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© Graham Technology 2005
The Utility Company of the Future:
From Reactive Customer Service to
Proactive Customer Account Management
Michael CairnsGraham Technology
Business Unit Director, Utility Sector18th May 2005
© Graham Technology 2005
Today’s Presentation
• Defect-based Customer Service
• Traditional Operating Model
• Customer Centric Approach
• Emerging Operating Model
• Multiple touch-points
• Conclusion
© Graham Technology 2005
Global Utility Trends
Worldwide Market Changes Lead to New Demands on Processes
South AfricaSouth Africa
REDs: CT 2005REDs: CT 2005Customers: 5 millionCustomers: 5 million
© Graham Technology 2005
Defect-based Customer Service
Current Issues Utilities have invested heavily (money and time) in the creation and maintenance of
complex IT suites. Radical or rapid change of complicated systems can be difficult and painful. Long timescales for ROI. Systems are inflexible. Systems & Processes are often not integrated. ‘IT-driven’ rather than ‘business driven’.
Results
Customer service is reactive, not proactiveContact initiated by the customerContact is normally to report a fault or problemLow visibility of customer accounts and issuesCustomer’s service experience is poorIncrease in Customer ChurnHigh Operating costs
© Graham Technology 2005
Traditional Model
Defect-based Customer Service
Departmental Silos (Sales, Marketing, Customer Establishment, Metering, Billing, Credit Management, Operations) and multiple applications.
Replication of Data across multiple Core systems (Sales, Registration, Metering, Billing, Debt Management, etc..)
No end-to-end visibility (Sales to Credit Management)
Clear separation of front and back-office
Numerous manual & repetitive tasks
Exceptions handled manually, lack of visibility, control, etc..
No routing & recognition strategy
© Graham Technology 2005
Defect-Based Customer Service
Traditional System-Driven rather than Process-Driven solution
BillingBillingDebtDebt ContactContact SalesSalesData-martData-mart Metering, Metering, OthersOthers
Integration LayerIntegration Layer
Mu
ltiple
M
ultip
le
Re
po
rtsR
ep
orts
DebtDebt BillingBilling CRM ApplicationsCRM Applications Various Various AppsApps
Users
What will we try next?
Management
Process?Customers
Complaint, Query, Record Defect, etc..
Field Force
3rd Parties
Not Directly connected to Core
Systems
© Graham Technology 2005
Customer-Centric Model
Move to single, common operating platform across all users
Identification of Key Core systems & Data
Workflow based – to manage work delivery, tracking and escalation
Bring together front and back office (routing, transfer, point of contact resolution)
Increased process automation
Automation of exception handling, visibility of clearance rates, etc..
Pro-active Customer account management
Routing to provide ‘Point of Contact Resolution’
© Graham Technology 2005
The Emerging High-Level Operating Model
Process FrameworkProcess FrameworkManagement
Reports
Enterprise ArchitectureEnterprise Architecture
Core Core SystemsSystems
Time-delay Transfer
Workflow Workflow
(Thick & Thin)(Thick & Thin)
Customers & Prospects
Pro-Active, Outbound
Calls
Routing & Routing & RecognitionRecognition
Customer Customer IssuesIssues
CustomersInbound
Calls
Generalists
Customer Customer IssuesIssues
Real-time Transfer
Specialists, e.g, Sales, Marketing, Customer Est, Metering, Ops, Networks, Billing, Debt.
Customers
Automated outbound contacts, e.g., SMS messages, email, ..
Work Delivery
Direct Routing to Specialists
External, Field Agents & 3rd Parties
Business Business IssuesIssues
Resolution with external
Customer Self-service
Str
aig
ht
th
rou
gh
p
roce
ssin
g
© Graham Technology 2005
Proactive Customer Management
Process Approach
Integration (& Replacement) of processes and inflexible legacy systems Removes islands of technology Expands communication channels and services Rules are built into the system - prompts and scripting for agents Automated front office and back office – workflow delivery, tracking, escalation Automated reporting - use of process metrics to identify root causes Process innovation is supported
Benefits
End-to-end process – single customer viewSustainable competitive advantage through
innovationReduction in operating costs Improved use of service guarantees and
targetsFaster issue handling and access to dataConsistent companywide approach to serviceAbility to predict (& avoid) customer
behaviourCustomer Satisfaction and brand protectionEmpowered multi-skilled agents
Customer profiling and segmentation Maximises ‘first contact’ resolutionCross-selling & up-selling increase customer value
© Graham Technology 2005
Centralised Processing:Multiple Touch-points
Compliance
Compliance
Self Service
Overall Contacts
© Graham Technology 2005
To Conclude
Well Managed Customer Relationships are the Key to Profitable Growth in a liberalised market:
Maximises customer retention – retention is cheaper than acquisition Maximises revenue collection – shortens the credit cycle, minimises debt Maximises sales opportunities – up-selling & cross-selling
Moving towards Proactive Customer Account Management delivers:
Long-term growth and profitabilityLower cost to serve through automationCustomer retention and loyaltyIncreased value of your customer base
Keys are: Flexibility, Agility, Integration, Consistency and Visibility provided by a business process framework.
Automated processes create competitive advantage in evolving markets:
Product-driven Processes Customer-driven processes
Basic Customer Service Tailored customer servicePrice & Volume focus Value focusLimited product sales Up-sell and Cross-sell opportunities
© Graham Technology 2005
Michael CairnsGraham Technology
Business Unit Director, Utility Sector
© Graham Technology 2005
A New Approach
What Are the Benefits of a Process Framework?
Fit the system to your processes, not your processes to the system The business, not IT, has control Improve process automation without throwing away your existing core systems Data quality is assured Process-by-process rather than big-bang implementation Reduction in operating costs Multi-channel customer communication
Supports proactive customer account management