Case Study: Telstra Telemarketing


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Telstra's National Telemarketing Centre

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Case Study: Telstra Telemarketing

  1. 1. Telstra's National Telemarketing Centre Case Study Analysis by: Djadja Achmad Sardjana 10/8/2009 STMB MM Biztel - DASMR 1
  2. 2. Abstracts • Telstra - previously Australia's only telecommunications carrier. • In 1990, the Australian Government announced that it would end Telstra's monopoly . • In 1991-1992, a private carrier - Optus Communications - became Telstra's first competitor in the Australian market-place. • The shift in emphasis from engineering to marketing is clearly reflected by the establishment of Telstra's National Telemarketing Centre (NTC). 10/8/2009 STMB MM Biztel - DASMR 2
  3. 3. Case Facts : Strength and Weakness • Robert Holland got rare opportunity for Telstra to forge a close relationship with an important customer TeleMarketing • Following telecommunications deregulation in July 1997 the NTC was free to compete in the local telemarketing industry. • Resistances from internal NTC: • Various restrictions (especially on personnel numbers) prevented them from increasing capacity. • Previously, NTC is cost centre and not a profit centre. 10/8/2009 STMB MM Biztel - DASMR 3
  4. 4. Case Facts : Competition • In 1991—1992 a competitive duopoly was established. • In 1993—1994,Telstra faced its first full year of competition but revenues increased: • By 5 percent on the previous year to A$13.4B • Three years later, Telstra’s revenue was A$16.B • Telstra is one of the largest contributors to Australia’s with contribution of A$1O.8B in the financial year 1996—1997 24 percent of Australia’s GDP • On July I 1997 the Australian telecommunications market as opened. 10/8/2009 STMB MM Biztel - DASMR 4
  5. 5. Case Facts: Organization Structure 10/8/2009 STMB MM Biztel - DASMR 5
  6. 6. Case Facts : Vision and Strategy • Telstra is shift from a technically focused organization to one with a strong customer focus. • Telstra’s Vision and Strategy of key success factors: • Competitive customer services. • Best practice financial performance. • Retain market leadership. • Efficient and effective investment and infrastructure. Growth and business development • Employee satisfaction. • Corporate integrity. • Political regulatory environment. 10/8/2009 STMB MM Biztel - DASMR 6
  7. 7. Case Facts : Call Centre Business • Call centers are not an entirely new idea. • Call centers are a labor-intensive business 65 percent budget. • The call centre industry in Australia is on rapid expansion and growing at 10 percent to 25 percent (per annum). • The growth in call centers reflects an increasing recognition in business. • Australia has very little in the way of government regulation of telemarketing. 10/8/2009 STMB MM Biztel - DASMR 7
  8. 8. Case Facts : National Telemarketing Center (NTC) • Established May-1992 as: • Direct response to deregulation and the arrival of its first competitor— Optus Telecommunications • Reflected an important underlying change from being an “engineering-oriented” organization to one with more emphasis on the customer. • NTC Initial Task: • To contact customers prior to create a positive experience with Telstra. • Set up a “free pre-selection hotline” to answer any questions a customer may have had about choosing a long distance provider. • Gave a representative the opportunity to optimize the customer’s account and offer other Telstra services and products. • When the National Telemarketing Centre was established during deregulation, it became one of several marketing channels available. 10/8/2009 STMB MM Biztel - DASMR 8
  9. 9. Case Facts : NTC Clients 10/8/2009 STMB MM Biztel - DASMR 9
  10. 10. Case Facts : NTC Organizational Structure 10/8/2009 STMB MM Biztel - DASMR 10
  11. 11. Case Facts : NTC Business Process 10/8/2009 STMB MM Biztel - DASMR 11
  12. 12. Case Facts : NTC IT/ATLAS The business drivers for ATLAS were: • A fast mechanism of setting up campaigns, including setting up lists, defining call guides, arranging staff and physical resources, defining reporting requirements, and arranging order entry. • An automated, adaptable, efficient, and effective set of information systems to support the sales representative including: access to accurate and up-to-date customer infonnation and screen procedures that are friendly and fast. • Automatic production of the byproducts or results of sales activity, especially order fulfillments and statistics. • flexible, timely, and lucid performance and management reporting with minimum intervention by information systems personnel. • Systems to support efficient and effective centre management. 10/8/2009 STMB MM Biztel - DASMR 12
  13. 13. Case Facts : NTC Information Technology 10/8/2009 STMB MM Biztel - DASMR 13
  14. 14. Case Facts : NTC IT/ATLAS Statistic • NTC Telemarketing operates 7:00 A.M. to 12:00 A.M. 6.5 days per week. • In the financial year 1996—1997, the NTC ran a total of 290 campaigns. • One new campaign and two changes to existing campaigns are implemented in ATLAS each week. • Up to 320 people use ATLAS at any one time. • ATLAS is used for an average of 70,000 contacts per week. • On average, one in four contacts results in a sale. 10/8/2009 STMB MM Biztel - DASMR 14
  15. 15. Problems : Management Issues • Telemarketing is very much a people business. • Staff Performance. • Working on inbound campaigns is far more popular. • Union restrictions of the proportion of casual labor the NTC can use >< corporate limits on the headcount. • NTC has stringent occupational health and safety guidelines that translate into high property costs. • Telstra is taking a serious look at identifying its core business and those areas that could be outsourced. • Senior management doesn’t realize the power of Call Centre Lack of understanding of what call centers can contribute to the organization. 10/8/2009 STMB MM Biztel - DASMR 15
  16. 16. Problems : NTC Cost per-contact 10/8/2009 STMB MM Biztel - DASMR 16
  17. 17. Core Problems • Fierce Competition. • Need Significant Cost Reduction. • Government regulation of telemarketing 10/8/2009 STMB MM Biztel - DASMR 17
  18. 18. NTC Solutions Alternative • Only serve internal clients. • Serve major corporate customer. • Telstra outsource its telemarketing. 10/8/2009 STMB MM Biztel - DASMR 18
  19. 19. Appendix-A 10/8/2009 STMB MM Biztel - DASMR 19