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Reaping the Benefits of BPO – a Case Study

A major European retailer wanted to analyze their existing customer service approach in order to improve efficiency and effectiveness. As a result, they adapted their customer service operating model and embarked on a business process outsourcing (BPO) project.

Challenge: improve an in-house customer service operation

The retailer was increasingly confronted with operational inefficiencies, a lack of transparency and data across its operating countries, and high levels of demotivation and attrition. All of this resulted in a low overall performance across key contact center metrics and an urgent business need to structurally assess and – as a consequence – fundamentally re-organize their contact center operations.

Initially, the plan was to gradually professionalize the in-house organization and processes, with the aim of reaching acceptable levels of operational performance.

In addition, the company’s plans for ambitious growth, combined with a strategic mind-shift towards customer centricity, served as clear guidelines for a new operating model.

Solution: end-to-end improvement of customer service through BPO

We supported the client across six closely interrelated workstreams:

  • In-depth analysis of current customer service operations (Switzerland and Germany)
  • A comprehensive overview of sustainable target scenarios to enable a re-worked operating model (‘make or buy’)
  • Detailed business case calculations to support the analysis of the respective scenarios
  • Setup, and full process ownership of the RFI/RFP process for external BPO services
  • Advisory on a reimagined internal organizational structure, including role descriptions
  • Project management of the implementation

Results: boost in performance & quality, plus cost reduction

  • Empowerment of (top) management and tailored coaching of the operational workforce
  • A seamless operational transition
  • Significant cost savings based on scale and synergy effects in the course of an incremental volume shift towards the new BPO vendor
  • A boost in performance and quality due to the professionalization of customer service operations
  • Process harmonization across countries, allowing for European standardization/streamlining