Customer journey mapping and other customer insight approaches – how to use them to transform your services and save money The Improvement Service Change Management Network Glasgow, 13 August 2015 Sarah Fogden Avril Gold

1. INTRODUCTION TO TODAY

1. What are we doing here?? Introductions – us and you Agenda How much do you know about/use customer insight already? And most importantly - what do you want to get out of today? Let’s get started!

Agenda for today ItemContentTimeLearning outcome Arrivals and coffee Getting started Who we all are The agenda What you want to get out of today Intro to customer insight What it is How to get it How to use it Why it’s so important How CI can help you manage demand, drive down costs, and improve service quality

Agenda for today – understanding environmental health housing ItemContentTimeLearning outcome 3. Customer Journey Mapping the theory different approaches examples How you can use CJM to transform service delivery 4. Some other key customer insight techniques and approaches Customer safari Demand/activity analysis Segmentation Customer engagement Application of some other CI tools and techniques LUNCH

Agenda for today ItemContentTimeLearning outcome 5. Preparing for the practical session on CJM Teams Equipment etc Now you’re doing the work! 6. Mapping the ‘as is’ customer journey Group work Presentation Discussion What CJM tells us about how we really deliver services 7. Creating the 'to be' CJM Back in your groups Presentation Discussion Identifying opportunities for transformation 8. Capturing the learning and next steps Discussion TEA! ??

Checking in… temperature check!

2. INTRODUCTION TO CUSTOMER INSIGHT - ‘DESIGNING WITH THE CUSTOMER IN MIND’

Who’s good, who’s bad…??

10 What’s your customer experience?

Customer insight - what it is….. ‘The use of data and information about customers to better understand their needs, wants, expectations, behaviours and experiences; and the active application of this understanding in the design and delivery of services that better meet customers’ needs’. (Local Government Association) Customer insight is one of the most valuable assets you have – use it!

Customer insight – and what it is not….. Customer insight is not raw customer data Nor can it just be bought off the shelf Customer data is undoubtedly useful, but there is a gap between it and deeper “insight” Effectively bridging the gap between data and true insight is a valuable skill See also ‘Customer Insight – a Primer’ (Cabinet Office 2006) ce/Document%20Library/Customer_Insight_Primer.pdf

Are you ‘data rich, information poor’? Don’t panic! Our view of customer insight and its value is based on the following key core concepts……

14 Four worlds A traditional view: The ‘citizen world’ is separated from ‘service world’ by an invisible divide (we even call it the ‘front line’) This is further separated from ‘management world’ by another invisible divide – called ‘performance management’ In the citizen world, we do market research In the service world, we do BPR In management world, we do business planning, budgeting – and cuts In politician world…? Leadership – if it is to succeed – has to link these four worlds; and customer insight comes from all of them! Citizen world Service world Management world The front line Performance information The point of power! Politician world ????

What does customer insight mean? Ask them! Design from customer purpose Organise services around the customer Right first time, resolution Recognise the different needs of different customers ‘One organisation’ – pillar to post – all channels Turning the hierarchy upside down A customer services champion? Efficient processing at the deliverer end Lower costs The whole process – not just ‘lipstick on a pig’ Be really honest – how good is your council at doing theses things?

The first dimension: the very useful 5Ws and 1H checklist Who – who your customers are; socio-economic segmentation Where – where your customer live and where they contact you; geographical and touch-point analysis Why – the reasons your customers contact you; motivation and purpose When – moments your customers need or demand your services What – which services your customers need and how they can be clustered together How – which channels your customers use to contact you These are the six basic types of information we can gain about our customers

The second dimension: levels of analysis Secondary data analysis Direct customer consultation Customer engagement Customer journey analysis Customer contact Co-production Frontline staff knowledge Complaints, compliments and comments Contact metrics Performance management Press, lobbying etc. Known better to your customers than to you Known better to you than to your customers

WHO Segmentation WHERE Geography WHY Purpose WHEN Moments WHAT Services HOW Channels A framework for thinking about customer insight Customer world Secondary data analysis Direct consultation Customer engagement Customer journey analysis Service world Customer contact Co-production Frontline staff knowledge Management world Complaints, compliments and comments Contact metrics Performance management Press, lobbying etc All customer work will fit into one or more box on this grid!

So why bother with customer insight? Programme management Project benefits scoring criteria Modular projects manage risk Strategic Enterprise Architecture Communicating for change Benefits realisation …which defines an incremental transformational change programme Understand customer need Redesign processes to meet customer need – their purpose Redesign access to meet customer need – their purpose ICT architecture Structure and organisation Support service Customer focus… …improves access to and fulfilment of services… …which defines ‘back office’ requirements… Because systems efficiency is driven by customer value!

Seven ways to save and improve

Seven indicators of ways to save and improve 1.failure demand 2.complexity of flow/uneven demand 3.process waste 4.failure to optimise use of resources (including overloading) 5.ineffective organisational structures and failure to achieve economies of scale 6.inefficiencies or ineffectiveness in procurement 7.over-provision or inappropriate provision of service

A view of the organisation Customer insight and costing Access and contact Process improvement If the organisation works like this…… The strategy should look like this….. drive which drives which drives both and and also AccommodationCulture change and IT Org design Ways of working

3. CUSTOMER JOURNEY MAPPING

Where do customer journeys fit in? In the world of Agile, it’s like this…….. Users - personas Needs – stories Experiences - journeys

Bob Anita Carlos Owns one car Lives in the middle of Glasgow No off street parking Can afford 12 months Applying on behalf of whole family They own four cars Wants to put them on two permits (she and her husband commute during the week) Only wants visitor permits

‘As a ______________ I need to___________ so that I can_________’ User stories

So – what is customer journey mapping? Customer Journey Mapping is the process of tracking and describing all the experiences that customers have as they encounter a service or set of services. The journey can cover a single provider’s service(s) or those of a group of partner organisations It takes into account not only what happens to them, but also their responses to their experiences. Used well, it can reveal opportunities for improvement and innovation in that experience – acting as a strategic tool to ensure every action with the customer is as positive as it can be. First the theory…….

What is its purpose? (1) Purpose: Provides the customer perspective of interactions, complementing and balancing more inward-looking, objective system/process maps; Helps us understand the qualitative impact of service provision (i.e. where we might be putting stress on users, costing them time) as well as quantitative aspects, such as wasting valuable organisational resource; Illustrates how proposed process changes will alter their journey, and how steps may be refined, changed or even eliminated;

What is its purpose? (2) Purpose: Provides an effective visual end-to-end illustration of the customer experience which cuts across channels, touch points and organisational silos; and Is useful if there are gaps in your understanding of the customer experience, you need to convince colleagues of the value of a user-focused approach, and you need some high-impact feedback to challenge conventional thinking.

What different types are there? Actual – a literal, physical journey (e.g. a customer coming to your one stop shop to enquire about something) Transactional – going through a process with fixed steps (e.g. applying for Housing Benefit) Experiential – an ongoing experience of a service or linked services (e.g. after losing a job) Relationship building – development of a relationship over time (e.g. that built by a service area with a particular user group – social care etc.) “Life event” – a major life/career step (e.g. moving into the borough)

Now the practice - How do I get started? It’s quite easy really It’s actually quite easy Interview a real customer about a real customer experience If it’s too hard to ask a member of the public, try a colleague – or a ‘front-line staff member binetoffice.gov.uk/media/123970/journey_mapping1.pdf

Different journey map formats….. There are many different formats of Customer Journey Map, and there are no set rules about which work best. A popular style of map is the “Heart Monitor” map which plots the highs and lows in the customer experience as a graph, and which includes symbols, such as hearts or smiley/sad faces, for “moments of truth” (particular high or low spots along the journey).

Different journey map formats….. Most maps work well as they are highly visual, easy to interpret, yet still full of useful detail and levers for service re-design. Remember – before you start, always make sure you: confirm the journey; confirm the customer; identify the start/finish and key journey stages; and use real users, frontline staff or construct your journey from a review of past research, customer feedback and staff views. Choose the style that you think will work best!

Step 1 – Choose your template Objectives, scope & journey type Customer segment Moments of truth © Oxford Strategic Marketing Key Journey Steps Touchpoints (AKA channels) Actions, feelings, thoughts and reactions at each step

Step 2: Prepare your questions Planning and preparing interviews where going with the customer on the actual journey isn’t possible Keeping your questioning focused Getting the most from interviews Don’t over-plan. ne size doesn’t fit all. Tailor your questions to your customer Be aware that people may not tell you their information in a sequential way – they may jump around so you will have to piece it together later Questions to Ask Yourself What are the top three questions about this journey that you can’t answer? How typical is this person’s journey? What’s unique to them/likely to apply to all? Who or what aspect of the process influences them most? How strongly do they really feel about this? What are the real passion points? What surprised you from what you heard? What was new to you? Tell me about… What did you think when…? How did you feel when…? What were the high and low points in your journey? What really stood out for you (good or bad)? If you could change on thing what would it be? Why? (see ‘5 Whys’ Tool) Questions to Ask your Customer … General … For process improvement What parts of the process were really essential? Where did things get held up or take too long? Did you have to do the same thing more than once? Did you ever feel you were going backwards? Were any steps unnecessary? Were you clear who you were dealing with at every point? “CRITICAL QUESTIONS” Interview Planning Tool Aim where you can to ask open-ended questions (that is, ones to which customers can’t simply answer ‘yes’ or ‘no’). If you use this type of questioning, it encourages respondents to speak. BUT… avoid rhetorical questions – ask tangible things that people can answer.

Step 3 – use the 5 whys approach to dig deeper Getting to the root of a difficult issue Investigating complex subjects Gaining a deeper understanding of an issue or an action Don’t irritate people by constantly parroting “Why”! Think about different ways to probe deeper It doesn’t have to be 5 whys. You may get to the heart of the matter with more or fewer questions The ‘5 Whys’ is a useful tool to get to the root of a difficult issue. It is also known as “laddering” – moving through the ‘Whys’ is like climbing the rungs of a ladder. “THE 5 WHYS” Questioning Tool As you talk to people, or investigate your issue, keep asking ‘Why?’ every time you are given an answer This is particularly good for probing issues about which people have deep-seated feelings and emotions It can also help probe root causes when you are tracking a series of events ‘Emotional’ example from HMRC ‘Root Cause’ example from the NHS “ I don’t want to renew my tax credits even though I’m still eligible”… Why? “It’s too much stress”… Why? “They don’t care about customers”… Why? “Last time they overpaid me and that was a real problem”… Why? “They wanted a lump sum repayment and that was out of the question”… Why? “I’ve no savings – the money me and my kids live on is what we get week to week” “A patient got the wrong medicine” … Why? “The prescription was incorrect”… Why? “A wrong decision was made by the doctor” … Why? “The patient’s record did not contain all the information the doctor needed”… Why? “The doctor’s assistant had not entered the patient’s latest test results”… Why? “The lab technician had phoned the results through to the receptionist who forgot to tell the assistant” The root cause is the absence of a formal system for recording test results. A new system could guard against this in future In this case, understanding the real pain caused by overpayments had led to new processes to handle them within HMRC Getting to the root of a difficult issue Investigating complex subjects Gaining a deeper understanding of an issue or an action Don’t irritate people by constantly parroting “Why”! Think about different ways to probe deeper It doesn’t have to be 5 whys. You may get to the heart of the matter with more or fewer questions

New family moving in – typical ‘as is’ service Goals To register for Council Tax and get on the Electoral Register To get a parking permit Get details on local libraries Francis calls the Council and gets through to switchboard Francis explains that she has just moved to area and needs to register for Council Tax Francis is handed off to the Council Tax Department Francis provides new occupation information to the Council Tax advisor who sets up direct debit payments. The advisor confirms that the direct debit agreement will be sent in the post for her signature Francis asks if she can be placed on the Electoral Register at the same time The Council Tax advisor confirms that he will have to pass her back to the switchboard Francis is handed off back to switchboard Francis again requests to be placed on the Electoral Register Francis is put through to the electoral roll Francis registers herself and husband Francis then remembers that she wanted to find out about obtaining a parking permit Francis again calls and gets through to switchboard The switchboard transfers her to someone in the relevant department who can talk her through what is required to get a permit. Francis speaks to someone in the relevant department who explains the process for obtaining a permit and will send her a form to fill in Before she puts down the phone, Francis would like to find out information about libraries in the area The advisor confirms that she will have to pass her back to the switchboard Francis is handed back to switchboard Francis requests information about libraries The switchboard provides opening hours information to Francis but is unable to provide any more detailed information. Francis has yet another telephone number to call for more detailed information Francis calls the information line number provided for information about libraries

New family moving in – potential ‘to be’ service Goals To register for Council Tax and get on the Electoral Register To get a parking permit Get details on local libraries Francis calls the council and speaks to Front Office Customer Service Representative. Having just moved into the area she needs to register for Council Tax The Customer Service Representative takes Francis’s details to completes her Council Tax registration. Once registered the Customer Service Representative provides her with a choice of payment methods including: Debit / Credit card payment Paperless Direct debit (which does not require a signature). Confirmation can be sent by post or , whichever Francis chooses The Customer Service Representative confirms that details can also be used to place Francis and her husband on the local Electoral Register if she wants (whilst informing her of data protection legislation) Francis confirms that she would like to be placed on the Electoral Register Customer Service representative asks Francis if she is interested in finding out about local libraries. The Customer Service rep then registers Francis and her family on the library database, generating automatic send-out of library cards. The Customer Service Representative states that the web site contains all the required information and links necessary or they can arrange for information pack to be posted now Francis requests information pack As the Customer Service Representative already has name and address details from previous registration, she is informed that they will post out info pack The Customer Service Representative asks Francis if there is anything else? Francis enquires as to the whereabouts of her nearest recycling point. The Customer Service Representative reviews the online information and informs Francis of its location. Francis is informed that if she needs further information in the future, it is available on the website.

WHAT ARE THE DIFFERENCES BETWEEN THE TWO JOURNEYS OF THE MOVING IN EXPERIENCE?

What has happened? Huge insight into the process you’ve probably mapped many times but from an internal organisational perspective, enabling: o Customer service quality improvements o Reduced number of handovers o Increased timeliness o Reduced cost o Less failure demand o Improved staff satisfaction with their role = Customer and organisational quantitative and qualitative benefits