Delivering Customer Service across Multiple Contact Channels
Bernard Conlon Otto
Who are we?
• OTTO Group
German owned - privately by the Otto family Founded in 1949 – it is a world wide operating trade and services Group with circa 52,000 employees Organised into three business segments, Multi-channel Retailing, Financial Services and Business Services Group Revenue (07/08) 11.5bn euros OTTO is the largest mail order group in the world OTTO is second only to Amazon in B2C on-line trading
UK corporate identity is
OTTO UK - who we are in UK
OTTO UK - who we are
Grattan purchased in 1991. Freemans purchased in 1998 Traditional big book catalogue
Look Again launched in 1993
Oli launched in 2007 - web only, media rich, much younger market.
Traditionally viewed as ‘big book marketing’?
Our world is Changing - what are we faced with? “My Gran had one of them!” or “You never see them anymore!”
The reality is very different ...
• • • • • • • •
100 years of proud history 2 million + customers to manage - Grattan and Freemans largest bases UK T/O of c.£500m 3800 employees As a group we are currently paper first – internet second - 65 but changing quickly On-line trading increasing quickly and by 2011 we will be 40
/ 35%
/ 60%
but our systems, processes and people have traditionally supported a paper lead business we have been slow to adapt to the multi channel challenge
•
Also our customers are changing - today we have...
Traditional - 55+
Female Budget conscious Fashion aware Buy for themselves and others - agency? Like catalogues and phone ordering Uncomfortable with ordering on-line
But our new and potential customers are….
Female Younger - 25 - 45 Technology savvy Comfortable with web shopping Higher service expectations Higher disposable income, thought not ‘flush’ Brand shoppers
We know that the retail winners all have integrated multi-channel strategy……..
RETAILERS IN HOMEWARE & LIVING CURRYS PC WORLD COMET ARGOS JOHN LEWIS TESCO ASDA IKEA DEBENHAMS M&S DUNELM DFS MFI DREAMS MAGNET NEXT INFO WEBSITE ONLINE ORDER/STORE COLLECT SERVICE
STORES
REGULAR CAT
TEL ORDERING
TRANS WEBSITE
LSD
Source: Verdict Homewares Retailers 2008, Verdict Electrical Retailers 2007, Verdict Furniture & Floorcoverings Retailers 2007
…. And that Multi-channel retailing will be dominant trend over next 15 years
5th generation: Multi-channel, multi-format multiples Very large out of town formats Town centre and neighbourhood self-service multiples Small format multiples Artisan retailers Independent retailers*
1850
1875
1900
1925
1950
1975
2000
2025
What can we conclude?
• Seamless integration between channels will offer best customer experience • Convenience increasingly important for time poor consumers; feel increasingly pressured • Consumers move towards ‘better’ shopping experiences • Successful large retailers driving operational excellence • Retailers need to adopt new and improved IT systems to support business and deliver good service
So…?
As we go through this major transition within our own business, and the marketplace, how do we successfully service such large disparate groups of customers, counter market perceptions and try to keep everyone happy?
A Contact Centre example
Contact Centre - historically
• Inconsistent approach to customer contacts - calls, emails and written correspondence Inconsistent services between sites Different processes, different systems, different teams No meaningful M.I. No measureable SLAs
• • • •
…...yet
• • E-mail traffic has grown by 98% in the last two years Call volumes not decreasing by the same degree – circa 10% Written correspondence remaining static at circa 19,000 items per week
•
What were our Strategic Objectives to meet this challenge?
• •
Meet the challenges of customer contact growth type Provide consistent and improved levels of service across all channels Stabilise our systems Streamline our processes Improve management control – ‘real time’ reporting Provide our CSA’s with “one version of the truth” Drive operational savings
• • • • •
Phase I
E-mails
• • Implemented Numero SmartAgent in 2007. Immediate productivity benefits (circa £500k benefit annualised) - people and process improvements Reduced SLA’s from 72 hours to 24 hours > 90% now inside 12 hours Systems stabilised • Can absorb our growth plans • Significantly reduced repeat emails • Improved quality of responses
•
•
Phase II Written correspondence - White mail’ - and Consumer Credit Act
• • • • • • • Implemented Numero Smart Agent in 2008 All work captured, scanned, routed and stored electronically Integrated to mainframe Work outcome codes drive route cause analysis Full audit trails Fulfil our CCA obligations with storage of contracts Further productivity benefits (circa £250k benefit annualised)
Impact of Phase I and Phase II?
• • • •
Allowed multi-skilling of our CSA’s - away from single skill set All email and written correspondence now dealt with consistently All CSA’s have “one version of the truth” Significant improvement in SLA’s Q.C. M.I.
•
Significant bottom-line benefits
Where to next – Phase III?
• • • •
Pro-active Communications - rather than passive and reactive Complaint Handling consistency across whole organisation Pro-active sales - every customer contact can be viewed as an opportunity Moving towards a Unified Desktop
Have we reached all our Strategic Objectives?
• • • • • • Meet the challenges of customer contact growth Provide consistent and improved levels of service across all three Brands Stabilise our systems and streamline our process Improved management control and real time reporting Provide our CSA’s with “one version of the truth” Drive operational savings 75% 75% 75%
Other learnings?
• • • •
Our market continues to change and challenge Real time is becoming more important Customers are becoming more demanding New competition in the market are quick to change and adapt
What would I do differently? Never believe the salesman - integration takes longer than ‘promised’!!
Spend more time on training and developing people – the systems will only ever be as good as the people who are using them …… and they are the ones managing your customers
Thank you
Questions?