Operational Efficiency: Small Changes Yield Big Results

By Michael Woods, EVP, President of Communications, Media & Technology, CSG

Service providers today are facing a variety of complex challenges, contending with rising operational expenses (Opex), meeting diverse customer needs and continuously innovating to bring new offers and experiences to the market. That’s why operational efficiency must be more than a back-office focus; it needs to take center stage as the key driver of customer experience (CX) and profitability. The adoption of a “small changes, big results” approach allows service providers to make targeted improvements that transform key cost centers into strategic revenue generators.

By focusing on the contact center, customer communications and the billing experience, service providers can reduce costs, drive growth and build customer loyalty. When optimized, these areas form a catalyst for competitive advantage and exceptional CX.

Step Up Contact Center Performance with AI-Driven Solutions
Contact centers are a major Opex cost for service providers, but when optimized, they become a powerful channel for driving cost reduction and loyalty. Intelligent call routing can connect customers to the right agents, providing a quick win for improving resolution rates, eliminating delays and minimizing frustration for customers and agents. One CSG customer was experiencing ongoing contact center challenges, resulting in bottlenecks and dissatisfied customers. By implementing CSG’s call routing system, the customer reduced misdirected calls by 43% and achieved significant savings each month. This change rapidly lowered Opex and turned the contact center into a revenue-driving channel.

Simplify the Billing Experience to Reduce Opex
Customer communications is another major cost center. Yet, every interaction, from service notifications to bills, is an opportunity to further reduce Opex, improve customer satisfaction and sell more. Billing is the most frequent, impactful interaction between a service provider and its customers. One leading tier 1 service provider, for example, transformed its billing statement into a proactive self-help channel with CSG’s bill presentment solutions. By adding targeted offers based on usage to the billing statement, the service provider achieved a 33% increase in mobile sales and a significant decrease in call volumes. When it took personalization further by visually highlighting the customer’s name within the ad, response rates increased by 56%. This approach shows how small changes to a bill can reduce call volumes while creating an opportunity for customer engagement and incremental revenue growth.

Boost Self-Help Success as a Key CX Metric
Customers increasingly value the ability to resolve issues independently. Effective self-service options give customers control and reduce the need for live support, lowering the cost to serve and improving the experience. Self-help success rates are emerging as a key metric for CX, especially in billing, where customers prefer immediate answers. AI-enabled tools can empower customers to handle routine tasks like billing inquiries or service troubleshooting. This shift towards self-help support is both a cost-saving measure and a boost to customer satisfaction. When customers feel capable of managing their accounts on their own, they are happier, more loyal and more likely to buy more.

Three Key Takeaways: Immediate Actions, Lasting Impacts
Service providers can embrace the “small changes, big results” approach with three strategies:

• Use AI to Optimize Call Center Operations: Intelligent routing and resolution improvements can streamline support, reduce costs and improve customer loyalty.

• Redesign Billing for Self-Help and Revenue Generation: A straightforward, user-friendly bill can reduce call volumes and enhance customers’ trust in the service.

• Adopt Proactive Self-Help Strategies: AI-driven self-help tools anticipate customer needs, reducing Opex while creating a proactive experience to enhance loyalty further.

Acting on these strategies, service providers will see quick wins in customer satisfaction, cost reduction and revenue growth, which, in turn, establish a strong foundation for sustainable, customer-centered growth. Operational efficiency becomes a pathway to delivering exceptional customer experiences that keep customers loyal and satisfied. Now is the time for action; the service providers who focus on operational efficiency and customer experience today will be the winners tomorrow.