DO THE MATH

By moving some sales online and away from costly call centers, telecom companies are able to boast that they are cutting expenses. But they are about a tenth as likely to close a sale on the Internet as they are if they actually talk to a potential customer. So while companies may save costs, they are losing far more in revenue.

Our data shows that the rate at which telecom companies close sales via the Internet is roughly 2%, while the close rate in the call center is more than 20%. Rather than looking at percent of sales through the Internet as a positive measure, as many telecom analysts do, it should be viewed as a sign that value is being lost.

There still is good reason to redirect some incoming calls to the Internet, but companies need to be careful. The trick is figuring out why customers are calling in the first place. For every customer calling to buy something there are two that fall into the learning category and four that fall into the servicing category.

Half the calls in the learning category involve customers who are still collecting information and are not ready to buy. Half the calls in the servicing category come from irate or overwhelmed customers who will not be open to a sales pitch. These low-potential calls need to be rerouted to the Internet to maximize the overall close rate of the call center channel.

It is possible to redirect these calls if there is coordination between those running the call center and those overseeing the Web channel. The obvious first step is to use interactive voice response systems to encourage callers to take their learning and servicing interactions to the appropriate section of the company Web site. Alternatively, the Internet channel can refer a failed online sale to the call center.

The Web site can be altered to better serve its primary role — learning and servicing — rather than its secondary role of sales. That will save money because the technology required for servicing and learning is far less expensive than the e-commerce systems needed for online purchasing.

It is critical to remember that all learning and servicing interactions should not be shifted to the Internet — only those with low sales potential. Some simple primary research can allow you to determine what percentage and what demographic segments of your customer base may be willing to move their learning and servicing interactions to the Internet.

By offering customers high-quality service online, companies can increase customer satisfaction while cutting costs. Leave the selling to the call center reps, who are far more likely to close a sale.

DOSSIER DAVID L. INNS

Occupation: Partner with consulting firm DiamondCluster International, specializing in channel strategy, product launches, convergence, bundling and new market entry for telecom clients

Place of residence: Toronto

Current reading: “For Whom the Bell Tolls” by Ernest Hemingway

Favorite Web site: www.money.cnn.com

Next project: Taking 1XRTT data product offerings to market for a regional wireless player