How to use this template

1
August 31, 2006. Call in at 1255 p.m. Eastern
Time
2
Theme
To make a difference, customer-facing executives
must build the 12 skills required to lead EBD
transformation initiatives.
3
Agenda
Customer-facing executives have new leadership
challenges Success depends on mastering 12 skill
s How one executive is succeeding Five recommend
ations for becoming an EBD leader
4
Definition
Experience-based differentiation (EBD) is the
strategy of systematically integrating experience
into the design of products and services.
Forrester Research
5
Improving CExp is a pressing issue . . .
If we define customer experience as the degree
to which customers feel that interactions meet
their needs, how important is it to your firm
that it improve customer experience in 2005?

Base 176 North American firms with annual
revenues of US500 million or more
Source May 1, 2006, Best Practices Using
Technology To Improve Your Customer Experience
6
. . . because cross-channel integration is
difficult . . .
How well does your firm meet customer needs in
the following channel?
Base Survey 140 North American firms with annual
revenues of US500 million or more
Source May 1, 2006, Best Practices Using
Technology To Improve Your Customer Experience
7
. . . but no one has ownership for CExp
Do you have an individual (besides the CEO) who
is ultimately responsible for the
whole customer experience marketing through
service?
Base 176 North American firms with annual
revenues of US500 million or more
Source May 1, 2006, Best Practices Using
Technology To Improve Your Customer Experience
8
The CExp burden falls on customer-facing
executives
Within your company, which group is primarily
responsible for the following?
Base 176 North American firms with annual
revenues of US500 million or more (percentages
may not total 100 because of rounding)
Source August 22, 2006, Best Practices Twelve
Steps To Experience-Based Differentiation
9
The biggest challenge is gaining organizational
alignment
Which of the following items represent
significant obstacles for your firm to
improve the customer experience that it
delivers?
Base 176 North American firms with annual
revenues of US500 million or more (multiple
responses accepted)
Source May 1, 2006, Best Practices Using
Technology To Improve Your Customer Experience
10
Conclusion . . .

• Increased demands on customer-facing executives
  drive the need for extraordinary leadership
  abilities.

11
Agenda
Customer-facing executives have new leadership
challenges Success depends on mastering 12 skill
s How one executive is succeeding Five recommend
ations for becoming an EBD leader
12
The 12 Tests Of Leadership
August 2006, Best Practices Twelve Steps To
Experience-Based Differentiation
13
Agenda
Customer-facing executives have new leadership
challenges Success depends on mastering 12 skill
s How one executive is succeeding Five recommend
ations for becoming an EBD leader
14
Ella Lokshina, director of customer service and
CRM at MegaFon-Moscow leads transformation

• MegaFon Group is one of three national mobile
  telephone services in Russia.
  
• The company entered the GSM market in 2001
  without a single customer.
  
• MegaFon has expanded rapidly to more than 4.5
  million subscribers.

15
Facing a difficult business challenge

• Corporate progress in the rapidly growing and
  increasingly competitive Russian market depends
  on a dramatic enhancement of our customer
  relationships.
• A focus on delivering an intentional customer
  experience will help MegaFon build long-term
  customer loyalty, while reducing operational
  costs and increasing efficiency.

16
Solution required major business process and
technology change

• We chose Amdocs CRM solution to integrate with
  existing billing and operational infrastructure
  of the MegaFon-Moscow network.
  
• Customer service employees now have access to
  timely and up-to-date customer data, enabling
  them to respond quickly to customer requests and
  to provide a high level of customer service in
  line with global standards.
• Eighty percent of our customers do not wait more
  than 30 seconds when calling into the call
  center.
  
• We've also been able to increase the number of
  customer calls per CSR by 25 thanks to new
  automation.

17
Leadership skill No. 1 Confronting

• Definition Facing facts and understanding the
  current reality
  
• As a scientist trained in biochemistry, I
  assembled specific market facts to share with my
  engineering-minded colleagues.

18
Leadership skill No. 2 Visioning

• Definition Defining an EBD approach to create a
  competitive advantage in the marketplace
  
• Our objective for MegaFons EBD initiative was
  to improve significantly customer relationship
  quality and to deepen customer trust and customer
  satisfaction.

19
Leadership skill No. 3 Believing

• Definition Making a personal commitment and
  communicating, We can do it!
  
• A considerable portion of my time was spent
  cheerleading the CRM initiative constantly
  communicating the benefits that would be achieved
  as MegaFon began to live up to our new EBD
  promise.

20
Leadership skill No. 4 Communicating

• Definition Articulating the need for EBD change
  and involving others in the change process
  
• We defined and used specific metrics to help
  communicate the need for change and track
  progress number of repeat calls, number of
  topics discussed per contact, hold time, call
  time, and customer satisfaction.

21
Leadership skill No. 5 Organizing

• Definition Planning and structuring the change
  process
  
• I have learned there are a number of critical
  factors for EBD implementation, and you must pay
  attention to all of these factors in order to
  succeed.

22
Leadership skill No. 6 Supporting

• Definition Providing the necessary resources to
  sustain the change effort to enable others to
  act
  
• I became the executive personally responsible
  for implementing the EBD initiative.

23
Leadership skill No. 7 Honoring

• Definition Recognizing and publicly celebrating
  success
  
• The CSR role has greater status and
  responsibility under our EBD approach than in the
  past this new role is highly motivating for our
  CSRs, and I tried hard to communicate the
  importance they would play in delivering our
  customer experience strategy.

24
Leadership skill No. 8 Connecting

• Definition Building shared values and
  constituencies
  
• Without the support of the CSRs, our customer
  relationship strategy will not work.

25
Leadership skill No. 9 Acting

• Definition Walking, not just talking
• I have learned that not all people are leaders,
  nor do they have the will to push for change I
  began to understand this was responsibility that
  I had to accept personally before I could expect
  anybody else at MegaFon-Moscow to adopt new ways
  for customer relationship management.

26
Leadership skill No. 10 Serving

• Definition Accepting the responsibility of
  making a difference in other peoples lives
  
• I have come to accept that my fate is to be a
  change agent for helping MegaFon-Moscow to
  continue to become more customercentric. I
  accept this destiny.

27
Leadership skill No. 11 Rebounding

• Definition Moving constantly forward in the face
  of inevitable setbacks
  
• I know that there will be inevitable struggles
  to adopt doing things in new ways but, I keep
  trying to find ways to overcome the obstacles,
  and I understand that I will continue to have to
  meet more challenges as they present themselves.

28
Leadership skill No. 12 Renewing

• Definition Gathering energy and fortitude to
  start the change process all over again
  
• I have seen the industry change dramatically
  during this time and recognize that our company
  must continually adapt to new circumstances.

29
Can You Meet The 12 Tests Of Leadership?
August 2006, Best Practices Twelve Steps To
Experience-Based Differentiation
30
Agenda
Customer-facing executives have new leadership
challenges Success depends on mastering 12 skill
s How one executive is succeeding Five recommend
ations for becoming an EBD leader
31
Recommendations

• Challenge the process
• Inspire a shared vision
• Enable others to act
• Model new ways
• Encourage the heart

32
Thank you
William Band 1 617/613-6323 wband_at_forrester.co
m
www.forrester.com
33
Selected bibliography

• August 22, 2006, Best Practices Twelve Steps To
  Experience-Based Differentiation
  
• May 1, 2006, Best Practices Using Technology To
  Improve Your Customer Experience
  
• February 21, 2006, Trends Trends 2006 Customer
  Relationship Management
  
• February 3, 2006, Trends Customer Experience
  Spending Booms In 2006
  
• December 16, 2005, Best Practices Use Business
  Process Management Thinking To Evaluate CRM
  Solutions
  
• Customer Experience Management Resources
  http//www.forrester.com/Products/Consulting/CXP