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Multi-Channel Service Delivery
Getting Customers the Service they Want, Where and When they Want it


                              June 2010
                     Sumair Dutta, Aly Pinder, Jr.
Multi-Channel Service Delivery
Page 2




                      Executive Summary
It is often a misnomer that with the increased use of multiple non contact-     Research Benchmark
center based channels to deliver customer service, organizations are            Aberdeen’s Research
afforded the opportunity to reduce and eliminate service interactions with      Benchmarks provide an in-
their customers in order to cut costs. This strategy isn't reflective of the    depth and comprehensive look
multi-channel framework supported by Best-in-Class organizations; those         into process, procedure,
that do leverage multiple channels to eliminate unnecessary dispatches or       methodologies, and
service calls, but are most interested in enveloping their customers with the   technologies with best practice
right level of effective service information via the channels where customers   identification and actionable
prefer to receive their service information. As a result of truly connecting    recommendations
with their customers, these organizations are significantly outperforming
their peers with regards to key customer-facing and financial metrics.

Best-in-Class Performance
In May and June 2010, Aberdeen Group surveyed over 170 service
professionals to distinguish Best-in-Class companies from Industry Average
and Laggard. Those defined as Best-in-Class exhibited the following:
    •   86% current performance in customer retention (74% for all others
        - including Industry Average and Laggard companies) and 85%
        performance in first-call resolution (56% for all others)
    •   3.9 (out of 5.0) score for current level of customer satisfaction as
        compared to 3.0 (out of 5.0) score for all others
    •   21% reduction in total support costs over the last 12 months as
        compared to a 1% decrease for all others

Competitive Maturity Assessment
Survey results show that the firms enjoying Best-in-Class performance are:        “We are no longer perceived
                                                                                  as an expense center, now we
    •   More than two-times as likely as all others to provide their support      are viewed as a critical part of
        agents with real-time access to customer and service information          the service organization
                                                                                  enhancing the customer
    •   Nearly 30% more likely than all others to leverage web-based self-
                                                                                  experience and firm as a
        service solutions                                                         whole.”
    •   Three-times as likely as Laggards to instantly collect customer                           ~ Ed Billmaier,
        feedback after a service interaction and more than four times as          Senior Director of Relationship
        likely as Laggards to proactively monitor customer sentiment                     & Interactive Marketing,
                                                                                               ScottsMiracle-Gro
Required Actions
To achieve Best-in-Class performance, companies must:
    •   Empower stakeholders with real-time access to information
    •   Educate customers on the availability of non-contact center-based
        support channels
    •   Support multi-channel delivery with cross-channel agents
© 2010 Aberdeen Group.                                                                Telephone: 617 854 5200
www.aberdeen.com                                                                            Fax: 617 723 7897
Multi-Channel Service Delivery
Page 3




Table of Contents
Executive Summary....................................................................................................... 2
  Best-in-Class Performance..................................................................................... 2
  Competitive Maturity Assessment....................................................................... 2
  Required Actions...................................................................................................... 2
Chapter One: Benchmarking the Best-in-Class.................................................... 4
  More Channel Options........................................................................................... 4
  The Maturity Class Framework..........................................................................11
  The Best-in-Class PACE Model ..........................................................................12
  Best-in-Class Strategies.........................................................................................13
Chapter Two: Benchmarking Requirements for Success.................................15
  Competitive Assessment......................................................................................16
  Capabilities and Enablers......................................................................................18
Chapter Three: Required Actions .........................................................................25
  Laggard Steps to Success......................................................................................25
  Industry Average Steps to Success ....................................................................26
  Best-in-Class Steps to Success ............................................................................27
Appendix A: Research Methodology.....................................................................29
Appendix B: Related Aberdeen Research............................................................31
Figures
Figure 1: Reasons for Incoming Service Requests ................................................. 6
Figure 2: Drivers for Multi-Channel Service........................................................... 8
Figure 3: If Only I Had Coupons - Cost Cutting Initiatives...............................14
Figure 4: Measuring Service Success - KPIs Tracked ..........................................23
Tables
Table 1: Opening up Service Options ...................................................................... 5
Table 2: Channels for Incoming Requests and Resolutions ................................ 6
Table 3: Changing Focus on Channels in the Next 12 Months.......................... 7
Table 4: Top Performers Earn Best-in-Class Status............................................12
Table 5: The Best-in-Class PACE Framework .....................................................13
Table 6: Supporting a Multi-Channel Service Framework.................................13
Table 7: The Competitive Framework...................................................................17
Table 8: Empowering Information for Support Agents......................................20
Table 9: Tools to Build a Multi-Channel Roadmap .............................................21
Table 10: Giving Customers What they Need ....................................................22
Table 11: Getting Social with Service.....................................................................24
Table 12: Multi-Channel Report Card ...................................................................28
Table 13: The PACE Framework Key....................................................................30
Table 14: The Competitive Framework Key........................................................30
Table 15: The Relationship Between PACE and the Competitive Framework .30


© 2010 Aberdeen Group.                                                                                                       Telephone: 617 854 5200
www.aberdeen.com                                                                                                                   Fax: 617 723 7897
Multi-Channel Service Delivery
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                   Chapter One:
            Benchmarking the Best-in-Class
More Channel Options
                                                                                Fast Facts
The existence of numerous communication platforms and tools is changing
the way we choose to interact with our personal and professional                √ 86% level of customer
networks. This is not only in reference to outbound communication to a            retention reported by the
person or a group of people, but also in the way in which we gather               Best-in-Class compared to a
information from others. Instead of picking up the phone to connect with          74% performance by all
                                                                                  other organizations
colleagues at work, one can choose to use instant messenger or email to
establish a direct personal line or use a company-based forum, social           √ 21% reduction in total
network, or an intranet to tap into company information. On the personal          support costs experienced
side, tweeting, texting, chatting, posting on walls, nudging, and buzzing are     by the Best-in-Class over the
really just means to communicate and tap into the lives of others without         last 12 months, compared to
ever having to speak a word. While we may talk less, we are communicating         a 1% decrease for all other
more.                                                                             organizations

The extended network of communication tools and platforms also impacts          √ 47% of all organizations
                                                                                  looking at their multi-
the way customer service can be delivered. By no means is the phone the
                                                                                  channel frameworks to drive
only way one can get in touch with a product manufacturer or servicing            revenue, compared to 34%
organization. As customers, whether in the form of consumers or                   of organizations in 2009
businesses, we are afforded a variety of channels to capture service
information, make service requests, share feedback and purchase additional      √ 65% of organizations looking
products and services. These channels are also available to employees of an       for more self-service options
                                                                                  as a primary means to cut
organization looking for information regarding their resources and benefits.
                                                                                  service costs
We are no longer tethered to the phone for all of these requirements. In
response, servicing organizations, whether direct manufacturers or third-       √ 3% potential decrease in
party providers, are afforded a variety of platforms to deliver service. This     total service costs from a 5%
can be in the form of reactive service in response to a particular customer       decrease in unnecessary
query or proactive service on the channels in which customers are active.         dispatches
These channels also allow for better visibility into issues of customer
sentiment and customer feedback, all of which can greatly impact customer
service strategy.
In a recent study of over 170 service and manufacturing organizations, a
majority indicated that they were using more than just the contact center as
a means to capture customer requests and deliver service. While the
contact center, fax, and email have been the traditional channels available
for customer service requests (Table 1), channels such as live chat,
customer-specific web portals, and others have seen increased support in
the last three years. Looking ahead, organizations are actively looking to
increase investments in live chat, social media, SMS, and technical forums
and discussion boards.




© 2010 Aberdeen Group.                                                                Telephone: 617 854 5200
www.aberdeen.com                                                                            Fax: 617 723 7897
Multi-Channel Service Delivery
Page 5




Table 1: Opening up Service Options
                                                   Percentage of all respondents, n=172
             Channel             In Place for more In Place for 1- In Place for less Not in Place, Will
                                    than 3 years       3 years       than 1 year       be in 1 year
Mail / Fax                              74%                 6%                  3%                      1%
Email                                   73%                 11%                 6%                      3%
Contact Center                          70%                 8%                  5%                      5%
Help Desk (Internal)                    56%                 8%                  5%                      7%
Website Queries                         43%                 12%                 8%                     10%
Customer Service Desk
                                        41%                 6%                  4%                      3%
(Physical Location)
Customer-specific Web
                                        34%                 14%                 13%                    15%
Portals
Remote Support                          31%                 13%                 9%                      8%
Web-Based Technical Forums
                                        13%                 12%                 9%                     23%
/ Discussion Boards
SMS / Texts                             12%                 11%                 7%                     16%
Live Chat                               9%                  8%                  10%                    21%
Social Media                            3%                  10%                 19%                    22%
                                                                                     Source: Aberdeen Group, June 2010

With the availability of and familiarity with a great number of channels,              "[We have seen] significant
customers are actively leveraging non-contact center based channels for                reductions in administrative
their service requests. In fact, while organizations reported that they                questions to our L1 tech
received an average of 1.15 million service requests through the contact               support when we integrated a
center (including escalations) in the last 12 months, they received 316,000+           live chat function.”
service requests through non-contact center based channels in the same                                   ~ Mark Bath,
time frame. With reference to incoming requests, customers are leveraging                         Director, Customer
email as the primary non-contact center-based support channel with varied                            Service/Support,
use of web-based queries and mail / fax. Other newer channels such as                               Overland Storage
social media, instant messenger / chat and SMS still only account for 6%, 4%,
and 3% of overall requests respectively.
A majority of incoming requests are either for issues around technical
support or troubleshooting (Figure 1). Thirty percent (30%) of all incoming
requests are to schedule service appointments with 29% tied to the
purchase of a part / product or additional service. Billing queries and
changes as well as other account changes were indicated as reasons for
incoming service requests by approximately 23% and 16% of respondents
respectively.




© 2010 Aberdeen Group.                                                                       Telephone: 617 854 5200
www.aberdeen.com                                                                                   Fax: 617 723 7897
Multi-Channel Service Delivery
Page 6




Figure 1: Reasons for Incoming Service Requests
                                                                                         "As with all organizations we
             Technical support request                                       58%         find that our customers have
                                                                                         different preferred channels for
                                                                                         service and even have multiple
                       Troubleshooting                          37%                      channels to obtain information
                                                                                         on service. Providing great
                                                                                         phone support does not
        Request for product information                       33%
                                                                                         address the needs of a
                                                                                         customer who prefers self help
Request repair / maintenace appointment                   30%                            tools on a web site. We want
                                                                                         to make sure that we address
                                                                                         the customer’s needs in the
       Purchase of part/product/service                   29%                            channels that they are using."
                                                                                                        ~ Don McNair,
                                      0%   10%   20%    30%     40%   50%   60%    70%
                                                                                            Senior Director - Customer
                                             Percentage of respondents, n=172                               Interaction,
                Note: Respondents were asked to select their top three answer choices             Yaskawa America Inc.
                                                 Source: Aberdeen Group, June 2010

The contact center remains the major medium of issue resolution
accounting for more than a quarter of all service issues resolved (Table 2).
Field support, email and remote support are other channels that are highly
leveraged to resolve service issues. Nearly 8% of all issues are resolved
through self-service channels (company branded or otherwise) and an
additional 4% of issues are resolved via online search engines. It is
interesting to note that while social media accounts for approximately 6% of
all incoming requests, less than 1% of all issues are actively resolved via
social media.

Table 2: Channels for Incoming Requests and Resolutions
                 For Incoming Requests                 For Issue Resolution
                    (Last 12 Months)                    (Last 12 Months)
Top             1- Contact Center - 35%
                                                 1- Contact Center - 26%
Channels        2- Other Email - 15%
(average                                         2- Field Support - 20%
                3- Web Query - 11%
result -                                         3- Email - 14%
                4- Customer Service Desk
percentage                                       4- Remote Support - 9%
                (Physical Location) - 11%
of requests)                                     5- Customer Service Desk - 8%
                5- Mail / Fax - 10%
                                                  Source: Aberdeen Group, June 2010

Looking ahead over the next 12 months, while nearly 30% to 50% of
organizations report the maintenance of the status quo when it comes to
use of channels for incoming requests, more than 40% of respondents
indicate the increased use of website-based service queries and email for the
creation and logging of service requests. Fifteen percent (15%) of
organizations also see a significant 5%+ increase in the use of company-
branded social media channels for incoming service requests. On the
© 2010 Aberdeen Group.                                                                         Telephone: 617 854 5200
www.aberdeen.com                                                                                     Fax: 617 723 7897
Multi-Channel Service Delivery
Page 7




opposite end of the spectrum, the contact center and regular mail or fax are
the most likely to see less traffic in the next 12 months.

Table 3: Changing Focus on Channels in the Next 12 Months

   Proportion of Requests                            Percentage of all respondents, n=172
      through Channel                    Increase            Increase Slightly   Remain the
     (Next 12 Months)                                                                              Decrease
                                    Significantly (5%+)       (Less than 5%)       Same
Website Query                                24%                    22%              30%               2%
Other Email                                  20%                    20%              33%               8%
Contact Center                               17%                    14%              34%               16%
Social Media (Company Branded)               15%                    17%              37%               1%
Instant Messaging / Chat                     13%                    16%              39%               2%
Company Blog                                 13%                     9%              44%               1%
Discussion Board                             12%                    14%              41%               1%
Helpdesk                                     9%                     12%              47%               5%
Social Media (Third party)                   9%                     12%              44%                -
SMS / Messaging                              8%                     13%              29%                -
Customer Service Desk (Physical
                                             8%                      6%              49%               6%
Location)
Mail / fax                                   8%                      6%              43%               16%
                                                                                 Source: Aberdeen Group, June 2010


Pressing Needs - Dispatch Avoidance, Not Customer Service
Avoidance
As companies look to leverage multiple channels to enable the delivery of
service and support, they are doing so in the face of increasing customer
demands for better and faster service coupled with the need to control
service-related costs. The trend towards multi-channel service delivery isn't
just to push the cost per contact or cost per transaction to the lowest
common denominator, but to provide the customer with improved service
resolution regardless of the channel that is chosen. An isolated focus on
cost reduction without taking ultimate service issue resolution is short
sighted, just as a lack of focus on cost management in the current economy
is dangerous. As such, service organizations need to balance the pressures
of cost and customer satisfaction in their pursuit for the optimal mix of
service delivery channels.




© 2010 Aberdeen Group.                                                                   Telephone: 617 854 5200
www.aberdeen.com                                                                               Fax: 617 723 7897
Multi-Channel Service Delivery
    Page 8




    Figure 2: Drivers for Multi-Channel Service

 Customer demand for faster service resolution -
                                                                                          68%
 improved time to repair and first-call resolution


Need to control and reduce service-related costs                               53%



            Need to drive revenue opportunities                             47%


Need to drive productivity / utilization across the
                                                                        41%
                     entire service organization


                                                  0% 10% 20% 30% 40% 50% 60% 70% 80%
                                                       Percentage of respondents, n=172
                       Note: Respondents were asked to select their top three answer choices
                                                        Source: Aberdeen Group, June 2010

    Service organizations are also looking to their expanded service delivery                   "[Migrating customers to less
    networks as a means to increase overall revenue opportunities. Multiple                     expensive channels of support]
    channels of service delivery that envelop the customer not only breed                       is probably more important
    increased customer loyalty, but also offer multiple outlets of promotion that               than ever. With all departments
    ensure that the customer is aware of complementary products and services                    looking to cut their allocated
                                                                                                support costs and product
    offered by the servicing organization. The pursuit of revenue has been
                                                                                                management being driven to
    highlighted in past Aberdeen research (The Chief Service Officer's Guide to                 lower and lower margins, less
    Service Revenue January 2010 and in the 2009 Chief Service Officer Summit)                  costly support is almost
    as a key goal for service organizations in 2010. This active interest in                    mandated.”
    revenue in 2010 is further evidenced by the fact that the percentage of
    respondents that indicated that revenue was a key pressure jumped from                                        ~ Mark Bath,
                                                                                                           Director, Customer
    34% in Aberdeen's 2009 research on multi-channel research to 47% in this
                                                                                                              Service/Support,
    year's research. The ranking and priority of most other pressures have                                  Overland Storage.
    remained the same over the last two years of surveying.

                             Case Study — ScottsMiracle-Gro

      The Scotts Miracle-Gro Company (Scotts) is a marketer of branded lawn
      and garden care products. Scotts delivers customer support through a
      number of channels, including contact center, email, phone, and social
      media tools. The company handles approximately one million customer
      contacts per year.
      Scotts has a long history of focusing on the consumer and their needs. In
      fact, the originations of the existing contact center date back to 1935.
      While this focus on the consumer and their needs has a long history, the
      amount of investment in this area has varied over time.
                                                                                  continued



    © 2010 Aberdeen Group.                                                                            Telephone: 617 854 5200
    www.aberdeen.com                                                                                        Fax: 617 723 7897
Multi-Channel Service Delivery
Page 9




                    Case Study — ScottsMiracle-Gro

 In 1993, Scotts viewed its customer support contact center as an
 expense center and therefore did not invest in key processes, knowledge
 sharing and technology to enable greater customer service. As a result,
 support agents in the contact center were equipped with large binders
 and manuals to refer to in order to offer resolution scenarios to their
 customers. This manual process for support led to more than half of all
 incoming calls being abandoned, a major problem for any service
 organization that prides itself on providing a quality customer service
 experience. In turn, this manual process led to support agents having no
 ability to exchange best practices across the company while also having
 no way to capture customer data in order to leverage this information in
 future communications or internal processes. This lack of information
 also hindered the organization from gaining insights into any product
 development and marketing information that could have been inferred
 from customer feedback.
 Along with the manual process to handle customer calls, agents were
 scheduled in a static manner which could not handle the seasonality of
 the lawn / garden care business. Call volumes can fluctuate from peak
 levels in the summer and fall of 160,000 calls per month to 6,000 calls
 per month in the winter - leading to unutilized or overstretched
 resources. Therefore to turn things around, it was integral for Scotts to
 transform its service business, gain greater access to customer
 information, and develop internal capabilities in order to equip their
 support agents and customers with the necessary information for the
 delivery of the right customer experience. In 1994, Scotts embarked on a
 support group reorganization that was structured around:
       - The capture, storage and accessibility of customer data
       - Training in the use of data by support agents
       - Workforce staffing levels
 The company needed to formulate a strategy to change the culture and
 information flow of the business prior to any investment in technology.
 With insight into customer request volumes and trends, service leaders
 recognized that the seasonal nature of Scotts’ business made its current
 static support agent scheduling sub optimal. There was no need for a full
 time staff of employees year round from eight to five, and thus the
 organization moved to a dynamic staffing model which combined full-time
 workers with seasonal non-traditional staff to mirror the business needs
 and demands. With a part-time staff, it was integral that the accessible
 data was easy to use in order to provide customers with an “expert” at
 all times regardless of the employee being contacted. As a result, any new
 systems or information architectures had to allow for faster time to
 productivity for new / part-time agents and increased data capture. The
 system also needed to be scalable enough to accommodate the rapid
 growth of the organization through acquisitions.
                                                                   continued


© 2010 Aberdeen Group.                                                         Telephone: 617 854 5200
www.aberdeen.com                                                                     Fax: 617 723 7897
Multi-Channel Service Delivery
Page 10




                    Case Study — ScottsMiracle-Gro

 Scotts’ has grown both organically and through acquisitions, and thus
 needed a system that could integrate disparate knowledge management
 systems in order to quickly create a uniform support offering for the
 customer. With its restructuring in 1994, the organization was able to
 see a significant reduction in dropped or missed service calls (from
 250,000 in 1993 to 40,000 in 1994) and a significant improvement in
 productivity - all at a minimal cost investment. Once the service
 organization was able to show the value of an improved customer
 experience and the need for improved information-related automation,
 the company decided to move ahead with the implementation of a broad
 customer management and interaction system in 2001.
 As a result of these investments, customer support agents have the ability       “The goal for the technology
 to capture data in real-time while having immediate access to customer           investment was to get more
 history, call patterns, and weather information. This maturity in customer       value. It was never sold as a
 support delivery has led to measurable results with regards to service           cost saving tool but one that
 organization performance. Most importantly for the company, the                  enabled strategic
 customer experience has been improved in regard to a more personal               differentiation.”
 interaction with support agents as real-time information is accessible at                        ~ Ed Billmaier,
 each channel and can be leveraged to provide resolution and                      Senior Director of Relationship
 recommendations.                                                                        & Interactive Marketing,
                                                                                               ScottsMiracle-Gro
 The company has also been able to reduce new agent training times by
 25% through the user-friendly interface of the customer management
 solution and the overall robust nature of the information that is available.
 Scotts has also been able to leverage the customer data being captured
 to increase product sales and personalize marketing efforts. With the
 breadth of customer information / trends being captured, Scotts has the
 capability to efficiently identify and provide an early warning email alert to
 notify their customers of potential negative issues (i.e. insect infestations)
 being identified and educate them on the right products to purchase to
 eliminate the problem. This type of proactive insight not only leads to
 increased product sales resolving an impending issue, but also a significant
 percent of all email alert recipients purchase products after receiving an
 email. Another added benefit of this interaction is that it also reaffirms
 the expert relationship of the Scotts team to the consumer.
 As Scotts continues the journey to perfect the customer experience
 there is an opportunity to further enhance the knowledge base,
 specifically with regard to increasing opportunities to leverage customer
 insights and data by supporting business units (i.e., sales, marketing, and
 engineering) further improving the service offering. The company would
 also like to extend the knowledge base to its customers to greater
 enhance their access to overall service information.
                                                                     continued




© 2010 Aberdeen Group.                                                              Telephone: 617 854 5200
www.aberdeen.com                                                                          Fax: 617 723 7897
Multi-Channel Service Delivery
Page 11




                    Case Study — ScottsMiracle-Gro

 Also, as social media (i.e. chat, blogs, discussion boards) continues to be
 internally validated and expected by the consumer, the company is
 actively developing its customer interaction strategy via social media
 platforms and is well positioned to continue efforts in delivering
 consistent customer support through all channels that are leveraged by
 its customers.


The Maturity Class Framework
                                                                                   Cost per Contact (Average
The ability to manage the highlighted pressures (Figure 2) is the true             Result)
measure of a Best-in-Class service organization. As a result, these
                                                                                   √ $248 Field Support
companies excel in metrics (Table 4) that tie directly to:
                                                                                   √ $58 Contact Center
    •   Customer satisfaction. Best-in-Class organizations indicate that
        their customers rank them at 3.9 on a 1 to 5 scale of customer             √ $31 Email
        satisfaction. This is compared to a 3.0 average for all other
                                                                                   √ $27 Chat
        organizations.
    •   Cost. Customers of Best-in-Class organizations are more likely to
        see resolution for their service requests on first-call basis, therefore
        leading to higher levels of satisfaction at lower overall costs. For
        service requests in the contact center, leading organizations report
        an 85% level of first-call resolution performance when compared to
        a 56% level for all other organizations. In fact, Best-in-Class
        organizations report a high first-time resolution performance across
        multiple service delivery channels such as email, e-service and chat.
        In addition to excelling at overall service efficiency, Best-in-Class
        organizations are also more successful in directing their customers
        to the most cost-effective service channels. These organizations
        report that 22% of requests could have been handled by a more
        cost efficient channel over the last 12 months, compared to 26% of         First-Time Resolution Rates
        service requests for all other organizations. As an overall result,
                                                                                   √ E-Service
        leading service organizations have seen a 21% reduction in total
                                                                                      Best-in-Class - 72%
        support costs over the last 12 months when compared to a 1%                   All Others - 44%
        reduction for all other organizations.
                                                                                   √ Email
    •   Revenue. While a 3.9 scale of customer satisfaction still indicates           Best-in-Class - 74%
        significant room for improvement for the Best-in-Class, they                  All Others - 53%
        successfully retained 86% of their customers over the last 12
        months when compared to an overall 74% retention rate for all              √ Chat
        other organizations. Aberdeen's research on service revenue (The             Best-in-Class - 77%
                                                                                     All Others - 33%
        CSO's Guide to Service Revenue January 2010) highlighted that
        organizations reporting a 70% to 80% level of customer retention
        experienced a 4% decrease in total spend from existing customers
        over the last 12 months, when compared to a 3% increase in total
        spend for companies reporting an 80%+ level of customer
        retention.

© 2010 Aberdeen Group.                                                                   Telephone: 617 854 5200
www.aberdeen.com                                                                               Fax: 617 723 7897
Multi-Channel Service Delivery
Page 12




    •   Productivity. The cost and customer satisfaction performance
        advantages experienced by Best-in-Class organizations are also tied
        to significant improvements in support agent productivity and
        utilization driven by these organizations. Over the last 12 months,
        leading organizations have driven a 38% increase in support agent
        productivity when compared to a 6% increase for all other
        organizations.

Table 4: Top Performers Earn Best-in-Class Status
    Definition of
                                      Mean Class Performance
   Maturity Class
                            3.9/5.0 level of customer satisfaction
                            86% customer retention in the last 12 months
    Best-in-Class:          85% first-call resolution performance in the contact
       Top 20%              center
      of aggregate          38% increase in support agent productivity over the
  performance scorers       last 12 months
                            21% reduction in total support costs in the last 12
                            months
                            3.5/5.0 level of customer satisfaction
                            84% customer retention in the last 12 months
  Industry Average:         66% first-call resolution performance in the contact
      Middle 50%            center
      of aggregate          8% increase in support agent productivity over the
  performance scorers       last 12 months
                            3% reduction in total support costs in the last 12
                            months
                            2.1/5.0 level of customer satisfaction
                            57% customer retention in the last 12 months
       Laggard:             35% first-call resolution performance in the contact
     Bottom 30%             center
      of aggregate          1% increase in support agent productivity over the
  performance scorers       last 12 months
                            4% increase in total support costs in the last 12
                            months
                                                Source: Aberdeen Group, June 2010


The Best-in-Class PACE Model
Aberdeen’s PACE framework is designed to highlight the key strategies and
capabilities employed by firms that attain Best-in-Class status through their
excellence in meeting and overcoming internal or market pressures. The
framework serves as a roadmap for non-Best-in-Class firms to duplicate the
strategies enforced and capabilities developed by Best-in-Class firms to
improve their service performance (Table 5).



© 2010 Aberdeen Group.                                                              Telephone: 617 854 5200
www.aberdeen.com                                                                          Fax: 617 723 7897
Multi-Channel Service Delivery
Page 13




Table 5: The Best-in-Class PACE Framework
   Pressures              Actions                   Capabilities                                Enablers
 Meet customer       Increase access to   Real-time capture and storage of        Optimized support agent schedules
 demand for          customer- and        customer and service information        CRM Solutions with multi-channel
 better service -    service-specific     Standardized escalation protocols       support capabilities
 enhance speed       information across   Service information made available      Service or contact center analytics
 and effectiveness   the organization     in central knowledgebase                Customer feedback management
 of service          Invest in            Immediate capture of customer           solutions
 delivery            technology           feedback following a service            Web self-support platforms
                     solutions or         interaction                             Knowledge management solutions
                     platforms to         Front-line support agents have real-
                     enable multi-        time access to complex resolutions
                     channel support      steps and schematics
                                                                                       Source: Aberdeen Group, June 2010
Best-in-Class Strategies
In Aberdeen's 2009 Delivering Customer Service via the Contact Center and the
                                                                                         "[The most vital action that our
Web report, it was highlighted that Best-in-Class companies are enabling                 organization has taken to
market leading service delivery frameworks around the 5Es: Educate,                      ensure the success of our
Eliminate, Escalate, Evaluate, and Empower. While the priorities of these                multi-channel solution is] tight
actions has changed in 2010, the Best-in-Class are still looking to these                integration between the CRM
principles to enable a true multi-channel service model in order to ease cost            system, ERP system, and
and customer satisfaction pressures (Table 6). For instance, leading                     business communication
organizations continue to look to empower their service agents with real-                systems which enable us to
time access to customer and service-specific information to aid issue                    have a central depository of
resolution efforts. This empowerment is enabled with the evaluation and                  information obtained during the
                                                                                         different touch points with the
implementation of solutions and knowledge platforms that allow for the
                                                                                         customer."
efficient capture, storage and distribution of information. With investments
in multiple service delivery platforms, the Best-in-Class are also looking to                             ~ Don McNair,
ensure the accuracy, validity, and efficacy of information across all channels                Senior Director - Customer
so as to eliminate inconsistent service experiences and unnecessary follow                                    Interaction,
up service requirements. Ultimately, education regarding the value and                              Yaskawa America Inc.
efficacy of available service channels is enabled through the proactive
capture of customer feedback regarding the overall service experience.

Table 6: Supporting a Multi-Channel Service Framework
                                                                                  Percentage of Respondents
                                    Action
                                                                                  Best-in-Class  All Others
Increase access to customer- and service-specific information across the
                                                                                        63%                  59%
organization
Invest in technology solutions or platforms to enable multi-channel support             54%                  44%
Proactively capture / monitor customer feedback via surveys (phone, web) and
                                                                                        46%                  39%
via web traffic and social media
Enable a multi-channel service structure / strategy encompassing the contact
                                                                                        43%                  33%
center, web, remote, and other outlets
Ensure accuracy and consistency of service information across all points of
                                                                                        40%                  31%
customer interaction (field, contact center, web)
                                                      Note: Respondents were asked to select their top four answer choices
                                                                                      Source: Aberdeen Group, June 2010

© 2010 Aberdeen Group.                                                                          Telephone: 617 854 5200
www.aberdeen.com                                                                                      Fax: 617 723 7897
Multi-Channel Service Delivery
Page 14




                      Aberdeen Insights — Cutting Cost in the Service Organization

 In meeting cost containment needs, organizations are actively looking to improve the self-service options
 available for service resolution, primarily as self-service only accounts for 8% of resolutions. Increased use of
 self-service channels can be accomplished through the enhanced promotion of non contact center-based
 avenues available to the customers and via attention to the benefits of using those channels. Ultimately, the
 most valid proof point and subsequent promotion avenue for non-contact center-based channels is in the
 ability of these channels to quickly and effectively meet the customer's needs. A single negative experience
 on a web-based or other channel will pretty much ensure that the customer returns relying on the contact
 center regardless of the amount of promotion that is done.

 Figure 3: If Only I Had Coupons - Cost Cutting Initiatives

               Provide more self-service scenarios to customers                                            65%

               Improve escalation processes and information to
            ensure least amount of transfers and resolution time                         39%


                 Educate customer regarding availability on non-
                                                                                        37%
                        contact center-related service channels

                Minimize unnecessary field dispatches - primary
                                                                                       34%
                                                           visits


                             Invest in / leverage remote support                 27%


                                                                0%   10%   20%   30%   40%     50%   60%   70%
                                                                      Percentage of respondents, n=172
                                                                                         Source: Aberdeen Group, June 2010
 To optimize their cost structures, organizations are also looking to minimize unnecessary service field
 dispatches. While 34% indicate that they can trim costs by reducing unnecessary dispatches of a primary
 nature (initial visits for repair or service that could have been avoided), another 24% of organizations are
 looking to minimize unnecessary secondary dispatches tied to inadequate first-visit resolution. Aberdeen's
 research finds that nearly 12% of dispatches over the last 12 months were unnecessary, and a 5% reduction
 of the unnecessary would have resulted in a corresponding 3% decrease in total service costs. This is
 attributed to the fact that the cost per contact for a field dispatch for the average service organization is
 nearly five times the cost in the contact center and eight times the cost of a transaction via email.




© 2010 Aberdeen Group.                                                                                Telephone: 617 854 5200
www.aberdeen.com                                                                                            Fax: 617 723 7897
Multi-Channel Service Delivery
Page 15




               Chapter Two:
    Benchmarking Requirements for Success
The success of all initiatives and programs adopted in support of effective        Fast Facts
multi-channel service delivery and customer management ultimately depends          √ 60% of Best-in-Class
on the supporting cast of organizational capabilities and processes in place.        organizations provide their
The identification of these vital capabilities, specifically around the capture,     agents with standard
availability and management of service information, and the organizational           escalation protocols
gaps that need to be overcome to put these in place will help service firms          compared to 17% of
ascend to the status of Best-in-Class.                                               Laggards
                                                                                   √ 54% of Best-in-Class
                  Case Study — Yaskawa America Inc.                                  organizations optimize
                                                                                     service agent schedules
 Yaskawa America Inc., a wholly owned corporation of Yaskawa Electric                compared to 24% of
 Corporation of Japan, is a high-tech manufacturer of AC Inverter Drives,            Laggards
 Servo and Motion Control, and Robotics Automation Systems with a
 focus in the North, Central, and South American regions. Products are             √ 49% of Best-in-Class
 sold through direct sales, distributors, dealers, and partners throughout           organizations provide their
                                                                                     agents with access to
 the Americas. Internally, Yaskawa has 30 support agents that manage
                                                                                     complex resolution steps
 either the technical support or inside sales aspect of customer service.            and schematics when
 The challenge facing Yaskawa 10 years ago was one that is similar to                compared to 28% of all
 most service organizations; how does it provide the best customer                   others
 experience possible while maintaining a profitable business? Also, how            √ Best-in-Class organizations
 does the company deliver a consistent service experience through its                are three times as likely as
 vast partner network? During this time, the company funneled all                    Laggards to immediately
 customer issues and requests through its contact center. However,                   capture customer feedback
 Yaskawa was unable to capture any customer information and thus had                 after a service session
 no ability to maximize the value of this customer interaction (i.e., ability      √ Best-in-Class organizations
 to understand the customer’s latent and overt needs and provide that                are two times as likely as
 service offering). Not being able to understand the customer led Yaskawa            Laggards to use web self-
 to a point where exceeding customer expectations would be difficult.                service solutions
 As customers continued to expect faster service, it was integral that
 Yaskawa provide the right information to the right people in real-time.           “About eight years ago, our
 The company, in order to create a unified voice to the customer,                  sole channel of customer
 implemented a strategy to centralize contact center operations /                  service contact was via the
 information and map the process flows within the organization. As                 phone. We could not capture
 process and information flows were identified and standardized, the               much user data, and thus would
 company made sure to involve / engage various stakeholders in order to            say hi and goodbye with no
                                                                                   ability to leverage past call
 extend the level of ownership across the company. Yaskawa, once the
                                                                                   history. We needed to better
 process flows were standardized, implemented an Enterprise Resource               understand the customer in
 Planning (ERP) and Customer Resource Management (CRM) solution to                 order to improve their overall
 better manage its information workflows. The integration of the these             customer experience.”
 management tools allowed Yaskawa to equip the support teams with the
 information necessary to both resolve customer issues and explore other               ~ Don McNair, Director –
                                                                                      Customer Service / Support,
 products / services of need for the customer.
                                                                                           Yaskawa America Inc.
                                                                      continued


© 2010 Aberdeen Group.                                                                   Telephone: 617 854 5200
www.aberdeen.com                                                                               Fax: 617 723 7897
Multi-Channel Service Delivery
Page 16




                  Case Study — Yaskawa America Inc.

 Yaskawa has seen measurable returns from the implementation of their
 CRM solution and subsequent transformation of their multi-channel
 customer support. Yaskawa has achieved improvements in customer
 retention and overall customer satisfaction; as seen through annual
 customer surveys and a subsequent willingness of customers to
 recommend the service offering to others. The customer satisfaction
 survey program is a tool Yaskawa is using to not only gauge customer
 sentiments but also to better understand the customer in order to more
 effectively lead them down the path to issue resolution while also
 tracking overall service performance. Over the last 12 months, Yaskawa
 has seen measurable gains in both internal performance metrics and
 overall future revenue generating metrics. The company has achieved an
 increase in leads of 172% due to data / need validation. Also, Yaskawa has        “Customers want accurate
                                                                                   information. They want good
 been able to close 19% of these leads that would otherwise migrate to a
                                                                                   and accurate information. We
 competitor.                                                                       must lead them down the path
 Yaskawa has been successful at providing their customers with a great             to solving their customer
 service experience while also leveraging the valuable information                 service issues in order to build
                                                                                   their trust and loyalty.”
 captured throughout the service process to create opportunities to both
 cross- and up-sell new products. As Yaskawa moves into the second half                ~ Don McNair, Director –
 of 2010, there are further opportunities to expand and enhance the                   Customer Service / Support,
 current web portal to provide an even friendlier, more intuitive user                     Yaskawa America Inc.
 interface in order to create an even better customer experience. This
 improved web portal will also be leveraged by Yaskawa’s distributor
 network to increase the functionality of the product ordering tool
 allowing for even more opportunities to extend the selling cycle. The
 benefits of providing a better experience to the customer while creating
 an easier access point for the distributor network will in turn lead to
 Yaskawa’s ability to reap the value of its efforts.


Competitive Assessment
Best-in-Class service firms, as determined by their performance in key
indicators, exhibit several of the capabilities highlighted in Table 4 that fall
into the five categories of Aberdeen's Competitive Framework: (1) process
(workflows for contact management, escalation, and feedback management);
(2) organization (corporate focus on the opportunity for improved
customer service through multiple service delivery channels, coupled with
increased visibility and oversight); (3) knowledge management (making
asset and service data available to stakeholders that can act on the
information to impact profitability); (4) technology (the selection of
appropriate tools and the intelligent deployment of those tools); and (5)
performance management (the ability of the organization to track /
measure performance and drive further improvements with necessary
modifications to processes in place).


© 2010 Aberdeen Group.                                                                 Telephone: 617 854 5200
www.aberdeen.com                                                                             Fax: 617 723 7897
Multi-Channel Service Delivery
Page 17




Table 7: The Competitive Framework
                      Best-in-Class          Average             Laggards
                     Real-time capture of service, asset and customer-specific
                     service information
                            71%                 55%                  33%
                     Standardized escalation procedures - higher tier agent has
     Process         immediate access to call history and customer information
                            60%                 50%                  17%
                     Immediate capture of customer feedback following contact
                     center, web-service, or other specific service sessions
                            46%                 41%                  15%
                     Frequent and periodic training of CSRs or web agents in
 Organization        accurate diagnosis, resolution, and escalation procedures
                            67%                 59%                  30%
                     Front-line support agents have real-time access to
                     customer service history
                            86%                 80%                  50%
   Knowledge
                     Front-line support agents have real-time access to
                     complex resolutions steps and schematics
                            49%                 35%                  15%
                     Optimized service agent schedules to account for high-
                     demand service times
                            54%                 44%                  24%
                     Customer Management technology currently in use:
                       51% CRM             44% CRM             24% CRM              “We needed to create an
                       Solution with       Solution with       Solution with        information architecture in our
                       Contact Center      Contact Center      Contact Center       system to give information to
                       functionality       functionality       functionality        the consumers when they need
                       49% Web Self-       48% Web Self-       24% Web Self-        it and make all our reps sound
                       Service Solution    Service Solution    Service Solution     like experts.”
  Technology
                       43% Knowledge       38% Knowledge       17% Knowledge                        ~ Ed Billmaier,
                       Management          Management          Management           Senior Director of Relationship
                       43% Contact         41% Contact         24% Contact                 & Interactive Marketing,
                       Center or           Center or           Center or                         ScottsMiracle-Gro
                       Service             Service             Service
                       Analytics           Analytics           Analytics
                       34% Contact         18% Contact         13% Contact
                       Center              Center              Center
                       Management          Management          Management
                       Solution            Solution            Solution
                     Proactive tracking and capture of customer feedback
 Performance         (sentiment) on web
                            43%                 35%                  9%
                                                Source: Aberdeen Group, June 2010

© 2010 Aberdeen Group.                                                                  Telephone: 617 854 5200
www.aberdeen.com                                                                              Fax: 617 723 7897
Multi-Channel Service Delivery
Page 18




Capabilities and Enablers
The Competitive Framework (Table 7) highlights that Best-in-Class
performance isn’t predicated on excellence in just one of the support
categories. Best-in-Class organizations exhibit a comprehensive focus on all
of the following support structures to strengthen the planned strategic
actions illustrated earlier (Table 6) in this research. In the context of the
discussion around multi-channel service, a majority of the capabilities
continue to fall into the 5E framework described earlier - Educate,
Eliminate, Escalate, Evaluate, and Empower. In addition, 2010 data indicates
that Best-in-Class organizations are taking significant steps to proactively
track, capture, and act on customer feedback.

Process
Sixty percent (60%) of the Best-in-Class indicate their organizations provide         Insight: Standardized Escalations
their support agents with standardized escalation protocols when compared             √ On average, organizations
to 38% of all other organizations. These escalations can occur across the               that have standard escalation
same delivery channel (contact center to contact center) or on different                protocols in place report a
channels (live chat to contact center). As a result, if support agents are              74% first-call resolution
unable to resolve a service issue at their level, they are provided with                performance as opposed to
                                                                                        a 55% result for those that
guidance into:
                                                                                        do not
    •   when an escalation needs to take place
    •   who it needs to be escalated to
    •   how that escalation takes place with the smallest disruption and
        inconvenience to the customer
    •   how to track the result of that escalation
The investment in standardized escalation protocols can be greatly
marginalized if the higher-tier agents or managers do not have immediate
visibility into the current service issue and steps that have already been
taken to resolve the issue. Therefore, the Best-in-Class strategy is not only
to standardize the upward escalation of service issues but also to ensure
that the agent receiving the escalated issue has full visibility into service issue
information prior to correspondence with the customer. As a result of the
focus from the Best-in-Class in ensuring that a first service call / email finds
the right service person, they are able to report higher first-call resolution
results. On average, organizations that have standard escalation protocols in
place report a 74% first-call resolution performance as opposed to a 55%
result for those that do not.
Immediate access for higher tier support agents to service information is
made possible due to the Best-in-Class focus on real-time capture of and
visibility into service, asset or customer-specific information. This real-time
mode of capture is in place at 71% of Best-in-Class organizations as opposed
to 47% of all other organizations. As seen in the context of escalation
protocols, leading organizations are also taking significant steps to invest in
making this collected information available to all relevant service

© 2010 Aberdeen Group.                                                                      Telephone: 617 854 5200
www.aberdeen.com                                                                                  Fax: 617 723 7897
Multi-Channel Service Delivery
Page 19




stakeholders to ensure an improved and expedited resolution experience
for the customer.

             Aberdeen Insights — Voice of the Customer

 Increased access to service knowledge continues to be a key pillar in the
 Best-in-Class multi-channel service delivery framework (further detailed
 in the proceeding section). In addition, Best-in-Class organizations are
 making significant investments in increasing their insight into customer
 feedback regarding the efficacy of their service delivery and the strength
 of the overall service experience. The success of any internal process
 can ultimately be measured on the final service experience felt by the
 customer. As a result, nearly 50% of Best-in-Class organizations
 immediately capture customer feedback at the end of a service session
 to not only understand whether the session was successful or not, but
 also to understand if there are gaps in the service delivery process that
 need to be addressed. Only 32% of all other organizations are looking
 to immediately capture customer feedback.


Knowledge Management and Organization
As discussed earlier, Best-in-Class organizations are making significant            "Complete integration of data
investments in their knowledge infrastructures to ensure the availability of        across all support channels is
valuable customer and service information to all support agents as well as to       critical to not only efficiency
other teams across the organization. Effective knowledge management                 but customer satisfaction as
forms the backbone of a successful multi-channel service strategy, and this is      well.”
evidenced by the dual Best-in-Class focus on:                                                          ~ Mark Bath,
                                                                                                Director, Customer
    •   The storage of service information in a common knowledgebase so
                                                                                                   Service/Support,
        as to expedite access to vital service and customer information.
                                                                                                 Overland Storage.
        Such a central knowledgebase is in place at 31% of leading
        organizations when compared to 26% of all others. As a result,
        interactions with a customer on one channel can be leveraged for
        subsequent discussions on another channel, thereby enabling
        visibility into resolution practices or other service information that
        can improve the overall customer experience.
    •   The type of information that front line support agents are
        empowered with at Best-in-Class organizations (Table 8). As a
        result of the available service information, support agents at Best-in-
        Class organizations aren't required to blindly enter into an
        unprepared service interaction with a customer and are immediately
        alerted to past service instances or resolution scenarios that may
        expedite the service delivery process. From the perspective of
        service revenue, access to trends in customer service queries can
        also alert the support agent to complementary services and
        offerings that the customer might not be aware of. While this cross-
        pollination of service and sales activities requires a focus on training,
        Best-in-Class companies are much more likely to provide their front

© 2010 Aberdeen Group.                                                                    Telephone: 617 854 5200
www.aberdeen.com                                                                                Fax: 617 723 7897
Multi-Channel Service Delivery
Page 20




        line agents with access to such sale offerings based on customer
        usage and service history.

Table 8: Empowering Information for Support Agents
                                                                                     Percentage of Respondents
                      Customer Support Agent Ability /                                   Reporting In Place
                                Access to:
                                                                                     Best-in-Class      All Others
Basic customer information (address, product usage etc.)                                  86%                73%
Customer service history                                                                  86%                69%
Basic troubleshooting steps                                                               69%                40%
Instantly connect customer to higher level of support                                     60%                47%
Complex troubleshooting steps / Product schematics                                        49%                28%
Resolution steps / decision trees as determined by experts or past product history        40%                31%
Customized sale offers based on service history                                           39%                23%
Add / remove features to products/services leveraged by customers                         26%                23%
                                                                                     Source: Aberdeen Group, June 2010

Looking ahead, Best-in-Class companies are also looking to empower their
support agents with increased access to past customer feedback or the
ability to direct customers to take post-service feedback surveys
immediately after a service interaction. More than a quarter (26%) of Best-
in-Class organizations are prioritizing the increased access to customer
feedback history for front line service agents.
In support of the increased information available to support agents, Best-in-
Class organizations are actively supporting training programs to enable their
agents to actually use the enhanced information and capabilities that are
afforded to them. Two-thirds of leading organizations, compared to 48% of
all others, periodically train their customers on leveraging available service
information to improve diagnosis and resolution rates or to understand the
required escalation procedures to ensure that a service issue that can't be            Solution Selection Attributes
handled at the front lines gets guided to the appropriate agent with a                 (Percentage of respondents,
minimal number of transfers.                                                           n=172)
                                                                                       √ 40% Integration
Technology                                                                             √ 35% Total cost of ownership
The organizational focus on developing a true multi-channel service
                                                                                       √ 33% Configurability of
infrastructure, as reflected in the focus on knowledge management, training,
                                                                                         solution
escalation processes, and feedback capture and management, is also
reflected in the investments made by leading organizations in service and              √ 30% Out-of-the-box
customer management tools and applications.                                              functionality provided

With regard to the backbone of knowledge management, 43% of leading                    √ 26% Scalability of application
organizations are currently leveraging a knowledge management application              Note: Respondents were asked
in support of their service environments, when compared to 30% of all                  to select their top four answer
other organizations. As a result, these organizations have a more structured           choices

© 2010 Aberdeen Group.                                                                       Telephone: 617 854 5200
www.aberdeen.com                                                                                   Fax: 617 723 7897
Multi-Channel Service Delivery
Page 21




focus on automating the capture, storage and distribution of data as
opposed to more unstructured and paper-based knowledge transfer
systems of non-Best-in-Class organizations.
This knowledge in turn needs to be integrated with customer management
systems that allow for the lifecycle management of a service customer. Fifty-
one percent (51%) of Best-in-Class organizations reveal the use of broader
customer relationship management solutions when compared to 37% of all
other organizations. These solutions allow for an integrated view of the
customer while supporting the multiple support environments tied to the
contact center, email, chat etc. described earlier in Chapter One. Specifically
in the context of the contact center, 34% of Best-in-Class companies report
the use of stand-alone contact center management solutions. These firms
are also nearly 1.5 times as likely as all others to use contact-center related
Interactive Voice Response (IVR) and Computer Telephony Integration
(CTI) technologies that enable the more intelligent routing of customer
queries once made through the contact center.

Table 9: Tools to Build a Multi-Channel Roadmap
                                                                 Percentage of Firms Reporting Solution in
                          Solution                                                 Place
                                                                     Best-in-Class               All Others
CRM Solution with Contact Center Management Functionality                  51%                        37%
Web-Based Self-Service Solution                                            49%                        39%
Service or Contact Center Analytics                                        43%                        35%
Knowledge Management Solution                                              43%                        30%
Customer Feedback Management Solution                                      37%                        25%
CTI / IVR and Customer Routing Solutions                                   34%                        24%
Stand-Alone Contact Center Management Solution                             34%                        16%
Contact Center Workforce Optimization / Shift Planning                     31%                        19%
                                                                                     Source: Aberdeen Group, June 2010

Best-in-Class organizations are also more likely (54% vs. 37% for all others)
to optimize the schedules of their service agents to match the variability in
the service demands. Thirty-one percent (31%) leverage workforce
optimization solutions in the contact center (not all support agents) when
compared to 19% of all other organizations. In fact, 30% of all other
                                                                                       "Our Case Management
organizations indicate that they leverage static service schedules for their           System is the most critical
support agents regardless of level of service demand, compared to 17% of               element, because it ties
Best-in-Class organizations. Optimized schedules that take service demand              everything together.”
peaks and dips into account, help Best-in-Class organizations ensure the
adequate utilization of their support agents by reducing underutilized                               ~ John Meaney,
                                                                                                   EVP/SVP, Business
workers in times of low demand and by eliminating overburdened agents in
                                                                                                      Development,
times of peak demand. Not only does this optimization increase the                                   Digitalrep, LLC.
utilization of workers, but it also helps eliminate labor-related costs tied to

© 2010 Aberdeen Group.                                                                       Telephone: 617 854 5200
www.aberdeen.com                                                                                   Fax: 617 723 7897
Multi-Channel Service Delivery
Page 22




overtime in peak times or excessive service representation in low-demand
times. It also helps improve the customer experience by reducing wait or
hold times particularly during high demand service periods. Aberdeen's past
research (Advanced Scheduling Execution, December 2009) has indicated how
optimized scheduling of field workforces drives overall productivity and
utilization. The same principles of optimization also apply to call center-
based or other support agents.

                      Aberdeen Insights — Self Service

 Best-in-Class organizations are also distancing themselves from their
 counterparts through investments in self-service platforms and portals
 (49% vs. 39% for all others). As seen in Figure 3, the increased focus on
 self-service is a major step towards the elimination of unnecessary
 service costs while enhancing the speed of service delivery, particularly
 for basic troubleshooting and information needs. As this stage most of
 the self-service information afforded to customers is in the form of
 FAQs and downloadable product information (Table 10). Best-in-Class
 companies are actively taking the lead in the provision of all described
 self-service capabilities, primarily as they relate to customized customer
 portals with product service and customer account information.

 Table 10: Giving Customers What they Need

                                                        Percentage of
      Self-Service Capabilities Available
                                                     respondents, n=172
  Frequently asked questions                                  65%
  Downloadable manuals / drivers                              56%
  Keyword search box                                          52%
  Customer-specific portal with product service
                                                              35%
  information
  Customer-specific portal with customer account
                                                              30%
  information
  Product forums                                              25%
  Resolution videos                                           16%
  Natural language search                                     13%
  Virtual assistant / conversational agent                     7%
  Resolution decision trees                                    6%
                                             Source: Aberdeen Group, June 2010



Performance Management
In addition to the above mentioned investments in self-service, customer
management and knowledge management solutions, Best-in-Class companies
are also investing in contact center and other service analytics to accurately
© 2010 Aberdeen Group.                                                           Telephone: 617 854 5200
www.aberdeen.com                                                                       Fax: 617 723 7897
Multi-Channel Service Delivery
Page 23




track the performance of their multi-channel service environments. Forty-                        "Our overall customer
three percent (43%) of leading organizations currently have analytical tools                     satisfaction scores have
in place when compared to 35% of all other organizations. The real-time                          increased three points since
capture and presentation of service data to executives enables the prompt                        implementing a multi-channel
                                                                                                 CRM system. [We have]
evaluation of investments in processes or technology and allows for
                                                                                                 increased leads by 172% to
improved planning and forecasting of parameters such as service demand,                          cross-sell and up-sell products
resource availability, service resource costs, and overall service                               resulting from the ability to
performance. Executives at Best-in-Class organizations are most concerned                        data mine information collected
with visibility into customer satisfaction and efficiency metrics to evaluate                    through multiple channels.
the performance of their service organizations which link directly to the top                    [There has also been an]
pressures being faced by these organizations in today's service environment.                     increase in speed of service
                                                                                                 through automatic populating
                                                                                                 of customer information as
Figure 4: Measuring Service Success - KPIs Tracked
                                                                                                 contacts are made."
                                                                                                                ~ Don McNair,
 Customer satisfaction                                                                 83%          Senior Director - Customer
                                                                                                                    Interaction,
   First-call resolution                                                  69%                             Yaskawa America Inc.


      SLA compliance                               37%


   Customer retention                            34%

     Total service and
                                           26%
        support costs

                       0%    10%    20%    30%    40%     50%    60%     70%     80%       90%
                                           Percentage of Best-in-Class

                    Note: Respondents were asked to select their top five answer choices
                                                   Source: Aberdeen Group, June 2010

    Aberdeen Insights — Social Media and Service Performance

 As noted earlier, Best-in-Class organizations are also taking a greater
 interest in capturing customer feedback to get a true customer view of
 the performance of the service organization. Nearly 50% of Best-in-Class
 organizations currently have processes in place to immediately capture
 feedback after a service interaction. However, for these organizations,
 the customer feedback capture and management strategy goes beyond
 post-interaction feedback, as 43% of Best-in-Class organizations are
 currently proactively tracking and monitoring customer feedback and
 customer sentiment regarding their organizations on the web, compared
 to 25% of all other organizations.
                                                                               continued




© 2010 Aberdeen Group.                                                                                 Telephone: 617 854 5200
www.aberdeen.com                                                                                             Fax: 617 723 7897
Multi-Channel Service Delivery
Page 24




    Aberdeen Insights — Social Media and Service Performance

 Social media tools and applications afford service organizations with
 increased opportunities to track customer sentiment. While most
 organizations have yet to develop an overall social media strategy around
 customer service (72% report not having a strategy in place), or leverage
 social media extensively for the creation of service requests, 25% of
 organizations indicate that they currently leverage social media to
 monitor customer sentiment with another 12% indicating the use of
 these tools to monitor the health of the organization's brand.
 Currently, most use of social media tools for customer service is for
 directly responding to customer queries or general customer feedback
 (Table 11). Very few organizations are successful in leveraging captured
 feedback to improve service performance or quality as survey
 respondents rate themselves a 2.9 (on a scale of 5.0) in being able to
 actively synthesize and use feedback data to improve performance.
 Service organizations need to be more proactive in leveraging customer
 feedback to improve their service and customer management processes.
 Along the lines of being more proactive, organizations would be well
 served to use the extensive network afforded by social media tools to
 proactively lead service discussions or notify customers regarding service
 updates.

 Table 11: Getting Social with Service
                                                             Percentage of
    Use of Social Media for Customer Service                 respondents,
                                                                n=172
  Respond to direct customer inquiry                                40%
  Promote upcoming product / services                               35%
  Respond to general customer feedback (e.g., customer
                                                                    29%
  posts comment regarding organization)
  Monitor customer sentiment                                        25%
  Proactively reach out to customer regarding updates               16%
  Monitor the health of organization's brand(s)                     12%
  Proactively lead and moderate discussions                         9%
                                                  Source: Aberdeen Group, June 2010




© 2010 Aberdeen Group.                                                                Telephone: 617 854 5200
www.aberdeen.com                                                                            Fax: 617 723 7897
Multi-Channel Service Delivery
Page 25




                          Chapter Three:
                         Required Actions
Whether a company is trying to move its performance in service delivery          Fast Facts
and customer satisfaction from Laggard to Industry Average, or Industry          √ 33% of Laggards do not
Average to Best-in-Class, the following summarized actions structured              measure or are unaware of
around the development of a multi-channel service delivery framework, will         their customer service
help spur the necessary performance improvements.                                  performance
                                                                                 √ 5:1 ratio of incoming
Laggard Steps to Success                                                           requests via the contact
                                                                                   center to non-contact center
When evaluating the performance of Laggard organizations in key service-
                                                                                   channels for Laggards
related performance indicators (Table 4), it is found that they significantly      compared to a 2:1 ration for
trail both the Best-in-Class and Industry Average in all metrics tied to           Best-in-Class organizations
customer satisfaction, cost control, and overall workforce productivity. To
progress down the path to Industry Average and ultimately the Best-in-           √ 55% of Industry Average
Class, these organizations can take steps to:                                      organizations capture and
                                                                                   store service information in
    •   Understand how customers rate service performance. In an                   real-time compared to 71%
        effort to improve customer service performance, it is vital for            of Best-in-Class
        Laggard organizations to first understand where they stand in terms        organizations
        of key metrics such as customer service and retention. Thirty-three      √ 49% of Best-in-Class
        percent (33%) currently don’t know or don't measure their                  organizations are looking to
        performance in a customer service-specific metric compared to 8%           increase investments in
        of Industry Average organizations. These organizations show a              educating their customers
        similar lack of visibility into other financial, operational, and          around the existence of non-
        customer-facing metrics. Prior to making any investments in                contact center-based
        processes or technology to improve performance, it is imperative           support channels
        that these organizations develop a clear line of sight into their
        performance in basic customer satisfaction metrics.
    •   Capture customer feedback. Some insight into customer
        service performance can be gleaned from the proactive tracking and
        measurement of customer feedback. Only 15% of Laggards indicate
        that they immediately capture customer feedback after a service
        session compared to 41% of Industry Average organizations.
        Immediate feedback on a service interaction is a simple way to poll
        customer sentiment without requiring a significant investment from
        both parties in a follow-on customer feedback appointment.
    •   Support multi-channel delivery with cross channel agents.
        Laggards report a 5:1 ratio of requests that come in via the contact
        center as opposed to non contact-center-related channels. This
        proportion is similar for Industry Average organizations but a far cry
        from the 2:1 ratio seen by Best-in-Class organizations. To support
        the broader acceptance of multiple service delivery channels,
        Laggard organizations can start by increasing the use of non-contact
        center channels for basic issue / request notification needs.



© 2010 Aberdeen Group.                                                                 Telephone: 617 854 5200
www.aberdeen.com                                                                             Fax: 617 723 7897
Multi-Channel Service Delivery
Page 26




        The move to a multi-channel environment can also be supported
                                                                                 "From our customer
        with changes in the workforce structure of service agents. While         satisfaction surveys we have
        59% of Laggards indicate that they currently have an integrated          found that there is a high
        workforce across service delivery channels, as opposed to channel-       correlation to the accuracy of
        specific workforces, this proportion lags the 65% of Industry            information provided not only
        Average and 86% of Best-in-Class groups that have integrated             with overall satisfaction, but
        workforces. In an effort to expedite the success of a multi-channel      also with loyalty and retention.
        environment, the use of a flexible cross-channel workforce can           With tight integration between
        greatly assist in the delivery of a consistent service experience        CRM, ERP and business
        across all channels.                                                     communication systems [we
                                                                                 have] the ability to
    •   Standardize escalation protocols and increase investments                continuously cleanse and enrich
        in support agent training. Laggard organizations can also benefit        the customer data. This
        from equipping their support agents with standard escalation             information can not only be
        protocols to allow for the expedited handling of customer requests       used to address the immediate
        by the right level of support. Currently 17% of Laggards have            customer concerns, but
                                                                                 through analytics we can assist
        standard steps communicated to their service teams when
                                                                                 in the design of future service
        compared to 50% of Industry Average organizations. Forty-three           offerings."
        percent (43%) of Laggards are prioritizing the investment in
        standard escalation protocols indicating a clear understanding of the                   ~ Don McNair,
        cost and customer satisfaction ramifications. Along the lines of            Senior Director - Customer
        better visibility into protocols, Laggards can also increase the focus                      Interaction,
                                                                                          Yaskawa America Inc.
        on training for service agents in the accurate diagnosis, resolution,
        or escalation of issues. Compared to 59% of Industry Average
        organizations, only 30% of Laggards have periodical training
        programs in place.

Industry Average Steps to Success
When compared to Best-in-Class performance, Industry Average
organizations do reasonably well in customer service ratings and overall
customer retention. However, the delivery of service comes at a price as
these organizations severely lag the Best-in-Class in terms of operational
efficiency and the ability to deliver exemplary service while controlling
service costs. To progress down the path to the Best-in-Class, these
organizations can take steps to:
    •   Empower support agents with information in real-time.
        Best-in-Class organizations report a 85% performance in first-call
        resolution compared to a 66% mark for Industry Average
        organizations. The additional cost associated with repeat service
        transactions adds a significant cost burden to the organization.
        Therefore these organizations can take significant steps in improving
        the capture and distribution of customer and service information in
        real-time. Fifty-five percent (55%) of Industry Average organizations
        currently capture and store service information in real-time
        compared to 71% of Best-in-Class organizations. More so, support
        agents at Industry Average organizations are less likely to have
        access to information such as past customer service history, basic


© 2010 Aberdeen Group.                                                                 Telephone: 617 854 5200
www.aberdeen.com                                                                             Fax: 617 723 7897
Astute aberdeen multi-channel_service_delivery
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Astute aberdeen multi-channel_service_delivery

  • 1. Multi-Channel Service Delivery Getting Customers the Service they Want, Where and When they Want it June 2010 Sumair Dutta, Aly Pinder, Jr.
  • 2. Multi-Channel Service Delivery Page 2 Executive Summary It is often a misnomer that with the increased use of multiple non contact- Research Benchmark center based channels to deliver customer service, organizations are Aberdeen’s Research afforded the opportunity to reduce and eliminate service interactions with Benchmarks provide an in- their customers in order to cut costs. This strategy isn't reflective of the depth and comprehensive look multi-channel framework supported by Best-in-Class organizations; those into process, procedure, that do leverage multiple channels to eliminate unnecessary dispatches or methodologies, and service calls, but are most interested in enveloping their customers with the technologies with best practice right level of effective service information via the channels where customers identification and actionable prefer to receive their service information. As a result of truly connecting recommendations with their customers, these organizations are significantly outperforming their peers with regards to key customer-facing and financial metrics. Best-in-Class Performance In May and June 2010, Aberdeen Group surveyed over 170 service professionals to distinguish Best-in-Class companies from Industry Average and Laggard. Those defined as Best-in-Class exhibited the following: • 86% current performance in customer retention (74% for all others - including Industry Average and Laggard companies) and 85% performance in first-call resolution (56% for all others) • 3.9 (out of 5.0) score for current level of customer satisfaction as compared to 3.0 (out of 5.0) score for all others • 21% reduction in total support costs over the last 12 months as compared to a 1% decrease for all others Competitive Maturity Assessment Survey results show that the firms enjoying Best-in-Class performance are: “We are no longer perceived as an expense center, now we • More than two-times as likely as all others to provide their support are viewed as a critical part of agents with real-time access to customer and service information the service organization enhancing the customer • Nearly 30% more likely than all others to leverage web-based self- experience and firm as a service solutions whole.” • Three-times as likely as Laggards to instantly collect customer ~ Ed Billmaier, feedback after a service interaction and more than four times as Senior Director of Relationship likely as Laggards to proactively monitor customer sentiment & Interactive Marketing, ScottsMiracle-Gro Required Actions To achieve Best-in-Class performance, companies must: • Empower stakeholders with real-time access to information • Educate customers on the availability of non-contact center-based support channels • Support multi-channel delivery with cross-channel agents © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 3. Multi-Channel Service Delivery Page 3 Table of Contents Executive Summary....................................................................................................... 2 Best-in-Class Performance..................................................................................... 2 Competitive Maturity Assessment....................................................................... 2 Required Actions...................................................................................................... 2 Chapter One: Benchmarking the Best-in-Class.................................................... 4 More Channel Options........................................................................................... 4 The Maturity Class Framework..........................................................................11 The Best-in-Class PACE Model ..........................................................................12 Best-in-Class Strategies.........................................................................................13 Chapter Two: Benchmarking Requirements for Success.................................15 Competitive Assessment......................................................................................16 Capabilities and Enablers......................................................................................18 Chapter Three: Required Actions .........................................................................25 Laggard Steps to Success......................................................................................25 Industry Average Steps to Success ....................................................................26 Best-in-Class Steps to Success ............................................................................27 Appendix A: Research Methodology.....................................................................29 Appendix B: Related Aberdeen Research............................................................31 Figures Figure 1: Reasons for Incoming Service Requests ................................................. 6 Figure 2: Drivers for Multi-Channel Service........................................................... 8 Figure 3: If Only I Had Coupons - Cost Cutting Initiatives...............................14 Figure 4: Measuring Service Success - KPIs Tracked ..........................................23 Tables Table 1: Opening up Service Options ...................................................................... 5 Table 2: Channels for Incoming Requests and Resolutions ................................ 6 Table 3: Changing Focus on Channels in the Next 12 Months.......................... 7 Table 4: Top Performers Earn Best-in-Class Status............................................12 Table 5: The Best-in-Class PACE Framework .....................................................13 Table 6: Supporting a Multi-Channel Service Framework.................................13 Table 7: The Competitive Framework...................................................................17 Table 8: Empowering Information for Support Agents......................................20 Table 9: Tools to Build a Multi-Channel Roadmap .............................................21 Table 10: Giving Customers What they Need ....................................................22 Table 11: Getting Social with Service.....................................................................24 Table 12: Multi-Channel Report Card ...................................................................28 Table 13: The PACE Framework Key....................................................................30 Table 14: The Competitive Framework Key........................................................30 Table 15: The Relationship Between PACE and the Competitive Framework .30 © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 4. Multi-Channel Service Delivery Page 4 Chapter One: Benchmarking the Best-in-Class More Channel Options Fast Facts The existence of numerous communication platforms and tools is changing the way we choose to interact with our personal and professional √ 86% level of customer networks. This is not only in reference to outbound communication to a retention reported by the person or a group of people, but also in the way in which we gather Best-in-Class compared to a information from others. Instead of picking up the phone to connect with 74% performance by all other organizations colleagues at work, one can choose to use instant messenger or email to establish a direct personal line or use a company-based forum, social √ 21% reduction in total network, or an intranet to tap into company information. On the personal support costs experienced side, tweeting, texting, chatting, posting on walls, nudging, and buzzing are by the Best-in-Class over the really just means to communicate and tap into the lives of others without last 12 months, compared to ever having to speak a word. While we may talk less, we are communicating a 1% decrease for all other more. organizations The extended network of communication tools and platforms also impacts √ 47% of all organizations looking at their multi- the way customer service can be delivered. By no means is the phone the channel frameworks to drive only way one can get in touch with a product manufacturer or servicing revenue, compared to 34% organization. As customers, whether in the form of consumers or of organizations in 2009 businesses, we are afforded a variety of channels to capture service information, make service requests, share feedback and purchase additional √ 65% of organizations looking products and services. These channels are also available to employees of an for more self-service options as a primary means to cut organization looking for information regarding their resources and benefits. service costs We are no longer tethered to the phone for all of these requirements. In response, servicing organizations, whether direct manufacturers or third- √ 3% potential decrease in party providers, are afforded a variety of platforms to deliver service. This total service costs from a 5% can be in the form of reactive service in response to a particular customer decrease in unnecessary query or proactive service on the channels in which customers are active. dispatches These channels also allow for better visibility into issues of customer sentiment and customer feedback, all of which can greatly impact customer service strategy. In a recent study of over 170 service and manufacturing organizations, a majority indicated that they were using more than just the contact center as a means to capture customer requests and deliver service. While the contact center, fax, and email have been the traditional channels available for customer service requests (Table 1), channels such as live chat, customer-specific web portals, and others have seen increased support in the last three years. Looking ahead, organizations are actively looking to increase investments in live chat, social media, SMS, and technical forums and discussion boards. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 5. Multi-Channel Service Delivery Page 5 Table 1: Opening up Service Options Percentage of all respondents, n=172 Channel In Place for more In Place for 1- In Place for less Not in Place, Will than 3 years 3 years than 1 year be in 1 year Mail / Fax 74% 6% 3% 1% Email 73% 11% 6% 3% Contact Center 70% 8% 5% 5% Help Desk (Internal) 56% 8% 5% 7% Website Queries 43% 12% 8% 10% Customer Service Desk 41% 6% 4% 3% (Physical Location) Customer-specific Web 34% 14% 13% 15% Portals Remote Support 31% 13% 9% 8% Web-Based Technical Forums 13% 12% 9% 23% / Discussion Boards SMS / Texts 12% 11% 7% 16% Live Chat 9% 8% 10% 21% Social Media 3% 10% 19% 22% Source: Aberdeen Group, June 2010 With the availability of and familiarity with a great number of channels, "[We have seen] significant customers are actively leveraging non-contact center based channels for reductions in administrative their service requests. In fact, while organizations reported that they questions to our L1 tech received an average of 1.15 million service requests through the contact support when we integrated a center (including escalations) in the last 12 months, they received 316,000+ live chat function.” service requests through non-contact center based channels in the same ~ Mark Bath, time frame. With reference to incoming requests, customers are leveraging Director, Customer email as the primary non-contact center-based support channel with varied Service/Support, use of web-based queries and mail / fax. Other newer channels such as Overland Storage social media, instant messenger / chat and SMS still only account for 6%, 4%, and 3% of overall requests respectively. A majority of incoming requests are either for issues around technical support or troubleshooting (Figure 1). Thirty percent (30%) of all incoming requests are to schedule service appointments with 29% tied to the purchase of a part / product or additional service. Billing queries and changes as well as other account changes were indicated as reasons for incoming service requests by approximately 23% and 16% of respondents respectively. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 6. Multi-Channel Service Delivery Page 6 Figure 1: Reasons for Incoming Service Requests "As with all organizations we Technical support request 58% find that our customers have different preferred channels for service and even have multiple Troubleshooting 37% channels to obtain information on service. Providing great phone support does not Request for product information 33% address the needs of a customer who prefers self help Request repair / maintenace appointment 30% tools on a web site. We want to make sure that we address the customer’s needs in the Purchase of part/product/service 29% channels that they are using." ~ Don McNair, 0% 10% 20% 30% 40% 50% 60% 70% Senior Director - Customer Percentage of respondents, n=172 Interaction, Note: Respondents were asked to select their top three answer choices Yaskawa America Inc. Source: Aberdeen Group, June 2010 The contact center remains the major medium of issue resolution accounting for more than a quarter of all service issues resolved (Table 2). Field support, email and remote support are other channels that are highly leveraged to resolve service issues. Nearly 8% of all issues are resolved through self-service channels (company branded or otherwise) and an additional 4% of issues are resolved via online search engines. It is interesting to note that while social media accounts for approximately 6% of all incoming requests, less than 1% of all issues are actively resolved via social media. Table 2: Channels for Incoming Requests and Resolutions For Incoming Requests For Issue Resolution (Last 12 Months) (Last 12 Months) Top 1- Contact Center - 35% 1- Contact Center - 26% Channels 2- Other Email - 15% (average 2- Field Support - 20% 3- Web Query - 11% result - 3- Email - 14% 4- Customer Service Desk percentage 4- Remote Support - 9% (Physical Location) - 11% of requests) 5- Customer Service Desk - 8% 5- Mail / Fax - 10% Source: Aberdeen Group, June 2010 Looking ahead over the next 12 months, while nearly 30% to 50% of organizations report the maintenance of the status quo when it comes to use of channels for incoming requests, more than 40% of respondents indicate the increased use of website-based service queries and email for the creation and logging of service requests. Fifteen percent (15%) of organizations also see a significant 5%+ increase in the use of company- branded social media channels for incoming service requests. On the © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 7. Multi-Channel Service Delivery Page 7 opposite end of the spectrum, the contact center and regular mail or fax are the most likely to see less traffic in the next 12 months. Table 3: Changing Focus on Channels in the Next 12 Months Proportion of Requests Percentage of all respondents, n=172 through Channel Increase Increase Slightly Remain the (Next 12 Months) Decrease Significantly (5%+) (Less than 5%) Same Website Query 24% 22% 30% 2% Other Email 20% 20% 33% 8% Contact Center 17% 14% 34% 16% Social Media (Company Branded) 15% 17% 37% 1% Instant Messaging / Chat 13% 16% 39% 2% Company Blog 13% 9% 44% 1% Discussion Board 12% 14% 41% 1% Helpdesk 9% 12% 47% 5% Social Media (Third party) 9% 12% 44% - SMS / Messaging 8% 13% 29% - Customer Service Desk (Physical 8% 6% 49% 6% Location) Mail / fax 8% 6% 43% 16% Source: Aberdeen Group, June 2010 Pressing Needs - Dispatch Avoidance, Not Customer Service Avoidance As companies look to leverage multiple channels to enable the delivery of service and support, they are doing so in the face of increasing customer demands for better and faster service coupled with the need to control service-related costs. The trend towards multi-channel service delivery isn't just to push the cost per contact or cost per transaction to the lowest common denominator, but to provide the customer with improved service resolution regardless of the channel that is chosen. An isolated focus on cost reduction without taking ultimate service issue resolution is short sighted, just as a lack of focus on cost management in the current economy is dangerous. As such, service organizations need to balance the pressures of cost and customer satisfaction in their pursuit for the optimal mix of service delivery channels. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 8. Multi-Channel Service Delivery Page 8 Figure 2: Drivers for Multi-Channel Service Customer demand for faster service resolution - 68% improved time to repair and first-call resolution Need to control and reduce service-related costs 53% Need to drive revenue opportunities 47% Need to drive productivity / utilization across the 41% entire service organization 0% 10% 20% 30% 40% 50% 60% 70% 80% Percentage of respondents, n=172 Note: Respondents were asked to select their top three answer choices Source: Aberdeen Group, June 2010 Service organizations are also looking to their expanded service delivery "[Migrating customers to less networks as a means to increase overall revenue opportunities. Multiple expensive channels of support] channels of service delivery that envelop the customer not only breed is probably more important increased customer loyalty, but also offer multiple outlets of promotion that than ever. With all departments ensure that the customer is aware of complementary products and services looking to cut their allocated support costs and product offered by the servicing organization. The pursuit of revenue has been management being driven to highlighted in past Aberdeen research (The Chief Service Officer's Guide to lower and lower margins, less Service Revenue January 2010 and in the 2009 Chief Service Officer Summit) costly support is almost as a key goal for service organizations in 2010. This active interest in mandated.” revenue in 2010 is further evidenced by the fact that the percentage of respondents that indicated that revenue was a key pressure jumped from ~ Mark Bath, Director, Customer 34% in Aberdeen's 2009 research on multi-channel research to 47% in this Service/Support, year's research. The ranking and priority of most other pressures have Overland Storage. remained the same over the last two years of surveying. Case Study — ScottsMiracle-Gro The Scotts Miracle-Gro Company (Scotts) is a marketer of branded lawn and garden care products. Scotts delivers customer support through a number of channels, including contact center, email, phone, and social media tools. The company handles approximately one million customer contacts per year. Scotts has a long history of focusing on the consumer and their needs. In fact, the originations of the existing contact center date back to 1935. While this focus on the consumer and their needs has a long history, the amount of investment in this area has varied over time. continued © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 9. Multi-Channel Service Delivery Page 9 Case Study — ScottsMiracle-Gro In 1993, Scotts viewed its customer support contact center as an expense center and therefore did not invest in key processes, knowledge sharing and technology to enable greater customer service. As a result, support agents in the contact center were equipped with large binders and manuals to refer to in order to offer resolution scenarios to their customers. This manual process for support led to more than half of all incoming calls being abandoned, a major problem for any service organization that prides itself on providing a quality customer service experience. In turn, this manual process led to support agents having no ability to exchange best practices across the company while also having no way to capture customer data in order to leverage this information in future communications or internal processes. This lack of information also hindered the organization from gaining insights into any product development and marketing information that could have been inferred from customer feedback. Along with the manual process to handle customer calls, agents were scheduled in a static manner which could not handle the seasonality of the lawn / garden care business. Call volumes can fluctuate from peak levels in the summer and fall of 160,000 calls per month to 6,000 calls per month in the winter - leading to unutilized or overstretched resources. Therefore to turn things around, it was integral for Scotts to transform its service business, gain greater access to customer information, and develop internal capabilities in order to equip their support agents and customers with the necessary information for the delivery of the right customer experience. In 1994, Scotts embarked on a support group reorganization that was structured around: - The capture, storage and accessibility of customer data - Training in the use of data by support agents - Workforce staffing levels The company needed to formulate a strategy to change the culture and information flow of the business prior to any investment in technology. With insight into customer request volumes and trends, service leaders recognized that the seasonal nature of Scotts’ business made its current static support agent scheduling sub optimal. There was no need for a full time staff of employees year round from eight to five, and thus the organization moved to a dynamic staffing model which combined full-time workers with seasonal non-traditional staff to mirror the business needs and demands. With a part-time staff, it was integral that the accessible data was easy to use in order to provide customers with an “expert” at all times regardless of the employee being contacted. As a result, any new systems or information architectures had to allow for faster time to productivity for new / part-time agents and increased data capture. The system also needed to be scalable enough to accommodate the rapid growth of the organization through acquisitions. continued © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 10. Multi-Channel Service Delivery Page 10 Case Study — ScottsMiracle-Gro Scotts’ has grown both organically and through acquisitions, and thus needed a system that could integrate disparate knowledge management systems in order to quickly create a uniform support offering for the customer. With its restructuring in 1994, the organization was able to see a significant reduction in dropped or missed service calls (from 250,000 in 1993 to 40,000 in 1994) and a significant improvement in productivity - all at a minimal cost investment. Once the service organization was able to show the value of an improved customer experience and the need for improved information-related automation, the company decided to move ahead with the implementation of a broad customer management and interaction system in 2001. As a result of these investments, customer support agents have the ability “The goal for the technology to capture data in real-time while having immediate access to customer investment was to get more history, call patterns, and weather information. This maturity in customer value. It was never sold as a support delivery has led to measurable results with regards to service cost saving tool but one that organization performance. Most importantly for the company, the enabled strategic customer experience has been improved in regard to a more personal differentiation.” interaction with support agents as real-time information is accessible at ~ Ed Billmaier, each channel and can be leveraged to provide resolution and Senior Director of Relationship recommendations. & Interactive Marketing, ScottsMiracle-Gro The company has also been able to reduce new agent training times by 25% through the user-friendly interface of the customer management solution and the overall robust nature of the information that is available. Scotts has also been able to leverage the customer data being captured to increase product sales and personalize marketing efforts. With the breadth of customer information / trends being captured, Scotts has the capability to efficiently identify and provide an early warning email alert to notify their customers of potential negative issues (i.e. insect infestations) being identified and educate them on the right products to purchase to eliminate the problem. This type of proactive insight not only leads to increased product sales resolving an impending issue, but also a significant percent of all email alert recipients purchase products after receiving an email. Another added benefit of this interaction is that it also reaffirms the expert relationship of the Scotts team to the consumer. As Scotts continues the journey to perfect the customer experience there is an opportunity to further enhance the knowledge base, specifically with regard to increasing opportunities to leverage customer insights and data by supporting business units (i.e., sales, marketing, and engineering) further improving the service offering. The company would also like to extend the knowledge base to its customers to greater enhance their access to overall service information. continued © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 11. Multi-Channel Service Delivery Page 11 Case Study — ScottsMiracle-Gro Also, as social media (i.e. chat, blogs, discussion boards) continues to be internally validated and expected by the consumer, the company is actively developing its customer interaction strategy via social media platforms and is well positioned to continue efforts in delivering consistent customer support through all channels that are leveraged by its customers. The Maturity Class Framework Cost per Contact (Average The ability to manage the highlighted pressures (Figure 2) is the true Result) measure of a Best-in-Class service organization. As a result, these √ $248 Field Support companies excel in metrics (Table 4) that tie directly to: √ $58 Contact Center • Customer satisfaction. Best-in-Class organizations indicate that their customers rank them at 3.9 on a 1 to 5 scale of customer √ $31 Email satisfaction. This is compared to a 3.0 average for all other √ $27 Chat organizations. • Cost. Customers of Best-in-Class organizations are more likely to see resolution for their service requests on first-call basis, therefore leading to higher levels of satisfaction at lower overall costs. For service requests in the contact center, leading organizations report an 85% level of first-call resolution performance when compared to a 56% level for all other organizations. In fact, Best-in-Class organizations report a high first-time resolution performance across multiple service delivery channels such as email, e-service and chat. In addition to excelling at overall service efficiency, Best-in-Class organizations are also more successful in directing their customers to the most cost-effective service channels. These organizations report that 22% of requests could have been handled by a more cost efficient channel over the last 12 months, compared to 26% of First-Time Resolution Rates service requests for all other organizations. As an overall result, √ E-Service leading service organizations have seen a 21% reduction in total Best-in-Class - 72% support costs over the last 12 months when compared to a 1% All Others - 44% reduction for all other organizations. √ Email • Revenue. While a 3.9 scale of customer satisfaction still indicates Best-in-Class - 74% significant room for improvement for the Best-in-Class, they All Others - 53% successfully retained 86% of their customers over the last 12 months when compared to an overall 74% retention rate for all √ Chat other organizations. Aberdeen's research on service revenue (The Best-in-Class - 77% All Others - 33% CSO's Guide to Service Revenue January 2010) highlighted that organizations reporting a 70% to 80% level of customer retention experienced a 4% decrease in total spend from existing customers over the last 12 months, when compared to a 3% increase in total spend for companies reporting an 80%+ level of customer retention. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 12. Multi-Channel Service Delivery Page 12 • Productivity. The cost and customer satisfaction performance advantages experienced by Best-in-Class organizations are also tied to significant improvements in support agent productivity and utilization driven by these organizations. Over the last 12 months, leading organizations have driven a 38% increase in support agent productivity when compared to a 6% increase for all other organizations. Table 4: Top Performers Earn Best-in-Class Status Definition of Mean Class Performance Maturity Class 3.9/5.0 level of customer satisfaction 86% customer retention in the last 12 months Best-in-Class: 85% first-call resolution performance in the contact Top 20% center of aggregate 38% increase in support agent productivity over the performance scorers last 12 months 21% reduction in total support costs in the last 12 months 3.5/5.0 level of customer satisfaction 84% customer retention in the last 12 months Industry Average: 66% first-call resolution performance in the contact Middle 50% center of aggregate 8% increase in support agent productivity over the performance scorers last 12 months 3% reduction in total support costs in the last 12 months 2.1/5.0 level of customer satisfaction 57% customer retention in the last 12 months Laggard: 35% first-call resolution performance in the contact Bottom 30% center of aggregate 1% increase in support agent productivity over the performance scorers last 12 months 4% increase in total support costs in the last 12 months Source: Aberdeen Group, June 2010 The Best-in-Class PACE Model Aberdeen’s PACE framework is designed to highlight the key strategies and capabilities employed by firms that attain Best-in-Class status through their excellence in meeting and overcoming internal or market pressures. The framework serves as a roadmap for non-Best-in-Class firms to duplicate the strategies enforced and capabilities developed by Best-in-Class firms to improve their service performance (Table 5). © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 13. Multi-Channel Service Delivery Page 13 Table 5: The Best-in-Class PACE Framework Pressures Actions Capabilities Enablers Meet customer Increase access to Real-time capture and storage of Optimized support agent schedules demand for customer- and customer and service information CRM Solutions with multi-channel better service - service-specific Standardized escalation protocols support capabilities enhance speed information across Service information made available Service or contact center analytics and effectiveness the organization in central knowledgebase Customer feedback management of service Invest in Immediate capture of customer solutions delivery technology feedback following a service Web self-support platforms solutions or interaction Knowledge management solutions platforms to Front-line support agents have real- enable multi- time access to complex resolutions channel support steps and schematics Source: Aberdeen Group, June 2010 Best-in-Class Strategies In Aberdeen's 2009 Delivering Customer Service via the Contact Center and the "[The most vital action that our Web report, it was highlighted that Best-in-Class companies are enabling organization has taken to market leading service delivery frameworks around the 5Es: Educate, ensure the success of our Eliminate, Escalate, Evaluate, and Empower. While the priorities of these multi-channel solution is] tight actions has changed in 2010, the Best-in-Class are still looking to these integration between the CRM principles to enable a true multi-channel service model in order to ease cost system, ERP system, and and customer satisfaction pressures (Table 6). For instance, leading business communication organizations continue to look to empower their service agents with real- systems which enable us to time access to customer and service-specific information to aid issue have a central depository of resolution efforts. This empowerment is enabled with the evaluation and information obtained during the different touch points with the implementation of solutions and knowledge platforms that allow for the customer." efficient capture, storage and distribution of information. With investments in multiple service delivery platforms, the Best-in-Class are also looking to ~ Don McNair, ensure the accuracy, validity, and efficacy of information across all channels Senior Director - Customer so as to eliminate inconsistent service experiences and unnecessary follow Interaction, up service requirements. Ultimately, education regarding the value and Yaskawa America Inc. efficacy of available service channels is enabled through the proactive capture of customer feedback regarding the overall service experience. Table 6: Supporting a Multi-Channel Service Framework Percentage of Respondents Action Best-in-Class All Others Increase access to customer- and service-specific information across the 63% 59% organization Invest in technology solutions or platforms to enable multi-channel support 54% 44% Proactively capture / monitor customer feedback via surveys (phone, web) and 46% 39% via web traffic and social media Enable a multi-channel service structure / strategy encompassing the contact 43% 33% center, web, remote, and other outlets Ensure accuracy and consistency of service information across all points of 40% 31% customer interaction (field, contact center, web) Note: Respondents were asked to select their top four answer choices Source: Aberdeen Group, June 2010 © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 14. Multi-Channel Service Delivery Page 14 Aberdeen Insights — Cutting Cost in the Service Organization In meeting cost containment needs, organizations are actively looking to improve the self-service options available for service resolution, primarily as self-service only accounts for 8% of resolutions. Increased use of self-service channels can be accomplished through the enhanced promotion of non contact center-based avenues available to the customers and via attention to the benefits of using those channels. Ultimately, the most valid proof point and subsequent promotion avenue for non-contact center-based channels is in the ability of these channels to quickly and effectively meet the customer's needs. A single negative experience on a web-based or other channel will pretty much ensure that the customer returns relying on the contact center regardless of the amount of promotion that is done. Figure 3: If Only I Had Coupons - Cost Cutting Initiatives Provide more self-service scenarios to customers 65% Improve escalation processes and information to ensure least amount of transfers and resolution time 39% Educate customer regarding availability on non- 37% contact center-related service channels Minimize unnecessary field dispatches - primary 34% visits Invest in / leverage remote support 27% 0% 10% 20% 30% 40% 50% 60% 70% Percentage of respondents, n=172 Source: Aberdeen Group, June 2010 To optimize their cost structures, organizations are also looking to minimize unnecessary service field dispatches. While 34% indicate that they can trim costs by reducing unnecessary dispatches of a primary nature (initial visits for repair or service that could have been avoided), another 24% of organizations are looking to minimize unnecessary secondary dispatches tied to inadequate first-visit resolution. Aberdeen's research finds that nearly 12% of dispatches over the last 12 months were unnecessary, and a 5% reduction of the unnecessary would have resulted in a corresponding 3% decrease in total service costs. This is attributed to the fact that the cost per contact for a field dispatch for the average service organization is nearly five times the cost in the contact center and eight times the cost of a transaction via email. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 15. Multi-Channel Service Delivery Page 15 Chapter Two: Benchmarking Requirements for Success The success of all initiatives and programs adopted in support of effective Fast Facts multi-channel service delivery and customer management ultimately depends √ 60% of Best-in-Class on the supporting cast of organizational capabilities and processes in place. organizations provide their The identification of these vital capabilities, specifically around the capture, agents with standard availability and management of service information, and the organizational escalation protocols gaps that need to be overcome to put these in place will help service firms compared to 17% of ascend to the status of Best-in-Class. Laggards √ 54% of Best-in-Class Case Study — Yaskawa America Inc. organizations optimize service agent schedules Yaskawa America Inc., a wholly owned corporation of Yaskawa Electric compared to 24% of Corporation of Japan, is a high-tech manufacturer of AC Inverter Drives, Laggards Servo and Motion Control, and Robotics Automation Systems with a focus in the North, Central, and South American regions. Products are √ 49% of Best-in-Class sold through direct sales, distributors, dealers, and partners throughout organizations provide their agents with access to the Americas. Internally, Yaskawa has 30 support agents that manage complex resolution steps either the technical support or inside sales aspect of customer service. and schematics when The challenge facing Yaskawa 10 years ago was one that is similar to compared to 28% of all most service organizations; how does it provide the best customer others experience possible while maintaining a profitable business? Also, how √ Best-in-Class organizations does the company deliver a consistent service experience through its are three times as likely as vast partner network? During this time, the company funneled all Laggards to immediately customer issues and requests through its contact center. However, capture customer feedback Yaskawa was unable to capture any customer information and thus had after a service session no ability to maximize the value of this customer interaction (i.e., ability √ Best-in-Class organizations to understand the customer’s latent and overt needs and provide that are two times as likely as service offering). Not being able to understand the customer led Yaskawa Laggards to use web self- to a point where exceeding customer expectations would be difficult. service solutions As customers continued to expect faster service, it was integral that Yaskawa provide the right information to the right people in real-time. “About eight years ago, our The company, in order to create a unified voice to the customer, sole channel of customer implemented a strategy to centralize contact center operations / service contact was via the information and map the process flows within the organization. As phone. We could not capture process and information flows were identified and standardized, the much user data, and thus would company made sure to involve / engage various stakeholders in order to say hi and goodbye with no ability to leverage past call extend the level of ownership across the company. Yaskawa, once the history. We needed to better process flows were standardized, implemented an Enterprise Resource understand the customer in Planning (ERP) and Customer Resource Management (CRM) solution to order to improve their overall better manage its information workflows. The integration of the these customer experience.” management tools allowed Yaskawa to equip the support teams with the information necessary to both resolve customer issues and explore other ~ Don McNair, Director – Customer Service / Support, products / services of need for the customer. Yaskawa America Inc. continued © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 16. Multi-Channel Service Delivery Page 16 Case Study — Yaskawa America Inc. Yaskawa has seen measurable returns from the implementation of their CRM solution and subsequent transformation of their multi-channel customer support. Yaskawa has achieved improvements in customer retention and overall customer satisfaction; as seen through annual customer surveys and a subsequent willingness of customers to recommend the service offering to others. The customer satisfaction survey program is a tool Yaskawa is using to not only gauge customer sentiments but also to better understand the customer in order to more effectively lead them down the path to issue resolution while also tracking overall service performance. Over the last 12 months, Yaskawa has seen measurable gains in both internal performance metrics and overall future revenue generating metrics. The company has achieved an increase in leads of 172% due to data / need validation. Also, Yaskawa has “Customers want accurate information. They want good been able to close 19% of these leads that would otherwise migrate to a and accurate information. We competitor. must lead them down the path Yaskawa has been successful at providing their customers with a great to solving their customer service experience while also leveraging the valuable information service issues in order to build their trust and loyalty.” captured throughout the service process to create opportunities to both cross- and up-sell new products. As Yaskawa moves into the second half ~ Don McNair, Director – of 2010, there are further opportunities to expand and enhance the Customer Service / Support, current web portal to provide an even friendlier, more intuitive user Yaskawa America Inc. interface in order to create an even better customer experience. This improved web portal will also be leveraged by Yaskawa’s distributor network to increase the functionality of the product ordering tool allowing for even more opportunities to extend the selling cycle. The benefits of providing a better experience to the customer while creating an easier access point for the distributor network will in turn lead to Yaskawa’s ability to reap the value of its efforts. Competitive Assessment Best-in-Class service firms, as determined by their performance in key indicators, exhibit several of the capabilities highlighted in Table 4 that fall into the five categories of Aberdeen's Competitive Framework: (1) process (workflows for contact management, escalation, and feedback management); (2) organization (corporate focus on the opportunity for improved customer service through multiple service delivery channels, coupled with increased visibility and oversight); (3) knowledge management (making asset and service data available to stakeholders that can act on the information to impact profitability); (4) technology (the selection of appropriate tools and the intelligent deployment of those tools); and (5) performance management (the ability of the organization to track / measure performance and drive further improvements with necessary modifications to processes in place). © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 17. Multi-Channel Service Delivery Page 17 Table 7: The Competitive Framework Best-in-Class Average Laggards Real-time capture of service, asset and customer-specific service information 71% 55% 33% Standardized escalation procedures - higher tier agent has Process immediate access to call history and customer information 60% 50% 17% Immediate capture of customer feedback following contact center, web-service, or other specific service sessions 46% 41% 15% Frequent and periodic training of CSRs or web agents in Organization accurate diagnosis, resolution, and escalation procedures 67% 59% 30% Front-line support agents have real-time access to customer service history 86% 80% 50% Knowledge Front-line support agents have real-time access to complex resolutions steps and schematics 49% 35% 15% Optimized service agent schedules to account for high- demand service times 54% 44% 24% Customer Management technology currently in use: 51% CRM 44% CRM 24% CRM “We needed to create an Solution with Solution with Solution with information architecture in our Contact Center Contact Center Contact Center system to give information to functionality functionality functionality the consumers when they need 49% Web Self- 48% Web Self- 24% Web Self- it and make all our reps sound Service Solution Service Solution Service Solution like experts.” Technology 43% Knowledge 38% Knowledge 17% Knowledge ~ Ed Billmaier, Management Management Management Senior Director of Relationship 43% Contact 41% Contact 24% Contact & Interactive Marketing, Center or Center or Center or ScottsMiracle-Gro Service Service Service Analytics Analytics Analytics 34% Contact 18% Contact 13% Contact Center Center Center Management Management Management Solution Solution Solution Proactive tracking and capture of customer feedback Performance (sentiment) on web 43% 35% 9% Source: Aberdeen Group, June 2010 © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 18. Multi-Channel Service Delivery Page 18 Capabilities and Enablers The Competitive Framework (Table 7) highlights that Best-in-Class performance isn’t predicated on excellence in just one of the support categories. Best-in-Class organizations exhibit a comprehensive focus on all of the following support structures to strengthen the planned strategic actions illustrated earlier (Table 6) in this research. In the context of the discussion around multi-channel service, a majority of the capabilities continue to fall into the 5E framework described earlier - Educate, Eliminate, Escalate, Evaluate, and Empower. In addition, 2010 data indicates that Best-in-Class organizations are taking significant steps to proactively track, capture, and act on customer feedback. Process Sixty percent (60%) of the Best-in-Class indicate their organizations provide Insight: Standardized Escalations their support agents with standardized escalation protocols when compared √ On average, organizations to 38% of all other organizations. These escalations can occur across the that have standard escalation same delivery channel (contact center to contact center) or on different protocols in place report a channels (live chat to contact center). As a result, if support agents are 74% first-call resolution unable to resolve a service issue at their level, they are provided with performance as opposed to a 55% result for those that guidance into: do not • when an escalation needs to take place • who it needs to be escalated to • how that escalation takes place with the smallest disruption and inconvenience to the customer • how to track the result of that escalation The investment in standardized escalation protocols can be greatly marginalized if the higher-tier agents or managers do not have immediate visibility into the current service issue and steps that have already been taken to resolve the issue. Therefore, the Best-in-Class strategy is not only to standardize the upward escalation of service issues but also to ensure that the agent receiving the escalated issue has full visibility into service issue information prior to correspondence with the customer. As a result of the focus from the Best-in-Class in ensuring that a first service call / email finds the right service person, they are able to report higher first-call resolution results. On average, organizations that have standard escalation protocols in place report a 74% first-call resolution performance as opposed to a 55% result for those that do not. Immediate access for higher tier support agents to service information is made possible due to the Best-in-Class focus on real-time capture of and visibility into service, asset or customer-specific information. This real-time mode of capture is in place at 71% of Best-in-Class organizations as opposed to 47% of all other organizations. As seen in the context of escalation protocols, leading organizations are also taking significant steps to invest in making this collected information available to all relevant service © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 19. Multi-Channel Service Delivery Page 19 stakeholders to ensure an improved and expedited resolution experience for the customer. Aberdeen Insights — Voice of the Customer Increased access to service knowledge continues to be a key pillar in the Best-in-Class multi-channel service delivery framework (further detailed in the proceeding section). In addition, Best-in-Class organizations are making significant investments in increasing their insight into customer feedback regarding the efficacy of their service delivery and the strength of the overall service experience. The success of any internal process can ultimately be measured on the final service experience felt by the customer. As a result, nearly 50% of Best-in-Class organizations immediately capture customer feedback at the end of a service session to not only understand whether the session was successful or not, but also to understand if there are gaps in the service delivery process that need to be addressed. Only 32% of all other organizations are looking to immediately capture customer feedback. Knowledge Management and Organization As discussed earlier, Best-in-Class organizations are making significant "Complete integration of data investments in their knowledge infrastructures to ensure the availability of across all support channels is valuable customer and service information to all support agents as well as to critical to not only efficiency other teams across the organization. Effective knowledge management but customer satisfaction as forms the backbone of a successful multi-channel service strategy, and this is well.” evidenced by the dual Best-in-Class focus on: ~ Mark Bath, Director, Customer • The storage of service information in a common knowledgebase so Service/Support, as to expedite access to vital service and customer information. Overland Storage. Such a central knowledgebase is in place at 31% of leading organizations when compared to 26% of all others. As a result, interactions with a customer on one channel can be leveraged for subsequent discussions on another channel, thereby enabling visibility into resolution practices or other service information that can improve the overall customer experience. • The type of information that front line support agents are empowered with at Best-in-Class organizations (Table 8). As a result of the available service information, support agents at Best-in- Class organizations aren't required to blindly enter into an unprepared service interaction with a customer and are immediately alerted to past service instances or resolution scenarios that may expedite the service delivery process. From the perspective of service revenue, access to trends in customer service queries can also alert the support agent to complementary services and offerings that the customer might not be aware of. While this cross- pollination of service and sales activities requires a focus on training, Best-in-Class companies are much more likely to provide their front © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 20. Multi-Channel Service Delivery Page 20 line agents with access to such sale offerings based on customer usage and service history. Table 8: Empowering Information for Support Agents Percentage of Respondents Customer Support Agent Ability / Reporting In Place Access to: Best-in-Class All Others Basic customer information (address, product usage etc.) 86% 73% Customer service history 86% 69% Basic troubleshooting steps 69% 40% Instantly connect customer to higher level of support 60% 47% Complex troubleshooting steps / Product schematics 49% 28% Resolution steps / decision trees as determined by experts or past product history 40% 31% Customized sale offers based on service history 39% 23% Add / remove features to products/services leveraged by customers 26% 23% Source: Aberdeen Group, June 2010 Looking ahead, Best-in-Class companies are also looking to empower their support agents with increased access to past customer feedback or the ability to direct customers to take post-service feedback surveys immediately after a service interaction. More than a quarter (26%) of Best- in-Class organizations are prioritizing the increased access to customer feedback history for front line service agents. In support of the increased information available to support agents, Best-in- Class organizations are actively supporting training programs to enable their agents to actually use the enhanced information and capabilities that are afforded to them. Two-thirds of leading organizations, compared to 48% of all others, periodically train their customers on leveraging available service information to improve diagnosis and resolution rates or to understand the required escalation procedures to ensure that a service issue that can't be Solution Selection Attributes handled at the front lines gets guided to the appropriate agent with a (Percentage of respondents, minimal number of transfers. n=172) √ 40% Integration Technology √ 35% Total cost of ownership The organizational focus on developing a true multi-channel service √ 33% Configurability of infrastructure, as reflected in the focus on knowledge management, training, solution escalation processes, and feedback capture and management, is also reflected in the investments made by leading organizations in service and √ 30% Out-of-the-box customer management tools and applications. functionality provided With regard to the backbone of knowledge management, 43% of leading √ 26% Scalability of application organizations are currently leveraging a knowledge management application Note: Respondents were asked in support of their service environments, when compared to 30% of all to select their top four answer other organizations. As a result, these organizations have a more structured choices © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 21. Multi-Channel Service Delivery Page 21 focus on automating the capture, storage and distribution of data as opposed to more unstructured and paper-based knowledge transfer systems of non-Best-in-Class organizations. This knowledge in turn needs to be integrated with customer management systems that allow for the lifecycle management of a service customer. Fifty- one percent (51%) of Best-in-Class organizations reveal the use of broader customer relationship management solutions when compared to 37% of all other organizations. These solutions allow for an integrated view of the customer while supporting the multiple support environments tied to the contact center, email, chat etc. described earlier in Chapter One. Specifically in the context of the contact center, 34% of Best-in-Class companies report the use of stand-alone contact center management solutions. These firms are also nearly 1.5 times as likely as all others to use contact-center related Interactive Voice Response (IVR) and Computer Telephony Integration (CTI) technologies that enable the more intelligent routing of customer queries once made through the contact center. Table 9: Tools to Build a Multi-Channel Roadmap Percentage of Firms Reporting Solution in Solution Place Best-in-Class All Others CRM Solution with Contact Center Management Functionality 51% 37% Web-Based Self-Service Solution 49% 39% Service or Contact Center Analytics 43% 35% Knowledge Management Solution 43% 30% Customer Feedback Management Solution 37% 25% CTI / IVR and Customer Routing Solutions 34% 24% Stand-Alone Contact Center Management Solution 34% 16% Contact Center Workforce Optimization / Shift Planning 31% 19% Source: Aberdeen Group, June 2010 Best-in-Class organizations are also more likely (54% vs. 37% for all others) to optimize the schedules of their service agents to match the variability in the service demands. Thirty-one percent (31%) leverage workforce optimization solutions in the contact center (not all support agents) when compared to 19% of all other organizations. In fact, 30% of all other "Our Case Management organizations indicate that they leverage static service schedules for their System is the most critical support agents regardless of level of service demand, compared to 17% of element, because it ties Best-in-Class organizations. Optimized schedules that take service demand everything together.” peaks and dips into account, help Best-in-Class organizations ensure the adequate utilization of their support agents by reducing underutilized ~ John Meaney, EVP/SVP, Business workers in times of low demand and by eliminating overburdened agents in Development, times of peak demand. Not only does this optimization increase the Digitalrep, LLC. utilization of workers, but it also helps eliminate labor-related costs tied to © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 22. Multi-Channel Service Delivery Page 22 overtime in peak times or excessive service representation in low-demand times. It also helps improve the customer experience by reducing wait or hold times particularly during high demand service periods. Aberdeen's past research (Advanced Scheduling Execution, December 2009) has indicated how optimized scheduling of field workforces drives overall productivity and utilization. The same principles of optimization also apply to call center- based or other support agents. Aberdeen Insights — Self Service Best-in-Class organizations are also distancing themselves from their counterparts through investments in self-service platforms and portals (49% vs. 39% for all others). As seen in Figure 3, the increased focus on self-service is a major step towards the elimination of unnecessary service costs while enhancing the speed of service delivery, particularly for basic troubleshooting and information needs. As this stage most of the self-service information afforded to customers is in the form of FAQs and downloadable product information (Table 10). Best-in-Class companies are actively taking the lead in the provision of all described self-service capabilities, primarily as they relate to customized customer portals with product service and customer account information. Table 10: Giving Customers What they Need Percentage of Self-Service Capabilities Available respondents, n=172 Frequently asked questions 65% Downloadable manuals / drivers 56% Keyword search box 52% Customer-specific portal with product service 35% information Customer-specific portal with customer account 30% information Product forums 25% Resolution videos 16% Natural language search 13% Virtual assistant / conversational agent 7% Resolution decision trees 6% Source: Aberdeen Group, June 2010 Performance Management In addition to the above mentioned investments in self-service, customer management and knowledge management solutions, Best-in-Class companies are also investing in contact center and other service analytics to accurately © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 23. Multi-Channel Service Delivery Page 23 track the performance of their multi-channel service environments. Forty- "Our overall customer three percent (43%) of leading organizations currently have analytical tools satisfaction scores have in place when compared to 35% of all other organizations. The real-time increased three points since capture and presentation of service data to executives enables the prompt implementing a multi-channel CRM system. [We have] evaluation of investments in processes or technology and allows for increased leads by 172% to improved planning and forecasting of parameters such as service demand, cross-sell and up-sell products resource availability, service resource costs, and overall service resulting from the ability to performance. Executives at Best-in-Class organizations are most concerned data mine information collected with visibility into customer satisfaction and efficiency metrics to evaluate through multiple channels. the performance of their service organizations which link directly to the top [There has also been an] pressures being faced by these organizations in today's service environment. increase in speed of service through automatic populating of customer information as Figure 4: Measuring Service Success - KPIs Tracked contacts are made." ~ Don McNair, Customer satisfaction 83% Senior Director - Customer Interaction, First-call resolution 69% Yaskawa America Inc. SLA compliance 37% Customer retention 34% Total service and 26% support costs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Percentage of Best-in-Class Note: Respondents were asked to select their top five answer choices Source: Aberdeen Group, June 2010 Aberdeen Insights — Social Media and Service Performance As noted earlier, Best-in-Class organizations are also taking a greater interest in capturing customer feedback to get a true customer view of the performance of the service organization. Nearly 50% of Best-in-Class organizations currently have processes in place to immediately capture feedback after a service interaction. However, for these organizations, the customer feedback capture and management strategy goes beyond post-interaction feedback, as 43% of Best-in-Class organizations are currently proactively tracking and monitoring customer feedback and customer sentiment regarding their organizations on the web, compared to 25% of all other organizations. continued © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 24. Multi-Channel Service Delivery Page 24 Aberdeen Insights — Social Media and Service Performance Social media tools and applications afford service organizations with increased opportunities to track customer sentiment. While most organizations have yet to develop an overall social media strategy around customer service (72% report not having a strategy in place), or leverage social media extensively for the creation of service requests, 25% of organizations indicate that they currently leverage social media to monitor customer sentiment with another 12% indicating the use of these tools to monitor the health of the organization's brand. Currently, most use of social media tools for customer service is for directly responding to customer queries or general customer feedback (Table 11). Very few organizations are successful in leveraging captured feedback to improve service performance or quality as survey respondents rate themselves a 2.9 (on a scale of 5.0) in being able to actively synthesize and use feedback data to improve performance. Service organizations need to be more proactive in leveraging customer feedback to improve their service and customer management processes. Along the lines of being more proactive, organizations would be well served to use the extensive network afforded by social media tools to proactively lead service discussions or notify customers regarding service updates. Table 11: Getting Social with Service Percentage of Use of Social Media for Customer Service respondents, n=172 Respond to direct customer inquiry 40% Promote upcoming product / services 35% Respond to general customer feedback (e.g., customer 29% posts comment regarding organization) Monitor customer sentiment 25% Proactively reach out to customer regarding updates 16% Monitor the health of organization's brand(s) 12% Proactively lead and moderate discussions 9% Source: Aberdeen Group, June 2010 © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 25. Multi-Channel Service Delivery Page 25 Chapter Three: Required Actions Whether a company is trying to move its performance in service delivery Fast Facts and customer satisfaction from Laggard to Industry Average, or Industry √ 33% of Laggards do not Average to Best-in-Class, the following summarized actions structured measure or are unaware of around the development of a multi-channel service delivery framework, will their customer service help spur the necessary performance improvements. performance √ 5:1 ratio of incoming Laggard Steps to Success requests via the contact center to non-contact center When evaluating the performance of Laggard organizations in key service- channels for Laggards related performance indicators (Table 4), it is found that they significantly compared to a 2:1 ration for trail both the Best-in-Class and Industry Average in all metrics tied to Best-in-Class organizations customer satisfaction, cost control, and overall workforce productivity. To progress down the path to Industry Average and ultimately the Best-in- √ 55% of Industry Average Class, these organizations can take steps to: organizations capture and store service information in • Understand how customers rate service performance. In an real-time compared to 71% effort to improve customer service performance, it is vital for of Best-in-Class Laggard organizations to first understand where they stand in terms organizations of key metrics such as customer service and retention. Thirty-three √ 49% of Best-in-Class percent (33%) currently don’t know or don't measure their organizations are looking to performance in a customer service-specific metric compared to 8% increase investments in of Industry Average organizations. These organizations show a educating their customers similar lack of visibility into other financial, operational, and around the existence of non- customer-facing metrics. Prior to making any investments in contact center-based processes or technology to improve performance, it is imperative support channels that these organizations develop a clear line of sight into their performance in basic customer satisfaction metrics. • Capture customer feedback. Some insight into customer service performance can be gleaned from the proactive tracking and measurement of customer feedback. Only 15% of Laggards indicate that they immediately capture customer feedback after a service session compared to 41% of Industry Average organizations. Immediate feedback on a service interaction is a simple way to poll customer sentiment without requiring a significant investment from both parties in a follow-on customer feedback appointment. • Support multi-channel delivery with cross channel agents. Laggards report a 5:1 ratio of requests that come in via the contact center as opposed to non contact-center-related channels. This proportion is similar for Industry Average organizations but a far cry from the 2:1 ratio seen by Best-in-Class organizations. To support the broader acceptance of multiple service delivery channels, Laggard organizations can start by increasing the use of non-contact center channels for basic issue / request notification needs. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 26. Multi-Channel Service Delivery Page 26 The move to a multi-channel environment can also be supported "From our customer with changes in the workforce structure of service agents. While satisfaction surveys we have 59% of Laggards indicate that they currently have an integrated found that there is a high workforce across service delivery channels, as opposed to channel- correlation to the accuracy of specific workforces, this proportion lags the 65% of Industry information provided not only Average and 86% of Best-in-Class groups that have integrated with overall satisfaction, but workforces. In an effort to expedite the success of a multi-channel also with loyalty and retention. environment, the use of a flexible cross-channel workforce can With tight integration between greatly assist in the delivery of a consistent service experience CRM, ERP and business across all channels. communication systems [we have] the ability to • Standardize escalation protocols and increase investments continuously cleanse and enrich in support agent training. Laggard organizations can also benefit the customer data. This from equipping their support agents with standard escalation information can not only be protocols to allow for the expedited handling of customer requests used to address the immediate by the right level of support. Currently 17% of Laggards have customer concerns, but through analytics we can assist standard steps communicated to their service teams when in the design of future service compared to 50% of Industry Average organizations. Forty-three offerings." percent (43%) of Laggards are prioritizing the investment in standard escalation protocols indicating a clear understanding of the ~ Don McNair, cost and customer satisfaction ramifications. Along the lines of Senior Director - Customer better visibility into protocols, Laggards can also increase the focus Interaction, Yaskawa America Inc. on training for service agents in the accurate diagnosis, resolution, or escalation of issues. Compared to 59% of Industry Average organizations, only 30% of Laggards have periodical training programs in place. Industry Average Steps to Success When compared to Best-in-Class performance, Industry Average organizations do reasonably well in customer service ratings and overall customer retention. However, the delivery of service comes at a price as these organizations severely lag the Best-in-Class in terms of operational efficiency and the ability to deliver exemplary service while controlling service costs. To progress down the path to the Best-in-Class, these organizations can take steps to: • Empower support agents with information in real-time. Best-in-Class organizations report a 85% performance in first-call resolution compared to a 66% mark for Industry Average organizations. The additional cost associated with repeat service transactions adds a significant cost burden to the organization. Therefore these organizations can take significant steps in improving the capture and distribution of customer and service information in real-time. Fifty-five percent (55%) of Industry Average organizations currently capture and store service information in real-time compared to 71% of Best-in-Class organizations. More so, support agents at Industry Average organizations are less likely to have access to information such as past customer service history, basic © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897