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Autonomous Customer 2015.Leading on interaction and insight.

Graham Fagan BSc, MSc, CMC, CITP, FICS.Head of Customer Experience and Multi-Channel BT Global Strategy TeamGraham.Fagan@bt.com@graham_fagan

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Customer Experience (CX) in Action.1

The Autonomous Customer 2015 Global Research.2

Laying the foundation for the customer of 2020.3

Presentation objectives.

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Customer Experience (CX) in Action.

4

A company's primary responsibility is to serve its customers ... Profit is not the primary goal, but rather an essential condition for the company's continued existence.

Peter Drucker

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Customer Experience Transformation.

Low CX High CX

Short termtransaction focused.

Off the shelfproducts and services.

Limited autonomyat the front line.

Measurementby issue resolution.

Silo mentalitywith unique agendas.

Customer lifecycle focused.

Customervalue propositions.

Empowerment were it impacts the customer most.

Measurement by profit margins, productivity, csat.

Leadership commitmentto alignment and change.

A commitment in time, resources and organisational alignment.

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The upside of getting it right.

43%

14.50%

-33.90%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Cu

mu

lati

ve t

ota

l ret

urn

Watermark defines Customer Experience Leaders and Laggards as the top ten and bottom ten rated public companies in Forrester Research’s 2007-2013 Customer Experience Index studies. Comparison is based on performance of equally-weighted, annually readjusted stock portfolios of Customer Experience Leaders and

Laggards relative to the S&P 500 Index.

Customer experience leaders outperform the market.6-Year stock performance of customer experience leaders vs. laggards vs. S&P 500 (2007-2012).

© 2013 Watermark Consulting

CustomerExperience Leaders

S&P 500 Index

CustomerExperience Laggards

Better experiences drive better returns.

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But who owns the customer?

Retail Location

Kiosk Terminal

Self Service

Live Agent

SalesSpecialist

DirectMail

Social Media

Corporate Website

Mobile Platform

Messaging Interaction

MarketingContact centerMarketing

App teamSales

DigitalPhysical

Single customer but myriad of fragmented channels.

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Growth of the Chief Customer Officer role.

Source: The CCO Council 2014 Chief Customer Officer Study.

8 812 16 26 32 50

87

145

209240

305345

377

0 44

10 6 18

37

58

64

31

65

40

32

31

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Start of year Net change

8 12 16 26 32 50 87 145 209 240 305 345 377 408

Taking end-to-end ownership of the customer experience.

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Autonomous Customer 2015 Global Research.

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The Autonomous Customer.

79% shop around to get the best prices

57% say self-serviceis good as it puts

you in control

46% contributeto online forumse.g. Trip Advisor

45% comment on social media using smartphone about

the customer servicejust received

43% say loyalty isa thing of the past

Consumers are ‘shopper swots’,

protecting their rights

Self-service hasgiven consumers

choice and control

Customers are turning to each other rather than organisations

for advice

Smartphoneusers have moreconsumer power

Consumers are less reliant on brands and

switch easily

They have much better access

to information

They useself-service togain control

They helpother customers

They are super-charged by

smartphones and social media

They are less loyal to organisations

which don’t deliver

Defining an ever evolving and demanding customer.

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Autonomous Customer methodology.

Belgium China(trend data 2012)

Germany India(trend data 2012)

Indonesia

Singapore(trend data 2012)

Spain UAE UK USA

A truly global customer perspective.

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52%

48%

Female.

Male.

Autonomous Customer methodology.

Gender – Global.

A strong gender balance.

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12-24

25-34

35-44

Autonomous Customer methodology.

45-54

55-64

65+

16%

17%

Age – Global.

12%

14%

21%

19%

No age limitations.

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1. Making it easy is a growing priority.

Busy Autonomous customers put a lot of effort into dealing with organisations and prefer easy interactions.

Building customer engagement.

30% Increase in consumers saying convenience is more important than price (UK and US).

85% It should be easier to contact orgs. by phone, web chat and email.

71% Like it when orgs. notice I have a problem with customer service and try to help.

88% Consumers would be more loyal to orgs. if they are easy to deal with.

Buy more from organisations that make it easier.

79%Indonesia

73%UK

72%Belgium

68%Germany

50%Spain

90%China

84%India

83%UAE

82%USA

81%Singapore

62%Find dealing with customer service issues exhausting

3 in 4Constantly research products to buy online

55%Put a lot of effort into safeguarding their consumer rights

Only 1 in 5Regularly experiencefirst contact resolutionfor customer service

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2. Supported self service is a necessity.

Consumers like self-service, but when it goes wrong they want live help there and then.

90%Want to e-mail the sameagent as they speak to on the phone.

When you most recently hada problem with self-service whattype of support did you want?

29%

23%

15%

10%

9%

0% 10% 20% 30% 40%

Phone

E-mail

Web-chat

Social media

Video-chat

Want advisor available on phone/web-chat when internet shopping.

Co-browsing would add value.

Prefer using the phone than FAQs (UK).

79%UK

84%USA

55%UK

65%USA

54%2013

62%2015

Customer service via apps would add value.

55%UK

62%USA

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3. Security concerns over the phone emerge.

Publicity around ID&V and card payment security means new solutions are needed to drive engagement.

55%It takes too long to identify me when I phone the call centre

73%Would like voice biometrics for ID&V

Want technology to secure card payments over the phone (the agent can not see/hear

the account or card details)

47%

Buy more over the phone if payment is secure.

70%

69%

68%

57%

54%

43%

33%

28%

21%

21%

0% 20% 40% 60% 80%

Indonesia

China

India

UAE

Spain

Singapore

USA

UK

Belgium

Germany

Use smartphone to…

81%

52%

77%

67%

77%

50%

72%

51%

69%

46%

0% 20% 40% 60% 80% 100%

China 2015

China 2012

India 2015

India 2012

Singapore 2015

Singapore 2012

UK 2015

UK 2012

USA 2015

USA 2012

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4. Omni-channel: still omni-present.

Channel switching is accelerating.

50%Regularly phone callcentre and look at webon smartphone

Agree organisationsmake it easy to switchbetween different channels

Less than 1 in 3

81%Organisations should always offer different channels to meet my needs

51%Would like to switch from web-chat to video-chat(62% - switch from web-chat to phone)

3 in 4Any agent should be instantly familiar with my contact history

67%Would like visual IVR on their smartphone

Would like organisations to offer the following…

50%

51%

53%

55%

62%

62%

63%

67%

71%

73%

90%

0% 20% 40% 60% 80% 100%

Secure tech. for phone payments

Switch from web-chat to video

Service through Facebook

Skype calls to call centres

Switch from web chat to phone

Share my screen with an agent

Social media to phone call

Visual IVR on smartphone

Apps with web-chat

Voice biometrics for ID&V

E-mail same call centre agent

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5. Social customers demand social customer service.

Consumers want more customer service by social media and less marketing - but there are sector differences.

70%Expect response to social media comment in 15 mins

35%would post a complaint on social media

25%Have had customer service by social media (15% made complaint)

2 in 3Want responses to comments by same platform

1 in 3for an urgent issue or emergency Twitter/Facebook is the best way to get customer service

Would post a Facebook customer service message to an organisation

53%UK

48%Belgium

40%Germany

N/AChina

87%UEA

80%Indonesia

74%Singapore

63%Spain

57%USA

88%India

Have used smartphone to comment on social media about customer service just received.

70%

67%

63%

61%

57%

37%

33%

30%

24%

23%

China

India

Indonesia

UAE

Singapore

Spain

USA

UK

Germany

Belgium

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Laying the foundation for 2020.

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Each customer interaction…

…contributes to which drives…

customer experience,

Higher customer engagement, and…

increased customer lifetime value!

It starts with a single interaction…and lasts the whole customer journey.

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Making each interaction count.

Omni-channel experience.Enterprise-wide

team engagement.Actionable insight.

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Imagine…

For your customer.Valued Experience that CreatesLoyalty and Brand

For your employees.Productive, Efficient, Retained Staff

For your business.Improved Customer Lifetime Valuefor Higher Revenue and Margins

Creating a whole new customer experience… for each customer, every time.

Thank you!Graham Fagan.

Head of Customer Experience and Multi-Channel,

BT Global Strategy Team

Graham.Fagan@bt.com

@graham_fagan

BT Let’s Talk Blog:

http://bizblog.btireland.ie/author/grahamfagan/