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Telstra keen to woo customers the CBA way

Telstra has sought advice from the Commonwealth Bank on how to improve its popularity with its millions of customers Australia-wide.
By · 11 May 2013
By ·
11 May 2013
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Telstra has sought advice from the Commonwealth Bank on how to improve its popularity with its millions of customers Australia-wide.

But the telecommunications company has no plans to scale back its outsourcing of call centres.

In an exclusive interview with BusinessDay's Malcolm Maiden, chief executive David Thodey revealed that Telstra had consulted the Commonwealth Bank on the telco's plan to win over customers, a project requiring big changes to Telstra's processes, technology and culture.

Mr Thodey said the formerly government-owned Commonwealth had "a lot of parallels" with Telstra and he took heart from the bank's success in transforming its customer satisfaction ratings under the leadership of former chief executive Ralph Norris.

According to Roy Morgan research, consumer satisfaction with the Commonwealth reached 80 per cent in January, the highest rating of the big four and the Commonwealth's best rating since the survey began in 1996. "It was seven years before they climbed to be No.1 and we are what, two or three years into our journey," Mr Thodey said.

Telstra has lifted the net promoter score that rates its popularity with its customers into positive territory overall, but Mr Thodey said the company still had a long way to go.

But one difference between the two was that the bank had not sent processing and call centre jobs offshore. Telstra runs local call centres but also has a significant operation in the Philippines. Mr Thodey said its first priority was to give "a great customer experience, irrespective of where that contact centre is".
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Frequently Asked Questions about this Article…

Telstra's CEO David Thodey said the company consulted the Commonwealth Bank because the bank had successfully transformed its customer satisfaction ratings and had parallels with Telstra. The project Telstra is working on requires big changes to processes, technology and culture, and the bank's experience was seen as a useful reference.

No. The article says Telstra has no plans to scale back outsourcing of call centres. It operates local Australian call centres but also runs a significant operation in the Philippines, and intends to focus on delivering a great customer experience regardless of where contact centres are located.

Telstra has lifted its net promoter score into positive territory overall, indicating improving popularity with customers, but CEO David Thodey said the company still has a long way to go to reach top satisfaction levels.

Roy Morgan research reported that consumer satisfaction with the Commonwealth Bank reached 80% in January, the highest rating of the big four banks and the Commonwealth's best score since the survey began in 1996.

The article notes it took the Commonwealth Bank seven years to climb to No.1 in customer satisfaction; David Thodey said Telstra is only two or three years into its own journey, suggesting meaningful improvements can take several years.

No. Telstra runs local Australian call centres but also has a significant customer service operation in the Philippines, so its support is a mix of onshore and offshore teams.

David Thodey said Telstra's first priority is to give 'a great customer experience, irrespective of where that contact centre is,' emphasizing outcome over location of service delivery.

The article references former Commonwealth Bank chief executive Ralph Norris as the leader under whom the bank transformed its customer satisfaction ratings.