Aegis Insight Newsletter Vol. 4 - Enhanced customer experience, customer retention, improved customer lifetime value

1. Case in Point Global Footprint
G lobal Headquarters C ountry Headquarters C enters
Enhanced customer retention by
re-engineering diverse business systems
THE CLIENT Aegis provided a number of features to both, end users and
Operating at the cutting-edge of technology and innovation, our dealers that included dedicated representatives catering to the
client, a luxury automobile manufacturer, is a brand renowned for South African and the Middle Eastern market and answering
its premium luxury passenger vehicles, as well as superior financial queries for the customer. General inquiries such as
trucks, buses and vans. The brand incorporates the highest pricing, new models and other value-added product information
global production standards in terms of quality. As a leading were provided to both them through e-mail, telephone or fax.
Enhanced Improved
brand, the company has extended its customer offering to Aegis ensured that the new channels and features remained in
Killeen, TX
Customer
Customer Customer
include a distinctive ‘menu’ of Financial Services tailor-made to line with company’s business requirements . Aegis’ services
Retention
its customers’ needs, thus enhancing end user experience even included financial assistance and options on matters such as
capital reductions, balance outstanding and restructuring of
Experience Lifetime Value
when they are not in the driver’s seat.
contracts. Further, language support was provided in English,
CUSTOMER CHALLENGES Arabic and Afrikaans. Aegis’ integrated solution along
Impacted by recent financial crises with luxury with superior customer service simplified
cars sales’ dipping by nearly 26%, the Business consumer information gathering and
process analysis, improved financial advice, and
company was compelled to re-examine
overhaul Argentina:
its current processes in order to reduce increased acceptance of company’s > Tucuman > Bhopal
> Cordoba > Srinagar
costs, enhance customer service and financial and insurance products. > Bahia Blanca
Robust Support > Mar del Plata
reinforce its reputation for excellence. Luxury Automobile > Buenos Aires City (2)
cutomer contact
The company sought to intensify the support Manufacturer centre RESULTS
interaction between dealers, itself and Aegis was able to successfully reduce
its customers. As the current disparate costs, while significantly exceeding
Better
communication patterns were causing collection expectations by improving customer CORPORATE HEADQUARTERS Contact Information
deficiencies in providing optimum activities satisfaction. From a cost perspective
Aegis Limited India : +91 40 6616 6220
customer service, leading to a need for these initiatives resulted in total savings Essar House Philippines : +63 2885 8000
system re-engineering. The primary Customer Satisfaction leading to of 16.4% as a result of process 11 K.K. Marg, Mahalaxmi
Customer Retention Argentina : +54 115 080 0000
challenge was presented by the fact improvements, superior quality and Mumbai – 400 034
performance of the centre. The impact South Africa : +27 11 461 9154
that crucial customer and business INDIA
UK : + 44 207 096 5097
Copyright 2010, Aegis Limited. All rights reserved
processes resided in a number of different systems. of Aegis’ services can also be highlighted from the statistics
mentioned below Phone: +91-22-6660 1100 US & Costa Rica: +1 877 892 3447
To sustain market share, the company required a partner capable ◆ Improved quality scores from 79% to the current 92% Fax: +91-22-2495 4490 Australia : +61 3 9256 5000
of providing robust customer support in the automobile domain. ◆ Customer satisfaction index increased from 85% to 96% Kenya : + 254 750 1026 78
To remain competitive, the company also needed a strong ◆ Number of settlement quotes completed per month rose Sri Lanka : +94 114 810 001
collaborator who was able to handle back-office activities such as from 316 to 1128, thereby increasing customer loyalty, and New Zealand : +64 9 302 1730
settlements, balance installments and skipped payments etc. increase First-call resolutions. Email : info@aegisglobal.com
AEGIS SOLUTION The Average Handle Time, or AHT, remained consistent leading
Aegis’s domain knowledge in the automobile industry combined
Do write in with your feedback on Insight to info@aegisglobal.com
to the adoption of strategies for offering additional support such
with its talented pool of Six Sigma consultants made it the as cross sell and up sell. This efficiency improvement as a result
perfect choice to optimize the company’s service systems. The of the improved workflow meant that Aegis had created extra
interconnected triad of customer service, profit and growth, capacity which could thus take on additional processes.
defined Aegis’s overall approach to the engagement. As part of
the solution, Aegis’s consultants worked with the company to
re-engineer and overhaul business processes, refining the
efficiency of its customer service and proffering best in class
customer experience. This would in turn raise customer loyalty,
attract more customers and improve customer retention. Vol. 4 December 2010
www.aegisglobal.com
5

2. Aegis Speak Buzz Factor Think Tank
Location Decisions for Outsourcers
Increasing Emphasis on Customer
Retention
Industry Buzz Aegis Buzz
Banks’ back office outsourcing expected to Aegis acquires Actionline Argentina Peter Ryan leads the BPO research within Ovum’s IT services practice, having joined Datamonitor, Ovum’s parent
company, in 2003. Peter has wide-ranging interests within the BPO/CRM field that include company profiling,
Dear Customer, grow at CAGR 7.6% from 2010 to 2014 Aegis entered into an agreement with Y&R Inversiones Publicitárias,
offshore & outsourcing, self-service technology & speech solutions, national and sectoral market
An accelerated growth of U.S. banks’ back-office processing S.A. and its business partner to fully acquire their jointly held business segmentation/sizing, internal and external customer satisfaction, commercial online content analysis, and
outsourcing has been predicted; it is forecast to grow from process outsourcing (BPO) company, Actionline in Argentina. This is economic analysis.
I am delighted to meet you on the platform of the fourth issue of Insight.
$38.1 billion in 2008 to $67.2 billion in 2015, and at an the 16th acquisition for Aegis over the last five years.
estimated CAGR of 7.6% from 2010 to 2015.The banking, Prior to joining Ovum and Datamonitor, Peter acquired an in-depth understanding of strategic marketing at
The recent global recession has underscored the importance of customer retention. As customers become more and Gateway Computers, NFO Prognostics and the Bank of Ireland.
financial services, and insurance segment held the largest Actionline is one of the largest BPOs in Argentina, with about 5,000
more demanding and informed of more choices, organizations must go beyond customer satisfaction studies to share – 40% – of the overall U.S. back office outsourcing associates, spread across six centers in five cities. It is focused on the Peter holds a BA in Political Science and Economics from the University of Saskatchewan. He also has an
transform the customer experience. This in turn leads to the pot of gold at the end of the rainbow – Customer market in 2009. Information technology outsourcing domestic market, serving leading telecom, banking, insurance, and MBA from Dalhousie University where he specialised in International Business.
accounted for 16% of the deals finalized in 2009. The increase energy clients in the region. Actionline will mark Aegis’ beachhead in
Retention, our theme for this issue.
in outsourcing has been attributed to increased M&A activity Latin America, a fast-growing market with a strong domestic demand.
and a drive towards cost mitigation and resource optimization.
At Aegis, we have moved from merely delivering services to the paradigm of creating unforgettable experiences for you Despite research showing that the cost of the customer, delivers outstanding customer experience. For this
Source: MarketsandMarkets
Aegis to bring 250 more jobs to Killeen at Sallie acquiring new customers is higher than the cost of to happen, training is crucial. Also top management direction is
and your customers. The learning from our global practices is ploughed back into processes to ensure that the ‘Wow’ Mae site retaining old customers, do you think that critical – customer retention should be part of the mission
factor is present in every interaction that Aegis anchors. We have proposed to clients innovative programs that result Aegis acquired the former Sallie Mae contact center in Killeen on June statement of organizations.
Gartner outlines the Top 10 Forces to impact enterprises are still not paying sufficient attention
in increase in first-call resolution and improvement in customer retention. 4 2010, saving about 350 jobs. The company added 250 people in
Outsourcing and IT Services Industry to customer retention?
November, and plans to add many more in December, in the process What does current research on customer retention
Hyperdigitization, consumerization, componentization, The bar is constantly rising for enterprises. With customers
making Aegis one of West Bell County's largest private employers show? Is it possible for a company to link
The secret is to focus on creating positive experiences for your customers and preempt them from thinking of a hypercompetition, hyperverticalization, value chain, cloud, becoming more and more discerning, and their demands
with nearly 900 workers. The former Sallie Mae call center had been customer retention to business goals like
substitute brand, in the process achieving customer retention. You will find details of how Aegis does this for a luxury intelligent technology, security and privacy, and globalization increasing constantly, enterprises are continuing to place
slated for closure at the end of this year but with this acquisition Aegis profitability?
have been identified as the top 10 forces reshaping the future importance on ensuring customer satisfaction and thus retaining
automobile manufacturer in South Africa and the Middle East, in our Case in Point section. has help retain around 350 jobs and has reiterated its commitment of
of the IT services and the outsourcing market by Gartner, Inc. customers. Many companies are trying to link customer retention to
significant capacity expansion in the area. The Killeen facility marks profitability. For some verticals, this is an imperative. For example,
With hyperdigitization and cloud computing emerging as
Peter Ryan, who heads BPO research within Ovum’s IT services practice, definite trends, security and privacy are expected to be the key
Aegis’ ninth delivery center in the United States and provides contact
Customer retention means increasing customer loyalty and trying margin-sensitive industries such as FMCG and travel and tourism
reiterates our views in this issue’s Think Tank. He believes that training is center services to major health care companies that operate in the should treat customer retention as mission critical, as from the
concerns. The value chain will no longer be one-dimensional, to anticipate customer needs. Consider the case of a retailer who
Medicare sector. customer’s perspective it is easy to switch brands in these
important to ingrain the idea of customer retention in every interaction a but a network of providers will be examined for specialization. sells a flat TV today. He should anticipate what kind of warranty the
A fragmented market, offering increased customer choice, is customer will need, what kind of upgrade the customer will go in industries.
customer may have with an organization. On the same lines, Aegis, in
expected to develop due to hyperverticalization of solutions.
Aegis pioneers a new service delivery model, for after 3 years, what other products he may be interested in and
association with the Customer Operations Performance Center Inc., outsources its quality function to COPC, Inc. What is your advice to companies in the business
The bent towards reusable components will stimulate a so on.
Indian Institute of Management-Indore (IIM-I) and Service Quality Centre Aegis entered the world’s first “Quality Process Outsourcing” deal process outsourcing industry – companies who
demand for componentization of IT. Globalization through and
(SQ Centre), recently launched the Institute of Customer Experience
in IT services, integration of consumer-oriented technology
with Texas-based Customer Operations Performance Inc. (COPC
Do you see any signs that enterprises today are are serving their clients’ end customers and may
Management (ICEM). into enterprise IT, intelligent technology for analytics and
Inc.), a leading authority on quality standards for customer
sensitized to the importance of customer need to ensure their satisfaction and retention?
experience. This deal marks the beginning of a new era, wherein all Organizations are looking to engage BPOs that can go beyond
decision making, hypercompetition driven by low cost deals retention? Please elaborate.
aspects of service delivery like process management, reducing costs to enhancing the quality of interaction (which in
As always, you will find analyst views and market reports in our Buzz Factor are the other influential forces outlined by Gartner. Yes, certainly. There is an emphasis on analytics and data mining
implementation, monitoring, and auditing are outsourced on a global turn leads to customer retention) – this is especially true of higher
section. – on learning as much as possible about the customer during a
Source: Gartner, Inc. scale. 1000 Aegis employees will move into COPC Inc.’s fold and end hotel chains and banking companies, for example. So, BPOs
telephone call; this information then serves as the feed for
render ‘quality as a service’ to Aegis under the terms of this should focus on enhancing end customer experience.
initiatives in customer retention.
I invite you to share your views on this issue and also write in with multi-year contract.
suggestions of what you will like to see in upcoming issues. BPOs that have a solid technology backbone for analytics will be
Also, companies are relying more and more on simple steps such
Awards favored by industries such as media and hospitality, where
as requesting customers to fill in a form (after the first sale). This
customer satisfaction has to be tracked in a robust fashion.
Regards, data gathered in this manner is then used to generate loyalty and
Ranked 5th among the top BPO players in repeat purchase.
It will be good for BPOs to adopt a partnership stance – of being
India in NASSCOM’S 2010 BPO ranking, Ranked 4th in the 2010 Dataquest-IDC
a leap forward from being ranked 8th last Employee Satisfaction Survey
a trusted guide to enterprises, helping them navigate the
year
How can customer retention be woven into the ever-changing landscape of customer service, customer
fabric of an organization? satisfaction and retention.
There is no debate that any organization’s culture should be built
Sudhir Agarwal around customer retention. But it is easier said than done. It is no
Ranked 21st in the International
President – Global M&A & Business Transformation Ranked 4th in Dataquest’s Top 20 BPO
Association of Outsourcing Professionals mean task to make sure that everyone, from the first person that
Ranking 2010, moving forward two
(IAOP) Global Outsourcing 100 for the the customer comes in contact with to the last one who services Peter Ryan can be contacted on info@aegisglobal.com
places over the previous year
year 2010
2 3 4

3. Aegis Speak Buzz Factor Think Tank
Location Decisions for Outsourcers
Increasing Emphasis on Customer
Retention
Industry Buzz Aegis Buzz
Banks’ back office outsourcing expected to Aegis acquires Actionline Argentina Peter Ryan leads the BPO research within Ovum’s IT services practice, having joined Datamonitor, Ovum’s parent
company, in 2003. Peter has wide-ranging interests within the BPO/CRM field that include company profiling,
Dear Customer, grow at CAGR 7.6% from 2010 to 2014 Aegis entered into an agreement with Y&R Inversiones Publicitárias,
offshore & outsourcing, self-service technology & speech solutions, national and sectoral market
An accelerated growth of U.S. banks’ back-office processing S.A. and its business partner to fully acquire their jointly held business segmentation/sizing, internal and external customer satisfaction, commercial online content analysis, and
outsourcing has been predicted; it is forecast to grow from process outsourcing (BPO) company, Actionline in Argentina. This is economic analysis.
I am delighted to meet you on the platform of the fourth issue of Insight.
$38.1 billion in 2008 to $67.2 billion in 2015, and at an the 16th acquisition for Aegis over the last five years.
estimated CAGR of 7.6% from 2010 to 2015.The banking, Prior to joining Ovum and Datamonitor, Peter acquired an in-depth understanding of strategic marketing at
The recent global recession has underscored the importance of customer retention. As customers become more and Gateway Computers, NFO Prognostics and the Bank of Ireland.
financial services, and insurance segment held the largest Actionline is one of the largest BPOs in Argentina, with about 5,000
more demanding and informed of more choices, organizations must go beyond customer satisfaction studies to share – 40% – of the overall U.S. back office outsourcing associates, spread across six centers in five cities. It is focused on the Peter holds a BA in Political Science and Economics from the University of Saskatchewan. He also has an
transform the customer experience. This in turn leads to the pot of gold at the end of the rainbow – Customer market in 2009. Information technology outsourcing domestic market, serving leading telecom, banking, insurance, and MBA from Dalhousie University where he specialised in International Business.
accounted for 16% of the deals finalized in 2009. The increase energy clients in the region. Actionline will mark Aegis’ beachhead in
Retention, our theme for this issue.
in outsourcing has been attributed to increased M&A activity Latin America, a fast-growing market with a strong domestic demand.
and a drive towards cost mitigation and resource optimization.
At Aegis, we have moved from merely delivering services to the paradigm of creating unforgettable experiences for you Despite research showing that the cost of the customer, delivers outstanding customer experience. For this
Source: MarketsandMarkets
Aegis to bring 250 more jobs to Killeen at Sallie acquiring new customers is higher than the cost of to happen, training is crucial. Also top management direction is
and your customers. The learning from our global practices is ploughed back into processes to ensure that the ‘Wow’ Mae site retaining old customers, do you think that critical – customer retention should be part of the mission
factor is present in every interaction that Aegis anchors. We have proposed to clients innovative programs that result Aegis acquired the former Sallie Mae contact center in Killeen on June statement of organizations.
Gartner outlines the Top 10 Forces to impact enterprises are still not paying sufficient attention
in increase in first-call resolution and improvement in customer retention. 4 2010, saving about 350 jobs. The company added 250 people in
Outsourcing and IT Services Industry to customer retention?
November, and plans to add many more in December, in the process What does current research on customer retention
Hyperdigitization, consumerization, componentization, The bar is constantly rising for enterprises. With customers
making Aegis one of West Bell County's largest private employers show? Is it possible for a company to link
The secret is to focus on creating positive experiences for your customers and preempt them from thinking of a hypercompetition, hyperverticalization, value chain, cloud, becoming more and more discerning, and their demands
with nearly 900 workers. The former Sallie Mae call center had been customer retention to business goals like
substitute brand, in the process achieving customer retention. You will find details of how Aegis does this for a luxury intelligent technology, security and privacy, and globalization increasing constantly, enterprises are continuing to place
slated for closure at the end of this year but with this acquisition Aegis profitability?
have been identified as the top 10 forces reshaping the future importance on ensuring customer satisfaction and thus retaining
automobile manufacturer in South Africa and the Middle East, in our Case in Point section. has help retain around 350 jobs and has reiterated its commitment of
of the IT services and the outsourcing market by Gartner, Inc. customers. Many companies are trying to link customer retention to
significant capacity expansion in the area. The Killeen facility marks profitability. For some verticals, this is an imperative. For example,
With hyperdigitization and cloud computing emerging as
Peter Ryan, who heads BPO research within Ovum’s IT services practice, definite trends, security and privacy are expected to be the key
Aegis’ ninth delivery center in the United States and provides contact
Customer retention means increasing customer loyalty and trying margin-sensitive industries such as FMCG and travel and tourism
reiterates our views in this issue’s Think Tank. He believes that training is center services to major health care companies that operate in the should treat customer retention as mission critical, as from the
concerns. The value chain will no longer be one-dimensional, to anticipate customer needs. Consider the case of a retailer who
Medicare sector. customer’s perspective it is easy to switch brands in these
important to ingrain the idea of customer retention in every interaction a but a network of providers will be examined for specialization. sells a flat TV today. He should anticipate what kind of warranty the
A fragmented market, offering increased customer choice, is customer will need, what kind of upgrade the customer will go in industries.
customer may have with an organization. On the same lines, Aegis, in
expected to develop due to hyperverticalization of solutions.
Aegis pioneers a new service delivery model, for after 3 years, what other products he may be interested in and
association with the Customer Operations Performance Center Inc., outsources its quality function to COPC, Inc. What is your advice to companies in the business
The bent towards reusable components will stimulate a so on.
Indian Institute of Management-Indore (IIM-I) and Service Quality Centre Aegis entered the world’s first “Quality Process Outsourcing” deal process outsourcing industry – companies who
demand for componentization of IT. Globalization through and
(SQ Centre), recently launched the Institute of Customer Experience
in IT services, integration of consumer-oriented technology
with Texas-based Customer Operations Performance Inc. (COPC
Do you see any signs that enterprises today are are serving their clients’ end customers and may
Management (ICEM). into enterprise IT, intelligent technology for analytics and
Inc.), a leading authority on quality standards for customer
sensitized to the importance of customer need to ensure their satisfaction and retention?
experience. This deal marks the beginning of a new era, wherein all Organizations are looking to engage BPOs that can go beyond
decision making, hypercompetition driven by low cost deals retention? Please elaborate.
aspects of service delivery like process management, reducing costs to enhancing the quality of interaction (which in
As always, you will find analyst views and market reports in our Buzz Factor are the other influential forces outlined by Gartner. Yes, certainly. There is an emphasis on analytics and data mining
implementation, monitoring, and auditing are outsourced on a global turn leads to customer retention) – this is especially true of higher
section. – on learning as much as possible about the customer during a
Source: Gartner, Inc. scale. 1000 Aegis employees will move into COPC Inc.’s fold and end hotel chains and banking companies, for example. So, BPOs
telephone call; this information then serves as the feed for
render ‘quality as a service’ to Aegis under the terms of this should focus on enhancing end customer experience.
initiatives in customer retention.
I invite you to share your views on this issue and also write in with multi-year contract.
suggestions of what you will like to see in upcoming issues. BPOs that have a solid technology backbone for analytics will be
Also, companies are relying more and more on simple steps such
Awards favored by industries such as media and hospitality, where
as requesting customers to fill in a form (after the first sale). This
customer satisfaction has to be tracked in a robust fashion.
Regards, data gathered in this manner is then used to generate loyalty and
Ranked 5th among the top BPO players in repeat purchase.
It will be good for BPOs to adopt a partnership stance – of being
India in NASSCOM’S 2010 BPO ranking, Ranked 4th in the 2010 Dataquest-IDC
a leap forward from being ranked 8th last Employee Satisfaction Survey
a trusted guide to enterprises, helping them navigate the
year
How can customer retention be woven into the ever-changing landscape of customer service, customer
fabric of an organization? satisfaction and retention.
There is no debate that any organization’s culture should be built
Sudhir Agarwal around customer retention. But it is easier said than done. It is no
Ranked 21st in the International
President – Global M&A & Business Transformation Ranked 4th in Dataquest’s Top 20 BPO
Association of Outsourcing Professionals mean task to make sure that everyone, from the first person that
Ranking 2010, moving forward two
(IAOP) Global Outsourcing 100 for the the customer comes in contact with to the last one who services Peter Ryan can be contacted on info@aegisglobal.com
places over the previous year
year 2010
2 3 4