Seven Iconic Customer Experience Trends That may shape your future success

1. Seven Iconic Customer Experience TrendsThat may shape your future success The Custommerce National Convention 23, 24 January 2014 Marriott, Jaipur India Sidney Yuen Chairman, 2011- 2014 Asia Pacific Contact Centre Association Leaders

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3. Customer Satisfaction (Source: ACSI) $58B 75% 73.5% Cost of Care Worldwide Customer Care Services Revenue CAGR(2006–2011)—12.6% (Source: IDC) $41B 2003 2006 Trend One – Customer Experience is on the CEO Agenda CEO Challenges • Changing Customer Needs – Expectation that companies focus on the quality of the customer experience: • Personalized service (know them and their needs) • Anytime, anywhere service (easy-to-use automation such as web, IVR, speech) • Proactive issue resolution (first call, or even before customer becomes aware of an issue) • Declining Customer Experience – Only 8 percent of customers described their experience with companies as “superior” while 80% of companies believed theirs was “superior.” (Bain & Company Survey) • Lack of Strategy – Only 3 percent of respondents could strongly agree that they had a “clearly defined process to determine what [they] want customers to feel, think, and do at every step of the customer lifecycle.” (Executive Education, Babson College) CEO Opportunities • Increase Shareholder Value – Companies that ranked high on the American Customer Service Index showed a 40 percent return in stock performance, compared to 13 percent. • 1% change in customer experience satisfaction equals a 4.5% change in market valuation. (ACSI)

4. c c c c c Trend two: Experience Transcends the Offer What How - - - $2.00-$5.00 1 2 5 25 75 $1.25 400% Premium Source: Marketspace Study 2007

5. Trend three: People are Picky About Their Experiences At risk — 34%Issue not resolved 2,992 customers $299,200 Defect — 28% 2,464 customers $246,400 Complain2% 8,800 customers Resolved — 38% Poor experience22% Do notcomplain98% Positiveexperience 78% At risk — 55%Decline in wallet share 237,160 customers $23,716,000 431,200 customers Defect — 45% 194,040 customers $19,404,000 Enterprise with 2 million customers Average revenue per customer = $100 per year 440,000 customers Source: ResponseTek

6. Trend four: The Solution is Now Multi-Faceted Strategy Development & Transformation Strategy Technology Enablement Operational Excellence Process Channel Customer Experience Tenets Technology/Tools Associate Analytics & Business Intelligence Analytics

7. When & How is Hyper-Complex email Vending Agent @ Web Viral IVR Lower Touch Automated Interaction Transaction Ease Agnostic Customers Low Switching Costs Gaming Retail + Social Network Mail / Statements Casts & Txt TV / Mass ATM Mobile Cable

8. Channels are also being Displaced. Issue / Need More Pay / Assess Value Balance Cost & Ease See Value Commit Need Agent TV/Mass Retail Retail Retail The Baby Boomer Touch Factor Social Network Web ePay Viral Casts & Txt The Millennial Content Factor

9. Trend five: Employee experience Drive Success Customer Experience Achieve a Superior Customer Experience Provide a High Performing Workforce Environment Enable Operational Efficiencies in a Cost Effective Manner Achieve Superior Talent Management Employee Experience

10. Trend six: Analytics – From One Question to a Combination of Many Today Tomorrow Products Channels Process Margin Backing 1 2 Satisfied Loyal Upset Disloyal customers use / yield? Are customers satisfied? What do • Focused on Business Issues • Business / Multi-Source Data • Impact on Profitability / Value • Analytic Environment (Multiple Tools) • Leveraged Skills / Team • Experience Defining • Focused on Satisfaction • Satisfaction Data • Operational Reporting • Finite Analytic Tools • Focused Skills Team • Primary Research

11. Analytic Capabilities Defined Behavior Analytics Structured Data Collection Understanding how customers interact with channels, and each channel’s relative effectiveness Structured (“tabled and keyed”) production data (Billing, ERP, CRM) Understanding how customers are impacting your brand in un-controllable channels (ex. facebook) Viral Analytics Unstructured Data Collection Translating unstructured data (ex. voice recordings, agent notes) into a structured data Business Analytics Understanding the strengths and weaknesses of an enterprises’ core business via customer interactions Master Data Management Aligned, Complete, Valid, Accurate and Timely Data Management Understanding the efficiency of contact center operations, and their relative level of quality Operational Analytics Consulting Guiding clients through the analytic process. Translating analytic findings into actionable recommendations Customer Satisfaction Measurement & Analytics Measuring and understanding what a customer “thinks” about their relationship with a business provider and how their experiences affect their loyalty Decisioning Using structured and unstructured data to shape – real time – the decisions impacting our clients' customers

12. Trend seven: Cloud based technology Advantages • Reducing capital expenses significantly • Scaling up or down more easily and quickly • Enabling “work anywhere” thus save space Disadvantages • Control & security – or it is something else? • Migration challenges • Internet stability and speed

13. 11 countries with 12 associations • Associations’ members occupy about 3 million seats • Australia, China, Hong Kong, Indonesia, Malaysia, Philippines, New Zealand, S Korea, Singapore, Taiwan, Thailand, RegionalCapabilities • Annual Awards & Expo by Host Associations • Monthly Leaders’ meeting via phones • Site visits to learn from each other • Training programs that promotes best practices • Collectively influence Government policies Events and Awards • Established in 2008 • Support more than 4 customer service professionals • Contribute to economical growth of the region • Promote Asia Pacific as the preferred customer service hub Key Facts

14. Questions, Comments, Insights? sidyuen@hbc.hk www.apccal.org www.hbc.hk