Transcript CS IT PPT - First Quartile Consulting

Customer Service
Information Technology
2016 Benchmarking
Insights Conference
Boulder, CO
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Agenda

Overview
 Coverage of the Study for CS IT

Performance Profiles
 Cost

2016 Benchmarking Results
 Functional-specific findings
• Technology Applications
• Multi-Channel Adoption
• CIS Integration: Credit, Outage, Field Service

Areas of Focus and Opportunity
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Overview
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Coverage of the 2016 Customer Service Benchmark
Study
Customer Contact
• Contact Center
• Local Office
• Self Service
• Contractors
• Credit Inbound calls
Field Service
• Change of Account
• Billing Field Orders
(meter investigations)
• Credit Field Orders
• Order Management
Meter Reading
• Manual
• Mobile AMR
• Fixed Network AMI
Back Office
• Billing
• Billing Field Policies
• Payment Processing
Revenue Management
• Credit Office and
Outbound calls
• Credit Field and Inbound
Contact Policies
• Revenue Protection:
Office and Field
CS Support and CS IT
Employees: Safety, Staffing
Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management,
Energy Efficiency , Outage Communications
Areas excluded:
◼ Meter Change-out
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Functional Cost Model – CS IT and CIS costs
Our approach to collecting cost, performance and staffing information
follows customer transactions through each functional area.
C
I
S
CS IT
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CIS vs. CS IT Costs
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CS IT (as part of “Technology” cost) is all the encompassing technology in a broad
sense so it includes any non-CIS and may include some CIS, but is specific to a
functional area
 for example: ACD, IVR, Work Management, Mobile Data are part of CS IT and belong in their
respective functional area (ACD to Contact Center etc.)
 If there is a DIRECT allocation or charge to a function of CIS charges (such as usage or system
utilization), then that goes into the CS IT, otherwise it is part of CIS
 Does not include any capital costs, just O&M

CIS is the system used to to maintain customer information, generate bills, issue service
requests, and help “manage” customer relationships by providing utility representatives
data, information and insight about each customer's accounts, individual needs and
preferences.
 Examples of vendor's products include: Accenture's C/1 (Customer-1), Oracle Utilities Customer
Care, SAP For Utilities.
 CIS costs may be costs allocated to or associated with Customer Service but not to specific
functions, such as usage charges, data transfer charges, and/or system maintenance charges. If
such charges cannot be allocated to a specific function, they would go into the CIS cost column.
 Everything else such as the Work Management, Mobile Data, Dispatch, ACD, IVR is Customer
Service IT and should be specific to a function
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CIS vs. CS IT Costs

CS IT (as part of “Technology” cost) is all the encompassing technology in a broad sense so it
includes any non-CIS and may include some CIS, but is specific to a functional area
 for example: ACD, IVR, Work Management, Mobile Data are part of CS IT and belong in their
respective functional area (ACD to Contact Center etc.)
 If there is a DIRECT allocation or charge to a function of CIS charges (such as usage or system
utilization), then that goes into the CS IT, otherwise it is part of CIS

CIS is the system used to to maintain customer information, generate bills, issue service requests,
and help “manage” customer relationships by providing utility representatives data, information and
insight about each customer's accounts, individual needs and preferences.
 Examples of vendor's products include: Accenture's C/1 (Customer-1), Oracle Utilities Customer
Care, SAP For Utilities.
 CIS costs may be costs allocated to or associated with Customer Service but not to specific
functions, such as usage charges, data transfer charges, and/or system maintenance charges. If
such charges cannot be allocated to a specific function, they would go into the CIS cost column.
 Everything else such as the Work Management, Mobile Data, Dispatch, ACD, IVR is Customer
Service IT and should be specific to a function
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Technology Cost Within Function
Technology
Any technology specifically used for a function such as meter reading
devices, mobile data technology, telephone switch or call routing
software, call monitoring software etc.
Contact Center:
◼ IVR (Interactive Voice Response)
◼ ACD (Automatic Call Distributor)
◼ Scheduling Software
◼ Workforce Management (WFM)
◼ Multi-channel processing
◼ Web, Social Media technology costs
◼ VOIP (Voice Over Internet Protocol)
◼ Web/email routers
◼ Virtual Hold technology costs
◼ 3rd party applications (OMS interface etc.)
Field:
◼ Mobile data (software and hardware)
◼ Scheduling
◼ GPS (Global Positioning System)
◼ Routing software
◼ Dispatching software
Revenue Protection
◼ Tamper plug
◼ Data mining and analytics for revenue
protection software
Meter:
◼ Handhelds
◼ Routing software
◼ Remote disconnect
◼ MV 90
◼ GPS (Global Positioning System)
Bills:
◼ Inserters
◼ Web/email, bill presentment
◼ C/I billing software
◼ O&M costs associated w/ mobile
billing
Payment:
◼ Image processer
◼ Slitter/sorter
◼ Interface w/kiosks
◼ Routing software for off-site payments
◼ Payment Kiosks
Credit:
◼ Behavioral scoring
◼ Predictive dialer
◼ Credit optimization software
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Performance Profile
Cost
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TOTAL CUSTOMER SERVICE COST (EXCLUDING WRITEOFFS, P&B, OVERHEADS) PER ACCOUNT * Commodity
Median* CIS Costs
represent $2.34 of the
$34.91 Median Cost, or
6.7%
• CIS Costs have been in the
range of 5-8% CS costs (ex
Write-offs) over the past 4
years
• Companies 30, 41, 42 and
49 report significantly higher
costs
Mean
Quartile 1
Quartile 2:
Quartile 3:
FL5
$40.05
$31.55
$34.91
$41.37
Not reporting CIS costs: 23, 33, 35, and 44
* Mean costs are 13% including all reporting companies
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CIS COST PER ACCOUNT * COMMODITY
Mean of $5.20 per Account *
Commodity represents a
significant increase over over
2015’s mean
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•
Mean
Quartile 1
Quartile 2:
Quartile 3:
IT Page 2– FL5
$5.20
$2.26
$2.34
$3.46
Mean cost driven by significant
reported O&M by 5 companies
Median costs are flat versus
2015
Several companies report
few/no CIS costs
Companies within the same
holding company structure
should be able to discuss and
explain variability in costs
Not reporting CIS costs: 23, 33, 35, and 44
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Benchmarking Results
Functional-specific findings
• Technology Applications
• Multi-Channel Adoption
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Technology Application Profile:
Changes and Recent Upgrades
CIS Systems Installed (DC115)…upgrades are continuing
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In the past 3 years, companies in our Community have moved away from mainframe-based
systems of the 90’s and early 2000’s toward much more flexible systems, allowing for more data
capture and use
Mean age of install or upgrade= 2008
Newer systems have been primarily SAP
Recent implementations or upgrades are Companies 29, 30, 41, 49, 50 and 51
Contact Handling and Management (DC115)…most companies now have IVRs
that have been implemented in the past 2-3 years. Other contact handling and
management systems (ACD, WFM, QM), are also new as are Quality Monitoring
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2/3 of our companies have installed new IVRs or major upgrades since 2012;
10 of 12 companies reporting have installed new Automated Call Distribution (ACD) since 2012
7 of 11 companies reporting have installed new Work Force Management (WFM)
12 of 12 reporting have new Quality Monitoring Systems since 2012
6 companies have new Meter Data Management systems since 2012
Multi-channel technology applications (IT10)
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10 companies have implemented new text messaging/SMS systems since 2013
Numerous changes in mobile, web, and multi-channel management are also coming for at least 7
companies in the next 2 years (see next slides)
Report: CS IT and Operational
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CUSTOMER INFORMATION SYSTEM:
YEAR INSTALLED Or Last Major Upgrade
Oracle
SAP
Accenture
C-1
In-House
Cayenta (Harris)
DC115
Company 42 and 44 did
not provide
The average year of install/upgrade of the CIS in our Community is 2008
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Migration and transition time periods are 2-3 years…how are companies
leveraging?
Impact of systems on companies ability to mine and capture data, have flexible
reporting and integrate with new applications should be noted
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Interactive Voice Response (IVR):
YEAR INSTALLED Or Major Upgrade
Centurion
Siemens
Avaya
TFCC
Nuance
In-House
West
Avaya
Avaya
Avaya
DC115
The median year of install/upgrade of the IVR in our Community is 2012
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At least 1/3 of the companies have installed new IVRs 3 years
What cost and live call reduction benefits have been derived?
What are we understanding about our self-service calls?
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MAJOR UPGRADE OR REPLACEMENT IN NEXT 2 YEARS
For those remaining companies that have not upgraded, CIS, Quality Monitoring
changes along with mobile web and SMS applications are occurring in the next 2
year window. How to best leverage the technology change?
Total Respondents
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Primary CIS Customer Information System
38.89%
Quality Monitoring and Reporting Software
33.33%
Mobile Website Mobile Application
50%
SMS Messaging Text
Legends
Primary CIS Customer Information System
ACD Automatic Call Distributor
IVR Interactive Voice Response
CMS Call Management System
Scheduling WFM Software call forecast work
Quality Monitoring and Reporting Software
Multi Channel Blended Contact management
software
Meter data management system (MDMS)
Training Elearning software
Mobile Data (Field Scheduling or Order Mgmt)
Mobile Website Mobile Application
SMS Messaging Text
44.44%
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IT5
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INTEGRATIVE TECHNOLOGIES EMPLOYED at the Agent
Level
Nearly ¾ of companies are reporting high levels of technology aids to
help agents support customers. Significant growth since 2014
Total Respondents
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Screen pops with customer information prepopulated
96%
Information to the agent on what path the customer has taken in the IVR to get to the agent
28%
Most appropriate agent to handle call based on skill customer history etc. based on data
72%
mining
Provide the agent the ability to see realtime status of service orders or other pending customer work for
informational
purposes
72%
Enhanced intranet capability to allow agents to see quick tips or content specific areas
72%
Other
0%
Legends
Screen pops with customer information
prepopulated
Information to the agent on what path the customer
has taken in the IVR to get to the agent
Most appropriate agent to handle call based on
skill customer history etc. based on data mining
Provide the agent the ability to see realtime status
of service orders or other pending customer work
for informational purposes
Enhanced intranet capability to allow agents to
see quick tips or content specific areas
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Other
DCY Page 67– DC125
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INITIATIVES TO MANAGE THE HANDLING OF CUSTOMER INFO
NEEDED TO ENABLE MULTICHANNEL ADOPTION
Companies are focusing on communication, verification and
informational aspects in their initiatives
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We have begun the process of implementing a Preference Management Tool., allowing
customers the opportunity to choose communication avenues for outages and service orders.
(Company 33)
Security upgrades for the masking of PII data (SSN, Bank Account and Drivers License are under
consideration). Encryption of the PII data will also being implemented. (29)
Volume Reduction efforts, Customer Self Service increased options efforts (36)
Currently reviewing SalesForce as an option to manage email, fax, web to contact and more.
SalesForce would need to integrate with SAP to be front face CRM. (23)
Data Governance, Data Warehouse, Data Handling all in progress. (42)
Laying the groundwork for our omni-channel project in 2016. (21)
Web profile page update (click to update; web wizard for solar and wind; Customer preferences
page on website, where we collect email, text info and allow customers to opt-in to outage text
alerts. Pop up requesting updated contact information on web. (34)
The Move-In Process script was modified to ask a customer for their email address and to
immediately sign them up for e-bill and phone alert notices. (51)
(Company) has undertaken customer contact data acquisition and cleansing initiatives through
both frontline (contact center, website, etc.) and systemic processes. (32)
IT35
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areas of Focus and Opportunity
Volume
 Is the upgrade/ replacement of your CIS allowing you to support customer
contacts more effectively and efficiently
 Is the development and use of self service (Web, IVR, Mobile etc.) helping
your company reduce the volume of live transactions/ work?
 Are you able to measure the volume changes, where and why they are
happening? Are you able to measure customer satisfaction (and importantly
dissatisfaction and fixes) with new applications?
Cost
 CIS spending (FL5) – can you quantify it and what are getting for your
spend in this area?
Service
 Are your customers getting the level of service in your IVR and Web without
having to call twice/ transfer/ use alternate live contacts?
 Are you measuring to understand if you are attaining the benefits promised
in business cases/ justification for CIS/ IT investment?
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1QC Community Key Success Factors
Information Technology and CIS
Effectively communicate plans and changes internally
Leverage regulatory support in making changes service and customer friendly;
incorporate a regulatory strategy as part of implementations (AMI or CIS)
Maintain process consistency and improvement as a driver of change and
preparation for systems implementations
Link initiatives to better provide service, data management and information
flow to and from customers…don’t confuse your customers
Develop internal expertise to parallel and augment the use of external vendors in
implementations
Manage expectations and targets to allow for assimilation of technology (people learning, project “burnout”, work load; process- application and testing, quality)
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Thank You for Your Input and Participation!
Your Presenters Ken Buckstaff
[email protected]
310-922-0783
Debi Cook
[email protected]
760-272-7277
Gene Dimitrov
[email protected]
301-535-0590
Rob Earle
[email protected]
315-944-7610
About 1QC
First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous
process improvement, change management, benchmarking and more. You can count on a proven process that
assesses and optimizes your resources, processes, leadership management and technology to align your business
needs with your customer’s needs.
Visit us at www.1stquartileconsulting.com | Follow our updates on LinkedIn
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