1

CS Solutions

“The Best Service Is No Service”Peter Massey

“The Best Service Is No Service” written by Bill Price and David Jaffe

22

Measuring first contact resolution is hard – so think differently – “Snowballs”Amazon found a unique way to measure how well they resolved first contacts by focusing on second contacts

Unresolved Contacts Get Worse.. Snowballs getting bigger as they roll out of control

Second Contacts at Amazon were called“Snowballs”

The recipient of the second contact was empowered to melt the

snowball

Snowballs had to be “logged” for later analysis and follow up

The “rate” of snowballs was tracked as a proxy for resolution rate and could be measured at

multiple levels

3

Copyright Budd UK Ltd 2009

The snowball process delivers improvement in three ways

Strike 1Measurement response

•The focus and measurement of second contacts increases people’s efforts on first point resolution

Strike 2The Melting effect

•Melting snowballs prevents 3rd

and 4th contacts

Strike 3Systematic Improvement

•The data gathered enables systematic reduction in the causes of repeat contacts

FCR is captured in contact rate measurement “CpX”4

Copyright Budd UK Ltd 2009

Running a sustainable “Best Service Is No Service” business model

The right metrics – contact rate per x

Starting the journey with the customer

Set the contact strategy

Focus the business owners on the improvement areas

Gather live root cause and focusinsight

Prioritise and manage action across the business

“CpX”

“Contact categorisation”

“Value Irritant”

“Skyline dashboard”

“What Our Customers Are Saying”

“It’s Raining Projects”

Where’s my stuff?

5

BSINS - Embed this improvement process and make it scalable across thewhole business, with communications and MI on the flow of change

6

• Root cause analysis of reason codes provided by WOCAS

• Detailed descriptions of the customer issues sorted by contact reason

• Weighting information indicating severity by contact reason/root cause

Real time root cause and customer insight, engaged staff as part of a customer experience strategy – not just cost saving

WOCAS delivers in-depth insight into what exactly is causing the contacts

Aggregate Account-ability Resourcing

Resolution

Tracking

Frontline staff

Prioritise

Measureimpact

Ask Publish

Feedback

It’s Raining Projects

Feedback

Feedback

7

Amazon.com CEO Jeff Bezos on customer focused businesses

• “…that execution factor is a big factor and you can see it in our financial metrics over the past ten years. It’s very obvious when, for instance, we look at the number of customer contacts per unit sold. Our customers don’t contact us unless something’s wrong, so we want that number to move down – and it has gone down every year for 12 years"

Source: Jeff Bezos, HBR, October 2007

7

0

50

100

150

200

250

1H98 1H99 1H00 1H01

Contacts per Order Index

“Last year, Amazon

received an ASCI score of

84, the highest ever

recorded…This year,

Amazon.com scored an

88…”

BSINS – 80% impact over 5 years in a UK financial services organisation

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

0

0.2

0.4

0.6

0.8

1

1.2

2003 2004 2005 2006 2007

Trans

act

ions

/yea

r

Con

tact

s p

er tr

ans

actio

n fa

ctor

Contacts per transac tion fac to r transac tions/ yr

8

Avoiding snowballs - Optimise customer journeys through the business by understanding the knowledge, both agent and self serve

“Knowledge - Pebbles and boulders”

Universal agent Product, segment specialist Complexity Split

Copyright Budd UK Ltd 2009

25 min18 min

5 min

3 min2 minI want to pay

Change my address

Am I covered?

I don’t want to pay my billI want different product

hold

HELP hold

HELP Try to locate Fumble through process

Sam – an agent using current practice

Would you trust the answers here? If not, what is the implication?

54 min of time spent

15 min

10 min

5 min

3 min2 min

hold

Question

35 min of time spentTrf Resolution

Resolution

Sam – now has specialist teams to call upon

Trf

I want to pay

Change my address

Am I covered?

I don’t want to pay my billI want different product

10Copyright Budd UK Ltd 2009© 2004 Limebridge Pty Limited

Example – first directMaximise throughput, value, customer experience and channel use

Self service

Consistently great human service for simple demands

Transfer to specialists for longer processes after Id and get it right first time eg• Mortgage purchase• Foreign payments• Fraud checks

Customer view11

Copyright Budd UK Ltd 2009

Copyright Budd UK Ltd 2009