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The Contact Center Industry is growing exponentially.
There are now nearly 90,000 Contact Centers in the U.S. alone.
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We thought about it a long time, but there's no easy or gentle way to say this;
You are currently paying as much as 50%-75% more than our clients are paying
for the exact same Telecom Services you have.
Ouch.
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Case Study:
We recently (February 2007) provided an analysis and proposal to a large, well known collection organization (they've been around since 1936) with a substantial call center operation. They typically do about 3.5 million minutes per month in dedicated LD. Their carrier for many years has been MCI, and they had secured an .0197 (1.97 cents) per minute rate on their most recent 36 month term. We had originally opened a dialogue with them in the summer of '06, but they were imprisoned in a term agreement with a large volume commitment. When their term expired, they sent us their CDRs (Call Detail Records) to see what we could do for them. We performed a traffic analysis, and based on our findings, we were able to propose an .0105 (1.05 cents) per minute rate - and they could choose their preference from either of two different networks - MCI or Qwest. Do that math - .0197 (their current rate with MCI) is 187% of .0105 (our proposed rate), or 87% higher. Here's what that looks like in dollars:
3.5 million minutes per month x .0197 = $68,950.00 per month (current expenditures)
3.5 million minutes per month x .0105 = $36,750.00 per month (proposed expenditures)
Monthly Savings = $32,200.00
Annual Savings = $386,400.00
36 month Savings = $1,159,200.00
It get's better - in an effort to entice this customer to sign a new agreement directly with them, MCI generously offered to reduce their per minute rate to .0165 (1.65 cents) per minute if the customer agreed to a new 36 month term and an even more substantial volume commitment. Not a terrible offer mind you, but still fully 57% higher than the pricing we were able to provide them - on the same network. And our offer only required a 12 month term agreement, and no volume commitment, as is the case with all of our LD product offerings
Net results? By taking MCI "direct" up on their .0165 offer, they would have to consciously choose to pay MCI $648,000.00 more over the next 36 months for the same service on the same network.
What would you have done?
Dollars to Donuts...
By now we hope we've gotten you interested enough to ask, "How is this possible?" Here's where the donut story comes in.
Let's for a minute assume you like donuts. Let's say you went to buy donuts one sunny morning (let's say Krispy Kreme - they really do make a mean donut), and you ask for the price for a dozen donuts. They would happily quote you the "dozen donut price". That's a no brainer.
Now let's make you a Donut Management Firm instead. People come from far and wide to buy their donuts through you because you have a unique relationship with Krispy Kreme - you've brought many millions of dollars worth of donut purchases to the table over the years. Because they value the business you bring, Krispy Kreme has negotiated a special deal with you - a price that no single donut buyer could ever hope to get. Why? Because Krispy Kreme doesn't want to lose the substantial amount of business you represent to Dunkin' Donuts or any of their other competitors. So your customers get the very best deal on the exact same donuts everyone else pays full price for. They're still Krispy Kreme donuts - just at a far better price. That really is all there is to this. Except telecom isn't as tasty as Krispy Kreme donuts are. But then you can't run a Call Center on donuts either.
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Genesis Telemanagement
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