An online travel company
Case study
An online travel company - B2B Customer Tiering
Industry
Online Travel
Challenge
An online travel company’s B2B division faced the challenge of optimizing service levels for its diverse range of business partners. The company needed to:
- Provide tailored support that aligned with the value and needs of different B2B customer segments.
- Improve operational efficiency by reducing the number of low-value, high-touch accounts.
- Maintain or improve overall revenue while streamlining customer service operations.
Solution
Our consultancy partnered with them to analyze their B2B customer base and implement a tiered service level system. This involved:
Customer Segmentation:
We conducted a comprehensive analysis of this company’s B2B customer data, including factors such as booking volume, revenue contribution, growth potential, and service requirements. his analysis enabled us to identify distinct customer segments with varying levels of strategic importance.
Tiered Service Level Design:
Based on the customer segmentation, we developed a tiered service level system with clearly defined offerings for each tier. This typically included:
- Platinum Tier: Dedicated account management, proactive support, customized solutions, and exclusive benefits for the highest-value customers.
- Gold Tier: Priority support, named account representatives, and enhanced service level agreements for high-value customers.
- Silver Tier: Standard support, online resources, and efficient self-service tools for mid-tier customers.
- Bronze Tier: Self-service support, online knowledge base, and automated processes for lower-value customers.
Implementation and Transition:
We worked closely with them to implement the tiered service level system, including:
- Communicating the new service levels to B2B customers.
- Training the company’s customer service and sales teams on the new system.
- Developing processes and tools to efficiently manage customers across different tiers.
Results
The implementation of the tiered service level system delivered significant benefits for them:
- Improved Service Efficiency: By aligning service levels with customer value, the company reduced the number of high-touch interactions for low-value customers, freeing up resources to focus on strategic accounts.
- Reduced Customer Base: The initiative resulted in a 60% reduction in the number of customers, primarily through the attrition of the lowest-value accounts.
- Minimal Revenue Impact: Despite the reduction in customer base, the impact on overall revenue was minimal, with only a 0.02% decrease.
- Increased Customer Satisfaction: Tailored service levels improved satisfaction among high-value customers, who received the dedicated support they needed.
- Enhanced Focus on Strategic Growth: The streamlined customer portfolio allowed them to focus more resources on growing its business with high-potential, high-value B2B partners.
