Jose Vergara, Chief Customer Officer, McKesson

Getting Business Value from Improved Customer

Experience

CCO – Critical Success Factors

Jose L. Vergara Customer Chief Officer McKesson Imaging & Workflow Solutions

Content

01 Framework

02 Success Factors

03 Organizational Alignment

04 Lessons Learned

Business Value from CSx at McKesson IWS | CEX is about ROI

Reviewing the Pieces of the CSx Centricity Model Puzzle

Silos & Barriers | Enablers

What Worked, What Didn’t

McKesson Imaging & Workflow Solutions

Radiology

Cardiology

Workflow & Infrastructure

#2

< 1%

Facts

Double

Digit

Why Change?

• Happy Customers • Proud Employees • Happy Shareholders

• Churn <1% • #1 – 2 Market Share • Sustained double digit growth in the last decade

McKesson IWS

McKesson Corporation Confidential and Proprietary

Problem to be Solved

Changing Market

Conditions • Unsustainable

Healthcare Costs • Value-Based Care • Consolidation

Market Maturity


McKesson IWS

Market Maturity



McKesson IWS


Market Maturity

Product Differentiation

Changing Market

Conditions • Unsustainable

Healthcare Costs • Value-Based Care • Consolidation

Risk of stalled Growth


McKesson IWS

Customers Success is a business strategy, not a function, project or initiative. J.Vergara

Organizational Alignment

The role of the CCO is about ROI


Revenue Preservation

Revenue Acceleration

Efficiencies & Cost Avoidance

Maximize Loyalty & Growth

Support New Acquisitions & Increase Share of Wallet

Focus on Value Streams

CSx Strategy

To achieve this customer-centricity we will enable operational transformation by:

Providing a Customer Success Management platform to guide us through the relationship’s priorities

Supporting operational change through touch-point-specific process playbooks

Supporting customer-related decision making through data analytics and predictive modeling tools

Defining the desired experience at each touchpoint along the journey

Providing relevant customer information along the customer journey map


Integrated Customer Success Strategy

Voice of Customer

Analytics & Systems

Customer Success Management


The CSx Centricity Model Puzzle

Data, Analytics, and Systems

Analytics to understand &

predict customer behavior

Data-driven programs based on predictive models

to pro-actively retain, optimize & expand

Single E2E platform

(Gainsight) – analytics,

dashboards, workflows & alerts, playbooks – all in

one place!


Multi-Level Cascading VOC Program

New Discovery sessions for

additional insights

Face-to-Face

KLAS/NPS

Discovery Surveys

Transactional

Higher level questions mapped to lower level

surveys

New Discovery surveys for

additional insights

New customer-defined metrics incorporated into transactional

surveys

L2/L3

L1

L2

L4


Customers buy on hope, renew on experience…

Customer Lifecycle Management

Proactive Lifecycle Management

Define the phases in the Customer journey

Identify interactions, customer desired

outcomes, barriers, solutions, goals, KPIs

Design playbooks to manage each interaction

Define lifecycle triggers for launch of best-

practice playbooks

Managing base as a portfolio, applying Lifecycle-based playbooks McKesson Corporation Confidential and Proprietary

Cross-functional

factors

Customer Health Score Model


Customer Health in Gainsight

Health Score to be implemented in Gainsight for proactive relationship management

Overall “Health” Health Components Customers Renewal Date

Color-Coding & Health Score


Lifecycle Playbooks Opportunity Playbooks Risk Playbooks

Defining Best Practices thru Playbooks

Pre-defined Playbooks for consistency of experience & best practice adoption:

• Contract signed • Implementation Start to End • Discount Request • Contract Amendment /

Credit Request • Onsite Trip Follow-up

• Imaging Assessment • HW/SW Upgrade • Up/Cross Sell

• Code Orange (Health Risk) • Acquisition • Key Contact change • NPS Detractor • Payment Dispute • Support hold


Driving Organizational Change

D e f i n e D e v e l o p D r i v e • Define the

customer journey and experience

• Develop the process to deliver the experience, and develop the metrics to measure it

• Drive the experience

• Align on metrics to drive behavior

Requires Executive

Team support to Execute, Engage &

Excite!

Transformation begins and ends with changes in process, systems, and metrics to drive a change in behavior – throughout the organization


Driving Organizational Change


Scorecard

Analytics

Market

VOC Customers

Closing The Gap

Sales

Contracting

R&D

Production

Support

Services CSx Board

Executive Messaging

Functional Teams

Customer Success

Creating Employee Engagement Engaged and excited teams key to driving change & adoption:

• Share customer stories at each AEM, Town Hall, QBR, etc. – how we improved a customer experience and drove our customer’s success

• Create functional journey maps and identify touch points that need improvement • Compare to the customer’s perception of the same journey/experience; identify gaps • Brainstorm ways to improve respective functional customer experience • Appoint Customer Success Evangelists on each team to provide CSx oversight and

focus • Include Customer Success as a criteria in all employee performance metric

• Solicit and publicize stories • Monthly/quarterly awards to the best customer success/experience improvement • Create a Customer Success newsletter with customer stories and circulate

internally

Creating a culture where every employee, in every situtaion, is thinking: “What is the impact of the customer?”

Empowering through tools and playbooks

Empowerment

Discussing customer success with our customers

Customer Input

It isn’t linear Change as a system

Preservation > Acceleration > Efficiency

Tying strategy to ROI

Customer Success is in the company vernacular

Executive Engagement


Benchmarks for successful CCO strategy implementation

Starting from the end of the process

Not setting the foundational

pieces Not defining how

employees would be engaged

What Didn’t Work


Take-Aways

CCO role is about strategy, execution

and cultural transformation

CCO & Customer Success need to

prove ROI

Top down approach & executive support is not enough – The lone ranger

will fail

The cardinal rule of 3 – P, A, E

All the pieces of the puzzle are necessary only then the plane

will fly


Thank You

Jose Luis Vergara Customer Chief Officer McKesson IWS

[email protected]

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Jose Vergara, Chief Customer Officer, McKesson

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