BT expects CRM to save it US$200 million
The UK-based telecommunications firm, BT Retail, expects to make cost saving of more than US$200 million by 2004, following its implementation of Siebel's multichannel e-business software.
In the firm's ambitious CRM (customer relationship management) implementation, involving more than 22,000 users, the BT's retail division aims to achieve a single view of its 21 million domestic and business customers.
"BT Retail's goal is to create clear blue water between ourselves and the competition when it comes to customer satisfaction," said Pierre Danon, CEO for BT Retail. "By extending our channel reach, capacity, and capability, Siebel will allow us to enhance the customer experience through improved choice, convenience, and responsiveness."
Efficiency boost By integrating a number of previously disconnected customer information systems, BT Retail will use Siebel's software to optimise efficiency by migrating transactions to lower-cost channels, and by using the existing field sales force for the more complex deals.
BT is also rationalising over 100 call centres, and investing US$179.4 million in the creation of a network of 33 multi-functional, next-generation contact centres (comprising 31 in the UK and 2 in India), all of which will be powered by Siebel CRM applications.
This integrated customer understanding is what will allow BT to provide a more consistent, fast, and accurate response to the 850 million inbound customer enquiries received every year, whether through the internet, telephones, mobile devices, field sales, or channel partners.
CRM savings The new CRM programme is expected to save BT the equivalent of US$200 million or more by 2004. Already, overall customer satisfaction has increased by 3.5%, and customer dissatisfaction arising from call waiting time has been reduced from 28% to 2%. The total volume of calls needing to be transferred has also fallen by 27%.
Following the adoption of Siebel CRM applications, BT Retail has recorded a 10% increase in customer satisfaction among these mid-market and large corporate customers, and achieved a 70% increase in employee satisfaction.
And, thanks to the improvements in profiling and targeting, the company has also experienced a US$27 million incremental increase in revenues from its desk-based sales teams.