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Cost Reduction Through Customer Self Service:
ABC International is a catalog company, in business for 10 years and mails out 100,000 catalogs bi-monthly. The wanted to reduce the cost of only one simple corner of their customer support services - catalog customers changing address.
ABC added an online support section allowing customers to change their address themselves on the website. Every month, customer service incoming 800 support line receives an average of 2,250 change of address calls from customers.
Creating Incentives and Promoting Online Self-Support
They discovered that when a customer changes their address in the database on the website, the company saves $12 in overhead costs compared to offline. This is ample incentive to persuade customers to move this activity online.
ABC engaged in a variety of offline and online promotions that were successful in convincing 30% of customers changing address montly to make that change themselves online.
How They Accomplished This
The company used a few simple devices to achieve their goals of moving self-support address changing online. One of the most successful was electronic coupons for savings on next purchases. They also added a "gold customer" status for those customers who purchase higher volumes annually with them.
The company is experiencing a saving of $96,000 annually so far and looking to increase that further each month.
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CONVERSION RATES at LOWERING COSTS
CASE STUDIES
INCREASING INCOME
