Enhancing the Customer Experience in an Internet World

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 B 2 E Suppliers B 2 B Internal Processes B 2 B / B 2 C Customers valuechain. dell. com inside. 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 www. dell. com 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

• 7 x 24 800 -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 p Su . d rt po om c ell. 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. dell. com Page 5

. d rt po p Su Resolution Assistant Customer Server or PC om c ell. ics ost tent n iag Con D e iv Act 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 Technical Support Dell Support Model Incident Dell with Resolution Assistant Incident 9 to 25%* >75 - 91% resolved 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 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 Resolution Assistant Telephone E-mail Contact Number Page 11

Dell Resolution Assistant Benefits To Date ¨ Benefits to Customer: Time savings: Ä No telephone hold times Ä No time spent on the phone in lengthy diagnosis Ä 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 Deskside Visit $15 per contact Typical Support Model Incident 1 -3 calls per user per month $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

Customer Help Desk . d rt po p Su Resolution Assistant Customer Server or PC om c ell. ics ost tent n iag Con D e tiv Ac Dell Technical Support Dell E-support with Tiered Resolution Assistant Page 16

Potential Customer Savings with Resolution Assistant Level 0 Support Level 1 Support Level 2 Support Help Deskside Visit End User Self Help Typical Support Model Incident With Resolution Assistant 0 - 10% resolved $15 per contact $100 per contact Cost per Incident 80% resolved $0 (no contact) 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 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: 4 Q • Rollout: 1 Q 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