Telerx’s Partnership With A Durable Goods ManufacturerA Customer Care Solution That Increases Loyalty, Drives Revenue and Tangibly Builds Value

Case studyCase study

SITuATIon:

Transform this industry leader’s customer care

program into a strategic, brand-building initiative that

delivers best-in-class service and generates revenue.

ReSuLT:

• 90% customer satisfaction rate: most customers

were very satisfied with their overall contact expe-

rience.

• A significant increase in product satisfaction

based on interactions with a customer service representative.

• During the first quarter of integrating a sales component into the customer care program, an

increase in contact center-generated revenue that exceeded an ambitious goal of 20%.

• Increase of more than 20% in revenue per order from 2002 to 2003.

• Generation of sales revenue equivalent to the annual cost of operations for the customer

care team during the initial 12 months of the sales program.

BACkGRounD

This manufacturer of food storage products and small electric kitchen appliances has experi-

enced phenomenal growth selling the product and accessories directly, via the web, toll-free

numbers, and retail outlets since its introduction in 1987. The company’s premier product is

a category market leader.

Early on, the company realized the important role its customer care program played in the

success of its brand.

Recognizing that each contact is an opportunity to build, or risk, life-long relationships with

customers, the company began the search for a customer care partner. Requirements in-

cluded the expertise and experience to develop a team of product experts whose interactions

would enhance the relationship with its customers and, thus, its brand. Senior management,

committed to obtaining “best-in-class” practices across the organization, was looking for:

1) A strategic outsource partner with a highly developed specialization in customer care

and consumer affairs.

2) Documented success in providing consumers with contact experiences that exceed

their expectations.

3) Specialized technology with future scope and bandwidth projections.

4) The ability to turn call data into strategic and actionable knowledge.

5) The skill to create a client-focused culture within a dedicated team.

6) A strong commitment to continuous improvement, enhanced service, and

cost efficiencies.

The ReSuLT of The SeARCh WAS The CReATIon of A PARTneRShIP WITh TeLeRx

Telerx, recognized as a “Top 50 Inbound Service Bureau” and a “Rising Star” by Customer

Inter@ction Solutions Magazine, helps clients succeed by protecting and maximizing the

investments they make in brand building. Telerx carefully manages consumer interactions,

strengthens relationships and provides clients with valuable market intelligence, providing

return on investment in the marketing, sales, product, and process improvement areas. Telerx

provides flexible options and advanced technology to tailor solutions that fit each client’s

unique goals, market and budget. Telerx operates through dedicated client teams of highly

trained customer service representatives that interface with customers in the media of their

choice including toll-free numbers, white-mail, email and Internet chat.

CuSToMeR CARe neeDS

The company’s customer care needs are extremely complex:

• Products are sold through multiple distribution channels including direct (mass media driven,

web, and telemarketing) and retail. This creates different communications needs.

• Part of the “product system” is the need for continued repurchasing of consumable product.

• The product itself is mechanical in nature, resulting in customer inquiries that are often

complex and complicated to resolve.

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To meet these needs, the client’s dedicated team at Telerx participated in an extensive train-

ing program. Representatives developed in-depth product expertise. They also acquired

the communication techniques needed to effectively walk customers through step-by-step

resolution – be it product information, repurchase of the right consumables or troubleshooting

instructions. Additionally, the client provides a machine to each representative for his/her own

personal use. This enables each communicator to continually develop his/her expertise and

be knowledgeable product ambassadors.

Comprehensive training and product use empower the customer care team at Telerx to handle

customer inquiries on a wide range of critical topics including product usage, mechanical

operation/troubleshooting, product/accessory orders, pre-purchase consultation, order status,

repair procedures, and warranty information.

Representatives are available to assist customers six days a week from 8:00 a.m. to 8:00 p.m.

ET Monday through Friday and 9:00 a.m. to 6:00 p.m. on Saturdays. As product experts,

customer service representatives are skilled in the operation of all product models. They ef-

fectively answer mechanical questions and walk customers through the operational process

step-by-step if necessary. In fact, after assisting a customer with a mechanical issue, a cus-

tomer service representative remains on the line until the customer successfully operates his/

her machine. This ensures the issue is completely resolved to the customer’s satisfaction.

The ability to provide flexible staffing to meet seasonal and media-driven increases in contact

volumes is extremely important to the company. Team staffing rises 20% in December and

January. Temporary representatives undergo the same comprehensive three-week training as

their permanent counterparts to ensure they are equipped to provide superior service.

SuCCeSS LeADS To GRoWTh

Having successfully met the client’s initial customer care goals, the range of services provided

by Telerx’s customer care team has greatly expanded. In addition to handling customer

service and product orders received via toll-free numbers and e-mail, the Telerx team now

executes the company’s:

• Returned merchandise authorization process.

• Rebate program including the review of all rebate applications and input of rebate orders.

• Continuity program to ensure auto-replenishment of supplies for customers.

• Infomercial customer service calls and sales closings.

• Product registration program.

Telerx’s scope of responsibility regarding the number of products supported continues to grow. The

client recently acquired a brand of high-end kitchen electronics, tools, and cookware and is looking

to the Telerx team to expertly handle all aspects of customer care for these products as well.

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TAkInG IT To The nexT LeVeL – DRIVInG ReVenue

Like all marketers, the client company is under increasing pressure to grow revenue. It turned

to Telerx for help by integrating strategic selling with customer service. Now, instead of just

taking orders and making product suggestions, revenue generation is a formal part of the

program.

Key to integrating a sales effort and capitalizing on revenue opportunities was maintaining, not

compromising, the superior level of service the company’s customers expect. To achieve

that goal, Telerx and the client collaborated with a third-party marketing consultant to create a

three-pronged approach to the sales effort integration:

1) A solution-selling training program was developed to equip the representatives with the

knowledge and skills needed to recognize and capitalize on revenue opportunities. The

training also helped these representatives who had been so focused on customer care

overcome their concerns about selling to customers. Since solution selling hinges on

asking appropriate questions to better identify and offer products that meet customers’

needs, representatives quickly felt comfortable with the process. They view it as a way

to provide enhanced customer service – not just trying to sell.

2) A sales goal incentive was developed and implemented for the customer service repre-

sentatives. Under the tiered incentive program, representatives can earn cash bonuses

based on the number of machines and/or accessories sold monthly. Since the quality

of each phone call is paramount, monthly quality monitoring results are also factored

into the incentive payout.

3) The skill sets learned during the solution-selling training are reinforced through monthly

quality monitoring and feedback sessions. Representatives are evaluated on their

effectiveness at cross-selling and increasing brand awareness. Periodic refresher

training gives representatives the opportunity to practice and enhance their skills in a

training environment. Telerx built upon the marketing consultant’s training approach to

develop sales and training modules tailored to meet the individual needs of each repre-

sentative.

Results from the solution-selling initiative have exceeded the company’s goals. During the

first quarter of the program, the customer care team generated a revenue increase that ex-

ceeded the aggressive goal of 20%. Perhaps the most impressive measure of the success of

the solution-selling effort is that during the initial 12 months of the program, the team generat-

ed gross sales revenue equivalent to the annual cost of operations for the customer care team.

The VoICe of The CuSToMeR

Customer feedback indicates the company has successfully met its goal of providing world-

class service.

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Results of a customer satisfaction study conducted by a third-party research firm in No-

vember 2003 reveal a remarkable 90% satisfaction rate with the overall contact experience.

In addition, more than half of all respondents indicated their satisfaction with the product

improved as a result of their interaction with a customer service representative. Even those

customers with more challenging issues like problems and repair needs reported their satis-

faction with the product increased as a result of their experience with the customer service

team. This is an extremely notable achievement.

Positive feedback regarding the solution-selling initiative was also reflected in the satisfac-

tion survey. There was a dramatic 45% increase in the number of customers receptive

to having customer service representatives offer special promotions during the phone call

over the 2002 baseline survey. This confirms representatives have effectively incorporated

solution selling into their customer service calls by tactfully introducing product offers and

promotions.

DATA AnD TeChnoLoGy ARe CRITICAL

Telerx customer service representatives are the main touch point between the company’s

customers and its corporate staff – and a valuable source of actionable data. The insights

gleaned directly from customers regarding their preferences and product/service improve-

ment is invaluable.

Valuable intelligence is also gained from the customer service representatives themselves.

Based in part on team feedback regarding customer comments about repair charges, the

company recently implemented an upgrade in warranty handling. While relatively new, the

customer care team already reports overwhelmingly positive reception.

Representatives also provide critical marketing information. Representative input was wel-

come in the recent redesign of the brand website. The team routinely offers input on items

that should be included on the website and in the online FAQs.

As a result of direct and measurable return on investment, the company’s willingness to listen

to feedback from customer care representatives and act on their suggestions continues to

increase. In fact, the company’s management staff recently initiated focus group discussions

with representatives to elicit additional ideas for improving products and service policies.

ConCLuSIon

As a growing company, Telerx’s client recognized the need for its customer care program to

go beyond adequacy. The company invests heavily in marketing and sales to promote its

brand and nurture one of its most valuable assets – its customers. The company acknowl-

edges that the way this asset is managed, protected, and cultivated has direct impact on

customer satisfaction, loyalty and, therefore, continued purchasing and positive word-of-mouth.

For more information about Telerx Marketing, Inc. please visit the company’s website at www.telerx.com or call 1-800-2-Telerx.

about telerx

Telerx, headquartered in Horsham, PA is a leading provider of customer care solutions. From its contact centers in Pennsylvania, Texas, North Carolina, British Columbia, the Philippines, and Latin America Telerx’s 2000+ associates help companies maximize their customer relationships and build brand loyalty.

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723 Dresher RoadHorsham, PA 190441.800.2TELERXwww.telerx.com

To move its customer care program to a higher level of achievement, the company:

• Developed specific selection criteria to identify Telerx as the customer care category leader.

• Fully embraced Telerx as a partner and jointly developed a clear definition of what consti-

tutes successful service levels.

• Empowered Telerx to provide its best-in-class training and team management techniques.

• Invested in third-party customer satisfaction benchmarking and measurement.

• Identified success early and installed an aggressive program expansion that went from

superior service to superior revenue generation.

• Recognized and acted on the Telerx team’s input to improve marketing, product, and pro-

cess decisions.

The ReSuLT

• Service levels that challenge industry standards.

• The transformation of what historically in any company is a cost center into a revenue generator.

• Soaring levels of consumer satisfaction that are proven by third-party research.

• Documented return on investment that is clearly measured in hard dollars.

• A powerful partnership that attains the often desired, but rarely achieved, “win-win.”

Through its partnership with Telerx, the client was able to prove through hard dollars and cus-

tomer satisfaction numbers the importance of good customer care and the belief that doing it

right pays off.