Optimisation of the goodwill process

Client:
German Mobile Operator

Challenge:

Compensation policy is often a neglected area; considered part of daily business or regarded as a necessary evil. Compensation is rarely a process that is actively managed and it therefore often remains suboptimally designed. Companies that optimize how and in what circumstances compensation is granted can achieve significant results, either by increasing customer satisfaction or by increasing cost efficiency. Up to 65% of goodwill payouts can be saved while maintaining the existing level of customer satisfaction.
The challenge is to identify the optimum between customer satisfaction and cost savings for each company and to realize it through the implementation of selective optimization measures.

Core issues:

  • What does the compensation policy look like and what are the rules for granting goodwill?
  • How much is paid out in compensation and what is the proportion of corrective vs. goodwill payments?
  • Which measures can be implemented to optimize the goodwill process?
  • How much cost savings will each measure generate?
  • How can we prevent a negative impact on customer satisfaction?
  • How can we set up an inlife management process to ensure a permanent optimisation of the goodwill process?

 

Our input:

  • Identification of savings potential
  • Prioritisation of measures according to impact and feasibilty
  • Implementation of two top optimisation measures
  • Development of an inlife management concept
  • Introduction of inlife management and hand-over of activities

Results:

  • Reduction of goodwill payouts by 30%
  • Decrease of the volume of goodwill by 17% shortly after the introduction of the measures
  • Identification of measures to further reduce the volume of goodwill
  • Implementation of a sustainable process to manage and continuously improve the compensation process