We were engaged by an Meridian Energy to map out processes linked to customer service calls, enabling a root cause analysis to be completed. This, in turn, led to the identification of opportunities to reduce cost-to-serve (ultimately a 22% cost reduction was identified with even greater debt recovery opportunity).
Amongst the findings was the end-to-end process picture of a payment plan that was widely considered to be profitable. On closer inspection this particular service was not understood by the front line who were responsible for selling it, creating extremely high cost in the billing back office, demanding and disliked by credit, yet loved and promoted by marketing.
What was considered to be a $4 front office call was quickly identified as creating an $18 contact cost, making the service completely unsustainable. One of the results of our work was the establishment of a forum and closer working relationship between the business units involved, rallying them around the end-to-end processes mapped and allowing each to understand the relevant impact they had on, particularly, the front office and the customer.