Challenge
The client competed in a mature, low growth and price-competitive market with distribution channel, operations and technology marked by ineffectiveness and inefficiencies. Their large customer base (>200,000) was being sold to and serviced by the same delivery system, irrespective of the customer size or their profit contribution to the client’s business. This was resulting in excessive sales and distribution expense, and a service performance that was creating issues in 80% of the customer base.

Tasks and Approach
First, a rolling 3-year Service Strategy Plan for the client’s 11 Contact Centers was prepared. This plan was closely tied into the client’s company Strategic Plan and drove the individual Contact Centers’ business plans. A key element of this Service Strategy was the provision of different service delivery systems for different customer groups. The profitability of small customers was increased by implementing a minimum order program and training the front-line staff to cross/up sell to reach the minimum. Selling costs to the small customer were reduced by switching from external to internal sales support. Service to the most profitable customers was significantly improved by training and empowering the highest performing service staff in Ambassador teams, who could now handle all of their customers’ issues without having to hand-off to other support functions as they had previously.