CX CliffsNote 3: McKinsey – Cheaper, simpler, better for customers: Outsourcing without trade-offs

Interview by McKinsey and Vodafone Spain: Cheaper, simpler, better for customers: Outsourcing without trade-offs. Interview with Vodafone Spain’s Carmen López-Suevos Hernández.

The interview discusses how Carmen López-Suevos Hernández revamped Vodafone Spain’s approach to outsourcing and improved customer experience while reducing costs.

Vodafone’s customer experience approach was rigorously focused on cost efficiency. The company ranked last among major Spanish mobile providers in terms of customer satisfaction.

Three years later, Vodafone takes the top spot while costs reduced significantly. The company transformed the way it manages its vendors, moving from a transactional vendor governance model to one that emphasizes the customer relationship.

Instead of focusing on reducing the cost per call it pays its vendors, Vodafone invested in increasing the quality (and cost) of the customer interaction hoping it would reduce the overall number of calls. The goal was for vendors not just to take calls on behalf of Vodafone but to make Vodafone customers promoters. Call volume down by 50%, first call resolution increased by 50 %.

Culturally, managing outsourced vendors shifted from negotiating a best rate to simplifying the vendor landscape and deeply integrating the vendor into the Vodafone data and management landscape.

Concrete measures Vodafone took: create a central vendor management team, reduce number of vendors, a vendor purposed customer database was created so that vendors could always lookup the entire customer history during calls, speech analytics were performed for vendors to better analyze their call quality, each vendor site now includes a Vodafone representative who evaluated on exactly the same metrics as the vendor

Interview by McKinsey & Company, Raffaella Bianchi and Christian Johnson. The full interview published here. 

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