1. First Contact REsolution 2016 Benchmarking Insights Conference Boulder, CO 1 This material has been optimized for the Insights Conference audience. To get the most of this material and hear a recording of this presentation go to our http://1stquartileconsulting.com/benchmarking/customer_service_b/csdocs.html and find the table for CS Insights, then click on the ”Contact Center ” link.

2. Agenda  Overview  Coverage of the Study for First Contact Resolution  Process Models for: Manage Customer Service Inquiries Resolve Customer Meter Request  2016 Benchmarking Results  Functional-specific findings (Cost, Service, Volume and Practices)  Out of Industry Practices  Areas of Focus and Opportunity 2

3. Overview 3

4. Coverage of the 2016 Customer Service Benchmark Study 4 CS Support and CS IT Customer Contact Contact Center Local Office Self Service Contractors Credit Inbound calls Customer Contact Contact Center Local Office Self Service Contractors Credit Inbound calls Back Office Billing Billing Field Policies Payment Processing Back Office Billing Billing Field Policies Payment Processing Field Service Change of Account Billing Field Orders (meter investigations) Credit Field Orders Order Management Field Service Change of Account Billing Field Orders (meter investigations) Credit Field Orders Order Management Meter Reading Manual Mobile AMR Fixed Network AMI Meter Reading Manual Mobile AMR Fixed Network AMI Revenue Management Credit Office and Outbound calls Credit Field and Inbound Contact Policies Revenue Protection: Office and Field Revenue Management Credit Office and Outbound calls Credit Field and Inbound Contact Policies Revenue Protection: Office and Field Employees: Safety, Staffing Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management, Energy Efficiency, Outage Communications Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management, Energy Efficiency, Outage Communications Areas excluded: Meter Change-out

5. Benchmarking: Customer Experience and it’s links to FCR…  From our benchmarking experience with FCR we know it is one of the biggest measures correlated to customer satisfaction, therefore experience, (and related cost)  Fewer companies have efforts in place to understand the volume and resolution status of repeat customer contacts and address those contacts from a integrated quality and training aspect  For those that do, they are often limited to the Contact Center environment only (meaning, what happens downstream to work that his needed outside the Contact Center is not considered in the measurement process) 5

6. More companies are able to articulate how they define FCR 6 Standard definition of FCR as currently applied in your organization… FR Page 4 – FR5.1 IDIDResponse2Percent of calls where a customer who was interviewed during the ongoing call transaction study answered 'yes' their issues was resolved on the first call. 4343Based on ANI did the customer make only one call during the span of 1, 3 or 7 days. 3535From a customer's perspective, did their issue was resolved in their first call. If not, how many calls were needed to resolve it 3Situations need to be handled no the first contact. It does not include any proactive updates that may be provided back after initial customer contact. 2929Customer states the request was handled the first time they contacted us. 3636 The Call Center's Quality Team individual representative's scorecards include a first call resolution section. The company is working on reporting at the Director level and above related to calls transferred from the IVR to CSRs, excluding emergency calls and calls transferred from CSR to CSR. 3131 The percent of survey respondents who indicated 'Yes' that they contacted Entergy only once by phone, web or any other method about their issue/inquiry for Billing and Payment,Technical Services or Outage issues/questions. 4242has not yet been identified 2121It is defined by the customer while taking our surveys as to whether or not their issue was resolved. 3434We define FCR as handling the customer's request in one contact so as to eliminate follow up calls regarding the same request. 30, 49, 41 We currently use our monthly transactional survey FCR question, 'Were you able to achieve the goal of your call on the first try, or did you have to call more than once? 3232Resolution provided in First contact 40, 50From a customer's perspective, did they need to contact us more than once to resolve their issue. 2828A call or issue resolved the first time the customer contacts the utility. Only customer interacton with a CSR are included. 47This metric (FCR) measures the percentage of issues resolved in one phone call based on customer self-reported feedback from the Call Center Transactional Survey. The metric (FCR) is calculated by combining the results of two questions 1) Was the issue resolved? And 2) How many calls did it take to resolve your issue? ???to create a percentage score for First Call Resolutions (FCR)

7. QUESTIONS ASKED OF our CUSTOMERS TO DETERMINE First Contact Resolution… 7 If we are gathering this, what are we doing with the information? FR Page 12 – FR26.1 IDIDResponse2Now, thinking about the reason why you called X, was your question answered or problem resolved in your first call? 3535From your point of view, do we solve the problem or answer your request in one contact with an representing Hydro-Qu?bec? (Yes or no) 2929Was your request resolved with this most recent contact? 3131 Did you contact [company] more than once, whether by phone, by accessing their website or some other method, about this specific billing or payment inquiry/outage/request requiring a representatitive to come to your location?representatitive to come to your location? 2323How many attempts did it take you to resolve your issue? 2121Was the (company) representative able to resolve all of your issues today? 3434 Were you able to complete your transaction with one contact? How many contacts did it take before your request was resolved? Was this a reasonable or unreasonable? 30, 49, 41, Were you able to achieve the goal of your call on the first try, or did you have to call more than once? 3232'Were you able to resolve your request with one contact to (our company)? 40, 50, 28 Recalling the reason you spoke with the utility name representative on the phone, did you have to call more than once regarding this issue 47471) Was the issue resolved? And 2) How many calls did it take to resolve your issue?

8. Are Measures In place and being reported? 8 Utility Has First Contact Resolution (FCR) Measures In Place… FR Page 13 – FR28 LegendsLegends2121223232828292930303131323233434353536364040414142424343474749495050 Yes♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ NoNo♦♦ Utility Reports First Contact Resolution (FCR) Measures At The Management (Director And Above) Level… LegendsLegends2121223232828292930303131323233434353536364040414142424343474749495050 Yes♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ NoNo♦♦♦♦

9. How Frequently do you Report your FCR metric as defined? 9 12 of 19 companies that started the survey responded… Of those, 10 report the measure and all of them report it on a monthly basis—a significant increase over last year (only 4 reported) How actionable is your measure? 12 of 19 companies that started the survey responded… Of those, 10 report the measure and all of them report it on a monthly basis—a significant increase over last year (only 4 reported) How actionable is your measure? FR Page 13 – FR28 Total Respondents1212 We do not report our FCR measures16.67% Monthly83.33% Quarterly16.67% LegendsLegends212122323292930303131335354141434347474949 We do not report our FCR measures ♦♦ Monthly♦♦♦♦♦♦♦♦♦♦ Quarterly♦♦

10. Measurement And communications of FCR…Where to look for Useful practices Channels where the FCR measure is tracked (FR20)  2 companies reported measuring across Live, Web, and IVR (29, 31)  Functions that are evaluated in the FCR measurement process (FR40)  5 companies (28, 29, 32, 40, 50) evaluate most CS functions (such as Call Center, Billing, Field Meter, Credit, etc.) Segment evaluations by transaction type and/or by customer segment (FR50)  4 segment both by type and customer segment (31, 32, 35, 43) Functions involved in the FCR communication process (FR45)  6 companies (28, 29, 32, 35, 40 and 50) have a number of CS functions participate in the FCR information/results sharing process The most common vehicle used for evaluation (FR30)  IVR- 3rd party Post transaction (3 companies); post contact survey (2 companies)  Web- 2 companies do any type of frequent transaction survey (29, 31, 32)—post- transaction or contact  Live (Contact Center) – Live post-contact survey (7 companies), 3rd party post- transaction (4 co’s); periodic survey (6 companies) Two companies report implementing an FCR process this year (34, 36) (FR35) 10

11. Reported FIRST CONTACT RESOLUTION SCORE 11 MeanMean76 %76 % Quartile 185 %85 % Quartile 2:80 %80 % Quartile 3:66 %66 % Also…JDP reports a residential customer average of 71%

12. Insights overview…First Contact Resolution (FCR) Practices that work: 1.Measuring the entire transaction (beyond just the contact center interaction) 2.Use a multi-view approach (company and customer ) to understand issues 3.Balance coverage and accuracy on a timely basis 4.Treat all transaction channels- live contact, web, IVR, email etc.- as part of the FCR process 5.Segmenting by transaction type and customer segment 6.Measure the volume for transaction types…changes (reductions) in volume are a good indicator 7.Integrate real-time feedback results/issue resolution back into training and development (CSRs, techs etc) 8.Incorporate non-Contact Centers and management levels into your feedback process 9.Apply technology/automation (usually automated and post-transaction surveys) where possible, but sampling works! 10.Effectively use 3 rd parties to support understanding customers perspectives 12

13. Approaches That Work- Outside Industry Research Outcomes (1 of 2) Research has varied views on methodology to use, but there is consensus in the following views: 1.Use multiple vehicles to cover both internal and external perspectives (ultimately the customer’s view counts, but understand your internal identification and quality monitoring) 2.Target by channel and by contact/issue type (e.g. high bill, service connect etc) with effective sample sizes. Companies that are able to understand by transaction type report being able to get at root cause better. Similar research results around segmentation by customer (e.g. C&I, Residential etc.) 3.Frequency on a monthly basis, manage lagging indicators 4.Use of completely automated telephone surveys, where callers, while waiting in queue, are asked to participate in a post-call survey. Those who accept are automatically routed to a concise IVR survey following their interaction with an agent, and asked up to five focused questions about their experience, with the emphasis on whether or not the customer felt the call was fully resolved with a positive outcome. 13

14. Approaches That Work- Outside Industry Research Outcomes (2 of 2) 5.Combine the previous post-contact with post-call transactional (“was your issue resolved to your satisfaction? On the first attempt?”). Not only does asking customers whether or not their issues were resolved provide a clearer picture of the the true FCR rate outside of the Contact Center, it can help the company (if the survey is appropriately designed) discover some of the main causes of repeat contacts that are driven by process/interface issues downstream! 6.Training is integrated (top promoting reason) with quality monitoring. Also tie incentives (today only 1 in 5 out-of-industry companies reporting FCR tie to exec comp, 1 in 3 to managers). Train on the “defect” in the work. 7.For those [customers] who have a problem that was not resolved on the contact, where an automated (voice) survey is used, it should branch to an open-ended question to capture the customer's description of the problem. This qualitative information adds the explanation to the dramatic quantitative information you now have available. The cause of unresolved calls is invaluable to correcting process issues. This does entail more work in the analysis, but is seen in the research as valuable. Company call-backs to address the concern/issue often follow and demonstrate the company listened and will demonstrate corrective action 8.Provide feedback to front-line employees and related departments, train, recognition and reward. Build accurate contact identification into the quality monitoring process 14

15. areas of Focus and Opportunity  Volume  Accurately identify your contacts  Track and understand repeat contact volumes and drivers of repeat contacts  Ensure self-service is reducing live contact volume  Benchmark your performance  Cost  What is it costing you in rework?  Service  Understand the level and quality of service you are providing. Use your internal quality processes and transactional analysis to understand the impact on customers.  Optimize the use of and involve your CSRs and other “downstream” organizations in the process of understanding FCR measures as an improvement driver…they not just “a metric” 15

16. Thank You for Your Input and Participation! 16 First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs. Visit us at www.1stquartileconsulting.com | Follow our updates on LinkedInwww.1stquartileconsulting.comLinkedIn About 1QC Ken Buckstaff Ken.Buckstaff@1QConsulting.com 310-922-0783 Debi Cook Debi.Cook@1QConsulting.com 760-272-7277 Gene Dimitrov Gene.Dimitrov@1QConsulting.com 301-535-0590 Rob Earle Rob.Earle@1QConsulting.com 315-944-7610 Your Presenters