While the acquisition last fall of AT&T Wireless is viewed by far as the key driver in building Cingular's customer base beyond the 50 million subscriber mark, customer care and retention efforts like this play a major role.
While such a critical all-inclusive document may seem dull and less than mission-critical at first blush, consider the file folder of disjointed and difficult-to-understand paperwork, receipts and maps with which many folks leave wireless stores. Now combine that with the shock of not understanding your first bill and the separately mailed ancillary documents, and it becomes easier to value the import of such an undertaking.
Finally, consider the time, frustration and cost of trying to resolve problems and get basic questions answered after you've left the store. Does "Your call is very important to us, please wait for the next available agent ..." sound familiar? All these issues were top considerations in Cingular's teaming with office systems giant Xerox to architect the solution, one that was deployed quickly and more widely after the operator acquired AT&T Wireless.
"The customer is king line just hasn't flown when it comes to customer service with wireless providers because most employ an out-of-sight, out-of-mind approach to subscribers after they leave the stores," said Daniel Briere, CEO of TeleChoice Inc. "And many are focused so keenly on marketing and selling that they have no idea what this 'approach' is costing them in resources and customer turnover, with number portability a stark reality."
Cingular did its homework on all fronts and came up with the following facts upon which to base the business case for the proposed project *:
* Average revenue per user: $50 per month;
* Average duration of typical customer stay: 37 months;
* New customers calling the customer service center with questions within 60 days: 60 percent;
* Average cost of call to contact center: $6;
* Proposed savings if call volume cut by 25 percent: $3 million per year.
The anticipated savings helped make the sale, at which point senior management support helped convince store owners to make the investment in the Xerox printers.
The key to selling finance on the efficient-office strategy is to justify purchases and deliver a tangible ROI.
"The biggest issue in selling our plan was selling vice presidents with 100 stores in their regions on having to buy new printers at $2,000 apiece installed," said John Hedges, then director of sales automation at Cingular. "We did that by having solid senior-management backing for the effort and demonstrating to them anticipated savings in several areas. "That hit the VPs in the wallet, as we bill them back for calls to the center from their region."
Cingular COO Ralph de la Vega said the operator deployed a new POS system and trained more than 100,000 employees and agent workers. It closed the deal for AT&T Wireless in late October and converted roughly 1,000 AT&T stores on the Sunday evening of Nov. 14, sending coupons for Dominos Pizza to all workers involved in the massive, one-day effort.
Pizza and proper paperwork would make any consumer happy.
* Data points provided by Cingular before the acquisition of AT&T Wireless.
