Achieved saves of nearly Rs 7 Cr on AOP in
2016 by ensuring CSAT stay green; resulting in increasing it to 85% from
66%
During the last AOP planning cycle Anjum
Khanna was given a challenge to reduce the total AOP of Rs 85 cr by Rs 5 cr. Anjum
Khanna asked his boss to increase the
target by further 20% to Rs 7 cr that was achieved by the close of the year.
Not only were Anjum Khanna able to reduce the AOP, he also realized the opportunity
of making our processes robust, adopt best practices in the industry, automate
processes, optimize our vendor relationships and above all made a significant
19-point jump in CSAT from erstwhile 66% to 85% in the most recent CSAT survey,
indicating how well our optimization projects spanned without impacting the
Customer Journey at any point of the life cycle.
In addition to this, these optimization
projects managed by Anjum Khanna will also result in stronger compliance,
reduced manual effort and above all sustainable saves.
Before Anjum Khanna set out to achieve this
target, he decided to shift away from what was being done traditionally to
optimize the services we were offering to our Customers – who must not
experience any breaches in the way they were being services.
What we could have done
As would anyone else, Anjum Khanna too thought
of the usual solutions to be able to achieve the target of bringing down the
AOP by ~ 10%. Anjum could have done this by either optimizing the total number
of resources, or reduce the number of calls, ran lesser number of campaigns or
automated the process to reduce the manual effort. This could be done using
simple adjustments in that way distributed our called to the vendors, reduced
AHT irrespective of the impact of it, optimized the resources by a blanket
10-15% reduction.
What we did instead
Instead of approaching this challenge the
traditional manner, Anjum Khanna rather worked on a three-pronged approach of–
Innovate, Focus and Transform.
Innovate to realize the inherent
improvement opportunity in the projects that I was planning to start. Some of
these are, not limiting to, is the reduction in calls, FTEs redux or making the
campaigns redundant that were not giving us the threshold ROIs. We also
increased the ARPU by Rs 15 INR.
In the process we also had a golden chance to
revisit our legacy systems that we automated to drastically reduce the
non-value-add steps and removing manual interventions by 50%.
Focus on improving the current
scenario that will result in sustainable saves and make processes robust with
better customer experience. For example, let’s say we made 260,000 calls in a
day out of which 200,000 lac were unique contacts dialed from the databases with
approximately 50% successful customer contact and 25% conversion from the
successful contact – about 25,000 customers a day.
Anjum Khanna focused on how to optimize
the process by doing a rejig with vendor relations, while keeping focus on
ARPU, challenging the legacy processes and best customer experience.
We had 5 partners dialing 7.8 Million
data/month out of which 2 were dedicatedly dialing Churn and remaining 3 were
given mix of all the campaigns. Resulting in better process management and
compliance. Also looked at the hard coding of the dialer. As per the compliance
contact policy; our vendor could only dial a sub ID 3 times/day and a max of 9
attempts in 3 days. We had these attempts reduced by 33% to 6 only.
Making the APRU Better: We also focused on how to make the APRU
better. The Original AOP of Rs 85 Cr ($13 m) was divided
into Revenue, Churn, Sales & Service Campaigns. On an average we run a total
of 70 different campaigns which cuts across the customer life cycle. We broke
these AOP items further into Revenue (Rs 33 cr), Retention (Rs 33 cr), Sales (Rs
13 cr) and Service (Rs 6 cr).
Better Contact %: We focused on how to increase the Contact % of
50% and to 60% can could spike number of contacts by 20,000 a day. We also
relooked at our processes with increase the erstwhile conversion on 60% the contacts increased to 30% from the current
number of 25%. This gave us 6,000 incremental pack sales a day. Let’s say a
pack costed Rs 50 each, this gave us additional Rs 50 x 6000= Rs 300,000 a day
as revenue.
Optimizing the AHT: We also focused on optimizing the AHT. While
we ensured out agents remain good communicator and have a great conversation
with the customers; we focused on setting up an Upper Specification Limit. We
arrived at this Upper Limit by averaging the last 3 months of AHT. So if the
AHT for Jan was 300 Seconds, Feb 350 and
March and AHT of 375. The forecasting team averaged it to 340 and give it to
the partner with specific instructions to ensure no customer experience impacts.
We worked on a weighted mean to reduce the AHT by 20 seconds.
Reduction in unproductive AUX in Billing: We reduced unproductive Aux like Idle,
Downtime and Shrinkage
Automating our Campaigns: We looked
at reducing the number of calls by automating our campaign. We achieved it by:
· by making use of Voice Blast to
reduce Predictive Churn Campaigns, saving 50 FTEs
· by Automating SR / WO on IVR to
save 70 FTEs who only prepare New Box SR Prospect
and transfer the call to OB Queue
· The WO cancellation process was automated and push SMS was send to the
customer real time reducing cases of cancellation from 7500 to 3500 thereby
saving 80 FTEs
We created Universal Agents for Churn Campaigns and clubbed 5 campaigns into 1,
saving 30 FTEs.
Motivating the Partners: While we focused on
all these, we ensured our Partner KPIs were robust to mitigate any slack (can
you use this word?). The partner KPIs were Contact, Conversion and CSAT. To
boost the morale, we added First Call Conversion in RnP and increasing their
Reward in case of reduction of call to convert.
Optimize the Contacts: To optimize the contacts and reach 50% of
Contact % we dial the data with certain penetration or intensities. We focused
on how to dial intelligently the data to make a significant impact on the
optimization. Thus, Anjum Khanna and his team focused on Baseline Intensities
and increase First Call Conversions.
·
We sifted intensities required for Conversion
in each and every campaign. Our analysis suggested that most of the Revenue
campaigns work on Contact Intensities of 3 and Non-Contact Intensity of 5
·
Churn works on Contact Intensity of 4 and NC
of 5
·
Box Sale and Service run on Contact Intensity
of 2 and NC of 3
Reduction of the Revenue Campaigns: We looked at Reduction of Revenue Campaigns on
basis the ROI of each and every campaign. If it did not meet the threshold
value, we looked at either omitting it or automating it. We achieved it by
Calculating ROI by multiplying number of packs
sold in last 3 month with cost/pack and stickiness of customer to the platform
post the sale. For example we sold 45,000 packs of ACTVE Music and 35000 of
ACTVE Fitness in last month. The cost to customer remain at 60/month and our
cost of total packs/number of FTEs* cost per FTE. The customer took ACTVE Music
for 90 days and ACTVE Fitness for 60 days :
i. Cost of ACTVE music 30 x 25,000
= 7.5 LAC + Prorated Management Cost + Cost of Content
= 12 lac per month
= 12 lac per month
ii. Cost of ACTVE fitness 30 x 25,000
=7.5 Lac + Prorated Management Cost + Cost of Content
= 12 lac per month
= 12 lac per month
iii. Music Revenue per month is 15,000
x 60( Cost to Customer) x 3 months retention = Rs 27 Lac
iv. Fitness Revenue per month is
15,000 x 60( Cost to Customer) x 2 months retention = Rs 18 Lac
i.
ROI for Fitness is 12/18*100 = 66%
ii.
ROI for Music is 12/27*100 = 44%
Using such calculations, we arrived at whether
to keep the campaign live or shelve it.
Motivating the Partners: We established a Champion Challenger amongst partners – a competition increased both contact % as well
as Conversion% while giving a shining CSAT Score.
Transforming: We continue Evaluating Results and constantly
work towards sustaining the results