Enhancing the Customer Experience in an Internet World Bill Peterson Director, Services Strategy and Marketing Dell Computer Corporation Page 1 Leveraging the Internet Throughout Dell www.dell.com/premier • 40,000+ customized premier pages • 70% of customers use web to check order status E-support Company B2E Suppliers B2BB2B Internal Processes B2B / B2C Customers valuechain.dell.com inside.dell.com www.dell.com • Supply Chain Management • 5.1 days of inventory • All internal functions • E-commerce • 500,000+ pages • $50 Million/day (www.dell.com) • 50% Revenue is Online Page 2 Dell Services Facts • 34 million computers under warranty • 30 million support requests annually • Over 6,000 global service professionals worldwide • Remote and on-site service in 170 Countries • Access to over 50,000 field technicians globally • 75% of DELL desktop incidents resolved remotely; over 90% for servers • Overall delivery performance of 90+% * • Fastest-growing hardware services company in the world • Consistent Winner of Customer Satisfaction Awards * Dell comparison to Dataquest’s June 1998 Benchmarking Hardware Service Operations Page 3 • 7x24 800-number lifetime support Customer Nine-time winner: Readers’ Choice for Service and Reliability Reader’s Survey award for “Best PC Reliability and Service” – 1994-1999 Customer Satisfaction Leader (9 consecutive quarters) 10 Best Support Sites – 1999, 2000 Dell Technical Support Dell’s Traditional Support Model Page 4 Customer Server or PC Per day: • 63,000 unique user visits • 26,000 questions to Ask Dudley • Over 35,000 order status checks • Over 32,000 files downloaded Dell Technical Support Support.dell.com Page 5 Resolution Assistant Customer Server or PC Dell Technical Support Dell E-support with Resolution Assistant Page 6 Resolution Assistant User Interface Page 7 Resolution Assistant Help Desk Interface Page 8 Impact of E-support on Customer Downtime Vendor Technical Support or Dispatch Typical Hardware Manufacturer Incident Dispatch Rate 66 to 73%* 27 - 34% resolved Dell Support Model Incident Dell Technical Support 9 to 25%* >75 - 91% resolved Dell with Resolution Assistant Incident Dell Computer with Resolution Assistant Dell Technical Support with Resolution Assistant >95% resolved < 5% *Source: Gartner Group, 1/00 Page 9 Top 10 Incidents Handled with Resolution Assistant Resolution Assistant Contacts: Phone-Based Contacts: 1. Internet setup/usage 2. Software 3. Printer 4. CD/DVD 5. Lockup 6. Sound 7. Monitor/video 8. Superdisk 9. Keyboard 10. Mouse 1. Internet setup/usage 2. Software 3. Modem 4. Printer 5. Monitor/video 6. CD/DVD 7. Sound 8. Motherboard 9. Hard Drive 10. Keyboard Page 10 Customer Preference for Resolution Assistant Contact Method 80% Resolution Assistant 70% 60% 50% 40% 30% Telephone 20% 10% E-mail 0% 1 2 3 Contact Number 4 5 Page 11 Dell Resolution Assistant Benefits To Date Benefits to Customer: Time savings: No telephone hold times No time spent on the phone in lengthy diagnosis Greatly reduced incidence of dispatches Benefits to Dell: Higher customer satisfaction Reduced dispatches & warranty cost Reduced “no fault found” part replacements Lower Support Cost Higher technical support rep job satisfaction & lower turnover Page 12 E-support Opportunities for Corporate Users Most corporate customers maintain internal help desks and incur significant cost Increasing numbers of applications to support: Some customers utilize 600+ desktops apps Many custom apps with no centralized knowledge base Increased use of the web: Network/connectivity issues Downloads create conflicts and configuration issues Increased strategic role of IT diminishes resources available for user support Decreasing talent pool and retention issues Opportunity Leverage Dell’s proven technology and expertise for internal E-support solution: • Reduce help desk expense • Improve user uptime and satisfaction Page 13 The Potential of E-support for Businesses Reduce Help Desk Expense: Level 1 Support Level 2 Support Help Desk Deskside Visit Typical Support Model Incident 1-3 calls per user per month $15 per contact $100 per contact 80% resolved 20% resolved Cost per Incident $32 $768 Annual support cost per user Source: Meta Group; Dell estimates Page 14 The Potential of E-support for Businesses Improve End User Uptime and Satisfaction: Time Remote Resolution (80%) Hold Time Triage Diagnosis/Fix Deskside Visit (20%) Hold Time Triage Diagnosis Dispatch On-site Repair Page 15 Server or PC Dell Technical Support Customer Help Desk Resolution Assistant Customer Dell E-support with Tiered Resolution Assistant Page 16 Potential Customer Savings with Resolution Assistant Level 0 Support Level 1 Support Level 2 Support End User Self Help Help Desk Deskside Visit $0 (no contact) Typical Support Model Incident Incident With Resolution Assistant 0 - 10% resolved $15 per contact $100 per contact Cost per Incident 80% resolved 20% resolved $32 80 - 90% resolved 10% resolved $21 Potential Annual Savings: $264 per user Source: Meta Group; Dell estimates Page 17 Impact on the End User Improved Uptime and Satisfaction: With E-support Current Time Remote Resolution (80%) Hold Time Triage Diagnosis/Fix Deskside Visit (20%) Hold Time Triage Diagnosis Remote Resolution (90%) Remote Diagnosis/Fix Deskside Visit (10%) Remote Diagnosis Dispatch On-site Repair Dispatch On-site Repair Page 18 Tiering E-Support Solution Concepts Small/Medium Help Desk: User 1 Dell Tech User 2 Self-Service User 3 User n Hosted Backend Escalation Dell Backend Tech 1 Tech n Assisted Service: •Apply active content • Telemetry •Rollback • Chat Outsource Tech Page 19 Tiering E-Support Solution Concepts Large Help Desk: User 1 Dell Tech User 2 Self-Service User 3 User n Backend Escalation Dell Backend Tech 1 Tech n Additional capabilities: • Content authoring capability • Integration with call management system • Multi-vendor capable Outsource Tech Page 20 Dell’s E-support Outlook Near-term: “Tiered” E-support solution: • Pilot: 4Q • Rollout: 1Q By the end of 2001: • 80% web-based customer support • 95% remote resolution rate Page 21 Dell’s E-support Outlook Longer-term: Standards-based E-support to allow customers to collaborate or outsource to a tight-knit service community Integration of supplemental tools (e.g. password reset) Diagnosis and resolution capabilities updated real-time to reflect the experience of all customers All “soft” problems resolved remotely, the first time Increased viability and acceptance of self-service Automated problem detection and correction 25-50% reduced resolution time Potential $500 million to be saved annually by Dell customers using Resolution Assistant Page 22 Conclusions Leverage what’s out there today! e.g. support.dell.com Understand your support requirements and associated costs (they are more than you think!) Consider piloting E-support technology in one or more areas of your company Look for comprehensive solutions, not point solutions, to your support requirements Page 23 Thank You Page 24