Case Studies

#1 Rework caused by incorrect handling of customer inquiries in the e-commerce industry 2020

Problem: A high number of customer inquiries were handled incorrectly, not following established procedures. This led to rework, customer dissatisfaction, and some customers discontinuing their online shopping subscriptions.

Causes: The app containing work procedures and instructions (similar to a simplified version of Wikipedia) was not user-friendly. Information for specific actions was scattered across various tabs and sections. The procedures and instructions were complex and lacked a logical flow when considered as a whole.

New support agents were unaware of the proper customer account identification methods and sometimes followed the wrong work instructions.

Periodical evaluation tests did not cover all topics.

In summary, the knowledge base app had been updated and modified repeatedly without removing outdated information or considering user usability. For six years, random internal stakeholders proposed various changes, most of which were implemented, making the app complicated and difficult to use. Even some stakeholders did not understand what an agent should do in certain situations.

Solution: Select the work procedures and instructions that were still relevant and migrate them into a new app (using the same framework, but creating a new app rather than updating the existing one).

Simplify the information so that any new agent, even those with no prior e-commerce experience, could understand it. Restructure the training program with different topics in a logical, chronological flow, according to the customer journey.

Update the periodical tests to cover all topics related to agents' activities.

Include customer identification in the Chatbot menu. Customers could provide their ID number and Account number to the Chatbot for identification, rather than just selecting the correct option for their issue.

Savings: $13,000 USD monthly, as the rework required approximately 3 FTEs for a team of 60 agents (at most times, as there was some attrition and sometimes the team was short of 1 to 3 FTEs). Additionally, the identification process took an average of 5% of the total chat time, resulting in another 3 FTEs saved.

#2 Incorrect refund amounts at a chain of electronic gadget stores 2015

Problem: Cashiers were refunding full price for discounted items sold.

Causes: The app running on the point-of-sale (POS) system allowed employees to process a refund transaction without linking it to a sale transaction, enabling refunds at any price, regardless of the sale price.

This occurred in various situations:

During promotional campaigns, such as "buy one, get one at 50% off"
When customers received a discount for bulk purchases
During midseason or end-of-season sales campaigns

Sometimes, mistakes were unintentional and considered as execution errors. However, other times it was done repeatedly and intentionally: for example, 3, 5, or more refunds during the same week for high-value transactions involving the same customer, as seen in video recordings, indicated obvious fraud cases.

What they had done: Updated work instructions regarding refund transactions and increased the frequency of remote verifications for refund transactions by the internal audit team.

Solution: Condition the return upon presenting the sales receipt. Previously, a customer could return an item or more simply because it was sold by the store, and they would accept it. After the change, a customer could return one or more products only if they presented the sales receipt.

Establish a new refund flow where a cashier could not process a refund transaction alone. The Store Manager would assist during the transaction. If the manager was unavailable, another colleague would help. Initially, they were hesitant to accept this change due to a slight decrease in customer experience and the need to use another employee's time for a single-person job. It's important to note that the second person would not spend time at the cash register for the entire transaction, only to ensure the cashier selected the appropriate sale transaction.

Result: An average monthly saving of $23,000 USD in items refunded at their discounted sale price, instead of the full price.

#3 High operating costs and low customer retention due to rework on personal loans at a bank 2017

Problem: A significant percentage of loan applications required rework, with some branches experiencing over 40% rework rates. Rework led to direct losses in time spent detecting and correcting errors, both internally and externally. Clients had to submit additional information or documents via email or visit a branch in person. When an agent was occupied with a client, it resulted in increased waiting times for others. The bank's reputation was also affected, with many clients leaving negative reviews and vowing never to choose the same bank again when applying for a loan.

Causes: Agents were inadequately trained in reviewing documents for missing information, errors, or discrepancies in the information submitted by clients. Internal systems allowed loan applications to be sent for approval to the Credit Team even if documents were missing. Some Credit Team members failed to identify missing or incorrect information, which was typically discovered by the Payments Team.

Solution: Restructure the training program, focusing on modules concerning the necessary data, information, and documents required for different types of loans.

Implement mistake-proofing features in internal systems using a waterfall approach, preventing agents from proceeding to the next step until the previous one is completed correctly.

Update work procedures and instructions in accordance with the system changes.

Branch Directors randomly selected loan applications for weekly quality checks and reported their findings to Area Directors.

Result: The overall rework rate decreased from 28% to 6% within the first three months of implementing these measures. Considering the hourly gross salary for the employees involved and the number of loans processed each month, the bank saved approximately $19,000 USD monthly.

#4 Excessive response time to customer complaints led to financial losses for a telecom company 2021

Problem: The average time for responding to customer complaints exceeded the targeted cycle time, leading to a higher percentage of complaints filed with authorities, increased goodwill compensations for customers, and decreased customer satisfaction.

Causes: Some complaints received in a shared inbox were not properly handled by agents due to the absence of an automated routing system. Complaints could be accidentally removed from the inbox or left unaddressed for longer than the targeted cycle time. In addition, some emails were mistakenly sent to the wrong team, as there were no clear criteria for distribution.

Previous Actions: The company increased training time for new agents and held weekly shadowing sessions between agents and Team Leaders.

Solution: Develop, specify, and oversee the implementation of a new automated routing system for handling customer complaints, eliminating the need for manual intervention. The system accurately routed email complaints to the appropriate teams, preventing deletion or overlooked emails. This not only saved employee time but also eliminated errors.

Collaborate with Operational Managers and Coordinators to update work procedures and instructions, ensuring alignment between teams. Offer guidelines, supervise the update process, and review the final documents.

Savings: The company saved $16,000 USD per month in compensations (based on the average of the last three months when compensations were offered) and experienced a decrease in fines from authorities of approximately $19,000 USD per month (compared to the previous three months before implementation).

#5 Project Funding through PPP using Medium Term Notes (MTNs)

Challenge: Insufficient Funding for a Real Estate Project

Problem: A prominent real estate development company, XYZ Developments, was faced with a significant financial gap for their ambitious mixed-use project. Traditional financing methods were restrictive, and the company needed a creative solution to secure the necessary funds.

Causes: Limited access to conventional loans and the desire for a funding model that aligns with Islamic financial principles led XYZ Developments to explore alternative methods. The company was seeking a partner who could provide substantial funding without imposing conventional interest structures.

Previous Actions: XYZ Developments had engaged in preliminary discussions with various financial institutions but found their offerings to be conventional and not entirely aligned with the company's ethical and financial principles.

Solution: Leveraging PPP and MTNs with ApexSphere Consulting

Approach: XYZ Developments partnered with ApexSphere Consulting to explore the possibilities offered by Private Placement Programmes (PPP) and the trading of Medium Term Notes (MTNs). ApexSphere presented a Sharia-compliant funding solution that not only met the financial requirements but also aligned with the company's values.

Implementation: ApexSphere, utilizing its trusted banking partners such as Barclays Bank, initiated the process of trading MTNs on a high-yield, low-risk platform. This innovative funding model, commonly known as PPP, ensured that XYZ Developments could leverage their existing capital to generate additional funding without depleting their initial deposit.

Funds Handling: The funds generated through the trading of MTNs were securely held in a single signatory account, providing XYZ Developments with complete control and transparency over their financial assets.

Equity Partnership: In return for facilitating the funding through PPP, ApexSphere Consulting became an equity partner in XYZ Development's project, holding a 35% equity stake.

Results: Empowering XYZ Developments for Success

Financial Impact: XYZ Developments received 100% of the project financing needs through the PPP, avoiding the limitations imposed by traditional financing avenues. The funds facilitated the seamless progression of their real estate project.

Equity Partnership: ApexSphere Consulting's 35% equity stake ensured a collaborative relationship, aligning the interests of both parties for the success of the project.

Sharia Compliance: The entire process adhered to Islamic financial principles, making it a Halal funding solution that resonated with XYZ Development's commitment to ethical financial practices.

Conclusion: Through the innovative use of PPP and MTNs, ApexSphere Consulting empowered XYZ Developments to overcome financial challenges, providing them with the necessary resources to thrive in their real estate endeavors. This case study exemplifies the effectiveness of creative funding solutions in transforming ambitious projects into successful realities.