By Dan Gettens, Chief Research Officer
In managing the service supply chain, few companies have realized the promise of mining big data. In our experience, clients want it both ways, mining big data and achieving big results.
“Companies are finding that big data doesn’t necessarily translate into easy success” … “ too many companies throw themselves into big-data projects, only to fall into common traps and end up with nothing to show for their efforts. Some 44% of information-technology professionals” … “said they had worked on big-data initiatives that got scrapped.” -Big Data, Big Blunders, Wall Street Journal
What do clients mean by big results? They want to reduce cost-to-serve, achieve big results that are scalable, predictable and high-impact. Big results are outcomes built on rock solid methodology. They can be realized with a step-by-step process combined with advanced planning. According to Everest Research, post-sales supply chain is a major revenue center and accounts for 75%-80% of a product company’s core profits. So, a little extra planning can pay off.
As you plan major changes and investments in your SSC, we invite you to consider these four programs for translating big data into meaningful results:
- Operational Outcome-Based Segmentation
Include segments that represent the diverse needs of customers. Advanced analytics enables you to segment customer populations, understand ecosystem partner differences in performance, and identify how to improve processes and drive economic value across each segment of the customer and partner base in every aspect of the post-sale supply chain.
- In-Depth Voice-of-the-Customer (VOC)
This includes proactive outreach to capture customer ratings including customer effort scores, recommender scores and ways to improve. Use VOC in selected segments across the supply chain, including generating actions that you can use to drive improvements in each segment.
- Intuitive Predictive Analytics
Embed risk scoring and intuitive analytics in the SSC systems-of-record and in the business culture of the client’s organization. Risk scoring allows you to resolve end-customer immediate issues faster while improving next-issue-avoidance.
- Closed-Loop Causal-Effect Analytics
Leverage a randomized control group. Providers can assign customers to different processes and more confidently ensure that differences in results can be attributed to the process that was assigned – not to chance events. This analytics is also a source of intelligence that can further improve segmentation and predictive analytics.
You can achieve significant results even in the first phase of a step-by-step approach to SSC transformation, as these companies did:
- A major wireless provider improved asset recovery rates by 5.9%, which was validated with Causal-Effect Analytics and randomized comparative groups. In this case, we compared results of highly automated messaging with the improvement driven by proactive customer outreach based on live calls.
- A wireless consumer product company reduced remorse return rates by 4.8 points by using advanced planning, Causal-Effect Analytics and VOC.
- A leading national broadband provider saved $3.5 M in asset retrieval in a rollout of Operational Outcome-Based Segmentation, VOC and Intuitive Predictive Analytics in just one city.
- A leading cable MSO noticed that a high percent of their scheduled installations were cancelled and not rescheduled. The results were lost revenue, under-utilization of technicians, increased risk of competitive switching and a higher cost-to-serve. With better planning, proactive customer outreach and Causal-Effects Analytics, the MSO realized a 40% increase in successfully rescheduled installations.
These four step-by-step, scalable analytics-based programs can turn a big data initiative, with limited-quality data and some business risk, into measurably higher-quality data, actionable insights and big results. It can help you pinpoint areas of concern and waste and identify opportunities for post-sales supply chain improvement. By leveraging analytics, you can focus investments in automation on those areas that have the greatest chance to drive efficiencies.
Do you have two hours to invest in planning your next step?
Contact me (508) 520-2711, x1115 or Pedro Cueva, Director, Analytics for OnProcess (508) 520-2711, x2011. In a two-hour workshop, your management team will gain a good understanding of how to apply these four programs to your SSC requirements and create an action plan to get started.