Table 2-1: Old Economy vs. New Economy

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Table 2-1 Old Economy vs. New Economy
Old Economy New Economy
Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Overpromise, underdeliver Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and retention rate Underpromise, overdeliver
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Measuring (and Acting upon) Customer
Satisfaction
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Data

• Description of Cisco processes for Data Gathering
• Driving Action from the Data

Tell the Customer !
Goals
Analysis
Progress Metrics
Drivers
Initiatives
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Satisfaction Motivation
Reward for Performance
Increasing Company Value
Cisco
Strong emphasis on customer satisfaction
Revenue
Loyalty
Stock ownership Cisco Bonus Program
Time
Customer Satisfaction and Loyalty
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The Complete Measurement Process
Relationship Survey Annual Sat
Survey Broad representation of all
End-Users Partner served customers All theaters,
all people 15 to 20 minutes Length
Indications / Directions Overall
Satisfaction Loyalty factors Experience
satisfaction Pre-Sales Team, Post-Sales
Software, Products
indicate
Digging / More Info Follow-on surveys EMBU
Product Surveys Focus groups / TAGs Product Beta
tests
Understanding Selected Customers Particular
subjects Could be deep long
understand
measure
Ongoing Tracking TAC Bingo Cust. Service
survey CCO Satisfaction Internal Measures
On time shipment Bugs per week
Transaction Every User Every time Small Quick
We need all three layers to Measure and Improve
Customer Satisfaction
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Continuous Flow Annual Satisfaction Measurement
Replies Data
Sources One-byOne Field Sales Anyone
at Cisco Channel Partners www.cisco.com/go/pal/
Mass Upload TAC case customers Web
users Networkers attendees Etc.
Invite
Analysis / Actions
Start 1 August
Stop 15 July
Bonus Calculations 30 Apr
Invitations / Replies Thru-Out the Year Its a
Continuous Process A Particular Person gets ONE
survey during the year Its an Annual event
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Real Time Invitations Cisco and Partners
Cisco Web Based Names Tool
Cisco Partners External Portal And Web
Based Names Tool
SEARCH company Name database
SEND Options
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Customer Information Gathered

• Sample Information Includes
• Name, e-mail, Country
• Account Manager and System Engineer
• Sales Hierarchy ( Theater, Area, Operation,
  Region )
• Partner Name sending invitation
• Cisco Standard Company (CSC) name
• Global Ultimate ID - GUID
• Company Target ID - CoTgtID
• Company site ID ( future )
• Customer Input
• Co. Size, Market Type, Role in Company
• Cisco Products in Use
• Follow-up Contact Y/N ? Release Info to
  Partners Y/N ?
• Name, phone, address for further contact

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Names Machine- Real Time Status
Names Blanked Out
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Names Machine Low Score / Loyalty Alerts
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Annual Survey Questionnaire http//survey.walke
rinfo.com/MZTEST0
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TAC Bingo Customer Survey
BINGO survey for every Closed TAC case
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Reporting Tools Allow Wide Access to Results
Scoreboards Fixed Format Reports
GUID and CoTgtID codes allow Company Specific
Reporting too
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We Compare Cisco to Others via Benchmarks Source
Analysis of Cisco Customer Loyalty Walker
Information Oct, 2002
IT Benchmark Network Sector (Excl. Cisco)
2002 National IT Customer Benchmark Study -
Cisco
IT Benchmark Total (Incl. Cisco)
GUID and CoTgtID codes allow Company Specific
Loyalty
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OK - We Have a Bunch of Data . . . So What ?

• What are the Key Drivers of Satisfaction and
  Loyalty ?

• This finding supports previous analyses that
  have shown that for customers worldwide
  (regardless of loyalty level), satisfaction
  towards Cisco is largely driven by how they
  perceive interactions with the Account Team,
  Hardware Products and Post-Sales Technical
  support - (Walker National Benchmark study)
• Three separate analysis techniques were employed
  to rigorously test which key areas influence
  whether a customer is Trapped or Truly Loyal.
  All three analyses confirmed the same key areas
• Hardware Products
• Account Team
• Post-Sales Technical Support
• - (Analysis of FY-02 Cisco data)

Source Analysis of Cisco Customer Loyalty
Walker Information Oct, 2002
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Taking Action to Improve Support Satisfaction

• WalkerInfo Computes relative Impact, or
  Importance - Timely Case Closure is seen to be
  the Biggest Driver of Post Sales support
• Lower Sat level too, so there is plenty of
  Runway around this issue.
• CA Initiatives for FY-03
• TRIP Timely Resolution Improvement
• Re-Launch of TAC-WEB site
• PSI Product Serviceability Improvement
• Low Score Follow-Up Process

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TRIP Launched - June 2002
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Post Sales Support ( cisco ) Real Time, Web
based Reporting
Customer Advocacy takes Goal on overall Support
Q 34
The TAC team watches this Number While BINGO Q
3 is the Business metric
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Communicating in Cisco My Customer Pages
Note Demo Data
Low Score Alerts
Consolidating Customer Sat information as well
as Service and Sales Initiatives For Top
3,000 accounts
Satisfaction, Loyalty by Customer
Company Specific Scores and Alerts
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Communication to CustomersSurvey Participants
See this Link in the Thank-you note
http//www.cisco.com/warp/public/750/cust_sat/stre
ngth_areas.html
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The Action Process
Customer Follow-up Phone Interviews. . .
Low scores - Contact
Annual Survey Indications Goals
Transactional Timely Data Running Metrics Trends
Comments Extra Information

• Overall surveys gives Directions and Goals-
  ANNUAL
• Initiatives Delivered by Business Owners
• Transactional measures for tracking eg TAC
  BINGO

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