Telstra taps CBA to win customers
But the telecommunications major 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 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 CBA 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 CBA reached 80 per cent in January, the highest rating of the big four and the bank's best rating since the survey began in 1996.
"It was seven years before they climbed to be number one, 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 strategies of CBA and Telstra was that the bank had not sent processing and call centre jobs offshore. Telstra runs local call centres, but also has a significant call centre operation in the Philippines.
Mr Thodey said that while he understood some customers were more comfortable hearing an Australian accent on the other end of the line, the first priority was to give "a great customer experience, irrespective of where that contact centre is".
He added that Telstra was not just an Australia-focused group, but a regionally focused one, with people from many cultures employed.
"Cost comes into it - I'm a businessman," he says. "But we honestly start with an improved service outcome. Even if the cost per call is very low, if the customer has to ring back, all the economies go out the door."
Frequently Asked Questions about this Article…
Telstra asked CBA for advice because CBA had successfully transformed its customer satisfaction under former CEO Ralph Norris. Telstra’s CEO David Thodey said there were “a lot of parallels” between the companies, and Telstra wanted guidance on big changes to its processes, technology and culture to win over customers.
No. According to the article, Telstra has no plans to scale back outsourcing. It operates local call centres in Australia but also maintains a significant call centre operation in the Philippines.
Telstra uses measures such as net promoter score (NPS) to rate its popularity with customers. The company has lifted its NPS into positive territory overall, but CEO David Thodey said Telstra still has a long way to go on its customer journey.
Roy Morgan research reported that consumer satisfaction with Commonwealth Bank reached 80% in January — the highest rating among the big four banks and CBA’s best result since the survey began in 1996.
David Thodey said Telstra’s first priority is delivering a great customer experience regardless of where a contact centre is located. He noted Telstra is a regionally focused group with employees from many cultures and that cost is a factor, but service outcome comes first.
Thodey acknowledged cost per call matters, but warned that if customers need to ring back because service wasn’t resolved, any cost savings disappear. The company aims to balance lower operating costs with improved service outcomes.
Thodey pointed out that it took CBA about seven years to climb to number one in customer satisfaction. He said Telstra is roughly two or three years into its own transformation, suggesting a multi-year effort to reach top satisfaction levels.
Investors may want to monitor Telstra’s customer metrics—like net promoter score improvements—along with reported changes to processes, technology and culture. The company’s progress in delivering consistent customer outcomes, rather than just cutting costs, is a key indicator mentioned in the article.
Call 1300 880 160
Start a chat
Schedule a call
