TECH SAVVY MANAGEMENT UPDATE
Voice Recognition and the Bottom LineYou and I have experienced a significant increase in the use of voice recognition technology by businesses and government agencies. I believe the major driver of this trend has been the pressure to reduce costs by reducing head count, including customer contact staff. Frequently the result is a decline in customer service and customer satisfaction. There is often a negative effect on sales and profits as well.
However, there are situations when use of this technology can increase service and satisfaction levels...and also favorably impact the top and bottom lines.
A recent example is the experience of ABN AMRO Mortgage, Inc., a subsidiary of Dutch ABN AMRO Bank, the global banking power. The mortgage company has 1.3 million customers and is the fifth-largest loan originator and eighth-largest loan servicer in the U.S.
During the explosion of mortgage refinancings last year, resulting from falling interest rates, the company wanted to increase customer retention by serving them better. They invested in a new voice recognition system to accomplish this. A customer could call a toll free number and provide verbally either their loan number or Social Security number. Within 30 seconds the customer would receive an instant savings calculation. If qualified, the voice-response system then enabled the customer to begin the refinancing process. Of course, the customer was given the option to talk with a live person if they desired.
The company estimates the system generated $1 million in incremental revenue in the first three months after introduction and $2.5 million over the first six months. Customer retention rate has increased 25% as a result of the new system.
If you want to learn more, you can read about it in the February, 2002 issue of Internet World magazine.
Harry L. Nolan, Jr., CMC, President
Management Advisory Services, Inc.
Management Catalyst For Successful Clients Since 1982
hnolan@masinc.net http://www.CEOHomePage.com http://www.HarryNolan.com
Telephone: (404) 261-2000 Fax: (404) 261-0069
Mail: P.O. Box 421428, Atlanta, Georgia 30342
Street: 5600 Roswell Road, Suite 300 North, Atlanta, Georgia 30342
Business - Voice Recognition
