Putting a lid on CRM costs with self-service

Calculating the benefits of self-service CRM to the bottom line can be eye-opening. At $32.74 per transaction, telephone-based customer service is the most costly channel for CRM, followed by e-mail at $9.99 per transaction on average. In contrast, Web self-service costs just $1.17 per transaction, according to Forrester. Remington's Moore reports that his company realised a return on its investment in self-service CRM in less than a year, after initially paying about $30,000 for it almost three years ago. Today, Remington still uses RightNow's hosted package, with its Revelation self-learning knowledge base and e-mail management system, and sees greater productivity with the same 20-rep customer service team. Recent Forrester research indicates that CRM tops most companies' lists of application investments. "Companies want frequent contact with their customers, but they want to do it without driving up customer service costs," says Bob Chatham, principal analyst with Forrester's business application research group. Self-service CRM can help companies control customer service expenditures by reducing the cost of each interaction. That's exactly what's happening at both Remington and Andale. "To get round-the-clock coverage using people, we would have to more than quadruple the number of reps at a cost well in excess of $100,000," says Remington's Moore. Russo says Andale's self-service CRM setup hasn't "reduced the costs of providing customer service," but it has allowed the company to "control costs with a growing customer base." Andale has between 200 and 400 FAQs on its site now and two five-person crews manning its customer service desk from midnight to 7pm seven days a week. Painless but not pain-free
Remington chose hosted self-service CRM because it relieves the company's 10-member IT staff of direct application development and maintenance. Andale, on the other hand, opted for an in-house application that runs on two mirrored Hewlett-Packard servers. Regardless of the delivery method, self-service CRM is very much a hands-on application, with special attention needed to maintain the FAQs and knowledge base. "Self-service CRM isn't worth committing the resources to if a company isn't going to do the required maintenance to the data," says Esteban Kolsky, senior research analyst at the Gartner Group. In fact, customers may not only get frustrated, but they may also resort to picking up the telephone, shooting down the whole premise of self-service. With about 250 FAQs on Remington's Web site, the knowledge base, and 30,000 Web pages, Moore and his team are always reviewing questions to look for trends and repetition. Russo says that Andale has a person dedicated to making sure that the right questions are getting answered. "We refresh the FAQs every other day or they get stale," he says. One of the other key issues to making Web-based self-service work is focusing on internal processes and getting your customer service reps to buy into the proposition. "You don't just put a self-service component on your Web site and expect it to solve your customer service problems," says Moore. "It's not self-service for the organization implementing it."
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