Steve Bartos Information Technology Futures Capital One Financial Corporation IP Networking and Mediacom-2004 International Telecommunications Union 24/04/2001 Geneve World Wide Multimedia Availability The Impact On Call Center Customer Systems

Agenda Overview of Capital One Knowing the customer Emerging technology Call to action World Wide Multimedia Availability The Impact On Call Center Customer Systems

Background on Capital One 6th largest card issuer in the United States S&P 500 as of 1998 Fortune 500 company last two years Managed loans at $31.6 billion level

Capital One has more than 36 million customers and 20,000+ associates across the globe

We have expanded outside of credit cards Auto Finance Credit Recovery Services

Using IBS to drive mass customization

Success is driven by the Information-Based Strategy “Mass Customization” results in Micro-Segmentation Capital One’s IBS Testing - products Analysis - responses Micro-segmentation - Solicitation Right Product Right Customer Right Price Right Time Right Channel

Our ability to mass customize has allowed us to manage the customer relationship differently... Common Practice MASS CUSTOMIZATION Knowledge Empowerment Actions broad and shallownarrow and deep constrained directed constrained directed thoughtful, delegated decision making motivated

The Call Center Dilemma Diversity Mass Customization Complexity

Right CALL Right REP/VRU Right LOCATION Right SERVICE LEVEL …Primary interactive touch point is the contact center Contact Center IBS Testing - routing Analyze - productivity & quality Micro-segment - agent grouping

In an extraordinarily complex environment call types 54 agents groups 14 switches and growing 45,000+ tests per year Complex Routing Challenge

AG3 S Technology is the enabler 14 Switches Customer Carrier Network Customer SSSSSSSSSS AG1 AG2 AG3 AG4 S Intelligent Call Routing (ICR) Determines how to handle the call Right VRU Right Rep ICR VRU Pool

Intelligent CRM in the blink of an eye Customers are connected to the right VRU or phone rep in 1/100th seconds - literally in the blink of an eye Intelligent Call Routing is: Account-level, attribute-driven routing Match to correct associate –Account status – Propensity to buy – Language preference – Product – Age of account –Availability – Special skills – Functional expertise – Tests

The routing decision is made in the network. Load balancing Minimizes infrastructure Facilitates growth – Appropriate distribution of work – Service levels managed by call type – Protection of special call types – Deliberate imbalance capability exists –Switch interconnectivity not required – Could not grow to the number of sites and switches under prior architecture – Highly variable site size and configuration options

Without ICR, we lose value. w/ ICRw/o ICR Occupancy Difference 4% w/ ICR w/o ICR Sales Difference 12% % Occupancy % Sales

We consider many things when determining how to service a customer AccountCustomerAssociateCall Center What product? What age? Current Status - terms - payment history - credit line Why are they calling? What is their propensity to buy? How comfortable are they with technology? Language skills Areas of expertise - products - functions Sales skills What sites are open? What wait times exist for the various queues?

Technology makes it happen! ANI, DNI Customer- external info Databases, segmentation & rules engines ACD’s & Routing technologies Who is this? Why are they calling? Best route Best Product Tests VRU Agent Groups Data Bases Analytical Tools All in 1/100th of a second - the blink of an eye

Customization of customer interaction touches many components In the future we must continue to customize each and every customer interaction The Customer Service Representative The CSR interface Intelligent Call Routing Customer hand - off Auditability

John Smith Capital One On-line Account Servicing

In an even more complex environment call types 54 agents groups 14 switches and growing 45,000+ tests per year X Contact origination sources BIGGER Routing Challenge!

So what’s next?

New Technologies IP network based interaction Live Interactive Contact Chat Video Conferencing One way video Automated Interactive Contact Face Mail On-line Query

New Business Models Call Center Staffing Follow the Sun Language Handling Privacy Issues In country handling Personal Information Protection Fraud Protection

New Appliances Handhelds Cell phones as terminals PDA’s Embedded Internet systems Plug and Play terminals Voice recognition

Product Account Status Account attributes Customer Language Preferences Country Privacy Culture Every Interaction Must Be Unique

Technical ICR in the (many) networks Call setup and tracking Auditability System complexity Barriers to adopting new contact center technologies Logistical Representative training Customer acceptance Quality management

Standardize what? - Key features today required tomorrow -ANI -Intelligent Call Routing -Take Back and Transfer -New features we need -Audit -Tracing -Billing

So Why Standardize ? From a Business Perspective: Attract our adoption of your New Service Offerings Attract our business to your Region From a Global Perspective: Inter-operability between distant contact centers From Our Perspective: Efficiencies of scale and cost savings Customer satisfaction

Customer Segment C Customer Segment B Customer Segment A Standardize to Hit the Target Anytime Anyway Anywhere

Thank you! Steve Bartos Information Technology Futures Capital One Financial Corporation