Leveraging the XInternet for Proactive and Pervasive Service

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Leveraging the X-Internet for Proactive and
Pervasive Service

• John Ragsdale
• VP, Research Director
• Forrester Research

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Theme
Convenience overrides paranoia
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Why it matters

• Exceeding customer expectations requires more
  heroic efforts
• Increasing customers 11 time with agents is not
  scalable or cost effective
• Device dependent customers are less loyal the
  more time they spend troubleshooting

Customer Satisfaction
Customer Expectations
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Customer Behavior is Changing
Source Forresters Consumer Technographics
2000-2005 North American Benchmark Studies
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Customer Behavior is Changing

• Customers will pay more for better service

57 of telco customers will pay an additional 5
a month for immediateaccess to a live agent who
can solve their problem
Source 02/06 Survey of 1000 telco customers in
US and UK
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X-Internets Role in Building Customer Passion
Customer Satisfaction
Trust
Convenience
Value
Fulfillment
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X-Internets Role in Building Customer Passion
Customer Loyalty
Empowerment
Customer Satisfaction
Personalization
Bonding
Convenience
Satisfaction
Fulfillment
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X-Internets Role in Building Customer Passion
Customer Passion
Pervasive
Customer Satisfaction
Customer Loyalty
Persuasive
Empowerment
Proactive
Convenience
Personalization
Bonding
Loyalty
Satisfaction
Fulfillment
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Proactive Service BOK Corporation
Account Overdraft Notifications
Challenge
Solution
16 billion retail financial services company
with 150 branches across the Southwest wanted to
quickly reach more overdrawn customers to prevent
high fees, decreased customer loyalty, and
charge-offs.
Instead of adding FTEs, BOK uses PAR3s automated
notifications to increase its customer contact
rate, improve loyalty and service levels and keep
charge-offs to a minimum.
Results

• 370 increase in customer contact rate
• 75 reduction in dedicated overdraft service
  agents
• Increased retention of NSF income with a
  simultaneously decrease overdraft operating
  expenses
• BOK is now planning to use PAR3s communications
  solution across other business units, such as
  loan collections

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Proactive Service by Industry
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Persuasive Service BellSouth
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Persuasive Service BellSouth
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Pervasive Service Via X-Internet
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X-Internet Enabling Technologies
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Blast from the Past The Web Refrigerator
My ice maker is overflowing.
Im empty. Im contacting WebVan!
Im due for a service call.
My plug isnt grounded. My warranty is not
valid.
Im set on 10 degrees and freezing the milk.
My door seal is loose. Ive called for repair.
Oh, snacking at 2 a.m. again?
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From the sublime.
Emergency Service Notification
Remote Engine Diagnostics
Remote Door Unlock
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To the ridiculous
Kettle of Comfort San Jose Mercury News April
7, 2005
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Pervasive support examples by industry

• Oil and gas
• High tech manufacturing
• Communications
• Financial services

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Oil Gas

• Pipelines for oil, gas, water and waste are part
  of the worlds largest and most critical
  structures.
• Support Challenges
• Inspecting lines in remote or hazardous
  (underground, underwater) conditions manually.
• Performing REACTIVE time consuming diagnostics on
  location with limited information.

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Oil Gas - Remote Pipeline Monitoring

• Solutions
• Sensors monitor pipeline, detect leaks and track
  pressure and temperature.
• Field service workers access information in
  real-time with wireless laptops.
• Remote Diagnostics supported.
• Results
• Field workers are more efficient paperwork
  reduced 100.
• Less time on the road performing inspections.
• Less down time

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High Tech Manufacturing

• For every minute of down-time on a critical
  manufacturing asset, thousands of dollars are
  lost.
• Support Challenges
• Limited maintenance and repair resources are in a
  reactive state.
• Diagnostics are being done after the asset fails
  and the mean time to repair is extended.

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High Tech Manufacturing - Predictive Maintenance

• Solutions
• Embedded sensors using vibration analysis,
  thermography or ultrasound.
• Manufacturers providing remote monitoring as a
  service.
• Results
• Potential problems discovered before they occur.
  
• Diagnostics tracked and viewable remotely,
  dramatically reducing cycle time to diagnose and
  repair an asset.

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Communications

• Controlling phone support costs while meeting
  high customer expectations is an ever growing
  challenge.
• Support Challenges
• 50-75 of customers call each month.
• Typical connection time of 30 to 40 minutes.
• Churn factor of 20-30.

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Communications Self-healing, Self-service
Proactive Support Mass Healing
Assisted Service
Problem Resolution Platform
Self-Healing Self-Service
Knowledge Automation
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Financial Services

• Capturing car loan business from an expanded
  target audience without increasing cost of bad
  loans.
• Challenges
• Poor credit history keeps some buyers from
  qualifying for loans
• Profitable business due to higher interest rates
• Car dealers want to minimize cost of slow pay or
  no pay buyers

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Financial Services - Starter Interrupter Unit

• Solutions
• Used at 15 of buy-here/pay-here lots in US
• LED will flash green to confirm payments are on
  time
• LED will turn Red when payments due
• Car will not start when payment past due
• Results
• 40 delinquency becomes 96 on-time payment rate

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The Future of Pervasive Support

• Further enabling the field service workforce
• Voice Commands
• Virtual Keyboards
• Eye Monitors
• Enable completely hands free instant access to
  all data while performing repairs.

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The Future of Pervasive Support

• Online Medicine Cabinet
• In home personal health portal.
• Monitor blood pressure, heart rate and
  cholesterol level, consult with physician or
  refill prescriptions online.

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Recommendations

• Think beyond your current scope of customer
  channels and issues
• Survey customers for ideas on the ultimate
  customer service experience
• Demand your place at the table for Customer
  Experience discussions and decisions

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Thank you
John Ragsdale 408/327.4382 jragsdale_at_forrester.com
www.forrester.com