Customer Experience Lab

Case Studies for Cost Reduction with Customer Experience

By Anya Phillips on March 05, 2018

We have published the Centriam CX Money Map, which details 12 drivers that make the financial case for a customer experience program. In our last post, my colleague Joe focused on customer enrichment. This week, I will delve into the two drivers involved with reducing costs in contact centers and marketing while maintaining, and potentially improving, customer experience.

Clarify Expectations to Clear Out Service Cues

When customer experience is considered from the customer’s point of view, it can lead to lower customer experience costs. Expedia used this way of thinking when looking at how to cut volume at their call centers without diminishing the experience. They discovered that their longest and most challenging calls were from customers who had booked the lowest rate, not realizing the room was non-cancellable. In response, Expedia looked for steps they could take (on their website, through confirmation emails, etc.) to more clearly indicate the trade-off customers were making. By considering this pain point from a customer journey perspective, Expedia changed the customer’s expectation and subsequently decreased the volume and length of those calls.

Reduce Repeat Calls by Focusing Upstream

Documenting the disposition of inbound calls is important for understanding the customer. We work with a telecom company facing a similar challenge to Expedia: lowering call center volumes while maintaining or growing customer experience scores. Our analytic approach included evaluating repeat call rate patterns. One area with a substantial repeat call rate was billing disputes. Our client used this insight to justify investments in consolidating and clarifying their bills. By focusing on the customer experience upstream, the call center reduced repeat calls stemming from billing disputes by up to 30% in 6 months.

Companies need to be focusing on customer experience. You'll not only have happier customers, but your bottom line will thank you. #CX #CXImpact #CallCenterMarketing [Click to Tweet!]

Develop Win-Win Market Research

Product development research can consume tremendous resources. But it’s critical: customers won’t buy products they don’t want! However, Lego has found a way to cut market research costs and improve customer experience. They’ve created the LEGO Ideas platform for LEGO fans to submit their own LEGO set designs and vote on other submissions. Once a submitted design reaches ten thousand votes, it will be given to the LEGO Review Board, where they will decide which sets will move into production. Two recent popular designs generated from this process are the NASA Apollo Saturn V and Ship in a Bottle. By giving their customers a voice in product design and making them feel valuable, they’ve improved customer experience while simultaneously creating products they know will be desired and purchased by their customers.

Cost Reduction - Ship in a Bottle

None of these companies cut costs directly. They made investments that decreased demand for call center agents and market research panelists, respectively. Importantly, all three companies thought about their business challenges from the customers’ perspective. By becoming a little more customer obsessed, these companies identified smart investments that ultimately led to lower costs while improving customer experience.

Generating your business case for decreasing customer service and marketing costs by focusing on customer experience can begin right now! Download the Centriam CX Money Map for more information on the financial benefits of customer experience today. And don’t forget to follow this blog for further discussion on the other business case drivers.

CX Money Map

Topics: Financial Drivers

Author: Anya Phillips

Anya helps Centriam's clients gather and act upon analytic insights. Anya came to Centriam from Minneapolis Community and Technical College, where she was the head mathematics tutor. Prior to that, she travelled extensively, living in Hungary, Australia and New Zealand. Anya holds a B.A. in applied mathematics and statistics from Macalester College. During her time there, she interned at the Institute for Math and its Applications, applying predictive modeling to GPS and accelerometer data.
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