SIX OPTIMIZATION
STRATEGIES TO INCREASE
PROFITS AFTER THE SALE
For years, companies have used split testing to obtain more customers
from marketing efforts, but few have programs to split test messaging to
existing customers or to measure the financial impact when they do.
TABLE OF CONTENTS
Contents
A/B Testing On the Front End ___________________________________________________________________________ 1
A/B Testing After The Sale ______________________________________________________________________________ 1
Contact Information______________________________________________________________________________________ 3
Company Information ___________________________________________________________________________________ 3
A/B Testing On the Front End
Some customer acquisition optimization questions frequently asked by executives include:
•
What landing page format will boost new customer conversion rates the most?
•
What is the best format to increase cross-sells online?
•
What is the best network and time slot to run my television ads and what is the best length?
•
At what point should I bring up testimonials on my infomercial?
•
What is the best format and timing to distribute my print ads?
A/B Testing After The Sale
If A/B testing is performed exclusively on customer acquisition, businesses are only looking at one
side of the fence. Applying the same optimization methodologies to the back end of the customer
relationship in customer service will allow you to generate these types of results on the second half
of the customer relationship resulting in additional profitability gains of up to 100%.
USE RELEVANT CUSTOMER CHARACTERISTICS TO CREATE CUSTOMER SEGMENTS
In order to optimize in customer service, you first need access to customer order details and
dispositions. Cross-referencing the types of questions customers ask and identifying trends in
characteristics of those customers will help you create customer segments, or buckets of customers
that have similar characteristics and therefore similar reasons for calling. This customer
segmentation will help agents anticipate the customer's reason for calling. Reps will develop
knowledge and best practices around the handling of each customer segment. Continue to review
to see what additional segments need to be created or which ones are redundant so you can remove
or combine for efficiency.
SET UP SKILL GROUPS AND ROUTE ACCORDINGLY
Identify what reps are best suited for each type of customer segment. Direct customers that are
most likely to request a cancelation or a refund to those reps that perform the best at save sales.
Reps with a more technical and process driven background would likely be best for more detailed
calls that require a lot of interaction. By optimizing your pool of reps and making sure each call
goes to the right person, this will help drive optimal outcomes, increase first call resolution, and
decrease customer service costs.
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TEST CELL CENTERS HEAD TO HEAD
So, you have been running with the same center for a while. Do you have a good handle on their
KPIs (Key Performance Indicators) such as average hold times, abandon rates, save sale rates, first
call resolution rates, etc.? If you don't, you should request this information and begin trending.
Once you have a good benchmark, carve off a percentage of calls and test with another center. How
do the KPIs compare between call centers? How do the reporting details look on the new center
compared to your original one? Split testing live centers will provide a good gauge on metrics, will
increase negotiation power on pricing and will uncover more opportunities.
UTILIZE AN IVR AND WEB AUTOMATION
When looking at call dispositions and types, there are call types that would be best suited to utilize
IVR technology or a web portal to automate interactions. Similarly, there will be times where IVR
and web would not be the best play and utilizing a live, specialized agent would be best. For nonstandard calls and ones that require a good amount of hand holding and interactions is where a
specialized agent would be best. When looking at the most commonly asked questions for each
customer status, begin to test the application of an IVR. Since the callers are existing customers,
you can personalize and speak to those customers specific to their customer segment. Measure
your effectiveness by looking at the conversion rates, first call resolution rates, hold times, and
abandon rates of each customer interaction medium.
A/B SPLIT-TESTING WITHIN ALL TOUCH POINTS.
Testing with live agents requires technology that provides agents with specific options to present to
each individual customer. You still have the human element where some reps are better than others,
attitudes and moods tend to change, etc. The best and true measure of split testing is within
automated applications such as an IVR. The messaging is consistent, the calls get answered
immediately, and for those customers that are able to interact with the system, there are no hold
times or abandon rates. A/B testing on details such as messaging, save sales, cross-sales, and first
call resolution will truly put the power in your hands to take control and turn customer service
handing into a profit machine.
REVIEW STATS, ADJUST AND OPTIMIZE.
So, you are now A/B testing across IVR, Web and on live customer service. You are getting some
good metrics and have identified some areas that are working well and others that need
improvement. It's a great start. When optimizing, it's important to be diligent about the data you
are collecting, the format that is displayed when optimizing and when and how you are making
changes and adjusting the customer handling percentages. In using statistically relevant sample
sizes and confidence intervals, you're truly utilizing a science where you will lift performance stats
and your profitability every single time.
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Contact Information
WALTER LONG
J. BRENT TUTTLE
JONATHAN BISHOFF
SVP, BUSINESS DEVELOPMENT
SR. DIRECTOR LEAD MARKETING
SR. BUSINESS ANALYST
Company Information
RevGuard, LLC
6260 Lookout Road, Boulder, CO 80301
Tel 720-600-1485 Email
[email protected]
http://www.revguard.net/
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