Article Comment: C|Net News.com: Telcos - see you online

09 March 2005

C|Net News.com: Telcos: See you online - The combination of internal process automation plus customer e-enablement has the potential to provide substantial operational cost reductions. Customers who can access their accounts 24x7 and perform actions themselves will be happier (if only because they avoid dealing with the Telcos' internal processes and departmental structure).

The article suggests that call centre costs of $8-10 can be reduced to ~$0.80 per transation when performed online, with bills presented online costed at 25% of paper bills.

Telcos' issue is that each customer contact (by phone) has traditionally been an opportunity to sell incremental products and services (suggested at 85% of incremental sales). If Telcos lose call centre customer contacts (by e-enabling), they risk losing the incremental revenues that flows from those contacts (despite their higher costs).

The C|Net article is based on a McKinsey Quarterly article - Automated self-service comes to telcos (free registration required).