How to Leverage Analytics, Design, and Development to Transform Customer Journeys
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The document discusses leveraging big data analytics and design to enhance customer journeys, with case studies demonstrating significant increases in customer satisfaction and revenue across various industries. It emphasizes the importance of journey mapping, identifying pain points, prioritizing improvements based on ROI, and employing analytics tools to track journey performance. Ultimately, the goal is to transition from traditional customer management to a more integrated and customer-centric approach to enhance overall experience and efficiency.
How to Leverage Analytics, Design, and Development to Transform Customer Journeys
- 1. McKinsey & Company 0 Leveraging Big Data Analytics and Design to Transform Customer Journeys Maxence Vancauwenberghe McKinsey
- 2. Housekeeping ©2015QUALTRICSLLC. The recording and slides for today’s presentation will be made available on cxweek.com along with other content and webinars from throughout the week Please use the chat window to submit questions throughout the webinar, we will have time designated at the end for Q & A Join the conversation on Twitter by tweeting @Qualtrics using #cxweek
- 3. McKinsey & Company 2 ▪ McKinsey, New York Office ▪ Leads Customer experience, Digital, Customer Operations and Marketing engagements in North America and Europe ▪ 25+ clients in Banking, Telco, Retail, Utility, Insurance, and B2B services ▪ In charge of building McKinsey’s practice in Omnichannel Analytics and partnership with ClickFox Maxence Vancauwenberghe Maxence.Vancauwenberghe@McKinsey.com Vancauwenberghe.Maxence@gmail.com
- 4. McKinsey & Company 3 Big Data
- 5. McKinsey & Company 4 Big Data in Experience
- 6. McKinsey & Company 5 ??? Harnessing Big Data in Experience
- 7. McKinsey & Company 6 DesignAnalytics Ideate Transform Improvise Imagine Qualify Sketch Invent Next practice Measure Fix Plan Track Quantify Analyze Forecast Best practice
- 8. McKinsey & Company 7 Higher ROI and impact Banking JOURNEYS TRANSFORMED ▪ Disputes ▪ Card Replacement ▪ Identity Verification NPS Increase +23% Healthcare JOURNEYS TRANSFORMED ▪ Prescription refill Annual Spend Increase $1bl Store Experience CSAT +16pts Repeat visit +45 % Retail JOURNEYS TRANSFORMED ▪ Product trial ▪ In store digital order pick-up ▪ Product return ▪ Consumer loan application We partnered with a major global pharmaceutical company to help increase patient adherence. Increased Annual Revenue $500m Increased Adherence +1% We embarked on a complete journey transformation with a top 10 world bank to reach top 3 in customer satisfaction in 3 years. We partnered with the European specialty retailer to improve journey driving satisfaction and repeat business Cost $25m
- 9. McKinsey & Company 8 “Getting to the top 3!” Large retail bank Lagging behind competition in digital development (e.g., limited omni-channel functionalities) Aspiration to go from low industry ranking in satisfaction to best-in-class Traditional “touchpoint based” management of customer journeys resulting in clunky experience
- 10. McKinsey & Company 9 Engage Use Enjoy Seek help Separate Prioritize Journeys to maximize impact Volume PriorityRevenuesNPS Cost Shop for a card 9 Onboard 5 XX 3 Manage my account 6 XX 2 10XX XX 8 7XX Replace my card 1 XX 4 XX 11 Impact on…
- 11. McKinsey & Company 10 Journey analytics tool box Drivers of NPS Post completion call # of attempts prior to completing Journey duration – avg. journey duration Engagement time Engagement time – avg. engagement time Journey duration to reactivation # of hops Self-serve # of calls per journey Time spent waiting on hold Success Rate Efficiency Channel effectiv- eness Journey completion – reactivation rate Negative journey outcome (e.g., declined) Relink recurring payments Mainly interact in non-preferred channel Time spent talking to Agent - 0.58 - 0.53 - 0.41 -0.4 - 0.79 - 0.37 - 0.26 - 0.17 - 0.71 - 0.63 - 0.73 - 0.08 - 0.61 - 0.52 0.26 Correlation to NPSCurrent State Value - 0.58 - 0.53 - 0.41 -0.4 - 0.79 - 0.37 - 0.26 - 0.17 - 0.71 - 0.63 - 0.73 - 0.08 - 0.61 - 0.52 0.26 Priority themes Conjoint assessment of improvement Journey map Journey archetypes Importance of sub-journeys
- 12. McKinsey & Company 11 Map the journey Outcomes Channel NPS 67 Cost $13m Spend loss $1bn p.a. 66% 25% 9% Completion 75% Journey map Understand my spend Understand my spend Understand my spend Understand my spend Account mgmt. hub Shop for a card Other Replace my card contact 44% 39% 4% 10% 2% 1% No “real” activity Activate new card Anxiety related to card loss Opportunity to upsell
- 13. McKinsey & Company 12 Quantify drivers of satisfaction Contribution to NPS Examples from competitors ▪ “Freeze” ▪ 5 years expiration ▪ Available in all channels ▪ Instant account number ▪ Next day delivery ▪ Live tracker ▪ Online activation ▪ Provide list of recurring vendors Trigger (start) Notify Wait Receive and activate Re- onboard (finish) Satisfaction vs. average Average Average Average Average What the company thought was important Average
- 14. McKinsey & Company 13 ▪ Pain points eradication ▪ Radical innovations 150+ ideas Ideate Co-creationJourney diagnostic Trendscraping Targeted personas
- 15. McKinsey & Company 14 Prioritize ideas based on quantified RoI Cost saveProgram NPS Lift Value IndexComplexity 9MMCard Freeze +7 7421 2MMxx x 5534 -Concierge x 6445 -xx x xx57 -xx x xx48 In Control x11 xx x13 Disposable Numbers x14 Welcome Back x16 xx x19 Send it Anywhere x20 Rank Future Card x21 Spend drop -xx +6 5713 0.8bn xx x xx29 xx xx x12 xx Spring Cleaning x15 xx xx x17 xx xx x18 xx xx +7 6632 3bn xx x10 xx 23MMxx x xx56 xx Quantifying business impact of each individual idea xx3 xx3 From 150 ideas to 5 programs ▪ +23pts NPS ▪ $4bn spend savings ▪ $10m cost save
- 16. McKinsey & Company 15 Crystallize Multiple Ideas in Hi-Fi Wireframes Combine several priority ideas into a concept to deliver a high customer and business value Innovate Idea: Ability to replace card and resolve fraud in mobile app. Pain Point Idea: Single swipe dispute or approve from a list without leaving flow Value Leakage Idea: Chat support with live agent in mobile application to reduce support calls
- 17. McKinsey & Company 16 Launch kit for development and roadmap System map MVP and release plan Overview
- 18. McKinsey & Company 17 Ongoing journey performance tracking Success Rate Effici- ency Channel Effectiv eness Post completion call rate # of attempts prior to completing % report lost card in first week Engagement time First time resolution rate Journey duration to reactivation # of hops Self-serve rate # of calls per journey Time spent waiting on hold (avg.) Journey completion reactivation rate % Incur fraud losses Relink recurring payments rate Mainly interact in non-preferred channel Time spent talking to Agent (avg.) 35% 1.3 40% 17 m. 55% -0.37 -0.26 11% 1.3 36 s. 30% 13% 65% 1.2 m. 73% CURRENT STATE 0% 1 100% 4 m. 100% -0.37 0 80% .4 10 s. 15% 100% 0% 1 m. 100% FUTURE STATE Targets Tracking Rootcause and iterate
- 19. McKinsey & Company 18 Impact captured 19 to 30% improvement of NPS at Journey level $25m cost captured $1bn spend increase per year +2 spots in JD Power … on track to get to no. 3
- 20. McKinsey & Company 19 Data ▪ Customer profile ▪ Quantitative survey – General CSAT – Specific to journeys ▪ Qualitative / research ▪ Complaints logs ▪ Frontline feedback ▪ Interaction logs (connected) – Call – PoS – Field – Digital – Marketing ▪ Transactions – Financial – Non financial ▪ Cost to serve (call, field visits, POS) ▪ Key drivers of customer lifetime value (including up-sell / cross-sell sales) ▪ Product reliability, revenue rates, other cost drivers Voice of the customer Interaction data Operational/value metrics
- 21. McKinsey & Company 20 Tools – example: ClickFox Raw data Unstructured IVR Logs Structured Agent Logs Retail Desktop Data Web Logs Events Instant Transform Retail Steps IVR Prompts Web Pages Agent Steps Paths All Events Connected Cross-Channel Outgoing Paths from IVR promise to pay event Cross-Channel Outgoing Paths from web online payment event Tasks Completions & Departures Failed Web Pay Enrollment Web Pay Confirmed IVR Call Transfer to Agent Web Auto Pay Success IVR Pay By Phone Agent New Account Info Journeys Paths to Outcomes Enrollment Journeys Churn Journeys
- 22. McKinsey & Company 21 Talent Analytics Design Business Customers
- 23. McKinsey & Company 22 Cycle Monitor metrics QED cycle Implement tech changes rapidly Design journey and solutions Map current and future state Define customer journeys Prioritize journeys based on value at stake 4 weeks – Fact base 4 weeks – Prioritization 8 weeks – Design 8 weeks – First change <6 months
- 24. McKinsey & Company 23 Getting started No data is perfect Start right away with most important journey Carve out implementation capacity Set up cross-channel group
- 25. Q&A
- 26. Thank You!