Empirical consultation for sales and marketing
Customer example: 21% increase in call center conversion rate
What is the best way to increase the efficiency of a call center without extending the duration of a conversation, decreasing customer satisfaction, or increasing cost? When you understand how the customer's decision-making process works, this question is easy to answer.
Our customer, a German mobile phone provider, wanted to optimise the efficiency of its call center. The goal of the project was to develop a sound understanding of the telephone sales process:
- Why does a customer decide on a certain plan ?
- Why does the customer extend his contract - or not?
- How should a conversation be directed in order to increase the conversion rate?
- By which means can costs be reduced at the call center?
Differentiating customers according to purchasing behaviour
Using an empirical study, customers were separated into various customer groups based upon their actual decision-making process when purchasing mobile phone plans. Groups included bargain hunters, the indifferent, routine-based purchasers, the cost-ready, and the waste-averse. The call center agents were specifically trained to recognise the customer types early on in the conversation. Special conversational strategies were developed for the two main target groups - the bargain hunters and the waste-averse (who together make up 70% of the mobile phone market) - in order to have the greatest success with these customers.
- By accounting for personal decision-making behaviour, customer satisfaction was increased significantly.
- At the same time, the average conversation duration was markedly shortened, because the customer's decision-making process was supported and encouraged.
- Rebates were only offered to bargain hunters and not the waste-averse customers, which meant that the sum total of rebates offered was halved.
- Most importantly for the company, however, was the 21% conversion rate increase at the call center.
Focus on customer relationships and loyalty
To be truly customer-oriented, it is not enough to measure customer satisfaction alone. Instead, companies must closely examine their customer relationships as well as customer loyalty.
The customer believes in the company and in the quality of its services. He is emotionally involved, loyal, lastingly committed and recommends the company to others.
Customers voluntarily form relationships with a company, but tend to do so for reasons of comfort, risk aversion, financial incentives, or less attractive offers from competitors.
Customers are contractually bound to the company (legal barriers to change, duration of contract) or there is no available alternative.
Video: Why are men so irrational?
Oftentimes, men do not behave rationally. Purchasing decisions are seldom made from a rational standpoint, especially when it comes to tools or electronic devices.
Even your customers are not as rational as they might often seem. Discover why by viewing this short video.
Naturally, men are not alone in being "affected by" irrationality.