A Revenue@Risk Baseline Study characterizes and measures the amount of revenue a company has at risk, and then identifies the highest payback initiatives that will reduce that risk.
The methodology focuses on all customer contact points and interactions, not just inbound, call-center experiences among customers who have a problem. Consequently, the resulting recommendations are comprehensive, starting at the overall strategy level and focusing on people and technology issues, as well as on process problems.
The study consists of both qualitative and quantitative research, following stringent quality guidelines. In a typical engagement, the firm works with the client to answer the following questions:
- How much revenue is the company on the verge of losing due to potential customer defections?
- What service problems are creating this customer dissatisfaction?
- What are the main drivers of customer loyalty and of good customer experiences?
- How do you use these insights to revise your overall customer service strategy while avoiding unnecessary upheaval?
- What specific changes should you make, how quickly can they be implemented, and what will the ROI be?
- What technology changes will reduce customer dissatisfaction and what are the costs/benefits of each?
- What organizational and cultural changes will most improve customer satisfaction?
A Revenue@Risk initiative will also answer some very specific questions about your company's overall customer contact environment, including:
- What percentage of customers with problems actually contacts the company to complain?
- Which contact attributes have the most impact on profit/cost recovery?
- What is the overall health and ROI of your contact handling processes?
In a full engagement, The Verde Group works with senior management to produce a detailed Revenue@Risk assessment, coupled with a similarly detailed action plan with a risk reduction strategy and roadmap. This action plan answers:
- Where should you now focus your efforts?
- What actions should you take to improve your situation? What standards do you need to have in place?
- Which of these possible actions will have the greatest impact on customer retention and the potential to create a breakthrough in performance?
- Who is responsible for each action area and who else must be involved?
- What are the potential implementation challenges and how do you minimize them?
- When will the various tasks be completed and in what sequence?
- How will you measure the success of each task and what customer-focused performance standards do you need to put in place?
The Revenue@Risk Baseline Study methodology involves four key steps:
- Planning - Define scope, key decisions that need to be made, who to survey, how information will be used to drive change
- Diagnosis - Build the inventory of negative "experiences" customers have when they do business with you
- Measurement - Quantify the cost of individual sources of dissatisfaction and calculate the overall revenue that is at risk
- Action Planning - With senior management, develop a tactical plan for addressing problem areas to reduce customer defections
Approximate Time Frame: 4-6 months
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