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New Economics of Speech in the Enterprise Steve Ehrlich VP Marketing Apptera

New Economics of Speech in the Enterprise Steve Ehrlich VP Marketing Apptera. Profit per Customer, Retention and Loyalty are at All-time Lows. How do I make customers more loyal?. How can I get customers to buy more?. How can I differentiate from the competition?.

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New Economics of Speech in the Enterprise Steve Ehrlich VP Marketing Apptera

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  1. New Economics of Speech in the Enterprise Steve Ehrlich VP Marketing Apptera

  2. Profit per Customer, Retention and Loyalty are at All-time Lows How do I make customers more loyal? How can I get customers to buy more? How can I differentiate from the competition? Is there a way to reach customer more easily? Enterprise View Call Center Challenges • Customer Frustration with Phone-based Service is at an All-time High Why must I wait on hold for ever? Why does it take so long just to get a quote? 90% of Customer Interactions occur over the phone Are you going to transfer me again? Why are there so many menu options? Customer View

  3. INITIATIVE 1 IMPROVE THE QUALITY OF CUSTOMER SERVICE

  4. The Golden Opportunity “The quality of our customer service is our single biggest opportunity for revenue growth and a higher stock price.“ Richard M. KovacevichChairman and Chief Executive Officer Wells Fargo

  5. Reduce hold times Train agents Higher agent costs Impact of Service Improvement Initiative SERVICE QUALITY COST EFFICIENCY REVENUE High Low

  6. Impact of Speech on Customer Satisfaction 74% Prefer speech recognition systems to human agents 83% Prefer speech to touch tone 83% Overall satisfaction rate Source: Nuance Survey of 250 Callers (1999)

  7. Sample Speech Capabilities • Transfer funds • “Transfer six hundred dollars from checking to savings” • Enter a name • “Donald, D-O-N-A-L-D” • Get a quote • “Thirty year fixed rate” • Place a trade • “Buy five hundred shares of Big Blue at the market” • Find the nearest branch • “Corner of fifth avenue and fifty fifth street”

  8. Case Study • Bank of America - Branch/ATM locator • Goal: Customer delight • Touch-tone system only allowed zip and phone number searches • Speech system enables callers to search by address, cross-street, zip code or phone number • Almost half of all callers search by address • Practical increase in automation rate of 50% • More accurate locations provided to callers • Previously searches started at the center of the zip code

  9. INITIATIVE 2 LOWER COSTS

  10. How Much Can You Save? Annual Cost of Answering One Phone Line 7x24 US-based Agent $120,000 International Agent $30,000 Speech-enabled Phone Line $5,000 US agents: $40K/year * 8 hours worked/agent * 3 agents/day International agents: $10K/year * 8 hours worked/agent * 3 agents/day

  11. Basic ROI Calculation(Call center with 100K calls/month) • 50 agents @ $40,000/yr = $2,000,000 • 47 ports @ $5,500/port = $ 260,500 • Three year cost (incl. toll, telecom, etc.) • Before automation $6,500,000 ($1.79/call) • After automation $2,000,000 ($0.55/call) • Time to recover investment: 2.2 months

  12. Case Studies Applications: Stock and fund quotes and trading Savings Reduced cost per call by $4 ROI < 10 months Applications: Retail banking Service improvement Cut call duration in half Savings Paid for itself “many times over”

  13. Longer hold times Confusing menus Reduce agent pool Increase automation Make Sure You Don’t End up Back Where You Started SERVICE QUALITY COST EFFICIENCY REVENUE High Low

  14. INITIATIVE 3 INCREASE REVENUE

  15. Consumer Marketing Challenge Every Attempt to Reach Customers is Being Thwarted • Telemarketers are blocked by don’t-call lists • Direct mail is trashed unopened • Email is rejected by spam filters • Pop-up ads are blocked • TV ads are “Tivo-ed” out Yet the Most Valuable Marketing Tool is Being Ignored

  16. The Phone Channel has a Significant Impact on Loyalty Over 90% of Customer Interactions Occur Over the Phone After a good experience: 89% of customers are likely to repurchase After a poor experience: 68% of customers are likely to defect Do You Know Which Ones are Yours?

  17. Agent re-training Less automation Up-sell programs Defocus on service Focusing Only on Revenue Will Impact Service Delivery SERVICE QUALITY COST EFFICIENCY REVENUE High Low

  18. Meeting All Goals is a Balancing Act SERVICE QUALITY COST EFFICIENCY REVENUE High Low

  19. What’s Wrong With This Picture? • Every caller listens to the same menu options • Callers are given menu options that are irrelevant to them • Callers re-enter/provide the same information every time they call (and often several times on the same call) • Information gets on the Web months before it shows up in an IVR

  20. What if Every Call…? • … is tailored to the precise intent, needs, interests and preferences of individual customers • … dynamically utilizes business rules and customer profile information to create the ultimate customer experience • … becomes a vehicle for business managers to market to, educate and inform customers

  21. The Service-Revenue Cycle Higher Quality of Service The Better the Service,the More Purchased The More Known, the Easier to Target The More Sold, the More Learned

  22. Applying Technology to the Cycle Higher Quality of Service Ultimate Caller Experience Voice Applications Targeted Campaigns The Better the Service,the More Purchased More Purchases The More Known, the Easier to Target Greater Understanding of Interests The More Sold, the More Learned Greater Understanding of Needs Profiling Personalization

  23. Self-service systems Campaigns Manage accounts, enroll in services, get information RESULT:Meet basic customer needs of fast, easy and friendly service “Receive $500 a year in interest by transferring half your balance to a CD” RESULT:Increase profitability per customer Personalization Profiling Offer automatic transfers to customers who transfer money every payday RESULT:Improve customer loyalty and satisfaction “Refinance now and you could reduce your mortgage payments by $300” RESULT:Boost revenue and customer loyalty Financial Services Example

  24. Self-service systems Campaigns Shop, buy, and get order and store information RESULT:Meet basic customer needs of fast, easy and friendly service “If you increase the size of your order by $5, your shipping will be free” RESULT:Increase revenue per customer order Personalization Profiling Dynamically default to fast check-out for customers with a stored profile RESULT:Improve customer loyalty and satisfaction “The shirt you ordered in January is now available in your size in blue” RESULT:Boost revenue and customer loyalty Retail Example

  25. Summary • Speech has been proven to deliver a compelling ROI • Consider how to balance the benefits of • Improving customer satisfaction • Lowering operating costs • Increasing revenue

  26. Steve Ehrlich sehrlich@apptera.com Apptera www.apptera.com (650) 635-0600

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