Customer's Perspective within Organisations

1. ...who is organisationally responsible for the Customer? Customer's Perspective within Organisations Sheila Ross – National Customer Experience Manager, Centrelink Alvaro Del Pozo – Marketing Director, Dell Australia Belinda Davoren – former SOCAP President & partnership with Australian Merchants

2. Agenda • Overview of Chief Customer Officer (CCO) concept • Framework for Implementation • Case Study – Centrelink • Case Study – Dell Computers • Close

3. So….how do you bring the customers’ perspective into your organisation? • Do you have to lobby other organisational silos to work collaboratively so you can get the best out-come for customers? How much time do you spend lobbying? • Have you implemented a CRM IT system and not seen any real improvement in staff, businesses or processes? • Have you been unable to assess whether your valuable customers’ have experienced improved service when dealing with your organisation? • Do you lack confidence that the changes/improvements your organisation introduces will be appreciated by your customers? • Do you lack confidence that the brand promises made through your marketing department are being met or exceeded through your product and service departments? • Are you unaware of what your customers are saying about your product or service, therefore NOT able to use this information to enable product and service improvements? …if you answer ‘yes’ to these questions, than you need to consider the benefits that a Chief Customer Officer (CCO) can bring to your organisation

4. What is the Chief Customer Officer (CCO) Role What is a CCO? • An executive-level customer advocate • Accountable for maintaining and enhancing the customer base as an asset • Embrace a broad view of the customer base, the marketplace, and future trends, using this view to drive both corporate strategy and organizational changes. Not just advising a business how to serve its customers better; CCO’s work takes customer feedback and drives innovation throughout the organisation “Customer Facing Executive”

5. Primary CCO Goals 1 Increase Revenue Help identify opportunities to secure new customers and, importantly, a larger share of customer wallet Create a Customer Equilibrium in Executive Decision Making: Can and must counter the Board’s traditional focus on revenue growth and cost containment, two activities that are crucial in any organisation, however may result in hindering customer relationships and reducing longer term results 2 Leading to Organisational Customer Awareness 3 View and Manage Customer Experience as an asset: Customer Advocacy must be managed as carefully as other assets when attempting to control costs and maximise effectiveness Proactively gather Customer Insights and enable Strategic and Organisational change: Constantly gathering objective knowledge on the needs of the firm’s customers, prospects and the marketplace, using it to drive organisational change and innovation, often cutting across departmental or functional boundaries 4

6. Illustrative …so how does this new role ‘look and feel’ in an organisation • Sharing of information to team as part of the Senior/Executive Mgt Team • Discussion around the Customers’ perspective on each issue • Where is the “Dominant Core” of this organisation Key: CCO Staff Virtual Staff This structure will differ depending on the size of the organisation – potentially leverage existing resources

7. 1 Solution Strategy 2 Channel Strategy 4 Cultural Environment 3 Understanding & Measuring Customers CCO Implementation High Level Framework CCO Implementation Framework – Strategy & Culture Strategy & Culture • Review any existing organisation metrics • Identify new metrics that will allow the organisation to assess and track ‘customer experience’ • Customer segments analysis - growing • Annual customer surveys – continuous & progressive metrics • Create roadmap to define progress wanted in customer experience,loyalty & profitability • Annual goals for movement of customers from one priority level to another • Capture & learn from customers who have left your organisation • When improvements made – let the customer know • Identify and assess each customer channel • Define what are the preferred channels for the organisation • Encourage customers to use the preferred channel • Introduce loyalty programs for customer retention and channel strategy • Determine how to differentiate the high value customer interactions - segment • ID revenue potential of each segment • Define service levels and brand promises for each segment • Discuss with Marketing - current brand promise and what is planned – ongoing • Define what is the current culture within organisation • Define the ‘to be’ culture • Introduce rewardsfor good cultural approach • Change agent network to be introduced • Communication plan to be introduced to start ‘spreading the word’ of the Customer Experience • Decisions based on customer facts • New products • Create/change processes • Organisational structural review & reporting lines • Define what is valued by loyal customers • ID Churn areas • Proactivelyaddress issues through customer feedback • Where is the ‘Dominant Core’ of your organisation

8. 9 Holistic Communities CCO Implementation High Level Framework - contd CCO Implementation Framework - Enablers Enablers 6 Call Center Interactions 7 Information Empowerment 8 Compliance 5 Customer Relationship Mgt • Hold Customer Forums for feedback • Create ‘Customer Communities’ • Create corporate partnerships to increase organisations’ value proposition for the customer • Gap Analysis on ‘current state’ and ‘end state’ • Define what is the organisation’s CRM strategy • Define what has gone wrong with the strategy • Define what changes need to be made • Customer feedback will dictate the initiative priorities • Improve internal communications • Sales summits • Create one database for Customer information • All staff empowered with information on the holistic customer experience • Introduce integrated call center for high value customers • Create a career path between the call centres • Define what is the important information required for each call center/FOH area • Define & document how to deploy the ‘right information at the right time’ • Increase the empowerment of targeted call centre staff, why not provide them with the ability to sell, as well as service – never forgetting their primary service role • Summarise requirements of each legislation (i.e. Complaint legislation, Sarbanes-Oxley & Privacy Act) • Communicate to departments • Initial review of organisations’ compliance levels • 6 monthly review of compliance levels

9. Centrelink – Case Study Customer experience in Centrelink Sheila Ross

10. Centrelink – Case Study About Centrelink • Responsible for delivery of services on behalf of 25 “client agencies” • “Increasing revenue” and “securing new customers” - our success is measured by how well we deliver policy outcomes • The “Chief Customer Officer” role in Centrelink focused on policy outcomes sought by government • The CCO Implementation Framework highlights many of the opportunities and challenges we have encountered

11. Centrelink – Case Study Customer Experience in Centrelink

12. Centrelink – Case Study Strategy & Culture: Solution Strategy • Customer Experience Management model - relates customer experience to other business drivers • Customer Experience Design –ensures alignment between desired business outcomes and the customer experience of services • Service Delivery Framework - an analytical tool to guide business owners in design of customer service offers

13. Centrelink – Case Study Strategy & Culture: Customer Experience Management Model

14. Centrelink – Case Study Strategy & Culture: Customer Experience Design Define business outcomes and customer behaviour consistent with these outcomes Stage 1 Stage 2 Determine the experience which encourages these behaviours Map existing Service Offer and establish why current arrangements exist Stage 3 Stage 4 Determine the experience and behaviour actually encouraged by the Service Offer Stage 5 Identification of gaps Stage 6 Recommend strategy to minimise gap

15. Govt Service Delivery Principles & Objectives Government Policy Centrelink Service Delivery Principles & Objectives Service Delivery Outcomes Centrelink Service Delivery Framework HOW WELL? HOW? BY WHOM? AT WHAT COST? TO WHOM? WHERE? WITH WHOM? WHAT? Governance & People Mgt Financial Management Processes and Systems Relationships Customer Segments Distribution Channels Performance Specification & Evaluation Products and Services Centrelink – Case Study Strategy & Culture: Service Delivery Framework

16. Govt Service Delivery Principles & Objectives Government Policy Centrelink Service Delivery Principles & Objectives Service Delivery Outcomes Centrelink Service Delivery Framework HOW WELL? HOW? BY WHOM? AT WHAT COST? TO WHOM? WHERE? WITH WHOM? WHAT? Governance & People Mgt Financial Management Processes and Systems Relationships Customer Segments Distribution Channels Performance Specification & Evaluation Products and Services Centrelink – Case Study Strategy & Culture: Service Delivery Framework

17. Centrelink – Case Study Strategy & Culture: Channel Strategy • Current channels include • in person at a Service Centre • in person via a Call Centre • self-service via IVR or Internet • in writing by letter • Challenges to moving services online: • Still a preference for face-to-face and telephone interaction • Lack of access to internet • Need to improve understanding of electronic medium • Provision of appropriate support

18. Centrelink – Case Study Strategy & Culture: Understanding & Measuring Customer Experience • Centrelink collects customer data for two main reasons: • To assure our client agencies about the quality of the services we deliver (mostly measured in terms of “customer satisfaction”) • To inform the design of our service offers

19. Centrelink – Case Study Strategy & Culture: Cultural environment • Recognise that culture needs to be aligned with organisational purpose: “Serving Australia by assisting people to become self-sufficient and supporting those in need” • Desired culture is one which is “customer-focused” - encourages staff to understand customers’ individual needs and to work with them on overcoming barriers to achieving self-sufficiency • Customer Culture projects: • Hinds Cultural Change survey • TMI’s Complaints Culture benchmarking study • Customer Emotions study with Debt Services • Partnership with University of Melbourne and Novell

20. Centrelink – Case Study Enablers: Compliance • Very important area for Centrelink: • Must comply with Business Partnership Agreements with client agencies • Must comply with Ministerial direction • Must comply with Privacy Act • Must comply with community standards – ethics, equity, transparency • Operations are scrutinised intensively, eg. by: • Australian National Audit Office (ANAO) • Social Security and Administrative Appeals Tribunals (SSAT & AAT) • Welfare Rights Network (WRN) • Commonwealth Ombudsman • Senate Estimates Committees • Individual Members of Parliament • The Media

21. Centrelink – Case Study Enablers: Holistic Communities • Centrelink is an active participant in a range of customer-related forums: • Chief Customer Officer Forum • Members of SOCAP • Welfare Rights Network meetings • Business and academic conferences • Also have a number of formal and partnerships with external organisations which help increase our customer capability: • Novell • University of Melbourne • Monash University • Michael Edwardson

22. Centrelink – Case Study Measuring our progress • Customer Contentment • Change in Circumstances • Cost to Centrelink

23. Dell Inc.Australia & New Zealand – Case Study Alvaro del Pozo Relationship Marketing Director

24. Dell Agenda • Dell Facts • Dell Business Model • FY07 (CY06-07) Initiatives • C.E Framework • CCO / C.E Director Appointment

25. Dell Facts Customer Base (Revenues) • Revenue by Product • Desktop PCs ========= 36% • Mobility ============= 26% • Servers ============= 9% • Storage ============= 3% • Enhanced Services =====10% • Software and peripherals 16% ~85%Corporate & Institutional ~15% Consumer Global Manufacturing Revenue by Region Austin, Texas, USA Limerick, Ireland Penang, Malaysia Nashville, Tennessee, USA Xiamen, China Eldorado do Sul, Brazil Winston-Salem, North Carolina, USA 24%EMEA 63%Americas 13%APAC ~69,700 employees worldwide Revenue $56.7B (last 4-qtrs)

26. The direct relationship continues throughout the customer experience. The Value of the Dell Direct Model “When you're dealing direct, there's no place to hide. Nor should you want to”, Michael Dell Direct Built-to-Order Supply Chain Excellence • On-time delivery • Predictable • Direct to customer • Custom Factory Integration • Pre-loaded Operating Systems • Preconfigured HPC clusters • First-to-market technologies • Lower cost • Just-in-time inventory

27. WW PC/SIAS Share + 1.57% + 1.83% + 1.05% - 0.36% - 0.66% Dell ANZ : #3 Home & Small Business, #1 Corporate & Public Sector

28. Dell Is the Global Leader in Product Satisfaction • Customer Satisfaction Leader . . . • Desktop – 34 consecutive quarters • Notebook – 31 consecutive quarters • Servers – 29 of the past 33 quarters

29. Committed to being THE Leader… To be the best, Dell must strive for 90+% Satisfaction American Consumer Satisfaction Index 2005 Surveys In general, the computer industry scores lower in customer satisfaction than other industries Overall, the best companies score greater than 85% Satisfaction… we intend to be the best

30. Dell FY07 Initiatives “At Dell, the customer is at the center of everything we do, and we must strive to create loyal customers by providing a superior experience at a great value……Building this capability and privileged position into a long-term strategic advantage for Dell is critical to our success.Our target is to achieve 90% customer satisfaction by year-end, which will be measured by internal surveys and external customer satisfaction studies.” Michael & Kevin

31. CE Leadership Team Structure Customer Experience responsibility is global and local Actionable Local Customized Product Group & WWP HR & Corp Comms Americas EMEA APJ Services Dell IT Regional CE Leads & Teams Global CE Team Strategic Global Common WW Alignment via Executive CE Leadership Team The Executive CE Leadership Team is composed of Executives representing each region/function. Their role is to drive our aggressive performance goals within each of their respective areas.

32. Voice of the Customer - Listening Posts • The Listening Post process is a systematic way of gathering qualitative data from several forums of customer feedback Relationship Surveys Broader Customer Survey Event Surveys Interaction Specific Surveys External Media & Research Industry & Press Customer Events Strategic Forums & Customer Advisory Councils Online Feedback Feedback from the Online Store Customer Escalations Centralised Escalations Team “Brown Bags - with Agents” Voice of the "Frontline" Internal Staff Surveys

33. Product Range and Quality Price and TCO Sales Process Order Delivery Service & Support Relationship Survey • Comprehensive survey to determine customer experiences & attitudes & likelihood of future behavior • Bi-annual Survey • Results include prioritisation of Customer Experience drivers • Overall Customer Satisfaction • Likelihood to Repurchase • Likelihood to Recommend

34. Event Survey (E Surveys) Interaction Specific Surveys designed to assess process capability and opportunity for improvement • Service & Support • Customer Care • Technical Support • Onsite Service • Online Support • Purchase Experience • Marketing / Advertising • Online ordering • Order Delivery & Fulfillment • Online Shopping

35. What Customers Are Saying Customers consistently tell us that we need to focus on five basic things: Be available to customers – reasonable hold times and limited transfers when they call us; make online shopping and support easy. Easy to Contact Voice of the Customer Understand customer needs and recommend the right product (online and by phone); make sure the right product and service is ordered and shipped Understand customer needs and recommend the right product (online and by phone); make sure the right product and service is ordered and shipped Get My Order Right Deliver on Time Set and meet timely delivery expectations of all orders and services. Provide a Quality Product Design and build awesome products and services that are reliable and easy to use. If there is a problem, the utmost goal is to quickly and respectfully resolve the issue. Fix My Issue Note: “Voice of the Customer” or VOC Feedback comes from Dell customer surveys, focus groups, 3rd party research/surveys, press, etc

36. 90% Customer Satisfaction “Outcome” Operationalise C.E Priorities Voice of the Customer “WHY” Accountability “WHO” Key Customer Defect Measure “WHAT” Sales / Marketing/ Manufacturing / Finance 5% of orders causing contacts (POCC) Get My Order Right Manufacturing / Procurement 99.5% Deliver To Commit (DTC) Deliver On Time Product Group / Tech Support / Marketing 7% Annual Dispatch Rate ( .6 MDR) Provide a Quality Product Tech Support & Customer Care Fix My Issue 95% Resolve in Two Tech Support, Customer Care, Transactional Sales 80% Calls Answered in x minutes and < 10% Transfer Rate Make it Easy to Contact Dell These metrics relate directly to ~84%* of the Dell employee base

37. CE : 30% Weighting in Performance Plans Source: IDC

38. Dell ANZ Executive Team

39. 18% of our customers deliver 82% of our Margin Likelihood to Repurchase 70%

40. In Closing • So, when your organisation’s customer satisfaction scores come in and they are not good. You get your technical wizards, the customer service people, the marketers, and all of the others – until the room is bursting – however nothing really changes and everyone goes back to their silos within the business. • Here are the reasons why: • The customer experience is still considered to be something on top of their existing work • No one individual is accountable and responsible for pulling all information and good intentions together • The silos within an organisation continue to compete with each other

41. Thank You Belinda Davoren PH: 0409 300 741 Email: B_Davoren1@yahoo.com