Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The cost of a bad letter

429 views

Published on

Operational customer communication can cost businesses millions in wasted revenue, while impacting on customer perceptions through unclear content. Here we look at what just one simple letter could cost you...

  • Be the first to comment

  • Be the first to like this

The cost of a bad letter

  1. 1. The cost of abad letterIneffective operational customercommunication is costing you millions -here’s why.Rubuss
  2. 2. First off...What do we mean by “operationalcustomer communication”?
  3. 3. It’s this stuff...The millions of pieces of dry, uninspiring customercommunication sent each month by businesses.
  4. 4. For a customer,they really matter.Each one is a reminder ofwhat you think of them, andthe attention you’re puttinginto them now they’vebought.
  5. 5. Statements and billing, complaintsand conflict, contracts, terms andconditions, legal material and forms,compliance and regulatory comms,service support emails and issueresolution comms, demands and latepayment reminders, contract andservice renewals... So let’s see howmuch one of these ignored piecescould be costing you.
  6. 6. 1 Take just one letter. Perhaps asimple, administrative onewhich requires action fromyour customer.Currently, this letter is hidden in yourCRM system, was written by non-specialists and hasn’t really beenlooked at in several years. In fact, noone really knows it’s there...
  7. 7. 2 Let’s say it goes out to 250,000customers across the year.250,000
  8. 8. 3Chances are, if it’s not sufficiently clear, you’llget enquiries and complaints - plus non-response from customers. We’ll use aconservative estimate of 0.5% of customershaving to contact you, tying up an operator orcustomer facing team member.0.5% NEGATIVERESPONSE
  9. 9. 4So that’s another 1,250 queries orcomplaints across the year you’dneed to manage. Just from one,simple letter.1250
  10. 10. 5From independent research, one of theseenquiries costs anywhere between £5 and £50to resolve. Let’s use a conservative £15 in ourexample. If you’re regulated it can costthousands for each complaint.£15COSTINCURREDPERCUSTOMERQUERY
  11. 11. 6So this simple, single letter, hidden away in thedepths of your CRM system, is causing youaround £18,750 worth of additional cost. That’sjust one letter. And this assumes one-touchresolution, no reputational damage, noescalation and no senior manager intervention.£18,750
  12. 12. But £18,750 isn’t going to getmany FDs excited, so whatabout a real life examplewe’ve worked on recentlywhich takes into account a fewmore real-life variables?
  13. 13. Customer who receivedcommunication70,000Complaint and querypercentage 18.5%Cost per resolutionIncluding escalation, management andfurther correspondence£22Total cost to business £284,900From one letter, to just 70,000 customers.
  14. 14. Quite simply, you canshave millions offwasted budget bymaking better use ofoperational comms.We should know,we’ve helped clientsdo it for years.
  15. 15. We support and enable you to deliver worldclass operational customer communications,transforming a cumbersome overhead intoone of your most powerful assets.RubussSound interesting? Get in touch.01993 822524contact@rubuss.com

×