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New Economics of Speech in the Enterprise Steve Ehrlich VP Marketing Apptera. Profit per Customer, Retention and Loyalty are at All-time Lows. How do I make customers more loyal?. How can I get customers to buy more?. How can I differentiate from the competition?. - PowerPoint PPT Presentation
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New Economics of SpeechNew Economics of Speech in the Enterprise in the Enterprise
Steve EhrlichSteve EhrlichVP MarketingVP Marketing
AppteraApptera
New Economics of SpeechNew Economics of Speech in the Enterprise in the Enterprise
Steve EhrlichSteve EhrlichVP MarketingVP Marketing
AppteraApptera
Profit per Customer, Retention and Loyalty are at All-time Lows
How can I get customers to buy more?
How can I get customers to buy more?
How do I make customers more loyal?
How do I make customers more loyal?
How can I differentiate from the competition?
How can I differentiate from the competition?
Is there a way to reach customer
more easily?
Is there a way to reach customer
more easily?
Enterprise View
Call Center Challenges Customer Frustration with Phone-based Service is at an All-time High
Why must I wait on hold
for ever?
Why must I wait on hold
for ever?
Why does it take so long just to get a quote?
Why does it take so long just to get a quote?
Are you going to transfer me
again?
Are you going to transfer me
again?
Why are there so many menu
options?
Why are there so many menu
options?
Customer View
90% of Customer 90% of Customer Interactions occur Interactions occur
over the phoneover the phone
INITIATIVE 1
IMPROVE THE QUALITY OF CUSTOMER SERVICE
IMPROVE THE QUALITY OF CUSTOMER SERVICE
The Golden Opportunity
““The quality of our The quality of our customer service is our customer service is our
single biggest opportunity single biggest opportunity for revenue growth and a for revenue growth and a
higher stock price.“higher stock price.“
““The quality of our The quality of our customer service is our customer service is our
single biggest opportunity single biggest opportunity for revenue growth and a for revenue growth and a
higher stock price.“higher stock price.“
Richard M. KovacevichRichard M. KovacevichChairman and Chief Executive OfficerChairman and Chief Executive OfficerWells FargoWells Fargo
Impact of Service Improvement Initiative
SERVICE QUALITYSERVICE QUALITY REVENUEREVENUE
High
Low
COST EFFICIENCYCOST EFFICIENCY
Reduce hold timesReduce hold times
Train agentsTrain agents
Reduce hold timesReduce hold times
Train agentsTrain agents
Higher agent costsHigher agent costsHigher agent costsHigher agent costs
Impact of Speech on Customer Satisfaction
Overall satisfaction rateOverall satisfaction rate
Source: Nuance Survey of 250 Callers (1999)
Prefer speech recognition systems to human agentsPrefer speech recognition systems to human agents
Prefer speech to touch tonePrefer speech to touch tone
74%74%74%74%
83%83%83%83%
83%83%83%83%
Sample Speech Capabilities
• Transfer funds “Transfer six hundred dollars from checking to
savings”
• Enter a name “Donald, D-O-N-A-L-D”
• Get a quote “Thirty year fixed rate”
• Place a trade “Buy five hundred shares of Big Blue at the market”
• Find the nearest branch “Corner of fifth avenue and fifty fifth street”
• Transfer funds “Transfer six hundred dollars from checking to
savings”
• Enter a name “Donald, D-O-N-A-L-D”
• Get a quote “Thirty year fixed rate”
• Place a trade “Buy five hundred shares of Big Blue at the market”
• Find the nearest branch “Corner of fifth avenue and fifty fifth street”
Case Study
• Bank of America - Branch/ATM locatoro Goal: Customer delighto Touch-tone system only allowed zip and phone
number searcheso Speech system enables callers to search by
address, cross-street, zip code or phone number
o Almost half of all callers search by address• Practical increase in automation rate of 50%
o More accurate locations provided to callers• Previously searches started at the center of the zip code
INITIATIVE 2
LOWER COSTSLOWER COSTS
How Much Can You Save?
US agents: $40K/year * 8 hours worked/agent * 3 agents/day
International agents: $10K/year * 8 hours worked/agent * 3 agents/day
$5,000
Annual Cost of Answering One Phone Line 7x24
$30,000
$120,000US-based
Agent
International Agent
Speech-enabled Phone Line
Basic ROI Calculation(Call center with 100K
calls/month)• 50 agents @ $40,000/yr = $2,000,000• 47 ports @ $5,500/port = $ 260,500• Three year cost (incl. toll, telecom, etc.)
o Before automation $6,500,000 ($1.79/call)
o After automation $2,000,000 ($0.55/call)
• Time to recover investment: 2.2 months
Case Studies
Service improvementService improvement Cut call duration in halfCut call duration in halfSavingsSavings Paid for itself “many times over”Paid for itself “many times over”Service improvementService improvement Cut call duration in halfCut call duration in halfSavingsSavings Paid for itself “many times over”Paid for itself “many times over”
Applications: Retail banking
SavingsSavings Reduced cost per call by $4Reduced cost per call by $4ROIROI < 10 months< 10 months SavingsSavings Reduced cost per call by $4Reduced cost per call by $4ROIROI < 10 months< 10 months
Applications: Stock and fund quotes and trading
Make Sure You Don’t End up Back Where You Started
SERVICE QUALITYSERVICE QUALITY REVENUEREVENUE
High
Low
COST EFFICIENCYCOST EFFICIENCY
Longer hold timesLonger hold times
Confusing menusConfusing menus
Longer hold timesLonger hold times
Confusing menusConfusing menus
Reduce agent poolReduce agent pool
Increase automationIncrease automation
Reduce agent poolReduce agent pool
Increase automationIncrease automation
INITIATIVE 3
INCREASE REVENUEINCREASE REVENUE
Consumer Marketing Challenge
• Telemarketers are blocked by don’t-call lists
• Direct mail is trashed unopened• Email is rejected by spam filters• Pop-up ads are blocked• TV ads are “Tivo-ed” out
• Telemarketers are blocked by don’t-call lists
• Direct mail is trashed unopened• Email is rejected by spam filters• Pop-up ads are blocked• TV ads are “Tivo-ed” out
Every Attempt to Reach Customers is Being ThwartedEvery Attempt to Reach Customers is Being Thwarted
Yet the Most Valuable Marketing Tool
is Being Ignored
The Phone Channel has a Significant Impact on Loyalty
Over 90% of Customer Interactions Occur Over the PhoneOver 90% of Customer Interactions Occur Over the Phone
After a good experience:
89% of customers are likely to repurchase
After a good experience:
89% of customers are likely to repurchase
After a poor experience:
68% of customers are likely to defect
After a poor experience:
68% of customers are likely to defect
Do You Know Which Ones are Yours?
Focusing Only on Revenue Will Impact Service Delivery
SERVICE QUALITYSERVICE QUALITY REVENUEREVENUE
High
Low
COST EFFICIENCYCOST EFFICIENCY
Up-sell programsUp-sell programsUp-sell programsUp-sell programsAgent re-trainingAgent re-training
Less automationLess automation
Agent re-trainingAgent re-training
Less automationLess automation
Defocus on serviceDefocus on serviceDefocus on serviceDefocus on service
Meeting All Goals is a Balancing Act
SERVICE QUALITYSERVICE QUALITY REVENUEREVENUE
High
Low
COST EFFICIENCYCOST EFFICIENCY
What’s Wrong With This Picture?
• Every caller listens to the same menu
options
• Callers are given menu options that are
irrelevant to them
• Callers re-enter/provide the same
information every time they call (and
often several times on the same call)
• Information gets on the Web months
before it shows up in an IVR
What if Every Call…?
• … is tailored to the precise intent, needs, interests and preferences of individual customers
• … dynamically utilizes business rules and customer profile information to create the ultimate customer experience
• … becomes a vehicle for business managers to market to, educate and inform customers
The Service-Revenue Cycle
The More Sold, the More Learned
The More Sold, the More Learned
Higher Quality ofService
Higher Quality ofService
The Better the Service,the More Purchased
The Better the Service,the More Purchased
The More Known, the Easier to Target
The More Known, the Easier to Target
The More Sold, the More Learned
The More Sold, the More Learned
Higher Quality ofService
Higher Quality ofService
The Better the Service,the More Purchased
The Better the Service,the More Purchased
The More Known, the Easier to Target
The More Known, the Easier to Target
Applying Technology to the Cycle
Greater Understandingof Needs
Greater Understandingof Needs
Greater Understanding of Interests
Greater Understanding of Interests
Ultimate Caller ExperienceUltimate Caller Experience
More PurchasesMore Purchases
TargetedTargetedCampaignsCampaigns
PersonalizationPersonalizationProfilingProfiling
VoiceVoiceApplicationsApplications
Financial Services Example
Manage accounts, enroll in Manage accounts, enroll in services, get informationservices, get information
RESULTRESULT:: Meet basic customer needs Meet basic customer needs of fast, easy and friendly of fast, easy and friendly serviceservice
Manage accounts, enroll in Manage accounts, enroll in services, get informationservices, get information
RESULTRESULT:: Meet basic customer needs Meet basic customer needs of fast, easy and friendly of fast, easy and friendly serviceservice
Self-service systemsSelf-service systemsSelf-service systemsSelf-service systems
““Receive $500 a year in Receive $500 a year in interest by transferring half interest by transferring half your balance to a CD”your balance to a CD”
RESULTRESULT:: Increase profitability per Increase profitability per customercustomer
““Receive $500 a year in Receive $500 a year in interest by transferring half interest by transferring half your balance to a CD”your balance to a CD”
RESULTRESULT:: Increase profitability per Increase profitability per customercustomer
CampaignsCampaignsCampaignsCampaigns
““Refinance now and you Refinance now and you could reduce your mortgage could reduce your mortgage payments by $300”payments by $300”
RESULTRESULT:: Boost revenue and Boost revenue and customer loyaltycustomer loyalty
““Refinance now and you Refinance now and you could reduce your mortgage could reduce your mortgage payments by $300”payments by $300”
RESULTRESULT:: Boost revenue and Boost revenue and customer loyaltycustomer loyalty
ProfilingProfilingProfilingProfiling
Offer automatic transfers to Offer automatic transfers to customers who transfer customers who transfer money every paydaymoney every payday
RESULTRESULT:: Improve customer loyalty Improve customer loyalty and satisfactionand satisfaction
Offer automatic transfers to Offer automatic transfers to customers who transfer customers who transfer money every paydaymoney every payday
RESULTRESULT:: Improve customer loyalty Improve customer loyalty and satisfactionand satisfaction
PersonalizationPersonalizationPersonalizationPersonalization
Retail Example
Shop, buy, and get order Shop, buy, and get order and store informationand store information
RESULTRESULT:: Meet basic customer needs Meet basic customer needs of fast, easy and friendly of fast, easy and friendly serviceservice
Shop, buy, and get order Shop, buy, and get order and store informationand store information
RESULTRESULT:: Meet basic customer needs Meet basic customer needs of fast, easy and friendly of fast, easy and friendly serviceservice
Self-service systemsSelf-service systemsSelf-service systemsSelf-service systems
““If you increase the size of If you increase the size of your order by $5, your your order by $5, your shipping will be free”shipping will be free”
RESULTRESULT:: Increase revenue per Increase revenue per customer ordercustomer order
““If you increase the size of If you increase the size of your order by $5, your your order by $5, your shipping will be free”shipping will be free”
RESULTRESULT:: Increase revenue per Increase revenue per customer ordercustomer order
CampaignsCampaignsCampaignsCampaigns
““The shirt you ordered in The shirt you ordered in January is now available in January is now available in your size in blue”your size in blue”
RESULTRESULT:: Boost revenue and Boost revenue and customer loyaltycustomer loyalty
““The shirt you ordered in The shirt you ordered in January is now available in January is now available in your size in blue”your size in blue”
RESULTRESULT:: Boost revenue and Boost revenue and customer loyaltycustomer loyalty
ProfilingProfilingProfilingProfiling
Dynamically default to fast Dynamically default to fast check-out for customers check-out for customers with a stored profilewith a stored profile
RESULTRESULT:: Improve customer loyalty Improve customer loyalty and satisfactionand satisfaction
Dynamically default to fast Dynamically default to fast check-out for customers check-out for customers with a stored profilewith a stored profile
RESULTRESULT:: Improve customer loyalty Improve customer loyalty and satisfactionand satisfaction
PersonalizationPersonalizationPersonalizationPersonalization
Summary
• Speech has been proven to deliver a compelling ROI
• Consider how to balance the benefits ofo Improving customer satisfactiono Lowering operating costso Increasing revenue
Steve EhrlichSteve [email protected]@apptera.com
AppteraAppterawww.apptera.comwww.apptera.com
(650) 635-0600(650) 635-0600
Steve EhrlichSteve [email protected]@apptera.com
AppteraAppterawww.apptera.comwww.apptera.com
(650) 635-0600(650) 635-0600
