COST TO SERVE

Challenges

• High operating costs
• Poor performing customer service team
• Decentralised teams creating multiple hand-off's

Outcome

• Centralising part of the support structure
• Saving of $800,000 annualised

Our mission is to help businesses to identify and implement change that is sustainable over time.

Enhance customer experience, reduce cost to serve and increase profitability.

Caroline Chudasama

Co-Founder & Director

Objectives

• Large multi-national, business leaders were challenged to reduce their cost to serve model across the support organisation to fall more in line with corporate standards due to % of costs being too high for the overall operating model.

Solution

• Extensive due diligence of the customer account base we were able to different and segment customers into classifications of what was needed to serve them.
• Evident that certain accounts that had little scope for growth were being managed by expensive sales reps when they could be handled through the support organisation with strong service and close customer touch points.
• Carried out voice of the customer surveys to understand the customer experience. It was evident that the support organisation was too lean to support the customer and the sales team was over staffed.
• Company had no budget to hire more people so we had to get creative and develop a new model.
• Business process mapping and decoupling of processes we were able to develop a new support model creating a front and back-office support function.
• Backoffice support function would then be centralised in Romania to support multiple languages such as Italian, German and French.

OUTCOME

• Through centralising some of the support structure the business was able to make an annualised saving of $800,000.