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Channel Shift: Realising the Benefits

Channel Shift: Realising the Benefits. www.trapeze-transformation.com. Gerald Power. The White Paper. The aim of the white paper was to challenge some myths about channel shift and explain why…. ‘If the benefits of Digital are so obvious then why are they so hard to realise consistently?’ Or

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Channel Shift: Realising the Benefits

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  1. Channel Shift: Realising the Benefits www.trapeze-transformation.com Gerald Power

  2. The White Paper The aim of the white paper was to challenge some myths about channel shift and explain why…. ‘If the benefits of Digital are so obvious then why are they so hard to realise consistently?’ Or “Show me the money!”

  3. Channel Costs Everything should be made as simple as possible, but not one bit simpler. Albert Einstein

  4. Channel Costs Common cost per transaction assumptions What did the analysis say?

  5. They are credible averages, with two big caveats • Use them as ‘average’ contact costs across many sectors • Don’t ever use them in a business case

  6. Why the Caveats? These values are consistent with providing simple information via the channel. Costs will become much larger and more complex when performing transactions and its transactions that you want.

  7. Why the Caveats? These values are particularly misleading as the proposition is often for transactional digital self service and these costs are far too low for that – they imply a simple page of ‘flat’ content e.g. just information no transaction

  8. Blackburn and Darwen Winter Page A great example of simple but very effective low cost digital content, £0.08p per hit or low seems credible

  9. DVLA Online Car Tax It cost around £40M and will take around 10 years to cover its costs, £0.08p per transaction? The NAO don’t think so.

  10. For every Amazon and Facebook there are many forgotten online failures Success requires a very good understanding of your business and how to deliver benefits using Digital

  11. Savings & Benefits Ultimately whatever we say about channel costs and whatever logic we use, its not a real saving until it shows up on the bottom line

  12. Cashable Savings In the current climate cashable savings are probably your prime objective and there are only two significant sources • Headcount Reduction • Estates Rationalisation If your channel shift programme or business model allows the customer to self serve, without an agent, it has the potential to give you cashable benefits

  13. The Balance Sheet Looking at the balance sheet without the details of the technology and channel strategy can be very informative Investing is relatively easy, but you don’t realise the savings until you cut your costs and that’s the hard bit

  14. Behaviour Change and Rate of Change

  15. Change Rate & Net Benefits Savings Investment The faster the shift the quicker the return on investment, so effort spent on influencing will be effort well spent

  16. Time is Money In the current climate it is vital that you make your investments work for you: • If you are having to cut to invest its vital that savings come quickly, ideally in-year • The longer it takes to shift customers the bigger the hole the investment makes in your budget • Money spent on marketing can be money very well invested The jobs not over until the customers shift… and even then its not over as you seek continuous improvement

  17. Channel Cost Profiles: The Mathematical View F2F Telephone Web Cost Contact Volume

  18. Digital has a Different return profile This is a generalisation but: • Face to face and telephone have generally linear cost profiles, the main cost is in answering the call • For digital the main cost is often in setting up the service, once you do that it costs the same where 10 or 1000 people use it If people are not using the phone or F2F you tend to notice, idle websites often go unnoticed and its money quietly being lost as the investment yields no return

  19. Cost per Visit transportdirect.info (33p) defra.gov.uk (2p) uktradeinvest.gov.uk (£11.78p) UK Central Government Websites, June 2010 COI Mean by site = 54p/visit Mean by visits overall = 23p/visit

  20. Cargo Cults of the South Pacific: The Psychological View

  21. Magical Thinking The key lessons from the cargo cults: • Just because it looks digital doesn't mean it is digital • Digital is an end to end process model not a surface veneer Its you job to make it clear to your senior team if they are investing in a bamboo hut and a new lawn or an air-traffic control system

  22. Gerald PowerThe White Paper is available for download at http://direct.govdelivery.com/channelshift-wpThere are more resources available at our websitewww.trapeze-transformation.com

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