Customer Interaction Management

Alok Shende
Director, Technology Practice

29 October 2004, Goa

Agenda
• What is CRM ?
• CRM Technology Architecture
• Need for CIM
• Application of CIM
• Background of Indian Interaction CRM space
• Interaction CRM Case studies
-Indian Banks
-Telcos
-Travel & Hospitality
 WHAT IS CRM ?

• Business approach that understands, anticipates and manages the

need of current and potential customer of an organization.

• Integrating People, Processes and Technology of an organization

• Effective use of Information about customer to maximize customer

satisfaction as well as well as cost reduction and increased
profitability for an organization
 TAKE AN EVOLUTIONARY APPROACH TO
CUSTOMER STRATEGY

Human Resource

CRM
Process Technology

Transition of perception from viewing customers as exploitable

income sources to treating them as assets to be nurtured.
Treating CRM as a tool , rather than a strategic effort
 READING THE FINE PRINT

• Customer satisfaction--performance/conformance: Doing what

was agreed to and expected (explicitly and implicitly).
• Customer care and relationship/positioning: Anticipating and
delivering the solutions and leverage that will make the customer
more successful.
 UNDERSTANDING THE GAP

Foster
Behaviours

Implement Implement
Technologies Processes

Treating CRM as a tool implementation exercise rather

than a strategic effort
INVENT NEW WAYS TO CREATE VALUE TO THE
CUSTOMER
Managing Relationships means…
Study factors effecting customer iti on
q uis
behavior r Ac
t ome
s
Benchmark & measure Cu
factors:

Process to transcend the feel

good factor to customers
 Motivation
 Job satisfaction Customer Retention
 Quality of work life
 Work place
communication
 Leadership Cus
tom
er D
 Influence, power, politics eligh
t
 Organizational structure
 KEEP FOCUS ON WHAT IS IMPORTANT,
RATHER THAN TECHNOLOGY

Customer Acquisition Customer Retention

Personalize – innovate – differentiate Listen – empathize – adapt
– show more value – innovate
– profit the customer – create value
– transcend value
– orient to customer loyalty program

Customer Delight
Increase customer profitability – bundle offering:value proposition
– strategize differently for high-value and low-cost customers

CRM rapidly evolving from technology-centric to a

business-value effort.
 CRM TECHNOLOGY ARCHITECTURE

Component of CRM used for Customer interaction Management

 NEED FOR CUSTOMER INERACTION
MANAGEMENT

• Shifting of business focus from traditional CRM system to customer

centric approach of CIM

CRM CIM
Focuses more on Focuses on Managing
departmental efficiency Customer consistently

• CIM is a mix of traditional CRM solutions with suite of Web-based

interaction solutions and wireless device transaction management.
• CIM optimizes every interaction with customers, regardless of channel
or contact point
• CIM requires a centralized information center, applied analytics, and
interaction software that can deploy centralized decisions throughout
various business processes.
Application of Customer Interaction Management
 APPLICATION OF CIM

Application
of CIM
Assisted Automated

Transactions
Ma leph

Management

Ma
W agem
Te
n

eb
n
a

Email
ge ny

sit ent
m

e
o
e nt

Dialers, Real time Web

IVR, ASR Collaboration
E-mail Management system
 EMAIL MANAGEMENT SYSTEM

• Automated transaction : Information about a new product offering

or discount schemes
• Assisted transaction : Reply to the query of a customer about a
specific problem faced in a product.

- Supplements the marketing and sales force-automation

processes of an organization
- Effective and inexpensive system to test market one’s top
customer segment.
- Application in Banking & Finance, Travel & Hospitality and
BPOs
- Major Vendors : Talisma, eGain, Nortel Networks
 WEBSITE MANAGEMENT SYSTEM

• Assisted transaction : Chat with a live agent, guided to choose

suitable financial product
• Automated transaction : Browsing through an interactive web
page accessing information about specific product

- Various real-time collaborations : instant messaging, live Web

conferencing, interactive chat, semi-automated responses and
screen or document sharing
- Multiple sessions handling at a time in asynchronous mode .
- E-commerce websites, outsourced call centers
- Major Vendors : Talisma, eGain, Nortel Networks
 TELEPHONY MANAGEMENT SYSTEM

• Assisted transaction : Predictive dialers for outbound

campaigning
• Automated transaction : Query handling via IVR and ASR like
bank account balance enquiry, flight/rail reservation status

- Hindi and local language processing in ASRs, Speech to text

and text to speech conversion
- Service lines or toll free numbers for presales
- Convergence of voice, Web and e-mail response
- Telecom and Banking & Financial institutions
- Major Vendors : Concerto, Nortel Networks, Nuance, Scansoft
Background on Indian Interaction CRM Space
Key Market Findings

• The Indian BPO market continues to invest in technology. The

Indian ICRM revenues in 2003 stood at $77.0 million
• The Indian ICRM market accounted for 12.4 percent of total Asia
Pacific revenues in 2003 which is a growth of 38.2 percent over
2002 . The market is expected to grow at a CAGR of 19.5 percent
• Outsourcing non-core and IT services has become the business
strategy for growth in the new millennium as such the Outsourced
Call Center market in India will continue to dominate the ICRM
revenues
• The Banking & Financial Services Industry and the Telecom vertical
will be the next big wave of domestic ICRM uptake in India
Key Market Findings

• Pricing became very competitive in the Indian ICRM market in 2003.

Another trend that is emerging is to offer more features while
maintaining the same price.
• The coming years are likely to see the small and medium enterprises
(SME) market opening up with enormous business potential for
vendors that are able to provide competitive applications at lower
price points
INDIA ICRM TRENDS-RESHAPING THE MARKET
 WHAT ARE END USERS BIGGEST CONCERNS?

• ROI Assessment is Highly Critical

• Agent attrition is increasing and staffing
concerns are a major headache!
• Consolidation had led to multiple vendor
systems/technologies
• How MUCH of technology is enough and how
to achieve judicious blend between technology
and business benefits
ICRM TECHNOLOGY ADOPTION- ASIA PACIFIC
Chart on Technology Adoption and Uptake by Country ( Asia Pacific ), 2003

* ACD * Outbound * WFM Software *IP Contact Centers

Evolution * IVR * Advanced CTI * Multimedia * Analytics
of ICRM * Basic Recording * Universal Queueing Integration ( e-mail * Self Service Apps
Technologies * Basic Screen Pop * Call Recording and web ) * Speech ( ASR )
& Logging * Quality Monitoring

Phase 1 Phase 2 Phase 3 Phase 4

Phases of Uptake in the Asia Pacific Interaction CRM Market

Level
* Indonesia * Thailand * Singapore * Australia
of Country * Philippines * New Zealand
* Malaysia * Japan
Progression * China * India * Hong Kong * South Korea
* Taiwan

Source :Frost & Sullivan

Countries in Phase 1 and Phase 2 have only begun Countries in Phase 3 and Phase 4 are now
to deploy basic applications and this includes India demanding for more value based applications
and China. for lesser value
Interaction CRM: Case for Indian Banks
 BANKING & FINANCE

• Continued critical role played by Banking & Finance industry in the growth of
the call center market in India
• Typically set up for the back-office processing (trade, loans, cards, cash
management, customer care - both inbound and outbound)
• Increased usage of call centers for complex functions (financial analysis, HR
and marketing and publication) - a definite shift from traditional activities such
as data entry and call register
• Perceived as strategic investment for customer service rather than for
generating immediate ROI.
• Mostly captive units due to high sensitivity of information
 BANKING & FINANCE

• Expected to increase investment in contact center technology

• Focus steady on customer service and high technology
applications.
• Applications such as computer telephony integration (CTI), call
monitoring, Email and Web solutions likely to gain importance
• ICRM revenues to increase with large opportunities for cross
selling and up selling
• Some of the Major Deals that materialized across 2003 include: ICICI, SBI,
HSBC, ABN AMRO, Birla Global Finance, AVIVA Life Insurance, National
Insurance, New India Assurance, Citibank, ANZ Grindlays, HDFC, Birla Sunlife,
PNB, Principal AMC Mutual Funds and Kotak Mahindra.
 MAPPING CHANNELS WITH CUSTOMER NEEDS

High Entertainment Communication • Recent trend on proliferation

of channels driven by the
need for greater variety and
the need for greater the
Branch control by customers
Web call
TV center • Banks who align themselves
with this relationship have a
Variety Broadband PC greater chance of building
enduring relationships
Information Transactions
• In the future, dominant
leverage of bank branch will
ATM Call Center be for advisory services.
Mobile Phone (SMS) Transactions based services
will be in the wane.
Internet Mobile
Low Mail Phone Narrow Band
PC
Low High

Control by Customer
 CHANGING LANDSCAPE OF
INDIAN BANKING INDUSTRY

• Fee based income posing an increasing component of bank’s income as

compared to Interest income as in the past
• ‘It is becoming a customer driven market’. Key drivers:
• Mass customization of services
• Increased competition
• Shifts in demographics & income groups
• Proliferation of financial products
• Life cycle management needs of customer
• Brands
• Proliferation of Channels leading way for increased focus on Channel
Management
• Productivity growth driven by judicious investments in IT
Interaction CRM: Case of Telcos
 TELECOMMUNICATION
• Telecommunications industry offers attractive opportunity to call centers, with
almost all carriers, cellular operators and Internet Service Providers - setting up
call centers.
• Intense competition and low customer loyalty force service providers to invest
heavily in call center and customer care operations.
• Large carriers like BSNL and MTNL have set up their own captive call centers
catering to vast population across diverse geographies.
• Multi-modal applications get popular amongst the mobile operators as a source
of high revenue generation.
 TELECOMMUNICATION
• In-house or captive call centers more popular among service providers as
they can set up the centers in their existing premises, tapping into their
available network resources and expertise.
• However,with phenomenal increase in the number of subscribers for
basic and cellular services - opportunities to arise for outsourcing the
services to third party contact centers.
• Call center applications gain increasing level of complexity as most large
carriers have installed integrated customer support and help-desk
solutions that enable customer self-help, and multi-channel support.
• Industry more inclined to a multi-channel contact center scenario thereby
opening all channels of communication for its customers. As such these
service providers are likely to invest in unified solutions for their contact
center applications.
• Major deals that took place across 2003 are: BSNL, MTNL, Hutchison
Max, Airtel, BPL, Bharti Televentures and Reliance
Interaction CRM: Case of Travel &
Hospitality
 TRAVEL & HOSPITALITY
• An increasingly attractive vertical for call center operators as an industry
potential to bank heavily on outsourced services.
• Apart from traditional activities such as request logging, hotel and travel
booking and billing, would also look to call centers for assisting in their
marketing and customer reach efforts.
• Level of complexity of applications could be restricted to ACD, predictive
dialing, IVR and e-mail.
• Companies that have a large consumer base and contact volumes are
high investing in third party contact centers for providing services or
setting up 15-30 seat call center.
• Major wins across 2003 include Asian Paints, Procter & Gamble,
Hyundai, Maruti udyog, Volvo, Eureka Forbes, Whirlpool, Emirates, Jet
Airways, Air India, Lufthansa, Cathay Pacific, Thai Airways,
Scandinavian Airlines, Sita Travels, Hyatt Shared Services, etc
YOUR STRATEGIC PARTNER IN SUCCESS
Alok Shende
Technology Practice, Frost & Sullivan India
 : + 91 22 28324705
ashende@frost.com