How to Leverage Analytics, Design, and Development to Transform Customer Journeys

McKinsey & Company 1

Leveraging Big Data Analytics and Design

to Transform Customer Journeys

Maxence VancauwenbergheMcKinsey

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▪ 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

[email protected]

[email protected]


Big Data


Big Data in Experience


???Harnessing Big Data in Experience


DesignAnalyticsIdeate TransformImproviseImagineQualifySketchInventNext practice

MeasureFix

PlanTrack

QuantifyAnalyzeForecast

Best practice


Higher ROI and impactBankingJOURNEYS TRANSFORMED▪ Disputes▪ Card Replacement▪ Identity Verification

NPS Increase

+23%

HealthcareJOURNEYS TRANSFORMED▪ Prescription refill

Annual Spend Increase

$1bl

Store Experience CSAT

+16ptsRepeat 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

$500mIncreased 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


“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


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…


Journey analytics tool box

Drivers of NPS

Post completion call

# of attempts prior to completing

Journey duration – avg. journey durationEngagement 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 NPS

Current 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


Map the journeyOutcomes

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

Activatenew card

Anxiety related to card loss

Opportunity to upsell


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

Ave

rage

Ave

rage

Ave

rage

Ave

rage

What the company thought was important

Ave

rage


▪ Pain points eradication▪ Radical innovations

150+ ideas

Ideate

Co-creationJourney diagnostic

Trendscraping

Targeted personas


Prioritize ideas based on quantified RoI

Cost saveProgram NPS LiftValue Index Complexity

9MMCard Freeze +7 7421

2MMxx x 5534-Concierge x 6445

-xx x xx57-xx x xx48

In Control x11

xx x13Disposable Numbers x14

Welcome Back x16

xx x19Send 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 xxxx x18 xx

xx +7 6632 3bn

xx x10 xx

23MMxx x xx56 xx

Quantifying business impact of each individual idea

xx3xx3

From 150 ideas to 5 programs▪ +23pts NPS▪ $4bn spend savings ▪ $10m cost save


Crystallize Multiple Ideas in Hi-Fi WireframesCombine 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


Launch kit for development and roadmap

System map

MVP and release plan

Overview


Ongoing journey performance tracking

Success Rate

Effici-ency

Channel Effectiveness

Post completion call rate# of attempts prior to completing

% report lost card in first weekEngagement timeFirst 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 lossesRelink 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%

CURRENTSTATE

0%

1

100%

4 m.

100%

-0.37

0

80%

.4

10 s.

15%

100%

0%

1 m.

100%

FUTURESTATE

Targets Tracking Rootcause and iterate


Impact captured

19 to 30% improvement of NPS at Journey

level

$25mcost captured

$1bnspend increase

per year

+2 spots in JD Power …on track to get

to no. 3


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


Tools – example: ClickFoxRaw data

Unstructured IVR Logs

Structured Agent Logs

Retail Desktop Data

Web Logs

EventsInstant Transform

Retail Steps

IVR Prompts

Web Pages

Agent Steps

PathsAll 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

JourneysPaths to Outcomes

Enrollment Journeys

Churn Journeys


Talent

Analytics Design Business

Customers


Cycle

Monitor metrics

QEDcycle

Implement tech

changes rapidly

Design journey

and solution

s

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


Getting started

No data is perfect

Start right away with most important journey

Carve out implementation capacity

Set up cross-channel group

Thank You!

How to Leverage Analytics, Design, and Development to Transform Customer Journeys

Business

Transcript of How to Leverage Analytics, Design, and Development to Transform Customer Journeys