Customer Driven Digital Transformation
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The document discusses strategies for successful digital transformation. It argues that the most common mantras of "technology is key" and "ambition is all it takes" often fail because digital transformations require focusing on people, processes, and customer experience instead. The document outlines an approach of establishing a clear vision, getting feedback from customers, improving transparency and processes, and using technology to enable other changes rather than being the primary driver. It provides examples from one company's digital transformation journey of improving processes, using data to enhance the customer experience, and introducing new digital services and channels.
![Change by Changing Your Mindset.
Customer Driven Digital Transformation Conference [#DTCXJULY19]
René Werner - July 19th 2018](https://image.slidesharecdn.com/2018-07-19marketing-dtcxjuly19-180801183711/85/Customer-Driven-Digital-Transformation-1-320.jpg)
![We have shifted strongly to digital interactions.
Growth in digital transactions is strongly driven by creating service availability online
& awareness campaigns from traditional channels.
1.0x
2.0x
3.9x
2017
2016
2015
Digital
Interactions
(Indexed vs. 2015)
4.4x
SOCIAL MEDIA ENGAGEMENT
[YoY Growth – 2017 vs. 2016 in %]
SOCIAL MEDIA REACH
[YoY Growth – 2017 vs. 2016 in %]
APP ACTIVE
DOWNLOADS (‘000)
APP WEEKLY
ACTIVE USERS (‘000)
30-Apr-
’18
30-Apr-
’17
3.6x 2.9x
30-Apr-
’18
30-Apr-
’17 Peers*
15%
60%
4x
Celcom Celcom
-22%
Peers*
28%
EXISTING DIGITAL TOUCHPOINTS :
PROMOTION & NEW SERVICES
DEVELOPING NEW TOUCHPOINTS :
SOCIAL MEDIA](https://image.slidesharecdn.com/2018-07-19marketing-dtcxjuly19-180801183711/85/Customer-Driven-Digital-Transformation-7-320.jpg)
![... while traditional channels get optimized ...
Reduction in repeat callers, improved FCR, FLOA enablement and cost restructuring to
create headroom for innovations.
COST FOR PAPER BILLS
[RM‘mn per Month]
INBOUND CALL CENTRE
VOLUME [Thsd. per Month]
INBOUND CALL CENTRE COST
[RM‘mn per Month]
18-Apr17-Apr
-41%
16-Apr
-63%
18-Apr17-Apr16-Apr 16-Apr
-57%
18-Apr17-Apr](https://image.slidesharecdn.com/2018-07-19marketing-dtcxjuly19-180801183711/85/Customer-Driven-Digital-Transformation-8-320.jpg)
![... and refreshed for the future.
Increase in footfall, sales and customer satisfaction in own shops.
DEVICE SALES
[Thsd units]
ACCESSORIES
[Thsd units]
2.4x
2016 2017
VAS (insurance, device
funding) [Thsd units]
2016
4.1x
2017
4.3x
20172016](https://image.slidesharecdn.com/2018-07-19marketing-dtcxjuly19-180801183711/85/Customer-Driven-Digital-Transformation-9-320.jpg)
Customer Driven Digital Transformation
- 1. Change by Changing Your Mindset. Customer Driven Digital Transformation Conference [#DTCXJULY19] René Werner - July 19th 2018
- 3. Popular Change Mantras Out There ... The majority of digital transformation initiatives out there are guided by three key perceiptions ... TECHNOLOGY IS KEY AMBITION IS ALL IT TAKESDIGITAL IS THE PURPOSE A lot of them seemingly are based on the wrong mantras: 84% of all digital transformation initiatives fail.1) 1) Source: Forbes Magazine, 2016. Survey among Forbes Global 2000 companies
- 4. Working Change Mantras. The popular change mantras should be replaced by those that actually work but require a different sort of discipline and change agents for digital transformations to succeed. ENABLED BY PEOPLE & PROCESSES THAT DRIVE DAILY IMPROVEMENTSCUSTOMER EXPERIENCE IS KEY Digital technologies & enablers like RPA1) are there to enable people & processes and come only as a second step after process simplification and closing skill/culture gaps. „Digitizing a shitty process, will give you a shitty digitized process.“ Thorsten Dirks, prior CEO of Telefonica Germany. 1) RPA – Robotics Process Automation. Digitalization is not a self serving nor a self justifying purpose – its right of existence is drawn from the ultimate goal: great customer experience and hence it is one tool among many to be leveraged. „You´ve gotta start with the customer experience and work backwards to the technology.“ Steve Jobs, Founder & CEO of Apple Marginal daily gains compound & derisk + speed up market delivery – cadence of small steps vs. the one giant step that never happens. Modern buzzword: Scrum. „Forget about perfection; focus on progression. And compound the improvements.“ Sir David Brailsford, prior Manager of the British Cycling Team 2002-2014
- 6. 4Q173Q15 3Q173Q16 -99% 1Q18 -65% We Have Achieved a Lot With This Approach. Substantial movements in NPS driven by listening to customers feedback and driving actions from there. One Paradigm – treat complaints as opportunities rather than a threat. 1Q183Q15 +30 3Q173Q16 4Q17 +32 3Q173Q16 4Q17 1Q183Q15 RETAIL SHOPS CONTACT CENTRE 44 1247 77 TOUCH POINT NPS AGING COMPLAINTS (“Smelly Fishes”) COMPLAINTS MONTHLY INCOMING COMPLAINTS
- 7. We have shifted strongly to digital interactions. Growth in digital transactions is strongly driven by creating service availability online & awareness campaigns from traditional channels. 1.0x 2.0x 3.9x 2017 2016 2015 Digital Interactions (Indexed vs. 2015) 4.4x SOCIAL MEDIA ENGAGEMENT [YoY Growth – 2017 vs. 2016 in %] SOCIAL MEDIA REACH [YoY Growth – 2017 vs. 2016 in %] APP ACTIVE DOWNLOADS (‘000) APP WEEKLY ACTIVE USERS (‘000) 30-Apr- ’18 30-Apr- ’17 3.6x 2.9x 30-Apr- ’18 30-Apr- ’17 Peers* 15% 60% 4x Celcom Celcom -22% Peers* 28% EXISTING DIGITAL TOUCHPOINTS : PROMOTION & NEW SERVICES DEVELOPING NEW TOUCHPOINTS : SOCIAL MEDIA
- 8. ... while traditional channels get optimized ... Reduction in repeat callers, improved FCR, FLOA enablement and cost restructuring to create headroom for innovations. COST FOR PAPER BILLS [RM‘mn per Month] INBOUND CALL CENTRE VOLUME [Thsd. per Month] INBOUND CALL CENTRE COST [RM‘mn per Month] 18-Apr17-Apr -41% 16-Apr -63% 18-Apr17-Apr16-Apr 16-Apr -57% 18-Apr17-Apr
- 9. ... and refreshed for the future. Increase in footfall, sales and customer satisfaction in own shops. DEVICE SALES [Thsd units] ACCESSORIES [Thsd units] 2.4x 2016 2017 VAS (insurance, device funding) [Thsd units] 2016 4.1x 2017 4.3x 20172016
- 10. Which has led to a recovery of market share. Gaining back hearts and wallets of customers ... 0,2 0,5 Q1-16 -1,0 Q1-15 Q1-17 Q1-18 0,0 -1,3 0,00,0 0,1 0,4 0,0 -0,5 -0,2 -0,6 COMPETITIVENESSSTABILIZATIONCRISIS
- 11. The Approach to the Journey
- 12. The Change Approach A change journey on a macrolevel requires a sequence of changes – evolutions that sum up to a revolution. If you start with revolution first, your efforts & business might fail. Introduce New Service Innovations Fix & Refresh Enablers of BAU Change Business Policies Change Business Processes Establish Voice of Customer Performance Transparency Team Empowerment Performance Mgmt. Establish True North & Values Create Early Successes to Generate Momentum Address Structural Issues to Use Momentum for Key BAU Wins Build BAU of Tomorrow By Using Credibility from BAU of Today FIX FOCUS GROW 1 3 2 4 5 6 Awesome Customer Experience Three basic mantras: 1) Transparency 2) Inspection 3) Adaptation or in one sentence: Learning from Failures/ Defects
- 13. The General Mentality – Continous Improvement A change journey in a fast moving industry requires on a microlevel a culture of continuous improvement. You are never done improving ! Adapt Approach Business Rules Processes Enable People with skills decision powers right execution culture to solve real business problems Leverage Technology to cooperate to drive better customer experiences to capture efficiency & effectiveness opportunities Facilitate with cooperation platforms target alignments with performance & progress transparency Align with why (purpose) clear directional targets clear measurable, time boxed objectives to solve real business problems Retrospect Lessons learnt & areas to improve Things to strengthen & keep „Use failures/defects as opportunities rather than blame“ Continuous Improvement Three basic mantras: 1) Transparency 2) Inspection 3) Adaptation or in one sentence: Learning from Failures/ Defects
- 14. Starting A Change Agenda – True North. Moving on a transformation journey requires energy from everybody involved. So you have to create a sense of purpose and get the emotions on your side to answer „Why are we doing this?“ How serious you are about your purpose statement is driven by how visible top management „walks the talk“ Examples at Celcom: Turun Padang, Customer Arena, Call Center Days, Complaint Mgmt by C-Levels. 1 Establishing True North
- 15. True North & Values. Create a clear reference system for everybody in the company of what is the expected behavior. Ingrain this into your people management practices. 1 Establishing True North
- 16. Establish Voice of Customer Feedback. Realtime customer feedback with analytics to address problem areas. Automated Generation of Heatmap from VOC “Pounding the Rock”Realtime VOC Feedback Crowdsourcing of “Voice of Customer” on various channels & customer journey Per channels, we create heat maps by automatically tagging to the channel & journey Daily scrums leveraging on heatmaps to address problem areas >5mn Yearly Survey Sent (about 1-1.5 Mn. Responses) 2 Establish Voice of Customer
- 17. Performance Culture Performance Management & Transparency. Establish performance culture with respective consequence management on both sides as well as performance transparency. Performance Management Performance Transparency Clear performance criteria aligned with CE focus Talent & Improver Management Skilling program with annual certification & exams for three tracks Genesis Leaderboard with full staff performance visible to everybody daily, gamification: daily quizzes to keep rank, ability to credit points to colleagues for outstanding customer experience 3 Performance Transparency
- 18. Change Business Policies & Processes To get change in specific policies and processes embedded, you can not stay at an intentional level of grandiose ambitions. Your colleagues need to understand the „How“ they can apply their energy to help. From Theory & Boardroom Directions To Practice & the Frontliners in the Field 4 Change Business Processes
- 19. Example - From Fuzzy to Specific. Customer experience ambitions broken down to actionable, time-boxed and specific deliverables for processes and policies to drive actions. AREAS to compete Subareas to LEAD or be PARITY KPI & Performance Level to Achieve Subareas “TIME” of Arrival Specific TARGET EXPERIENCE Guidelines per Area 8 Areas to compete Network Products Channels Physical Digital Brand IT Culture/ORGAnalytics INDUSTRY LEADING PARITY 1 XXX AREAS OTHER (COVERAGE, ...) 1 • NETWORK tNPS XXX AREAS • NW OUTAGE HOURS • AVG. VIDEO RESOLUTION • VIDEO START DELAY TRESHOLD FOR KPI FOR • tNPS +XX • XX hr/month • >XXp • <X sec 1 INDUSTRY LEADING PARITY 1 M./YEAR M./YEAR XX AREAS OTHERS 4 Change Business Processes
- 20. LEVERAGE INSIGHTS (Automation) INSIGHTS CREATION (Pattern Recognition) CREATE CX DATA (Data Unification) Roadmapping Technology as an Enabler – AI. After policies and processes are getting fixed, a clear cut roadmap that is linked to the overall ambition of the company can be set for technology enablers such as AI. GENERATE INTERACTION DATA Retail Shops/ Branches Contact Centres Traditional Channels: Enrich Interaction Data IVR ... Digital Channels: Drive Migration to Digital Company Website Social Media Company App Others: Get deeper Usage Insights Network Experience Product Usage Experience ... 1 2 3 4 Customer Identification Journey Stitching Experience Issue Clustering Core AI Application Experience Opportunity Identification Channel Preferences & Effectiveness, Interaction Bottlenecks Customer Sentiment (State & Forecast) Channel Volumes (State & Forecasts) Automation: Use AI to Drive Action Intent Recognition (State & Forecast) Customer Service Bots Customer Service Agent Scheduling Network Field Force Dispatch ... Support: Use Insights to Drive Better Human Action Better Up- & Cross-Selling Better Network Planning Ambient Retail Influencer Marketing Six Sigma Initiatives AI Enabling AI Harvest 5 Fix & Refresh Enablers of BAU
- 21. Evolution to Holistic Social Media Operations. Innovation driven by clear view on customer preferences & needs and enabled by new servicing processes, policies, organisational approach and tech. Customer Engagement Analytics and Measurement Generate Data (Quality & Quantity) • Connect and crawl the social web • Derive actionable insights • Intelligent listening • Engage key influencers • Drive media value • Posting the right content • Develop actionable insights. Eg, complain resolution, social selling & conversion etc • Define and track social metrics • Identify key influencers • Identify key customer segments Social Media Servicing Celcom Community Social Media Analytics CELCOM SOCIAL MEDIA EXCHANGE (SMEX) Setting up of social media hub to service & engage with customer, managing brand and contextual offerings 6 Introduce New Service Innovations
- 22. Introduction of Virtual Agents As New Services. Launched smart virtual agents with distinct character for a more personalized and 24/7 experience with transaction capability. Clive & Emma State-of-art intelligent Virtual Agent with 2 personas powered by Microsoft technology. Currently, it can perform the following functions: • Prepaid & Postpaid – check bill/balances, reload/pay bills, check data usage, add VAS & Mobile Internet • Humanized tone • Small Talk & Personas • Ability to handover to Live Agents Next phase is to grow the Virtual Agent to perform more activities • Handling of natural language capabilities • Interface from “voice to text” and from “text to voice” • Handling of more transactions • Expansion to other servicing channels like FB Messenger 6 Introduce New Service Innovations
- 23. Parting Thoughts from the Journey
- 24. Working Change Mantras. The popular change mantras should be replaced by those that actually work but require a different sort of discipline and change agents for digital transformations to succeed. ENABLED BY PEOPLE & PROCESSES THAT DRIVE DAILY IMPROVEMENTSCUSTOMER EXPERIENCE IS KEY Digital technologies & enablers like RPA1) are there to enable people & processes and come only as a second step after process simplification and closing skill/culture gaps. „Digitizing a shitty process, will give you a shitty digitized process.“ Thorsten Dirks, prior CEO of Telefonica Germany. 1) RPA – Robotics Process Automation. Digitalization is not a self serving nor a self justifying purpose – its right of existence is drawn from the ultimate goal: great customer experience and hence it is one tool among many to be leveraged. „You´ve gotta start with the customer experience and work backwards to the technology.“ Steve Jobs, Founder & CEO of Apple Marginal daily gains compound & derisk + speed up market delivery – cadence of small steps vs. the one giant step that never happens. Modern buzzword: Scrum. „Forget about perfection; focus on progression. And compound the improvements.“ Sir David Brailsford, prior Manager of the British Cycling Team 2002-2014
- 25. THANK YOU !!! If you have questions contact me as below: rene.werner@celcom.com.my Linkedin.com/in/rene-werner