ICELAND TELECOM Competitive Advantage through CRM & eDM Process Innovation

1. ICELAND TELECOMCompetitive Advantage through CRM & eDM Process Innovation Agnar Mar Jónsson Managing Director Sales and Marketing agnar@simi.is

2. Agenda • Iceland Telecom • Using Document Management to cope with your Account Management and Quality standards • What's CRM • Using Document Management for an effective CRM

3. Iceland Telecom, activites • 1.300 employees • 300.000 customers • Inbound activities • 35.000 incoming calls per day • 2500 service orders per day • 1000 Customers per day through Service Centres • 35.000 Internet customers per day • 600 service orders per day through the Web • Outbound activities • Account management to large and medium sized companies • Direct Sales to High Valued customers

4. Iceland Telecom 1999 FACT: We used to be a governmental organisation • Other FACTs: • Fierce competition evolves in the small Icelandic market • Laws and regulations to cope with • Shift in the market and new players are entering • Multiple staff sometimes work on a customer issue unaware that it is being addressed by other staff • Customers sometimes feel compelled to callmultiple departments and perceive their concern has been handled inappropriately or "fallen through the cracks“ • No central database for tracking requests or complaints • Sales channel not implementet

5. Desission taken 1999 • New division, Strategic Accounts • Aggressive sale to large accounts • Implement Document Management System to maximise results • Implement the sales process throughout the organisation • KISS

6. The main objectives: • The main objective of the project was to increase the quality of service to customers and the efficiency of employees, achieved by: • Adopting all work processes to a user-friendly/standardised system with "open access" where many people can work on the same case resulting in increased output from the processes • Implementing electronic data/document management with controlled, traceable and categorised access to all documented clients and projects

7. The purpose of the implementation was: • To be able to store documents electronically, scan or record, references to hardcopy documents and store all e-mail in a centralised database • To make documents and the company's filing system more visible and more accessible • To make written communication simple and easy. • To support project and issue management • To register all complaints and use them to become a better organisation

8. The Solution Contact Centre GoPro Case for Correspondence Complaints IBM Content Manager ITSS Quality Module • All customers • Inbound • Outbound • Cases GoPro Case for Case mgmnt • Serious Complaints • Responsible employee • Customer related Scanned documents • Quality control • Evaluation • Grouping

9. Ppositive impact on the organisation FACT: No more brown envelopes! • Unified/standardised view of all documents. • Document processing and creation faster and less costly • Faster searching options • Storage plan for each file category insures document safety • Eliminates unnecessary copying and duplication of documents • Eliminates inconsistency between electronically stored documents and hardcopy documents • All work is controlled by quality standards

10. Verifiable benefits (tangible and intangible). • The time used to distribute incoming documents has gone down 60% • Employees using the application spend at least 50% less time in finding documents and customer information • Employees in sales and customer relations (about 200 at Iceland Telecom) spend 30% of their time looking for information • The Customer has huge impact on how we operate. • In whole this is estimated to save directly over 5.000 hours a month. Estimated wworth 200.000 Euro a month. • Process improvement and complaints services valued at approximately 60.000 Euro a month.

11. Desission taken 2000 • The organisation is turned 180 degrees • Focus on the market rather than products • Divided up in Organisations and Residential • New division, Sales and Marketing • Active sales to small companies and the residential market • KISS

12. Residential market, Year 2000 • Service Centres • 10 stores around the country • No direct sale • Advertise, advertise…with hope to reach customers

13. Corporate Sales, Year 2000 • Account management since 1999 • Increased revenues (30%) • Increased customer satisfaction • Account Management not feasible for small companies • 14000 companies • Call Centre plus 2 sales reps

14. Call Centre evolution Farsímamarkaðurinn: Agents Groups CTI

15. Simple Access To Iceland Telecom Residential Customers, small companies Letter phone Fax E-mail WWW WAP Contact center Sales Service Plain Telephoni service Mobile telephoni service Internet ISDN ADSL Broadband etc service Billing Services

16. Cost per channel • Direct Marketing $ 5 • Contact Centre $ 21 • Sales force $ 160 • WWW/e-mail 16 cent

17. Why Management • Savings • 5 to 8 times more expensive to get customer than keep. • Deep Sell • Sell more of the same • Up Sell • Sell more value • Cross Sell • Sell add-on things

18. Maintain Customer New Customer Revenues Cost Customer Loyalty Satisfaction Loyal Customers Get new Cross Sell Up Sell Deep Sell Customer Acquisition

19. The CRM Model Image Services Customer Live Time Value Cross Sell Up Sell Deep Sell Loyalty

20. Customer Relations GoPro/ITSS Customer Information Customer analyses Data Warehouse Customer behaviour model CRM

23. Managers Control Board

24. AIIM LAST FACT: 2’nd best in Europe Iceland Telecom CRM solution chosen 2’nd best in Europe at AIIM conference 2000

25. Why all this????? • We want to be faster than our competitors to understand our customer needs... • …and more over, to have the ability to create solutions for that customer faster than the competitors. • We want to stay in touch...