Confidential – Not for distribution

Vodafone Australia Engaging staff in the turnaround of ’s

service, while embracing a digital future

Matt Paterson General Manager, Customer Care

March 2016 About Vodafone Australia

Vodafone Hutchison Australia (VHA) Formed in June 2009 following merger of 3 and Vodafone 3rd largest telco in Australia

96.9% network coverage of all Australians

5.4million customers in Australia at December 2015

>1000 Retail points of presence December 2015

Approx2660 employees December 2015

Confidential. Not for external distribution. 2 Background Where we came from….

3 2012 : The need for a brand turnaround

Network outages late 2010 Net Promoter Score impact

-40 points June 2010 – June 2012

Socially known as “Vodafail” due to the outages

Source: SMH, The Australian, BRW

Confidential. Not for external distribution. 4 2013/2014 : The most hated telco

Confidential. Not for external distribution. 5 Evolving the experience

We are now in growth mode and the recovery plan has been implemented. Now’s the time to focus on growth, innovation and brand love – whilst ensuring we continue focus on closing key irritants, and introducing e2e operational management Our Service Evolution 2013 & 2014 Our past 2015 Our present 2016 Our Future

Recover operational trust Building capabilities Standing Strong Building Brand Love Network, migrations, brand sunsets Onshore, digital, process Removing failure & building Driving brand advocacy and and process overhaul. Phew! excellence & program 1.5 a market leading experience WOM – internally and externally Recovery Program 1.5 VOC Program Brand & Both 2012 & 2013 The key focus of program 2015 will see a major focus Customer focussed on operational 1.5 was to reduce calls on full removal of all key continuity, brand closures through failure demand issues as we begin our Journey Our strategy and migrations to enable a removal and self service journey to experience leader. Forum viable business model. enablement. At the cornerstone of the 2016 will see a Executive level service strategy is the major focus on The program has achieved governance of action plans balance of putting solid driving brand a step change but now needs with workstream leads across foundations first. advocacy as we to extend reach and scope of the business. begin our journey to Crisis the program across the This means building a experience leader. viable service model and focussed organisation Careflight transformation through empowering the fixing basics first before GM Journey Owner frontline and designing with attempting to extend into continue to drive the customer first more elaborate experience Program e2e improvements concepts. focussed which delivers a remarkable End-to-end & customer Confidential. Not for external distribution. bottom-to-top experience. The upside down organisation Empowering change through the frontline…

7 Careflight A new model to transform customer service

WhyWhy areare wewe doingdoing itit?? WhatWhat isis CareFlight?CareFlight? The Careflight Receive call A New Careflight aims to bring to structure has three Operating Use Model life a sustainable, tiered Data Triage core principles- a new New Practises WH and Disciplines operating model. Customer operating model… brought needs are triaged, calls are Direct to life with new practises directed to the best possible Complex, and disciplines... team and carefully designed Divert Easy, Episode Simple continuously improved by Continuous processes are followed to Improvement customer facing people assure resolution MyVF Mumbai Hobart

What’sWhat’s thethe approach?approach? WhatWhat isis itit achieving?achieving? At the heart of Careflight is Customers 1. Clearer standards, fewer repeat episodes, and the core belief in the upside more consistent experiences. down organisation, where Frontline 2. Careflight initiatives like 4th call service our frontline co-create using recovery have reduced 5th calls by 85%. design tools and expert Leaders 3. “Like for like” tests show a 30% reduction in support AHT

Management

Confidential. Not for external distribution. Our customer & front line needs

What needs we must meet to realize our vision “I can make decisions independently” 1. You empower me 6. You surprise 7. You help me do “They make “My partner” me more Our front line want to be able to make Going above and beyond what is me feel decisions to reach customers outcomes. Understanding how our products expected. 6. special” 7. and services serve the customers broader goals.

4. You value me 4. 5. 5. You trust me 3. You make it easy “They 2. You trust me I have the right “A Being listened to and respected. Start with trust, not treating My opinion for me relationship” Being acknowledged for their everyone the same. Providing appreciate tools to support You really listen to what I have to Reducing all distractions that take tenure with us. accurate information. Not me” counts say, I feel my opinion counts the focus away from our front line me in my job misleading focusing on the customer 2. 2. You give me 3. 3. You make it choices easy for me 4. You help me be Giving our customers control to Reducing the effort our customer “They are Effective how they do business with us has to make in every interaction easy to do even better interactions on every channel business Understanding how our products and 1. services serve the customers broader with” goals. 1. You know me, you remember me Our customers want to be recognised & appreciated, we know their preferences. “They care about my career development”

9 Creating a sustainable operating model

• Organisational Structure: define what teams do what work, and how they are trained Organisational Customer Practices: Structure: • Customer Practices. Clearly defines how to take a call, Define the Structure Where calls are then document and which to transfer and how and the best way to resolve it handed is clear train any changes

• Management Framework: Get the operational managers and team leaders to actively monitor the operating model, Management create contingencies and coach team members who are not Framework: following the defined practices Day visibility, planned resourcing, active coaching of agents Core principles

Upside Down Organisation Customer Centred Design (Front Line design changes)

Capability Development Continuous Improvement

It is not enough to do your best; you must know what to do, and then do your best. Overall Care Design Principles Principle Customer First We design from an “outside in” viewpoint, putting ourselves in the customers shoes, trying to make things easy, reducing effort, providing choice, valuing their time and above all adding value to their lives in their relationship with Vodafone

Digital integration and promotion We design from a default position of a digital mobilised world, encouraging, promoting and helping customers use our digital platforms. We will seamlessly integrate digital self-service into every interaction through recommended contact handling guidelines. Text will be a primary communication and help methodology. Choice and Efficiency We are conscious of reducing the need for our customers to call, and actively reducing the cost of the organisation targeting tight effective interactions, and encouraging self-service. We will not do this at the expense of the customer experience, offering channel choice, not forced migration. Episode Management We will design for interactions as end-to-end episodes, not fractured transactions. We will take into account root causes in our dealings and design of complex transactions, treating the interaction as a whole. If it requires investment of time to target the episode root cause and obtain a resolution we will consciously embed that into the practices.

First Contact Resolution focus Contacts will be an opportunity to investigate root cause and using effective triage techniques will get the customer to the most appropriate person to resolve the enquiry on the first interaction. If technology can be utilised to enable repeat call capture we will design with that principle in mind. Practical contact handling methods All design will be practically based in the “near future” state (i.e. the technology and processes we have at the moment) and focus on practical operational model and contact handling techniques. “Future State” technology will be considered and captured as part of the design process. Continuous Improvement The operating model and contact handling practices will consider how continuous improvement is embedded into each episode and that operational management practices are altered to get the most appropriate feedback into a continuous improvement closed loop model. Focus on Internal Capability The design team and task force will aim to be fully self-sufficient by accessing relevant external capability and methodology, learn, practice and embed into the organisation to become the internal Care continuous design and change process.

Slide 12 Practice design

Care flight is empowering agents to rethink our sales and saves process and create the optimal customer experience we deliver from our welcome, our policies, our procedures and how we close and fulfil the sale.

Each enquiry type will be broken down and redesigned from the ground up with the following key considerations taken into account; • Customer • Business • Staff • Optimising the sale Management

• Management will be made more consistent across the model • Similar KPIs and offers to be streamlined during design • Similar constructs: – Huddle – Shift Leader – Documentation – Off phone or Outbound control – SME support model – Coaching and desk review.

Slide 14 Empowering our Frontline VMBs Huddles ‘Even Better If’

• a visual way to highlight • a focused conversation with • a simple, practical problem departmental, team & the team, around a structured solving approach agent level performance VMB, led by the Team Leader • basic tools to solve • part of our operating • opportunity to unlock operational problems & discipline - performance by sharing our issues (root cause?) ‘collective intelligence’

Key Customer Services metrics such as NPS and First Call Resolution see >10% improvement within 4 weeks of these huddles being implemented

Confidential. Not for external distribution. Our achievements Making good progress, with more to do…

16 TIO Complaints: Vodafone now lead the market A whopping 73% year on year reduction in a remarkable reversal of trend TIO monthly volumes received- Vodafone only 4,500 4,000 10 TIO Industry Champion 3,500 8 3,000

2,500 6 4.1 complaints per 10k Services in 2,000 Operation for Q3 2015 4 1,500 35% on the Q2 results of 6.3 1,000 TIO- TOTAL VOLUME RECEIVED 620 1/3 of Q3 results in 2014 2 500 TIO - BUDGET Monthly complaints rate per 10K base 1.2 - 0 53% down TIO complaints from Q1 to Q3 in 2015 61% reduction in Billing complaints TIO quarterly ratio vs competitors to Q2 2015 55% reduction in Network complaints Vodafone Industry Avg

19.3 18.0 2/3 reduction of TIO Disputed usage 16.0 14.3 charges complaints in Q3 2015 12.2 10.5 8.6 7.9 7.6 8.2 7.6 6.9 6.6 6.5 5.5 7.2 6.3 4.1

Confidential. Not for external distribution. 2016 : Accelerate growth

The least complained about Telco! Net Promoter Score impact

+25 points Jan 2014 – Dec 2015

We have fixed the problems and delivered critical enablers. We have re-built trust and credibility.

Confidential. Not for external distribution. 18 Critical success factors

• Visible, active Sponsorship from the top • Empower the frontline • The ‘dual operating system’ • Test and learn, test and learn….. • Start small and build momentum • Embed the customer into everybody’s objectives. – In our vision – One of our business principles – Empathy embedded within one of our values • Accept this is NOT a quick fix – it’s a never ending journey of improvement

Confidential. Not for external distribution. 19 Thank you Learn How to Create Your Own World-class Customer Experience Strategy at:

1st – 2nd November 2016, Shanghai

• The only event in China focusing on customer experience management across all industries.

• Featuring the leading experts from across Asia Pacific. Click to Learn • Plus don’t miss the chance to participate in specialised workshops and exclusive site tours! How to Attend