Tuesday, December 30, 2008

Face to Face is highest Cost-to-serve

Following my recent posts on implementing and managaing customers down to a lower cost-to-serve channel, I got several emails from people asking me about face-to-face communication and where it fitted into my Interaction diagram.

Unsuprisingly, face-to-face (F2F) contact appears at 'Position E' in the top right corner. This channel of customer interaction is the most costly, involving premises or travel and a lot preparation. It may also need the customer service individual / account manager / client contact / handler, etc. having all necessary information and support materials to-hand.

Costs can potentially increase further depending upon the demands of the interaction. For example: you may have a complex product that needs explaining / configuring or possibly a prestige client-base who is used to the "Low Tech / High Touch" approach. Try managing these people to a lower interaction channel and you could instantly see them quickly migrate to your competitors.
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