Sei sulla pagina 1di 12

viewpoint

Volume 4
Number 1

A Root Cause Analysis Strategy for


Improving Customer Satisfaction
“What Can Jethro Tull Teach Us
About Customer Service?"

Introduction
In the largely agrarian 17th century economy, In many ways, customer service operations
farmers struggled to improve centuries-old today are riddled with the same inefficiencies
inefficient processes. Traditionally, seeds that were faced by 17th century farmers. This
were thrown, or "broadcast," which made it paper examines the successful, innovative and
difficult to weed and harvest the crop. Finally, cost-effective solution one customer-centric
farmers used a "dibber," a board with holes company deployed to identify and address the
evenly spread apart, for planting crops. A causes of customer dissatisfaction.
stick would be pushed through the holes, and
a seed placed in the hole made by the stick.
This was effective and targeted but also The discussion includes:
tedious and time-consuming. It was during
this time that a farmer named Jethro Tull (in I. Need for Strategic Root Cause
addition to inspiring flute-playing rock-and- Analysis in Customer Service
rollers everywhere), invented the seed drill
using parts from the foot pedals of his local II. Challenges of Strategic Root
church organ. Tull's drill sowed seeds in Cause Analysis
uniform distance and the runners on the drill
III. Identifying Drivers of
made holes that allowed the seeds to be Dissatisfaction – Crafting the
sowed at uniform depths. It also enabled a Solution
consistent, precise method for harvesting
since the seeds would grow in predictable IV. Benefits
patterns. Ultimately, his invention enabled
V. Can Your Company Find the Root
mechanized farming and is recognized as one
Causes of Customer
of the driving forces of the industrial Dissatisfaction?
revolution.

© 2004 DiamondCluster International, Inc. All rights reserved.

This Viewpoint was prepared by Steve Rudolph, Amaresh Tripathy, and Michel DiCapua.

Contact: Mark Keeley OR Steve Rudolph


Managing Partner, Telecom & High Tech Practice Principal, Telecom & High Tech Practice
Strategy & Business Analytics Strategy & Business Analytics
312.255.5642 312.268.3752
mark.keeley@diamondcluster.com steve.rudolph@diamondcluster.com
viewpoint
Despite all of the money spent on customer Root cause analysis reveals the underlying
satisfaction and CRM systems, many causes behind customer dissatisfaction and
companies are no closer than they were 20 leads to targeted actions to resolve them. It is
years ago in understanding the specific drivers based on the understanding that strategic,
of customer dissatisfaction. With only 16% of rather than merely operational, methods are
companies stating that CRM implementations required if companies aim to be serious about
result in "measurably improved business solving the challenges of customer
1
performance," the most basic questions still satisfaction.
remain unanswered:
The strategy follows the design and
! Why are customers dissatisfied? implementation of "code-based intervention."
Code-based intervention enables targeted call
! Why are customers calling care? monitoring and analysis by employing a
coding schema for inbound calls that is then
! Why do customers defect? matched to actual call recordings. In this way
the carrier can hypothesize about root causes
! And most importantly: What can we and subsequently validate, quantify, and
do to increase customer satisfaction tactically respond to these problems. When
cost-effectively? combined with existing primary and
secondary research tactics, code-based
Just as Tull's seed drill mated the range intervention greatly increases a company’s
afforded by the broadcasting process with the confidence in decisions that have far-reaching
targeted precision offered by the dibber, impacts on customer satisfaction, retention,
answering customer service questions and the cost of service.
requires a strategic approach that is at once
wide-ranging and targeted. Implemented for less than $1million, the
solution has allowed the carrier to identify
This paper outlines a root cause analysis over $60 million in variable cost savings
strategy developed by DiamondCluster in within the first 6 months after
collaboration with a national implementation.
telecommunications carrier to address
customer service issues.

1
Krass, Peter, "CRM: Once More, Without Reeling," CFO Magazine, March 17, 2003. Citing AMR Research, Krass notes
the following percentages of companies achieving various levels of success with CRM implementations: 12% - Failure:
started but failed to go live; 47% - Implemented: went live, succeeded in the technology aspects, but business change
and adoption failed; 25% - Adopted: Succeeded in both adoption and systems, but could not quantify business benefit;
16% - Improved performance: Reached the promised land. It measurably improved business performance.

2
I
Need for Strategic Root Cause
Analysis in Customer Service

Conventional approaches to customer a whole. Conversely, the call may be


dissatisfaction have encountered the representative of the customer population but
weaknesses of either the broadcasting due to the broad range of issues covered in
technique or the dibber. Traditionally, the calls monitored, may not be sufficiently
companies have used primary research tools detailed or actionable.
such as customer surveys and focus groups to
understand customer dissatisfaction. They As the shortcomings of these methodologies
rely on third-party firms who are divorced are exposed, the need for a strategic
from the day-to-day business operations. A approach to customer service becomes even
broad analysis such as a closed-ended more important. Barriers to switching
customer satisfaction survey may capture between products or service providers are
general feedback: customers are disgruntled constantly falling. The growth of the Internet
with the company's customer service; or has empowered customers with access to a
customers primarily choose products based on wider range of consumer choices in an
“Companies in many industries price; or the company suffers from an overly- increasingly competitive business
conservative brand. But these types of results environment. Customers are becoming savvier
need to be able to identify are often already obvious or are not specific in their choices and would not give a second
drivers of dissatisfaction in order enough to be actionable. Additionally, self- thought to switching loyalties when faced
selection or other biases to which surveys and with a situation where their needs are not
to reduce costs, increase focus groups are prone may skew the results. consistently met. These current realities,
customer satisfaction, and Similar to broadcasting, there is no efficient coupled with regulatory changes, such as
and clear way of harvesting actionable number portability in telecommunications and
prevent defection.”
information from this process. HIPAA in the healthcare industry, make
dissatisfied customers even more likely to
On the other hand, more rigorous hands-on defect. In short, companies in many industries
analysis, such as live monitoring of inbound need to be able to identify drivers of
calls, suffers from the same issues as the dissatisfaction in order to reduce costs,
dibber. It is very time-consuming and increase customer satisfaction, and prevent
expensive to make the process effective and defection (churn). Moreover, companies need
actionable. A small sample of calls may give to strike a careful balance between cost
the listener insightful detail into particular reduction and the potential loss of customer
customer concerns but it may not be satisfaction. In most cases, this is easier said
representative of the customer population as than done.

3
CASE STUDY
Keeping Customer Service a Key Competitive Lever

A wireless telecommunications operator was facing high call


volume in customer service operations and declining customer
satisfaction. The average call per subscriber was above the
industry benchmark. With the cost between $3-$5 per call,
customer service operations were a significant portion of their
general and administrative expense. Realizing that customer
service is a key competitive lever in an industry with declining
margins and high churn, the operator decided to elevate their
customer service operations from a tactical to a strategic level.

The carrier charted a three-step process:

1) Creating a coding schema for inbound calls, allowing the


operator to categorize the root cause prompting a customer call
and to obtain a "radar view" of the issues;

2) Developing a statistically significant tentative causal model


for the relationship between coded events and their value (i.e.
hypothesize and prioritize);

3) Intervening when the causal relationship is established


("deep-dive" analysis) – and creating strategies/tactics to
address and resolve the issues.

The solution integrated statistical process analysis with off-the-


shelf technology already in use by the call centers. It also
required staffing a specialized root cause analysis team to
support the ongoing process. The solution allowed the carrier to
conduct accurate, actionable, cost-effective root cause analysis
for the first time. This paper explores the challenges presented
by strategic root cause analysis, how the solution created by the
organization met their challenges, the benefits achieved, the
obstacles that were faced in implementation and execution, and
the applicability of this solution to identifying drivers of
dissatisfaction in other industries.

4
II
Challenges of Strategic Root Cause Analysis
Do you ever wonder why you often hear the enabling call center managers to grade their satisfaction, it is extremely difficult to
message, "Your call may be monitored for specialists. Call monitoring for root cause validate and quantify the extent of customer
quality assurance purposes," but you seldom analysis purposes, on the other hand, satisfaction issues, forcing most companies to
hear, "This call may be monitored for the represents a strategic version of primary jump from hypothesis generation immediately
purpose of improving customer satisfaction?" analysis. Indeed, many companies are not to implementation. Often, problems are
Most likely, the reason is that many accustomed to leveraging a tool such as call identified through anecdotal information – the
companies perform primary analysis for purely monitoring for strategic purposes such as "problem of the moment" that catches the
operational reasons. The carrier in the case understanding and improving customer attention of a customer service supervisor or
study (p.4), for example, was already satisfaction. department VP.
performing call monitoring on a regular basis.
Nonetheless, when it did so, the monitoring Yet even for those companies that do use
was typically targeted at the agent level, primary analysis to address customer

Strategic Root Cause Analysis Overview


Objective Outputs Typical Issues
A ! A lightweight front-end to existing ! Summary of available data; determine ! Current data sources and collection
Analyze impact of results to determine future improvements

operational and transaction systems to level of statistical accuracy and methods require revision to ensure
Gather Data
allow a faster, more flexible application actionability accuracy and actionability

! Generate hypotheses as to the ! Brief articulation of several key ! Hypotheses often based on incomplete
B underlying causes of customer hypotheses that need to be validated or or anecdotal evidence (e.g. Executive
Generate interactions based on available data disproved complaints, one-off call monitoring)
Hypotheses sources

! Validate hypotheses through direct ! Quantification of detailed reasons for ! Resources and methodology not
C observation (call monitoring, market root causes of customer interactions available to perform “deep dive” of
Validate surveys) and statistical analysis strategic root causes of dissatisfaction
& Quantify
! Identify the “quick hits” and long-term ! Detailed workplan: timeline, ! Determining proper action difficult
D changes required to optimize the dependencies, and responsibilities without understanding of specific,
Develop targeted customer interaction actionable causes of dissatisfaction
Action Plan
! Form teams to implement required ! Implementation of identified actions ! Implementation cannot be prioritized
E actions across the organization correctly without validating scope or
Implement scale of problem
Actions
! Track the impact of the results and ! Resolution of problem or generation of ! Data sources and tracing methodology
F determine if the root cause has been new hypotheses if not resolved not available to track results and isolate
Track Results addressed impact of actions

Many companies perform some type of root cause analysis to drive out the underlying reasons of
customer dissatisfaction; however, most do not validate and quantify their hypotheses prior to
implementing proposed solutions.

5
There are typically two problems encountered Both solutions turn out to have drawbacks.
by companies that attempt a systemic Hiring a team of call monitors is prohibitive
validation and quantification of hypotheses due to labor costs and the massive amount of
through primary analysis. The first problem is data that requires analysis. Automated call
that many forms of primary analysis have monitoring tools have various strategic or
basic statistical biases. An outbound survey technological shortcomings. For example,
of sources of customer satisfaction and text-mining software (which combs through
dissatisfaction may evoke responses from notes typed in by specialists as they listen to
only the most frustrated customers with the calls) is vulnerable to inaccuracy, sensitive to
most reason to vent (or, it may be asymmetric user-defined key words, and prone to human
on the other side, drawing responses only typing errors. Also, notes entered by
from the most pleased customers who are customer service reps often contain the
happy to contribute a short amount of time to solution to the problem (e.g. "gave customer
their preferred service provider). If the first $5 credit"), rather than the root cause of the “A winning solution for customer
problem with primary analysis conducted trouble (e.g. "customer stated that they were satisfaction root cause analysis
through surveys and focus groups is the misinformed of service fee"). On the more
slippery slope of bias, the second problem is technical side, voice recognition systems would deliver a complete,
that primary analysis conducted too broadly would be useful but may not yet be ready for statistically valid picture of the
(e.g. through generalized call monitoring) implementation.
gives statistically valid and believable results
issues...”
but which are often too obvious and It is clear that sound root cause analysis is
generalized to be actionable. required to strategically address customer
dissatisfaction, and that such analysis is
Based on our extensive work with dependent on some form of primary analysis.
telecommunications carriers there are two But it is also clear that conventional call
alternatives they typically consider in monitoring approaches either do not make
executing primary analysis through call economic sense or fail to provide significant
monitoring that is at once broad enough to and/or actionable value. Instead, a winning
give statistically valid, unbiased results as solution for customer satisfaction root cause
well as detailed enough to provide actionable analysis would deliver a complete,
conclusions. Either the company hires a large statistically valid picture of the issues; it
team dedicated exclusively to monitoring and would lead to actionable recommendations;
analyzing large, random sets of calls, or the and it would be capable of being implemented
company tries to implement sophisticated at a manageable cost.
automated tools to perform these functions.

6
Identifying Drivers of Dissatisfaction –
Crafting the Solution
The solution to identifying accurate, 1) A call reason tracker which presents a

III
actionable drivers of dissatisfaction is a running "radar view" of the reasons behind
comprehensive methodology and underlying customer calls;
system that begins at the level of reasons for
customer calls and culminates in detailed 2) A call library of recorded customer calls
customer experience-enhancing initiatives that enables rapid, efficient, targeted "deep-
with quantifiable ROI. The solution involves dive" call monitoring;
statistically rigorous call reason tracking
matched to highly-targeted call monitoring 3) A root cause analysis team to perform
efforts and is structured on three components: "deep dives" into specific call reasons through
targeted call monitoring.

A Strategic Root Cause Analysis Solution

1 – Billing education Generate new hypotheses


2 – Network coverage
reason 1
Validate previous hypotheses
3 – Dispute charges reason 2
4 – Change plan Track impact of initiatives
5 – Other reason 3

Obtain “Radar View” of Perform “Deep Dive” Analysis


Call Drivers Create a Call Library to Identify Call Reasons

! Select random sample of CSRs to code ! Store 3-6 months of recorded calls in ! Perform primary analysis on specific call
calls with standardized call reasons central database drivers through targeted call monitoring
Workstep
! Record 100% of these CSRs’ calls ! Match list of coded calls to the ! Perform more complex, secondary analyses
recordings of those calls using customer information databases

! “Radar view” providing directional ! Library of coded calls allowing primary ! Actionable, accurate insights into root cause
guidance as to call drivers research team to select specific call reasons of customer dissatisfaction
Output ! Ability to accurately track month-to-
reasons to monitor
! Validation and quantification of root causes
month changes in call reasons prior to launching initiatives

! Sample of CSRs cannot contain bias ! Technical issues such as storage ! A mix of primary and secondary analysis
space for recordings need to be required to identify and validate call drivers
Issues ! Sample size of coded calls must be
resolved early on and quantify their financial impact
sufficient to track changes over time

Creating a call library of recorded calls coded by call reason allows a team of analysts first to
obtain a “radar view” of major call drivers and then to perform a “deep dive” analysis to identify
actionable underlying causes of customer dissatisfaction.

7
The combination of the "radar view" to detect Here is where the strategic component of the focused as callers requiring a second
the major call drivers with the "deep dive" solution fits: highly targeted call monitoring. activation call or customers from a specified
analysis to pinpoint the underlying causes Once executives have studied the "radar view" credit segment calling on holiday weekends.
behind these calls gave the carrier an of call reason results and identified issues or
efficient, results-oriented strategy for tackling customer segments of concern, a call Combining these three components to
customer service issues. From this strategy monitoring team performs "deep-dives" into produce a complete strategy for addressing
emerged recommended actions the carrier the issue, validating and quantifying customer dissatisfaction yielded significant,
could adopt to increase customer satisfaction. hypotheses for root causes. This team, tangible value for the carrier. Findings
Examples of these actions included comprised of five full-time employees with generated by the call monitoring team
improvements to the customer experience for analytical expertise and operational allowed the carrier to identify critical root
credit-challenged customers, resolution experience, is charged with driving root cause cause themes. Among these themes were
management for the most frequent callers, insights from listening to calls, carrying out problems in the customer experience for
and evaluation of potential call savings that statistical validation of results, and delivering credit-challenged customers that were
could be achieved from specific IT actionable recommendations. These resulting in dissatisfaction and higher cash
investments. recommendations are uniquely tailored to cost per user (CCPU) for this segment.
address specific root causes and come with Recommendations based on these findings
To see how these types of recommendations quantified projections of the impact that could led to the development of business cases that
could be driven from the strategic root cause be expected from their implementation. identified $11 million in annualized cost
analysis solution, let us examine each of the savings. A separate call monitoring project
solution's components in more detail. confirmed the hypothesis that a decisive
“Recommendations based on the driver behind extraneous calls related to
The first component is a call reason tracker, balance inquiries was misleading or
root cause analysis identified
which records call reason frequencies of a inconsistent posting times being reported by
random representative sample of calls each $11 million in annualized cost different payment channels.
month. The application is designed to detect savings.”
slight but statistically significant deviations Sometimes the targeted call monitoring can
among these call reasons from month to reject an existing hypothesis. One example
month. Data generated from this tool proffers The third component, a call library of recorded looked at the call reasons for the most
a "radar view" – current and historical – of calls, allows for targeted call monitoring and frequent callers. It was assumed that there
call reason patterns across the enterprise, thus fills the gap between the "radar view" of were specific recurring issues that drove
allowing the carrier to identify major reasons the call reason tracker and the "deep dive" of these subscribers to call with such regularity,
for customer calls, anticipate growing the call monitoring team. While it is easy to and that therefore they would have a
problems in the customer base, and quantify gather a large set of previously recorded calls substantially different call reason profile than
the costs attributable to different call reasons. that the call monitoring team could access to the rest of the base. In fact, the opposite was
For example, "10.9% of all calls in April were perform the call monitoring deep-dive, true. While secondary analysis revealed that
billing inquiry calls" or "7.2% of calls were providing the user with a targeted call sample less than 4% of callers were responsible for
from customers inquiring about their minute is a trickier matter. Trying to locate among a more than 20% of calls, call-monitoring
balance.” large set of randomly-recorded calls a valid- efforts revealed that these customers were
sized sample of calls that fit the call reason or calling for quite similar reasons as everyone
But while these results provide a statistically customer segment under investigation is else. The findings indicated that many of
sound view of the big picture, real root cause simply too time-intensive and costly. The these frequent callers called out of personal
insights can only be found in the details. It's solution to this challenge was a "call library," habit rather than for a particular reason. The
good to know that many customers are calling a catalogued inventory of recorded calls, concomitant recommendation suggested that
with billing issues, but what particular aspect searchable by call reason or other target the carrier single out, through a review flag on
of the billing process can be repaired to specifications. This innovation has permitted the subscribers' accounts, those frequent
dramatically lessen this pain point? call monitoring projects with targets as callers with legitimate issues (a small portion

8
call just to chat or simply to inundate the call attributable to problems with the produce less than $25,000 due to the low
center) and resolve the problem, thus synchronization of account balances across frequency with which they occurred, thereby
improving the customer experience and systems, a business case was constructed to not justifying a costly IT fix. Without targeted
averting continued frequent calling in the weigh the savings generated from fixing the call monitoring to validate and quantify
future. problems versus the costs of these specific issues, problems were often
improvements. Since IT improvements often identified through anecdotal feedback,
Yet another project demonstrated the involve large amounts of fixed and variable leading to expenditures that outweighed the
importance of hypothesis validation and cost, this case serves to illustrate the resulting cost savings. The example illustrates
quantification. As noted earlier, a flaw in importance of targeted call monitoring how root cause analysis strategy not only
some forms of primary analysis is that determining where to focus human and offers a clean, exact way of locating and
anecdotal evidence may bring to the forefront capital resources. Using inputs from the call validating call volume drivers but also
problems that seem glaring but are actually monitoring effort it was determined specific presents a method through which to quantify
not as crucial as other root causes. Without fixes would generate cost savings in the the extent of the calling costs.
validation and quantification, the “problem of range of $8M-$10M, others would likely
the moment” can often lead to a knee-jerk
reaction that fails to consider the full
cost/benefit picture. One example of such a Reasons for Account Management Calls from Frequent Callers
problem at the company was balance and
50%
billing information provided across automated
systems (e.g. web, IVR). Within the company, 40%
there existed a perception that update lags or 30%
unavailable balance/billing information were
20%
prompting a high volume of calls.
10%
To understand the extent of this problem, the 0%
call monitoring team first measured the Account Account Minute Lost/Stolen Password
Balance Information Balance Phone
amount of calls attributable to account
management, and the percent of those calls
that could have been avoided. The first graph 76% of account management calls from frequent callers could have been handled via
shows that for frequent callers calling about automated systems.
account management, 76% of the calls
concern “Account Balance,” “Account
Information,” or “Minute Balance,” all of Root Causes Related to Automated Options
which represent types of calls that could have
0% 5% 10% 15%
been avoided had the caller used automated
systems. The second graph quantifies the Trust/system
update issues
root causes behind why the callers chose to
place a live call rather than use the Prefer live rep
automated systems. The findings show that
callers are sometimes not aware that such Tried but failed
systems exist or have learned not to trust
Unaware of
these systems as they sometimes provide self-serve option
delayed information.

Once the call monitoring analysis had given 11% of callers who could have used automated options chose to place a live call
an estimate of the call volume that was instead because they have learned not to trust the systems.

9
Implementation Challenges Benefits
Code-based intervention to improve customer
While the carrier's root cause analysis solution has been a quantified success satisfaction has produced substantial
and is easy to understand in theory, execution posed various challenges. benefits. Quantitatively, root cause analysis
From the program management perspective, establishing a standardized enables the operator to optimize spending and
process that filters, prioritizes, and schedules call-monitoring projects and maximize the returns on investment. The call
dictates the consistent methodology to be followed each time is critical. It is library was used to make specific, actionable
necessary to employ a system for ensuring compliance among the advocates recommendations for improvement in
that are responsible for tracking call reasons. processes and prioritizing and quantifying the
benefits of various technology projects.
Technical challenges include development of a call-matching algorithm,
acquisition of sufficient storage space for the library of recorded calls Code-based intervention is another powerful
(approximately 1TB), and dependency on existing infrastructure capabilities weapon in a company’s analytical arsenal. By
at a company or on the willingness of management to pursue requisite IT improving the precision of primary analysis
expenditures. Justification of these expenditures hinges on clear through code-based intervention and
demonstrations of ROI. combining it with existing secondary research,
the carrier has identified more than $60
Finally, there are numerous "people" challenges. One of the problems the million in variable cost savings in the first six
carrier encountered was the initial reluctance of executives to adopt a months after implementation for a cost of less
strategic approach to customer satisfaction. Faced with limited resources, than $1 million to implement and operate.
extreme pressure to deliver results, and short timeframes, some executives
balked at what they viewed as an overly cautious methodology of validating Qualitatively, the solution has added precision
hypotheses. Others questioned the ability of primary analysis such as code- to primary research. The solution's
based intervention to yield concrete results and significant returns on methodology and tools allow for ongoing
investment. Overcoming opposition required building a "proof-of-concept" identification, verification, and measurement
prototype. The simplicity of the technical design allowed the team to create a of actionable drivers of dissatisfaction. The
small-scale call library, storing a month's worth of calls using existing server methodology can be applied across the
space. This low-cost, small-scale solution enabled several targeted call organization (such as to understand network
monitoring projects before the full build-out was approved. The results of problems and churn reasons).
these projects allayed executives' concerns and justified full-scale production
of the call library.

IV
Choosing the right personnel for call monitoring team and getting them to
deliver consistently actionable analyses presented a different type of
challenge. The five members of the call monitoring team brought invaluable
internal know-how; they had excellent operational experience from prior
positions at the carrier that could be leveraged to gain an understanding of
specific problems with internal processes, systems, and service channels. On
the other hand, because their background was predominantly operational, it
was not second nature for them to perceive customer satisfaction issues
strategically and drive action-oriented tactics to resolve the problems.
Targeted training and frequent after-project reviews helped the team
increase its value.

10
Can Your Company Find the Root Causes
of Customer Dissatisfaction?
V
Any company facing mounting customer In fact, any organization with extensive
service costs and customer dissatisfaction customer service operations, including
challenges could stand to benefit from such a insurance companies, utilities, and some
strategy. Within financial services, for governmental agencies, could potentially
example, code-based intervention could be decrease costs and increase customer
employed to understand precisely why satisfaction by applying the principles of this
customers are switching to other banks, or carrier's successful approach to customer
why customers feel that product offerings are satisfaction root cause analysis.
not tailored to their investment needs.
By creating uniformity in the way that primary
Cable companies could seek to understand customer information is categorized and
why subscribers are unwilling to purchase stored, code-based intervention can
premium content or why broadband users are revolutionize customer service in the same
migrating to DSL. way that Jethro Tull's seed drill changed the
face of farming. Harvesting primary
Companies such as software distributors or information becomes a secondary concern,
appliance manufacturers that field technical allowing companies to focus on what really
support questions could use this combination matters: identifying and addressing the root
of "radar view" and "deep dives" to draw causes of customer dissatisfaction.
attention to the most frequent call drivers and
determine the underlying causes behind
recurring problems.

11
Visit www.diamondcluster.com for more information.

Potrebbero piacerti anche