1. 2008 Contact Center Satisfaction Index Presented by Sheri Teodoru CEO, CFI Group

2. © 2008 CFI Group. All rights reserved. 2 The only uniform measure of customer satisfaction in the U.S. economy, covering more than 200 companies and federal and local government agencies First published in 1994 Tracks performance over time Benchmarks against other organizations and industries American Customer Satisfaction Index

3. © 2008 CFI Group. All rights reserved. 3 x1x1 x2x2 x3x3 x4x4 x5x5 x6x6 x 1 x 3 x 4 x 5 x 6 y1y1 y2y2 y3y3 y 3 y 2 y 1 11 22  x ixit i , for i=1,2,3 t=1,2 y jyjj  1, for j=1,2,3    111221  x 2 Quantifies cause-and-effect relationships between drivers of satisfaction and desired outcomes ACSI Methodology (U.S. patent No. 6192319 B1)

4. © 2008 CFI Group. All rights reserved. 4 2,200 participants Over 100 companies Web-based survey Data collected March 2008 Respondents had called a contact center in the last 30 days The Contact Center Satisfaction Index Applies ACSI Methodology to Contact Centers Industries measured: >Banking >Retail >Hotel >Insurance >Cell phone >Cable and Satellite >PC >Government

5. © 2008 CFI Group. All rights reserved. 5 Which industries excel? The impact of Customer Service Representatives Issue resolution – as important as we think? Multi-channel service Offshoring Industry key findings Contact center measurement best practices Topics for Today

6. © 2008 CFI Group. All rights reserved. 6 Contact Center Satisfaction by Industry Note: Scores are on a 100-point scale. 72 78 76 75 72 71 70 69 66 Aggregate Hotels Retail Insurance Cell Phone Service Banks Government Personal Computers Cable & Satellite TV

7. © 2008 CFI Group. All rights reserved. 7 Contact Center Satisfaction by Industry 2008 vs. 2007 72 78 76 75 72 71 70 69 66 70 80 69 77 68 64 68 Aggregate Hotels Retail Insurance Cell Phone Service Banks Government Personal Computer Cable & Satellite TV 2008 2007

8. © 2008 CFI Group. All rights reserved. 8 Contact Center Vs. Overall ACSI Scores CCSI ACSI 72 78 76 72 70 66 75 71 69 75 74 68 62 76 75 78 68 Aggregate Hotels Retail Cell Phone Service Government Cable & Satellite TV Insurance Banks Personal Computer

9. © 2008 CFI Group. All rights reserved. 9 Customer Service Representatives Aggregate Attributes 77 81 78 77 76 73 Customer Service Representatives Courteousness Speaking in an understandable manner Interest in helping you Knowledge Effectiveness in handling your issue (Overall Score)

10. © 2008 CFI Group. All rights reserved. 10 Customer Service Representatives Industry Scores 77 81 80 79 77 76 75 74 73 Aggregate Retail Insurance Hotels Banks Cell Phone Service Personal Computer Government Cable & Satellite TV

11. © 2008 CFI Group. All rights reserved. 11 What Is Driving Satisfaction? CCSI 72 Speaking in an understandable manner Knowledge Effectiveness in handling issue 3.5 Courteousness 78 81 CSR Demeanor 79 Interest in helping 77 76 73 0.7 CSR Knowledge 75

12. © 2008 CFI Group. All rights reserved. 12 Issue Resolution 18% 23% 21% 20% 19% 17% 16% 15% 9% Aggregate of all industries Personal Computer Government Cable & Satellite TV Banks Insurance Retail Cell Phone Service Hotels % Unresolved Issues

13. © 2008 CFI Group. All rights reserved. 13 Impact of Issue Resolution Satisfaction Score Issue Not Resolved Issue Resolved Overall Score 72 80 40

14. © 2008 CFI Group. All rights reserved. 14 Satisfaction by Total Times Called 52 68 82 40 1st Call Resolution 2nd Call Resolution 3rd Call Resolution Still Unresolved First Call Resolution

15. © 2008 CFI Group. All rights reserved. 15 Before calling, 27% of customers tried another contact method first: Multi-Channel Attempts Industry Aggregate 82% 15% 7% Internet or website Visiting in-person U.S. mail Other

16. © 2008 CFI Group. All rights reserved. 16 Offshoring Contact Centers 2008 vs. 2007 15% 34% 16% 15% 14% 8% 7% 4% 11% 25% 14% 6% 9% 3% 6% Aggregate of all industries Personal Computer Cell Phone Service Banks Cable & Satellite TV Hotels Government Retail Insurance 2008 2007 N/A

17. © 2008 CFI Group. All rights reserved. 17 The Impact of Offshoring 75 59 Onshore Offshore Satisfaction Scores 52% of customers say contact center location affects their likelihood to do business (up from 48% in 2007). Offshore center callers more than twice as likely to sever relationship with company.

18. © 2008 CFI Group. All rights reserved. 18 Banks Bank CCSI drops from 77 (in 2007) to 71; the largest decline of all measured industries Banking hurt by mortgage crisis and increase in offshoring from 6% in 2007 to 15% in 2008 >CSR scores slip by 2 points >Issue resolution drops Right-channeling is a bright spot – more customers getting questions answered on the web

19. © 2008 CFI Group. All rights reserved. 19 Cable & Satellite TV CCSI is 66, lowest of all measured industries >Down 3% vs. last year Offshoring increases Issue resolution is poor in general (only PCs are worse) First call resolution is lowest of any measured industry 77 72 68 56 54 55 Customer Service Representative Effectiveness in handling your issue Customer Satisfaction Offshore Onshore

20. © 2008 CFI Group. All rights reserved. 20 Cell Phone Service CCSI up 4% to 72 Issue resolution improves >Only 15% of customers report unresolved issues, improved from 20% last year Website improvements have made it possible for more customers to self-serve and answer their own questions 78 39 Resolved Unresolved Satisfaction Scores

21. © 2008 CFI Group. All rights reserved. 21 Retail CCSI (76) above industry average, but down 5% vs. 2007 CSRs a strength – scores down but remain highest of all industries Website improvements yield tougher CSR questions (more customers self serve) >Greater proportion of product support vs. ordering 78% 37% 22% 5% 59% 44% 25% 7% To place an order or check the status of an order you had recently placed To receive product or service support To file a complaint Other 2008 2007 Reason for Call

22. © 2008 CFI Group. All rights reserved. 22 Hotels Hotels debut on top with a CCSI score of 78 >Highest issue resolution >Among highest CSR scores Website improvements needed >68% called to place an order or check order status, higher than any other industry >35% tried to resolve their issue through the website first

23. © 2008 CFI Group. All rights reserved. 23 Insurance Call Center Satisfaction improved by 10% to 75 CSRs gain 4% to 80, near the top of all measured industries >Lead every other industry in knowledge >FCR provides opportunity for CSR to be hero “Reason for calling” shows increase in placing/checking orders >Opportunity for web improvements? Offshoring in insurance industry is low today (4%), but call center location matters more than for most other industries >58% say affects likelihood to continue doing business

24. © 2008 CFI Group. All rights reserved. 24 Personal Computers CCSI up 8% to 69 this year >Driven by gains in offshore centers Offshoring highest by wide margin in PC industry (34%) >Onshore CCSI 18 points higher than offshore CCSI Issue resolution remains bad; 23% hang up with issue unresolved >Problem solved on first call: CCSI=80 >Problem not resolved: CCSI=57 77 2007 2008 77 2007 52 59 2008 64 69 2007 2008 Onshore SatisfactionOffshore SatisfactionOverall PC Satisfaction

25. © 2008 CFI Group. All rights reserved. 25 Government Call centers are a bright spot for the government >CCSI higher than overall ACSI score Federal (72) outperforms State & Local (67) CSR demeanor relatively more critical for government than for commercial, and much lower scoring >“Interest in helping” is very low 75 DemeanorKnowledge 79 DemeanorKnowledge 75 74 Commercial CSR Government CSR

26. © 2008 CFI Group. All rights reserved. 26 Government Contact Center Vs. Overall Agency Scores 72 73 71 64 68 59 72 Federal Government IRS Social Security Medicare/Medicaid Call Center Satisfaction (CCSI) Overall Satisfaction (ACSI)

27. © 2008 CFI Group. All rights reserved. 27 Summary You can’t manage what you don’t measure Incorporate the Voice of the Customer into performance metrics Measure what matters >Operational metrics are necessary, but not sufficient >Customer perceptions ARE reality Make sure the analysis tells you what you need to know and not what you want to hear

28. © 2008 CFI Group. All rights reserved. 28 Contact Center Measurement Best Practices Keep it short and sweet >Don’t ask 20 minutes of questions about a 5-minute interaction Use a scale that detects change >ACSI’s scale is ideal for customer satisfaction measurement Design the survey with the end in mind Make sure measurement used as learning tool – not a torture device >From telco CSR: “You will probably get a survey, please give me all ‘5’s. And remember, this isn’t about [telco name], it’s about me.” Use the right analytic tools >Need to understand cause-and-effect >Correlation is not enough, and can be misleading

29. © 2008 CFI Group. All rights reserved. 29 Questions? For more information contact: Terry Redding Tredding@cfigroup.com (734) 623-5425 Director of Sales and Business Development CFI Group

30. © 2008 CFI Group. All rights reserved. 30 Founded in 1988 R&D with the University of Michigan Offices in Ann Arbor, Atlanta, London, Milan, Madrid, Stockholm, Shanghai, Beijing 200 employees worldwide About CFI Group

31. © 2008 CFI Group. All rights reserved. 31 As the CEO of CFI Group, Sheri manages 12 offices across 4 continents from world headquarters in Ann Arbor, Michigan. Sheri joined CFI Group in 2000, where she integrated customer satisfaction metrics into client organizations at strategic and tactical levels, and soon became the director of U.S. Government and financial client projects. In 2006, CFI Group appointed Sheri to Partner. In 2008, she was chosen by the international board of directors to lead the organization. Sheri is also on board of directors at Foresee Results. Sheri’s 20+ years of experience began at the University of Michigan, where she graduated at the top of her class. She completed her MBA, with Honors, at the University of Chicago. Over the next 11 years, Sheri worked for Kraft Foods, Quaker Oats, and eventually became the head of the Kolcraft Enterprises Marketing department as director of market analysis, new product research, package development, and advertising. Sheri Teodoru CEO