AA-ISP Presentation- InsideOut -Final

Proprietary and Confidential

Copyright Inside Out Solutions, LLC No part or process to be used without permission.

Chad Nuss

Founder and EVP Strategy

inside|out

How to turn Customer Service

into a Profit Center

Proprietary and ConfidentialProprietary and Confidential

What the experts say…

“Organizations need to get the maximum value out of every customer relationship by reaching customers in a way the leverages knowledge of individual styles and preferences”

Recent McKinsey data indicates as much as “70 percent of a customer’s buying experience is based on how the customer feels they are treated.”

“Simply stated, advocacy is being built and traded in a matter of seconds.”

https://www.youtube.com/watch?v=1-mOKMq19zU

https://www.youtube.com/watch?v=1-mOKMq19zU


From reactive to pro-active dialogue…

We are operating in a new world

B2B Companies are now under pressure more than ever to

grow top-line, even as they

• Adapt to rapidly evolving technologies

• Deliver new pricing structures + business models

• Find, grow, and keep their customer base• Faster moving competition

• Increased buyer sophistication

• Radically reduced switching costs


What I hear on the inside sales floor…

How do I keep growing revenue from my installed base of customers?

How do I ensure my customers use and get value from my solutions?

How can I decrease customer churn?

How can I make sure that every one of my users gets off to a great start?

How do I get customer support calls and escalations prioritized based on sales requirements?


Some simple scenarios that make us sales people cringe

1. Poor Knowledge of Product: The person answering the support line knows less than the caller. So the person with the problem has to waste even more of her time educating the person with access to the resources that could actually make the problem go away.

2. Assuming Support is Always Right. The person answering the support line treats the caller as yet another person who didn't read the manual. It takes them a long time to understand that the manual was wrong about some specific detail of the API.

3. Won’t Escalate the Problem because of poorly designed KPI. The person answering the support line has incentives to not escalate the problem quickly. So they'll bump around, banging their head into walls...re-discovering what the caller already knows.

4. The Problem Didn’t Actually Get Solved. The support person will want to close the case early, even when the problem isn't fixed. So the person with the problem has to re-open the case, wasting more wall-clock time and impacting the partner's schedule.

5. You Get What you Paid For. All this goes double when the support person is from a culture that has trouble saying "I don't know" or "we made a mistake." Unfortunately, a lot of low-cost labor supplies seem to be in those cultures.

Getting Support Calls? It’s too late!


Customer Service vs. Sales DNACustomer Service

• Marginally profitable operations or outright cost centers

• Reduce cost of providing acceptable service

• IT and Phone infrastructure minimized to reduce call times and get customer to self support

• Optimize number of closed cases

• Invest heavily in saving a few seconds per call, setting up expensive menu trees, automation, monitoring and analytic systems

The crux of this business process design?

"There's no revenue opportunity here." While there may be some attribution of per-incident revenue, there's little thought of an upsell — the customer service rep isn't seen as an agent for sales. Further, there's typically an indirect connection between customer satisfaction and support renewal.

Inside Sales

• Revenue based mentality

• Focused on monthly and quarterly sales goals

• ROI and Revenue per Head are critical measurements

• Focused on making individual and team revenue numbers

• Invest heavily in automation systems to improve productivity of inbound and outbound customer calls

The crux of this business process design?

“There’s no room for non-revenue producing heads." Compensation models will drive behavior for hunter or farmer models to find, grow keep customers. Leads from existing customers are critical to success of farming models, and have direct connection with customer on compelling events (ie. Renewals).

I can’t handle all these calls, there are too many bugs in the product!

I made my quota for the quarter!


Develop a Customer Success Practice

How do I drive the best conversion?

Is usage meeting expectations?

What is time to value?

Did the customer get good value from the product or service?

Is the service underpriced compared to usage?

What is the next best offer based on value derived?

What are the right plan types or pricing for customer?





Build KPIs into the Marketing and Sales Process

• Increased decision maker count

• Campaign sophistication improvements

• Reduction in useless emails to wrong person

• Opportunity increase through conversations

• Increased sales through improved coverage

Measure Advocacy across your Customer Base

• Health Check grades and usage scores

• Loyalty spectrum analysis based on stage

• Measuring advocacy based on behaviors

• Understand the immediate steps to move them

• Have a long term plan of engagement


Sales Metrics

• Compressed sales cycles

• Pipeline generation

• Y/Y or M/M Revenue uplift

• Renewal Rate

• Addt’l Decision Maker ID

Customer Success Metrics

• Customer satisfaction

• Product usage

• Customer adoption

• Customer health score

• Churn reduction

Customer Service Metrics

• Service call reduction

• AHT time reduction

• Cross sell lead generation

• Up sell lead generation

• Net promotor score

Marketing Metrics

• Lead referrals

• Conversion to pipeline %

• Social Media reviews

• Content downloads

• X Sell/Up Sell click-through

Internally Facing Metrics

• Membership rate

• Engagement rate

• Engagement frequency

• Advocacy rate

• Advocacy frequency


OR


Do the Math!

• Prioritization comes with

alignment on three key

factors: #/$/%

• No time to be re-active,

you must create a pro-

active customer experience

strategy



Things that Customer Support can do

to support Customer Success More Sales through Customer Evangelists. Delight a customer and they will tell their friends. The average number

of people a social customer will tell about a good customer experience: 42, according to the American Express®

Global Customer Service Barometer.

Sales Retention through Customer Service Knowledge. The best salespeople should be able to quickly connect

their customers to support, know their customers’ current issues, and be able to view and update them on the

progress.

Increased Sales through Responsiveness and Personalization. When the customer feels like the whole company

knows and cares about them beyond the sale and through to customer service, retention and future sales are sure

to follow. P.S. If you use a channel for sales (such as email in my personal story above), also use it for customer

service (and be just as responsive).

New Customers from Engagement. When a prospective customer sees a brand actively engaging their current

customers on social media, not just in conversation but in customer service, it’s most impressive. When companies

engage and respond to customer service requests over social media, those customers end up spending 20% to

40% more with the company, notes a Bain & Company study.

Customer Retention through Action on Feedback. When a customer requests or makes a suggestion for a product

or service, and it is made so – cha-ching! You’ve earned their business for years to come.

Helping and Selling Customers on Chat. Live chat is a staple of customer service, but it’s also a helpful sales tool.

May I help you find something? Are you having trouble with checkout? Might I suggest this for you instead?

Proactive customer service and engagement via live chat can be sales’ best friend.

Courting Customers with Content. Content is king, every facet of it, including customer service. According to

Fleishmann-Hillard, 80% of consumers go directly to business websites or turn to Google, Bing or another search

engine to find information on products, services or businesses before any human to human interaction takes place

(if it ever does). Make sure your customer service knowledgebase/FAQ section is up-to-date.


Tools that help Support drive Sales

Dynamic Call Flow Guides

Customer Support to Sales Playbook

Dynamic Pricing

Real-Time Appointment Setting

Product Propensity Recommendations

Hot Call Transfer Queue

Gamification

Pitch and Transfer Compensation Program

Online Chat Queue


.

Customer Success: Inbound Care and Retention

Challenges

Tier 1 ‘Pitch and Catch’ Transfers for both B2B and B2C

customers needing tech support that required a service

contract plan

Customers were requiring technical assistance that wasn’t

covered under the standard Comcast service plan were very

frustrated and lowered Comcast brand perception

Solution

25 Tier 1 Agents selling support services from initial

inbound care or retention call

Up sell ‘Geek Squad” style premium support to SMBs

that required technical support on office equipment

including laptops, servers, wireless routers

Designed 3 Tiers of Subscription support to engage

different levels of customers with varying business

requirements

Provided Tier 1 – Tier 3 Customer Support and Help Desk

Key Results

15% conversion rate to subscription sold from inbound

‘actionable’ calls

25% Upsell to Bundling Services from initial inbound retention

call

20,000 Subscriptions sold within 12 months

42% increase in Net Promoter customer survey score

Best Practice Learning

Bundling offers delivered the highest conversion rate across all

offers

Developing product pricing and competitive offering requires

customer feedback and competitive intelligence

Flexibility and agility in monthly program adjustments were key

to the success of developing happy customers


.

Customer Success: Outbound Churn Reduction Program

Challenges

>20% SMB churn rate on existing customer on month to

month agreements from B2B Voice/IP competitors

Challenge in convincing customers to convert from

month-to-month agreements to annual or multi-year

subscription agreements

Customers with AOV <$25,000 annually were un-

managed by existing Verizon telesales teams

Solution

Engage select, high propensity customers via outbound

campaign leveraging email, telephone and responsive

microsite to deliver subscription value proposition

Small Business Advisors deployed to (10 USA Dedicated

Agents) offer solution orientated recommendations and

assistance to all Verizon core products

Key Results

10% decline in churn rate

35% conversion to annual subscription from month-to-month

3x increase in customer connections through multi touch

program (email/web/phone)


Engage with ‘advisory’ approach via phone

Develop online communication methods to increase penetration

rate of customer list

Generate compelling financial offer to switch from month to

month to subscription since the Lifetime Value average is well

above 3+ years


.

Customer Success: Office 365 Customer Success Program

Challenges

94% abandonment at online ecommerce store

24% of trials were resellers on behalf of customers,

creating loss of end-user visibility

No ongoing nurture cadence post purchase

Global telesales coverage model was at 120% max

capacity and unable to manage in flow of trials

Solution

Lead scoring and propensity to buy modeling to prioritize

trials and small customers for outbound nurture campaigns

Predictive cadence management for 30 day trial deployed

to ensure most appropriate touch point at most

meaningful time

120 global Tele agents covering inbound responses, trials

and MQLs across 71 countries and 42 languages covering

24x7 model

Key Results

700,000 inbound trials and responders managed per month

54% conversion from trial to opportunity

118M seats uncovered within 12 months

15% upsell cross sell to other cloud products

38% cross sell for professional implementation services


Prioritization and scoring of inbounds yields rewards on

investment regardless of the Average Order Size (AOV)

Communication cadence timing is paramount to the success of

the sales pursuit process, engaging with prospects or customers

within <10 minutes of trial signup yielded an 85% call to connect

rate vs. the industry average of <12%





Some final thoughts on how to get started!

1. Develop your customer experience baseline

3. Test and measure you baseline customer experience and build upon it

2. Deploy a customer success practice that crosses each functional group

4. Get Customer Support on Board!

5. Refine processes and begin to consolidate and dedicate resources for the role



Chad Nuss

EVP Strategy

Thank You!

Documents

AA-ISP Presentation- InsideOut -Final