The background.
A leading global white goods manufacturer faced significant operational challenges stemming from years of acquisitions and a decentralized customer service model. Their landscape was fragmented, with 25 disparate, localized contact centers spread across various regions, supporting 11 different brands in the EMEA region. Before the transformation, their customer service environment presented specific hurdles:
- Complex and varied processes across countries and brands.
- Inconsistent performance among brands, sites, vendors, and languages.
- High cost-to-serve due to a disparate, decentralized contact center network. Contact centers were historically viewed solely as an operational expense.
- Unconsolidated systems and processes.
- A high interaction volume of approximately 2.5 million customer interactions annually.
- A lack of standardization led to inconsistent customer experience across EMEA.
The solution.
Transcom implemented a strategic transformation program, aiming to convert the contact center from a cost center into a profit center. The project was initiated in 2015 and gained momentum in 2017. It is currently in the final integration phase for the 11th brand.
Transcom leveraged its position in EMEA to implement a hub-and-spoke style, multi-site solution, utilizing multiple locations across Poland, Portugal, and Hungary. This strategic move allowed the client to cover all necessary languages and significantly consolidate their footprint. A key element of the solution was establishing a competence center in Poland as a central hub, supported by spokes in three other locations. This structure enabled Transcom to:
- Provide a single point of contact for managing the entire call center network, simplifying oversight with one vendor.
- Achieve greater efficiencies by combining language queues across various brands and lines of business.
- Simplify processes across the entire operation, leading to a consistent and improved customer experience.
Key actions and strategies implemented included:
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Strategic consolidation: migration of all 25 localized contact centers to a single, strategic supplier.
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Standardization of processes: development and implementation of unified customer interaction protocols, consistent scripting, and communication guidelines across all brands.
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Centralized knowledge base: creation of a single source of reliable product information, FAQs, and troubleshooting guides.
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Unified training programs: comprehensive training for all agents focused on empathy, problem-solving, and sales skills. This includes the launch of the T:University e-learning platform.
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Technology harmonization: deployment of a common contact center platform and tools, including the T:Rex (our Looker-based tool) reporting platform and T:Perform (our performance management platform) for performance management and communication. External databases from the client's SAP are regularly imported, and a dedicated IAR portal has been built.
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Sales integration: training agents on sales techniques and product knowledge, identifying cross-sell and up-sell opportunities, and implementing performance incentives tied to sales targets. Transcom became an insurance sub agent with 2 insurance agencies.
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Cost avoidance on technical service: empowering agents with enhanced knowledge and tools for first-call resolution, thereby reducing escalations to higher-cost technical support teams. Proactive troubleshooting and self-service promotion were also implemented after COVID, supported by new tools with no adverse impact on KPIs.
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Flexible operational models: utilization of Transcom's global footprint and BCP protocols to activate backup sites and rebalance volumes when needed, such as during the COVID lockdown or during product recalls.
The success of the solution was deeply rooted in several main factors: a deep understanding of the client's strategic goals, in combination with robust overflow site options, innovative digital solutions like WhatsApp with call deflection and the Intervention Avoidance Ratio portal (Google Cloud integration), comprehensive multilevel 360-degree reporting, extensive market diversification, and flexible operational models.
The results.
The partnership between Transcom and the white goods manufacturer client delivered extraordinary and measurable results, transforming operations into a unified, profit-generating asset.
Key success metrics and achievements include:
- Exceptional Return on Investment (ROI):
- Achieved over 100% ROI in 2021, maintaining this level for four consecutive years.
- The ROI reached an impressive 132% in 2023, and 127% in 2024. This means the revenue generated and costs avoided fully offset the contact center's operational budget.
- In 2024, €12 million in value was generated against contact center operating costs of €9 million, demonstrating exceeding 100% ROI.
- Sales generation activities are currently bringing in more revenue (over €6.6 million) than the cost of operating the contact center.
- The average value of products sold by Transcom exceeds €0.5 million monthly.
- Significant Cost Savings and Technical Service Avoidance:
- Savings from technician visit avoidance totaled over €5.6 million in 2024 alone.
- The number of avoided technician visits is over 80,000 annually, which is well above the market benchmark.
- Service visit avoidance increased from 9% in 2015 to over 20% in 2024.
- On average, around 25% of cases are resolved via the phone channel, reducing the number of visits.
- Enhanced Employee Experience and Operational Effectiveness:
- 100% client satisfaction with operational management, people management, account management and relations, and technology and innovation.
- Sustained positive NPS results in quarterly pulse reviews for 4 consecutive years (16 quarters in a row).
- Low attrition and High tenure: monthly attrition maintained below 3%, with an impressive employee tenure: over 50% with more than 3 years of service, 75% above 1 year, and 30% above 5 years.
- Transcom successfully integrated over 10 brands into a single operating model.
Our partnership has not only revolutionized operations but has set new benchmarks for value creation, transforming a fragmented, cost-intensive operation into a unified, profit-generating asset. This groundbreaking partnership has not only revolutionized core operations but has also meticulously set entirely new benchmarks for comprehensive value creation within the industry. Overall, the strategic transformation has yielded substantial dividends, optimized resource allocation and streamlined complex workflows, leading to unparalleled efficiencies and a fortified market position.
