More Companies Helping Customers Help Themselves
Topic Customer Relationship Management
Key Words Web-based customer service,
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News Story 

In the telecommunications industry, the customer-managed relationship originally emerged as a strategy to reduce the crippling costs associated with customer care. Customers who previously contacted call centers were encouraged to use Web-based self-care systems as an alternative for checking their bills and limits. This migration resulted in substantial cost savings for operators. According to some estimates, it costs about $5 per minute to handle a call center call, whereas it costs a mere 1 or 2 cents to operate a virtual agent over the Net.

What may have started as motivation to cut operational expenses is turning into a branding and competitive bonanza for wireless operators. For example, in the early self-care airline model, customers could check flight times and fares without having to rely on airline agents. Offsetting more phone calls to Web-based self-care systems allowed airlines to reduce the number of servicing agents. Today's more sophisticated airline self-care model allows customers to dictate personal flight profiles, select seat assignments and manage complete travel packages and itineraries. Analysts suggest the same sophistication levels already are being duplicated and refined by wireless operators in their self-care systems.

Questions
1.

Do you generally prefer businesses that enable you to take care of your own customer-service needs instead of having to rely on live customer-service agents? Why or why not?

Source Rhonda Wickham, "Leveraging CMR for 3G: Web-based customer service systems saved carriers money in the voice world, but how will they play out in the world of more sophisticated data services?," Wireless Week, July 15, 2003, v9 i15 p22(2).
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