Customer Experience Management CEM Will Increase Customer Loyalty

“Customer Experience Management (CEM) Will Increase Customer Loyalty and Profitability” 2 nd Annual CANTO Marketing Forum July 30 -31, 2015 Melissa Harris, MBA CEO, Telecom Training Corporation www. telecomtrainingcorporation. com 1

Agenda CEM Overview CEM For Retention and Loyalty CEM Must Be A Company Wide Effort Ideas NPS to Improve the Customer Experience Overview Reasons Case for Low NPS and How to Improve Studies 2

Telecom Training Corporation Training, coaching and consulting solutions for telecommunications, cable TV and wireless operators/vendors Soft Skills Training Customized Training Sales Products/Services Customer Service Networks Call Centers Billing Systems Tech Support Software Leadership Mergers/Acquisitions Rightsizing Culture Change 3

TTC Overview Founded in 1996 with over 25 years experience in the industry 750+ professional industry-experienced trainers Worked with Caribbean operators & vendors for 9 years CANTO member responsible for the HR and Marketing Forums Chairperson and speaker at global industry events such as CEM NA and Cari. Cam/Mobile VAS 4

TTC Client Examples Caribbean Global BTC Vodafone Cable & Wireless / LIME Telefonica O 2 SETAR - Aruba Telmex Caribbean Cellular Telephone (CCT) - BVI Two Degrees Mobile – New Zealand Belize Telemedia (BTL) Safaricom – Kenya Smart! / Speednet – Belize Manx Telecom – Isle of Man Singapore Telecom US AT&T Saudi Arabia Telecom Sprint Nortel Verizon Alcatel-Lucent Comcast TDS Telecom / US Cellular 5

CEM Overview 6

The Customer Experience Defined The sum of all experiences a customer has with a supplier of goods and/or services, over the duration of their relationship with the supplier Includes interactions through: Traditional channels, such as purchases, customer service requests and call center communications Social media channels such as Twitter, Facebook, etc. The single most important aspect in achieving success for companies across all industries 7

Customer Experience Management (CEM/CXM) The processes used to comprehensively manage a customer's cross-channel exposure, interaction and transaction with an organization throughout the customer lifecycle Includes various tools to keep up with the complex and on-going demands Ø Ø CEO commitment Ø Strategy Ø A focus on all touch points Ø Integration of technology Ø Business models Brand management Customer Journey Roadmaps Net Promoter Score (NPS) Ø Constant employee training and development 8

CEM Goals & Benefits CEM Goals Optimizing interactions from the customer's perspective Delivering an exceptional experience that sets it apart in the eyes of its customers CEM Benefits Increasing the amount of consumer spending Inspiring loyalty to its brand 9

CEM Quotes “The essence of CEM is treating customers as individuals. ” "Consumers are statistics. Customers are people. ” Sources: Forrester and Stanley Marcus 10

CEM for Retention/Loyalty 11

Loyalty is More Critical Than Ever Telecom Market market challenges saturation Commoditized products Unsustainable price differentiation Increasing customer demands 12

Financial Benefits of Increasing Customer Loyalty In mobile sector, a 1% point increase of the Customer Satisfaction Index leads to: 2. 9% increase in ARPU 3. 2% decrease in churn 5% increase in customer retention yields as much as 75% increase in profitability Sources: Arthur D. Little (Consulting); Ericsson 13

Why Do Customer’s Churn? 45% changed because they had a bad customer service experience 52% got a better deal from another service provider 39% switched based on recommendation 38% switched service providers within the last 24 months 35% switched because their needs had changed Source: amdocs 14

The Bad News/The Good News 80% of businesses state that they offer a "great customer experience". This contrasts starkly with the 8% of customers who feel the same way (Source: James Allen) One bad experience increases the risk of “jumping ship” by 89% 80% of subscribers say their operator could have prevented them from churning Source: Database Marketing Institute 2014 15

CEM Must Be A Company-Wide Effort 16

CEM Must Be A Company Wide Effort CEM is not tied to any one department Marketing Sales Product Engineering Customer Service Customer Support Finance 17

Marketing Is marketing setting the right expectations in the lead generation process? Or are they looking to get as many leads as possible and letting sales sort it out? If marketing isn’t setting the right expectations or sending the right messages, it can lead to confusion during the sales process that can last through becoming a customer 18

Sales Is sales setting the right expectations during the closing process? Are they up front about limitations or realistic about a road map? Or do they say things that are approximately correct that the leads want to hear so they can hit quota? 19

Product and Engineering Product is where most companies focus Engineering This Are Is Are the product getting the customer the value they want? Is it easy to use or too complicated? there a lot of little and annoying bugs? there major bugs, or do they fail to deliver within promised time frames? 20

Customer Service Is your customer team putting the customer first? Are the setting the right long term expectations? Are they really getting customers setup and seeing value or just pointing them in the right direction? Are they constantly having to reset false expectations set by sales and marketing? 21

Customer Support How long is your hold time? Are issues resolved in a timely fashion? Do you focus on one call resolution? Are reps empowered to make decisions in the customers interest without having to escalate to their supervisors? Are customers kept in the loop or given proper time frames? Does support go out of its way to make sure customers hang up happy or are they just fixing the issue and moving on? 22

Finance Is it easy to get an invoice? Is billing clear? Is the credit policy fair? Do customers find out they are in arrears right away or do they get slapped with a huge bill several months later? Do we work with delinquent accounts in a way to encourage payment? How effective are contracts and termination fees? 23

Summary Everyone focused and working together on the customer experience will result in dramatic increases in the Customer Experience will which allow companies to survive/thrive in a competitive environment and experience growth, sustainability, and profitability 24

Ideas to Improve the Customer Experience 25

What “Delights” Our Customers Do it right the first time Make it easy to do business with Employees have knowledge and power to solve problems Service is reliable and fixed quickly when there is an issue Operator proactively manages relationships Source: Comcast 26

Ideas to Engage Customers 1. Stop the waiting game 2. Be a Value Provider vs. a Service Provider 3. Proactively contact customers to perform a free bill analysis 4. Offer free services 5. Divert marketing dollars to existing customers 27

1. Stop the Waiting Game Where Customers Wait On the phone At home In long lines On line Solutions Self-help across multiple platforms 2 hour windows for installation / repair appointments Kiosks 28

2. Be A Value Provider, Not A Service Operator Most customers see telecom operators as service providers, not as value providers To become a value provider, you must go “above and beyond” while providing a fee-based service Most on line service providers – Google, Linked. In, Netflix – start by creating “value” first, thereby engaging customers, and “paid” services next The engagement index (NPS) of online service providers is much higher than telecom ISPs Online services: +53 Software: +29 Airlines: +23 Telecom: +5 29

3. Proactively Contact Customers To Perform A Free Bill Analysis Even if it means putting them on lower monthly plans Use 12, 24, and 36 month agreements with termination fees Use existing subscribers’ own activity data Be sure callers are skilled to avoid creating customer dissatisfaction Use this as an opportunity to transition into upselling/cross selling (see article in CANTO Cancion Magazine) 30

4. Offer Free Services Online subscriber safety Disable malware Notify infected users Parental controls Customer Loyalty Programs Free mobile minutes Upgrade to higher broadband speeds Upgrade phones every 2 years Proactive care/alerts Network maintenance Usage cap notifications Self care (i. e. , mobile app) Staggered bill recovery Browser messaging with customer care campaigns Be sure to educate customers on these added value services in various ways!!! 31

5. Divert Marketing Dollars To Existing Subscribers Retaining customers is cheaper than getting new customers With new subscriber growth flattening, revenue growth should come from upsell and cross sell of new services targeted to existing customers It costs 4 x as much to acquire a new customer as it does to retain an existing customer We need to determine the “true cost” of generating revenues to new customers vs. existing customers Offer attractive incentives when customers call to cancel Telecom’s BIGGEST ASSETS are existing customers 32

Ten More Ideas to Improve the Customer Experience 1. 2. 3. 4. 5. Be proactive and prioritize 6. Employees must be enthusiastic, coached, and customer-focused with Focus on retaining existing benefits and consequences tied to high-value customers performance Move from silos to 7. Employees and union must understand collaborative why they must change and be interdepartmental focus accountable Cohesive and simplified strategy instead of each 8. Delegate to front line to help with functional area working projects solo 9. Communicate effectively, proactively Focus on transforming the and in various ways to employees and culture to focus on both customers the “internal” and external customer 10. When we stumble (i. e. , don’t get it right the first time), recover rapidly 33

NPS Overview 34

Net Promoter Score (NPS) Overview The worldwide standard to measure, understand, and improve their customer experience In use for 10 years Very popular and widely used 48% of large companies (over $500 US in revenues) use 35

NPS Customer Categories Customers can be divided into three categories Promoters Passives Detractors Ask one simple question — How likely is it that you would recommend BTC to a friend or colleague? Track these groups Clearly measure your company’s performance through your customers’ eyes 36

NPS Customer Categories Customers respond on a 0 -to-10 point rating scale Promoters (score 9 -10) Loyal enthusiasts who will keep buying and refer others, fueling growth Passives (score 7 -8) Satisfied but unenthusiastic customers who are vulnerable to competitive offerings Detractors (score 0 -6) Unhappy customers who can damage your brand impede growth through negative word-of-mouth 37

Satisfying vs. Delighting Customers Satisfying Customers Like getting a “C” in school It’s average and ordinary Vanilla ice cream Story of purchase at grocery store Delighting Customers Exceeding expectations Doing more than what is expected “Going the extra mile” They are surprised and grateful Usually tell friends and family (P. S. Employees have to be delighted before they can delight customers) 38

Calculating NPS Take the percentage of customers who are Promoters Subtract the percentage who are Detractors Example: 30% - 10% = +20 39

NPS Scores - CALA Wireline: +7 Broadband/Internet: Cable/TV: Wireless: +12 +14 +8 An industry leader has a NPS more than double its competitors 40 Source: Coleman Parkes

NPS Varies By Industry A score of 50 to 80 is typically considered “good” Average companies have Net Promoter Scores of 5 to 10 They have almost as many unhappy customers as happy customers The result is they struggle to achieve sustainable growth Well known US brands with the highest growth rates operate at NPS efficiency ratings of 50 - 80% Amazon Harley-Davidson Zappos Costco Dell In general, a NPS score of over 30 means a company is doing okay 41

How to Ensure NPS Makes A Difference Must be part of a broader ecosystem The entire organization must live and breathe by it Requires: Company-wide buy-in and effort Leadership sponsorship Supports the Customer Experience eco-system The influence of every single employee and external partner on every single customer interaction Challenging to manage the complex set of relationships Works in conjunction with a strong Voice of the Customer (VOC) program and/or Customer Satisfaction (CSAT) Source: Medalia 42

Reasons for Low NPS and How to Improve 43

How Customer Experience Affects NPS The NPS measurement is simply a way to quantify directional performance over a long period of time Improving NPS is tightly linked to retention, revenue increase and cost reduction The real operational focus needs to be on customer experience, not NPS By delivering a rewarding experience that customers will want to talk about, your NPS will automatically reflect those improvements you have made to both your brand recognition and business operations as a whole 44

Reasons NPS so Low for Service Providers Lack of consistent and personal service Only 17% of consumers agree that they always get a consistent response across channels 65% say they are always treated like anonymous customers Irrelevant proactive notifications 3 out of 4 (73%) proactive notifications are not useful in resolving customer issues 1 out of 4 (24%) result in a call to the contact center Ineffective mobile self-service apps 78% of the people that use mobile self-service apps found them hard to use 51% abandoned an online purchase Source: amdocs 45

A Loyalty/Engagement Metric – Influenced by Multiple Factors Technical issues Network quality of service Customer service across channels Call center Proper functioning of equipment Retail stores Corporate accounts Coverage using the device Self service Indirect sales/agents/dealers Billing issues Pricing and value Bill overage, bill errors, etc. Hidden fees, unexplained charges Complicated, hard-to. Source: amdocs understand bills Price of service Value for money 46

Deemphasize the “N” NPS improves by: Eliminating Detractors Increasing Promoters Netting removes clarity since these 2 customer categories can offset each other Look at the rise and fall of Promoters and Detractors independently since changes needed to improve in these areas are different Source: Word Press 47

Focus on Keeping Promoters vs. Uplifting Detractors It costs more to uplift Detractors than keep Promoters Detractors: File complaints Bog down customer service Require more time and resources Won’t buy from you Bad mouth you to others Promoters: Buy more from you Need less service Refer others Act like you own marketing department 6 x more likely to forgive >5 x likely to repurchase 2 x likely to recommend 48 Source: Medallia

What Can Move the NPS Needle? 84% more likely to recommend if the service provider Was able to identify and proactively resolve customer care issues that impact them 83% more likely to recommend if the service provider Would empower them with consistent, easy-to-use self-service via their smartphone Source: amdocs 49

AT&T Best NPS Practices Contact the customer prior to the survey distribution Explain the purpose of the survey Ask them their feedback on the company Commit to follow up on any negative comments Ask them to rate you highly Find out which survey method they prefer – end of call, email, SMS, snail mail Only survey customers who have purchased/installed products/services in 6 months 50

Wrap-Up 51

10 Steps to Improve the Customer Experience 1. Get employee buy-in 2. Run an open, transparent business 3. Deliver consistent customer experiences 4. Train customer-facing employees sufficiently 5. Give customers a personalized experience 6. Measure and analyze customer emotions 7. Act on customer feedback 8. Take the customer's point of view 9. Create a well-balanced customer experience team 10. Design the total customer experience Source: Search. CRM. com 52

Contact Info Melissa Harris, MBA President, Telecom Training Corporation 615 298 5429 office 615 838 2535 cell melissa@telecomtrainingcorporation. com 53

Case Studies • Comcast • TDS Telecom/US Cellular • Telkom South Africa • SETAR, BTL, Telesur, C&W 54

Who is Comcast? An American mass media company Largest broadcasting and cable company in the world by revenue Largest cable company and home ISP in the US Nation's third largest home telephone service provider Offer a triple play solution + home security + Verizon Wireless Owner of NBC Universal Operates: Multiple cable-only channels (including E! Entertainment Television, the Golf Channel, and NBCSN) Over-the-air national broadcast network channels (NBC and Telemundo) Universal Pictures and Universal Parks & Resorts In February 2014 the company agreed to merge with Time Warner Cable worth $45. 2 billion Comcast's customer satisfaction often ranks among the lowest in the communications industry 55

Comcast Case Study - Customer Guarantee We Make The Following Guarantees To Our Customers 1. We will give you a 30 -day, money-back guarantee on our video, voice, high-speed or Home Secure and Control services. 2. We will always be on time within your 2 hour appointment window or we'll credit you $20 or give you a free premium channel for three months. 3. We will resolve routine issues in one visit or we'll credit you $20 or give you a free premium channel for three months. 4. We will treat you and your home with courtesy and respect. 5. We’re Here For You, 24 Hours A Day, 7 Days A Week To Answer Questions At Your Convenience 6. We Will Quickly Address Any Problem You Experience 7. We Will Continually Offer The Best And Most Video Choices 56

Case Study: Comcast Customer Satisfaction Guarantee Since 1963, Comcast has been dreaming big. We bring exciting products and unparalleled choices to customers across America with our state-of-the-art video, high-speed Internet, phone and online services. We push the boundaries of innovation and creativity because we want to exceed our customers' expectations. We are committed to providing Comcast customers with a consistently superior customer experience. If for any reason something goes wrong, we will work to resolve the issue quickly and as professionally as we can. 57

We Make The Following Guarantees To Our Customers 1. We will give you a 30 -day, money-back guarantee on our video, voice, high-speed or Home Secure and Control services. 2. We will always be on time within your 2 hour appointment window or we'll credit you $20 or give you a free premium channel for three months. 3. We will resolve routine issues in one visit or we'll credit you $20 or give you a free premium channel for three months. 4. We will treat you and your home with courtesy and respect. 5. We’re Here For You, 24 Hours A Day, 7 Days A Week To Answer Questions At Your Convenience 6. We Will Quickly Address Any Problem You Experience 7. We Will Continually Offer The Best And Most Video Choices 58

1. We Will Give You A 30 -day, Money-Back Guarantee On Our Video, Voice, High-speed Or Home Secure And Control Services* If you’re not satisfied with these services and wish to cancel for any reason, you can do so in the first 30 days and get your money back. Simply return all equipment in good working order and we’ll refund the monthly recurring fee for your first 30 days of service, any charges you paid for standard installation and any Home Secure and Control equipment purchased. * Home Secure is a 24/7 professionally monitored security solution for residential customers. Home Control is a low-priced self-monitored security solution for residential customers. 59

2. We Will Always Be On Time Within Your 2 Hour Appointment Window Or We'll Credit You $20* Or Give You A Free Premium Channel For Three Months As a courtesy, we will call you before we arrive at your home. And if we fail to arrive for a scheduled visit during the appointment window, we will credit you $20 or give you a free premium channel for three months. 60

3. We Will Resolve Routine Issues In One Visit Or We'll Credit You $20 Or Give You A Free Premium Channel For Three Months After the first visit to your home, if we do not satisfactorily complete installation or can’t resolve a routine issue, we will credit you $20 or give you a free premium channel for three months. Additionally, we won’t charge you for a service visit that results from a Comcast equipment or network problem. 61

4. We Will Treat You And Your Home With Courtesy And Respect Our technicians will display their Comcast identification clearly when they arrive at your home. They will be trained and equipped to complete the job on the first visit. Our Customer Account Executives (CAEs) will be courteous and knowledgeable when you contact us. 62

5. We’re Here For You, 24 Hours A Day, 7 Days A Week To Answer Questions At Your Convenience You can contact us regarding any service-related issue by calling 1 -800 -COMCAST or in any of the following ways: Live Chat online with a Comcast Technician Online community forum 63

6. We Will Quickly Address Any Problem You Experience If we do not satisfactorily complete installation or can’t resolve the routine issue during the 30 days following the first visit to your home, we will extend a complimentary service to your account. Additionally, we won’t charge you for a service visit that results from a Comcast equipment or network problem. 64

7. We Will Continually Offer The Best And Most Video Choices We’re working hard to bring more choices to our customers instantaneously by using the full power of our advanced network and decades of television experience. We will use On Demand to bring you dramatically more content choices, including more movies, more sports, more kids programs, more network TV shows and more HD than anyone else. 65

TDS Telecom / US Cellular (USCC) Largest regional communications provider and one of the top 5 wireless service providers in the US NPS question – “Based on your experience with US Cellular call center representative, how likely are you to recommend US Cellular to your family, friends, or work associates? ” Conducted Voice of the Customer (VOC) analysis Determined the top 2 negative drivers of NPS were: Insufficient product knowledge Billing – new billing types and billing format Product features Poor communication skills No defined process for escalations No established guidelines for callbacks Poor accent, courtesy and comprehension Source: Telus International 66

TDS/USCC Solutions Process improvements Training improvements Escalation and call back processes were created and standardized Job aids and frequently used Resolution Specialists (RS) and Mentors were made accountable for handling escalated calls Agents are required to take the Quality assurance improvements applications were incorporated into an Intranet for easy access monthly Program Mastery Assessment (PMA) exams to measure their understanding and evaluate their progress Capability building Operations managers and team Quality audit guidelines were aligned with the guidelines of the NPS metric Communications skills assessment was incorporated into the quality guidelines supervisors underwent certification to expand their process management knowledge and improve their analytical and problem-solving skills Team supervisors were cross- skilled with senior agents to improve their process and 67 product knowledge Source: Telus International

TDS/USCC Results NPS was +62. 5 Exceeded program target of +50 To date, NPS performance is consistently monitored and sustained 68 Source: Telus International

Telkom South Africa Challenges for Africa’s largest integrated communications company High churn risk from its much criticized service approach Increased competition from new players Issues outside its control Saturation in the fixed line market Decreased revenue from its traditional income services Goal – create a customer-centric organization to: Protect the subscriber base Develop next generation offerings that would contribute to long-term growth 69 Source: Peppers & Rogers Group

Telkom South Africa Solutions Executive team workshops to define the customercentric vision Benchmarking its current customer-focused capabilities against cross-industry best practices Customer journey map Customer-centric roadmap with 70 initiatives over 30 months 24 projects chosen as “quick win” Generated near-term results Building momentum for the overall program Included change management for employees Source: Peppers & Rogers Group 70

Other Company Examples BTL Company wide “wake up” training when competition entered market Executive visits to employees Measurable goals and objectives in performance review plans tied to bonuses to promote accountability Culture change Management and supervisory training New retail sales channel to move from reactive order taking to consultative selling Setar Annual Christmas Event for top customers Company wide “wake up” training when competition entered market Telesur Customer Service now upselling and cross selling C&W East Caribbean - Selling and Supporting 3 G Mobile Data Training St Kitts & Nevis - Customer Service Sales Training when competition entered market 71