Customer Channel Preferences Survey Report Findings for Alpha Company 15 May 2009 SALES AND MARKETING PRACTICE CUSTOMER CONTACT COUNCIL © Survey Responses:

Beta Segment 384

Gamma Segement 619

Delta Segment 986

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Customer Channel Preferences Survey Report Findings for Alpha Company

15 May 2009

SALES AND MARKETING PRACTICE

CUSTOMER CONTACT COUNCIL©

Survey Responses: n= 1989Response Rate:Segment-Specific Participation:

™

© 2009 The Corporate Executive Board Company. All Rights Reserved.

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Customer Contact Council, Sales and Marketing Practice

Managing DirectorMatt Dixon Research DirectorNick Toman

Research TeamBen KoffelBrad FagerDan ClayDalia Naamani-GoldmanJohn TaddeiLara PonomareffLauren PragoffLouise WigginsMelissa Schnyder

Data AnalystsPulkit JainTushar Lahiri

Account Management TeamElizabeth BokKatharine MooreKristie ShiffletteLisa Filler

LEGAL CAVEAT

This document has been prepared by the Corporate Executive Board Company for the exclusive use of Alpha Company. It contains valuable proprietary information belonging to the Corporate Executive Board and/or and Alpha Company. It should be made available only to those employees and agents who require such access in order to learn from the material provided herein and who undertake not to disclose it to third parties without authorization by the Corporate Executive Board and/or Alpha Company. In the event that you are unwilling to assume this confidentiality obligation, please return this document and all copies in your possession promptly to the Corporate Executive Board.

The Corporate Executive Board Company does not make any representation or warranty in connection with this report, and hereby disclaims any and all representations and warranties, express or implied, including, without limitation, the implied warranties of merchantability and fitness for a particular purpose, design or use. This report and the analysis and/or recommendations provided herein are provided on an “as is” basis, and the member for whom this report was prepared assumes all risks as to suitability, use, and potential errors arising from use or implementation.

The Corporate Executive Board is not engaged in rendering Marketing, accounting, or other professional services. This report should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are asked to consult an appropriate professional.

U.S. GOVERNMENT LIMITED/RESTRICTED RIGHTS. UNPUBLISHED—RIGHTS RESERVED UNDER THE COPYRIGHT LAWS OF THE UNITED STATES.

Use, duplication, and disclosure by the U.S. Government subject to restrictions set forth in The Corporate Executive Board Company’s commercial license terms and the protections afforded commercial technical data and computer software, limited rights technical data and restricted rights computer software set forth in FAR 52.227-14, -19, DFARS 252.227-7013, -7004, -7015 and 227.7202, as amended from time to time.

Customer Contact Council Staff

Survey Overview and Cross-Company Findings

Alpha Company Results: Your Customers’ Channel Preferences

Alpha Company Results: Customer Experience Across

Channels

Alpha Company Results: Resolution Effectiveness Across

Channels

ROAD MAP FOR THE REPORT


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4

IN SEARCH OF ANSWERS

OVERVIEW > CUSTOMER PREFERENCES > CROSS-CHANNEL EXPERIENCE > RESOLUTION EFFECTIVENESS

To understand customer preferences, CCC surveyed more than 15,000 consumers.


5


5

INTERPRETING CONJOINT ANALYSISConjoint analysis uncovers the relative customer value of various parts of the customer service offering.



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6

OFF THE MARKCompanies have considerably misestimated the preferences that customers have for the phone and Web channels.



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TEST #1: ISSUE URGENCYWhile customer preferences do shift toward live phone in urgent/important scenarios, this shift is not nearly as pronounced as companies believe.



8


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TEST #2: CUSTOMER AGEGeneral preferences for Web self-service versus phone only marginally decline into older customer generations.



9


9

A TURNING OF THE TIDEWhile a sociological shift is occurring around customer comfort and desire to self-serve, phone volume is not proportionally declining.



10


10

LEAVING IT ON THE TABLECustomers are already using the Web self-service channel, indicating that the critical opportunity is in getting customers to stay in the Web.



11


11

GET 2 OUT OF 10 TO “STICK” A significant percentage of Web contacts presents an attainable opportunity to increase Web stickiness.



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12

COSTING YOU MORE NOW…AND LATER In addition to cost savings, improving Web self-service usage will result in improved customer loyalty.





Channels


Channels



14


55%51%

27% 36%

6%

4%5%3%

7% 6%

Alpha Company CCC B2C Benchmark

Web site Phone E-mail Web chat Web search engine

CUSTOMERS’ CHANNEL OF CHOICEHow Your Customers Want to Solve IssuesPercentage of Customers Who Go To A Channel FIRST To Solve Their Issues

To see your segment-specific results, click HERE.

More than 50% of your customers want to use the Web to solve service issues.



15


50%

59% 61%56%

51% 50%

14%

17%

24%

27%31%

37%14%

6%

4%2%

8%

7%

0%

5%

4%6%

5%3%

21%

12%7% 9%

5% 3%

21-30 31-40 41-50 51-60 61-70 71 and Older

Web site Phone E-mail Web chat Web search engine

CHANNEL CHOICE BY AGE

How Your Customers Want to Solve Issues By AgePercentage of Customers Who Go To A Channel FIRST To Solve Their Issues

THROUGH AGE 70, customers prefer the Web over all other channels.



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71%75%

47%

64%

74%

45%

35%

57%

Web site Phone E-mail Web chat


MULTI-CHANNEL CONFIDENCE

Customers Confident in Various ChannelsPercentage of Customers With High Confidence (5–7 on Scale)

Customers are significantly more confident in the Web and phone, rather than E-mail and Web chat.




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80% 79%75% 73% 71% 68%

21-30 31-40 41-50 51-60 61-70 71 and Older

70%53%


CURRENT WEB STICKINESS

Percentage of Callers Who First Visit Web

70% of your call volume is avoidable: these callers tried to use the Web first.

Callers Who First Visit Web by Age






Channels


Channels



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2.9 3.1


21%

16% 14%18% 17%

25%

17%

22%

31%

18%

1 2 3 4 5


CUSTOMER EFFORT SCORE™ Your Customer Effort Score performance is above the benchmark.

• CCC recommends the Customer Effort Score™ as the best measure of customer loyalty.

• To learn more about the Customer Effort Score, click here.

Customer Effort Score™ Average

Distribution of Customer Effort Score™ Responses

Very low effort

Very high effort




20


Alpha Company 20%

CCC B2C Benchmark -6%

NPS Efficiency

21%

49%43%

21%

37%29%

Detractor Neutral Promoter


3.7 3.5


ADDITIONAL EXPERIENCE MEASURESThis page depicts customer satisfaction and advocacy metrics. Customer Satisfaction

Net Promoter® Score

To see the distribution and your segment-specific results, click HERE.

06 78 910



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3.0

3.0

3.23.2

3.1

3.3

2.9

3.2

Web site Phone E-mail Web chat


CUSTOMER EFFORT ACROSS CHANNELSYour customers find the E-mail to be the easiest channel to use.

• If you do not offer Web chat to customers, please disregard the data regarding Web chat on this page. Respondent error has caused this data to appear in

your data set.

Channel-Specific Customer Effort




22


24%

30%24%

7%

14%

13% 14%

26% 26%22%

1 2 3 4 5

46%45%

10%

19%

45%

36%

Worse Same Better

EXPERIENCE IN THE WEB CHANNELCustomer Satisfaction with the Web Channel


Web Experience Compared to That With Other Companies

Very dissatisfied Very satisfied

46% of your customers evaluated their Web experience with you as better than that with other companies. CCC B2C Benchmark



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5%

17%11%

39%

27%

17%

9%

15%

22%

36%

1 2 3 4 5

28%

59%

13%20%

28%

52%

Worse Same Better

EXPERIENCE IN THE PHONE CHANNELCustomer Satisfaction with the Phone Channel

Phone Experience Compared to That With Other Companies

59% of your customers evaluated their phone experience with you as better than that with other companies.


CCC B2C Benchmark




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12%

21%

38%

7%

22%27%

11%

20% 18%

25%

1 2 3 4 5

16%

46%

38%

29%

36% 35%

Worse Same Better

EXPERIENCE IN THE E-MAIL CHANNELCustomer Satisfaction with the E-Mail Channel

E-Mail Experience Compared to That With Other Companies


46% of your customers evaluated their e-mail experience with you as better than that with other companies. CCC B2C Benchmark




25


17%

43%

17%17%

4%

22%

10%

20% 19%

30%

1 2 3 4 5

48%43%

10%

20%

36%

44%

Worse Same Better

EXPERIENCE IN WEB CHAT CHANNELCustomer Satisfaction with the Web Chat Channel

Web Chat Experience Compared to That With Other Companies

48% of your customers evaluated their Web chat experience with you as better than that with other companies.

• If you do not offer Web chat to customers, please disregard the data regarding Web chat on this page. Respondent error has caused this data to appear in your

data set.

CCC B2C Benchmark







Channels


Channels



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14%

86%

Used Did not use

17%

3%

17%

2% 14%

33%

14%27%

14% 15%

6%1%

13%

24%

Online search FAQs Web-guidedresolution

E-forums Online video Random clicks Other

58%

9%

16%18%

45%

9%

30%

16%

Yes No: Intend to tryagain

No: Intent to switchchannels

No: Gave upcompletely

WEB SELF-SERVICE RESOLUTION

Web Usage Resolution Success in Web Self-Service

Your customer-reported Web resolution rate is above the benchmark.

Methods to Resolve Issues OnlineOf Customers Who Resolved Issue Online*

*Respondent error could account for very low percentages, even if certain methods of resolution do not exist.


CCC B2C Benchmark


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30%23%

10%9%

9%9%

4%7%

9%13%

31%

12% 14%

5% 5%11%

Only looking forcontact

information

Wereinstructed to

call

Could not findanswer

Informationwas unclear

Issue was toocomplex

Not confident inself-service

answer

Technical glitch Other

WHY CUSTOMERS DON’T STICK ONLINECustomers most often fail to resolve issues online due to: 1) navigation issues; or 2) poor information quality.

Causes of Resolution Failure in the Web Channel

CCC Advice on Improving Web Effectiveness

• If your customers are only looking for contact information, see our case from Cisco on drawing customers to self-service.

• If your customers cannot find answers, see our case from Fidelity on improving navigation for complete issue resolution.

• If your customers find information unclear or are not confident in the answers, see our case from Travelocity on world-class rules for FAQs.

• To see our full resources on improving Web self-service, click here.


CCC B2C Benchmark


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30%

70%

Used Did not use

10% 11%18%10%

18%

33%

1%7%

16%

5%

28%24%

7%12%

Selected wrongoptions

Process took toolong

Unclear response Issue was toocomplex

Voice recognitionfailed

Got disconnected Other

4%

27%

69%

4%

73%

24%

Yes No: Used IVR for routing tolive rep

No: Tried to use IVR for self-service but failed

• To see our full resources on improving IVR self-service and routing, click here.

Causes of Resolution Failure in the IVR Channel

Your customer-reported IVR resolution rate is just at the benchmark.

IVR RESOLUTION

IVR Usage Resolution Success in IVR

CCC B2C Benchmark



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91%

9%

Used Did not use

32%

4%

22%20%

22%25%

31%

6%

14%

24%

Late/no response Scripted/genericresponse

Unclear response Issue was too complex Other

9%11%

55%

26%

46%

10%15%

28%

Yes No: Intend to tryagain

No: Intent to switchchannels


Causes of Resolution Failure in the E-Mail Channel

Your customer-reported e-mail resolution rate is above the benchmark.

E-MAIL RESOLUTION

E-Mail Usage Resolution Success in E-Mail

CCC B2C Benchmark



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96%

4%

Used Did not use

20%

10%

20%20%

20%

10%0%7%

25%

7%

27%23%

6% 5%

Late response Scripted/genericresponse

Unclearresponse

Issue was toocomplex

Other Gotdisconnected

Difficult to use

13%

4%

48%

35%

52%

7%

19%22%

Yes No: Intend to try again No: Intent to switchchannels


Causes of Resolution Failure in the Web Chat Channel

Your customer-reported Web chat resolution rate is just at the benchmark.


your data set.

WEB CHAT RESOLUTION

Web Chat Resolution Success in Web Chat

CCC B2C Benchmark


APPENDIX:

Additional Findings for Alpha Company

15 May 2009

SALES AND MARKETING PRACTICE

CUSTOMER CONTACT COUNCIL©


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50%47%

62%

32%36%

20%

7% 6%5%

5% 5% 6%

5% 7% 8%

Beta Segment Gamma Segement Delta SegmentWeb site Phone E-mail Web chat Web search engine

This page corresponds to page 14 in your report. How Your Customers Want to Solve Issues

Percentage of Customers Who Go To A Channel FIRST To Solve Their Issues

APPENDIX: SEGMENT-SPECIFIC DATA

Q: In general, which of the following methods would be your preferred way of handling a typical customer service request with a company?

To return to high-level data, click HERE.


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Overall Average Website Phone E-mail Chat

Alpha Company 5.3 5.4 4.7 4.2

CCC B2C Benchmark 4.9 5.4 4.2 3.6

Beta Segment 5.1 5.6 4.5 4.0

Gamma Segement 5.0 5.6 4.5 4.0

Delta Segment 5.5 5.3 4.8 4.3

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

Customers Confident in Various Channels

This page corresponds to page 16 in your report.


Q: In general, please rate your level of confidence with using each of the methods below to resolve a customer service request.

1 7Not at all confident Very confident



35


66% 67%

93%

Beta Segment Gamma Segement Delta Segment

Percentage of Callers Who First Visit Web





36


Alpha Company 2.9

CCC B2C Benchmark 3.1

Beta Segment 2.9

Gamma Segement 3.0

Delta Segment 2.7

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Overall Average

Customer Effort Score™ Average



Q: Thinking about this service interaction, how much effort did you personally have to put forth to handle this request?

1 5Very low effort Very high effort



37


Alpha Company 3.7

CCC B2C Benchmark 3.5

Beta Segment 3.8

Gamma Segement 3.7

Delta Segment 3.7

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Overall Average

17% 19%

44%

13%

7%20%

8%

15%19%

39%

1 2 3 4 5

Customer Satisfaction

Distribution of Customer Satisfaction Responses




CCC B2C Benchmark

Q: How satisfied or dissatisfied are you with the experience you had with customer service/support?

1 5Not at all satisfied Very satisfied



38


Web Effort Phone Effort E-mail Effort Web chat Effort

Alpha Company Average 3.0 3.0 2.9 3.2

CCC B2C Average 3.2 3.2 3.1 3.3

Beta Segment 2.5 3.0 2.8 3.6



0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0



your data set.

Q: Specific to each channel experience, how much effort did you personally have to put forth to handle this request?

1 5Very low effort Very high effort




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Web Satisfaction

Phone Satisfaction

E-mail Satisfaction

Web chat Satisfaction


CCC B2C Average 3.3 3.5 3.0 3.3

Beta Segment 3.9 3.7 3.5 3.8



0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

This page corresponds to pages 22–25 in your report.


your data set.


Q: How satisfied or dissatisfied are you with your overall (channel) experience?

1 5Not at all satisfied Very satisfied



40


Web Experience

Compared to Others

Phone Experience

Compared to Others

E-mail Experience

Compared to Others

Web chat Experience

Compared to Others


CCC B2C Average 6.1 6.9 5.8 6.6

Beta Segment 7.3 7.5 6.7 6.3



0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

This page corresponds to pages 22–25 in your report.


your data set.


Q: Was the (channel) experience with this company better or worse than other customer service-related (channel) experiences you have had recently?

1 10Significantly worse Significantly better


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Customer Channel Preferences Survey Report Findings for Alpha Company 15 May 2009 SALES AND MARKETING PRACTICE CUSTOMER CONTACT COUNCIL © Survey Responses: