PRESENTED BY: Joanna Macleod
AMERICAN EXPRESS BUSINESS TRAVEL
Adapting to a changing environment – our journey so far
ECEW 14-15th May 2103
AXP Public
AGENDA
• The way we live is continually changing
• The customer service industry has evolved to meet the service demands of our customers
• Virtual networks are now a proven model with American Express transitioning more of its front line travel consultants to a home based network
• Internal and client resistance to the evolving model are focused around four themes
14th May 2013 2
AXP Public
THE WAY WE LIVE IS CONSTANTLY CHANGING
COMPUTING: CONNECTIVITY:
THEN…(Classrooms / Lectures / Reading
Materials)
NOW…(Tablets / Smartphones)
THEN…(Dedicated Camera / Manually Transfer Digital Files / Develop
Films
NOW…(Instagram / Always With You Camera (Smartphone) / Instant Digital Effects /
Share / Sync / Discover)
THEN… NOW…
NOW…(Codecademy / Coursera / Interactive
/ Online / Accessible by Anyone Anywhere Anytime)
PHOTOGRAPHY:
THEN…(Desktops / Notebooks
NOW…(Tablets / Smartphones)
EDUCATION:
14th May 2013 3
AXP Public
GLOBALISATION AND 24/7 DEMAND HAS CHANGED HOW WE SERVICE OUR CUSTOMERS
14th May 2013 4
ConsolidationStandardisation and
centralisation to large centers
Home Based Servicing
Virtualisation model becomes proven and
starts growing exponentially
We need to be more flexible with a global network of skilled customer facing professionals
Adaptive Global NetworkLeveraging Home Base
Servicing, offshoring and local service centers
2000
LocalisedDisparate, non-standardised-
servicing
RealignmentResponding to cost
pressures and demands from customers for
increased quality of service
Offshoring and multi-lingual regional hubs
Leveraging labour arbitrage and achieving
economies of scale
2015
AXP Public
THE TREND FOR CUSTOMER CONTACT EMPLOYEES TO MOVE HOME IS PROVEN
14th May 2013 5
As the US heads towards 63MM home workers by 2016, continued advances in technology and process innovation present additional opportunities globally
20% of current customer contact employees are home based with plans to double that amount by 2014
Participants saw increased results in:• Employee Attendance 74%• Employee Retention 64%• Productivity 58%• Seasonal Staffing 45%• Intraday Staffing 38%
2013 AHCC Benchmarking
0-20 21-40 41+0%
20%
40%
60%
80%% of Customer Contact Team at Home
2013 2014
Connectivity• High speed broadband
Staffing• Desire for flexible shifts
New Hire Effectiveness• Improved Virtual training capabilities
Engagement• Social platforms
Enablers
AHCC = At Home Customer Contacts, AHCC_Benchmarking_Survey_Results2016 increase, Gartner, Hype Cycle for Cloud Computing, August 2012
AXP Public
OUR HOME BASED SERVICING FOOTPRINT NOW EXTENDS ACROSS 13 COUNTRIES
14th May 2013 6
Home Based Servicing Agents as a % of total agents
Potential remains for expansion in both existing and new markets
Global
Singapore
Switzerland
Argentina
Mexico
France
United Kingdom
Netherlands
Belgium
Nordics
Canada
Australia
United States
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
45.4%
3.5%
7.1%
13.8%
21.0%
23.3%
23.5%
24.8%
24.9%
25.3%
56.9%
65.8%
77.8%
2013 Exit 2014 Exit
AXP Public
THE BUSINESS CASE IS STRONG...
14th May 2013 7
Better Services & Solutions
Employee Financial
Client
Engagement & Loyalty Expense Reduction
• Fixed Cost reductions - real estate & related
• Flexible Cost Model
• Work-Life balance
• Work place happiness
• Platform Flexibility
• Crisis Management
• Retain/Attract Best Talent
AXP Public
Q2 2012 Q3 2012 Q4 2012 Q1 2013
Non-Virtual Virtual
2.3 ppt
...and their experience when calling out of hours
GREATER FLEXIBILITY IS CLEARLY BENEFITING OUR CLIENTS
14th May 2013 8
Feb Mar Apr
May Ju
n Jul
Aug Sep OctNov Dec
Jan1
3
Feb13
Mar
13
Trend in Customer Satisfaction
HBS migration
After Hours ServicingCore Servicing
0.7 ppt 1.4 ppt 2.6 ppt
With increases in customer satisfaction during their travel booking experience…
AXP Public
WHAT ARE THE KEY CONCERNS?
1. Can’t control the home environment from a security perspective
2. People won’t work as hard at home
3. Cultural connection weakens at home
4. Service level slides because people are distracted
14th May 2013 9
AXP Public
QUESTIONS?
14th May 2013 10
Joanna Macleod, GM/VP EMEA Service Delivery
