Chapter 11Case 11-3. CUP CorporationCase Overview CUP was one of the largest largest insura insurance nce rms based in Europe Europe.. They They enjoye enjoyed d growth rateof more than 25 each year for almost past !" years. They sold #arious forms of insurance inorder to broaden the type of the insurance into health$ health$ life$ casualty$ property$ property$ and automoti#ea automoti#eareas reas.. %owe#er$ %owe#er$ the growth growth was &at instead of the planned ' percent by !(() and !((*.The declining growth rate resulted from se#eral issues$ economic climate$ higher ta+esand social welfare le#ies le#ies$$ incre increasi asing ng compet competiti ition$ on$ e+ten e+tensi# si#e e satisf satisfact action ion of the basic basic demand demand forinsurance in ,ermany. -n !(()$ the number of customer canceling contracts compar compared ed to the total total amount amount of contra contracts cts$$ called called lapse lapse rate/$ rate/$ reach reached ed 01 (""1 which is !" of total premium re#enue. They are ha#ing customer loyalty problem that has to be sol#ed.ne of the issue here is the establishment of CCC 3Customer Care Center4. This CCCenables the company to pro#ide customer with one telephone number that will answer all ofcustomer uestions due to their contract. They need to professionally train people people who coulde6 coulde6ect ecti#el i#ely y answer answer a #ariety #ariety of uestio uestions ns and increa increase se the ser#ice dramatically. The nalobjecti#e would be to reduce the lapse rate. The lapse rate/ problem for CUP was summari7ed by the image of lea8ing buc8et$ new customers would &ow into the buc8et while at the same time many lea8ed out through big holes. -nstead of focusing on the lapse rate/$ the problem was restated as a customer loyalty problem that cut across product lines and was considered a corporate problem.
Analysis and Discussion CUP decided to create a Customer Care Center to stem defection of customers resulting in part from dissatisfaction with the rm9s ser#ice. The wor8ing hour of CCC is 2: hours a dayand * days per wee8. CCC9s main idea was to pro#ide pri#ate customers with one telephone number to be used for all their uestions and problems and for all types of insurance o6ered byCUP. The center design was ready and specied the following goals; !. CUP9s CUP9s pri#ate pri#ate custom customers ers would would ha#e one and only on telephon telephone e number for all their uestions and problems. 2. The center center would would open open 2: hours hours per day and * days per wee8. wee8. '. CUP would would benet benet from from a reducti reduction on in the the lapse lapse rate. :.
> ?-@=@C-=A; Bince the growth for insurance industry in ,erman was decreasing $ CUPhad higher growth than the other company in the insurance industry o#er the last couple ofyears. The objecti#e of the company was to increasing growth in income premium$ usingmeasurement by the re#enue growth$ and targeted to get at least 25 li8e they e#er got thisremar8able growth before. ?ortunately$ CUP had maintained its high growth while thegrowth of other insurance industry had le#eled o6. > CUBT1E; CUP su6ered from high lapse rates$ high number of customers signedmore than one contracts$ paid high commission$ and increasing number of customercomplaints or cancellation. =nother problem was that customers tended to loo8ed at the rmas a whole$ not as a product line with whom they had contract with. Therefore CCC wascreated to pro#ide customer with telephone number and professionally trained people whocould e6ecti#ely answer se#eral uestions so that CUP can satisfy what consumer needs andeliminate customer loyalty problem. =ccordingly$ their targets were reducing to !! for thelapse rate$ all of the complaint getting accomplished$ and all of the product lines beingo6ered to the customers. > -@TE@=A
AE=@-@, =@0 ,DT%; CUP Corporation had objecti#es to impro#ing the employee9s s8ills and increasing their ability to handle new topics about customers9 inuiry.The measurements used were the number of employees9 competency to handle the calls$ andalso new topics complaint by the customers can be sol#ed. Company had targets which werethat CCC could answer general inuiry about product lines$ and can answered spesicinuiry about new topics. CUP had insucient training personnel and less speciali7ed person based on learning and growth perspecti#e. Bo those incapable people could not gi#eser#ice and information which customers need.
Conclusion CCC can be used to o#ercome the problems between CUP and its customers. CCC helpthe customers when they could not reach their agent with contact CUP directly through CCC.CCC can gi#e information what customers need so that nally could decrease the lapse rate.There are some Fey success factors of CCC; !. Concerning to the customers The rm as a whole$ proacti#ely pic8ed and targeted the most protable group$ and learnmore about the customers. =t the same$ it also defended its e+isting customer basethrough becoming sensiti#e to early signals of defection$ monitoring carefully trigger e#ents$ and trying to reco#er lost/ contracts.
2. Eciency in terms of information processing Pro#ide customers with one telephone number and professionally trained people whocould e6ecti#ely answer a #ariety of uestions. -t also could co#erage the senior manager9s problem of lac8 critical mass. '. CCC as prot center outside company9s organi7ational structure This would ma8e it possible to sign more &e+ible employment contract and ha#e norelationship with operational di#ision in the company$ CCC could increase its performancee6ecti#ely.
Recommendation
=nalisis dan 0is8usi CUP memutus8an untu8 membuat Customer Care Center untu8 membendung pembelotan pelanggan yang menga8ibat8an bagian dari 8etida8puasan dengan layanan perusahaan. Ham 8erja CCC adalah 2: jam dayand * hari per minggu. -de utama CCC adalah untu8 menyedia8an pelanggan pribadi dengan satu nomor telepon yang a8an diguna8an untu8 semua pertanyaan dan masalah mere8a dan untu8 semua jenis asuransi yang ditawar8an byCUP. 0esain pusat sudah siap dan ditetap8an tujuan beri8ut; !. pelanggan pribadi CUP ini a8an memili8i satu dan hanya pada nomor telepon untu8 semua mere8a pertanyaan dan masalah.
2. Pusat a8an membu8a 2: jam per hari dan * hari per minggu. '. CUP a8an mendapat manfaat dari pengurangan ting8at selang. :. 1enjadi pemimpin layanan di industri asuransi dan mening8at8an jumlah customerswith beberapa 8ebija8an. Betelah CCC itu berjalan dalam satu tahun$ 0erric8 sebagai manajer yang 8ompeten ingin toensure 8eberhasilan CCC dan mendapat8an lang8ahGlang8ah yang tepat. Untu8 mencapai tujuan tersebut$ pengu8uran CCC harus mengguna8an scorecardsystems seimbang$ yang tida8 hanya berfo8us pada satu indi8ator tetapi juga menetap8an mere8a. 1ere8a perspe8tif 8euangan$ pembelajaran dan pertumbuhan.
pelanggan$
proses
bisnis
internal$
dan
> FEU=@,=@; Beja8 pertumbuhan industri asuransi di Herman mengalami penurunan$ CUPhad pertumbuhan lebih tinggi dari perusahaan lain di industri asuransi selama beberapa ofyears tera8hir. Tujuan dari perusahaan adalah untu8 mening8at8an pertumbuhan pendapatan premi$ usingmeasurement oleh pertumbuhan pendapatan$ dan ditarget8an untu8 mendapat8an setida8nya 25 seperti yang pernah mere8a mendapat pertumbuhan thisremar8able sebelumnya. Untungnya$ CUP telah mempertahan8an pertumbuhan yang tinggi sementara thegrowth industri asuransi lainnya telah mendatar. > PEA=@,,=@; CUP menderita tarif selang tinggi$ tingginya jumlah pelanggan signedmore dari satu 8ontra8$ dibayar 8omisi tinggi$ dan mening8at8an jumlah customercomplaints atau pembatalan. 1asalah lain adalah bahwa pelanggan cenderung memandang rmas 8eseluruhan$ bu8an sebagai lini produ8 dengan siapa mere8a memili8i 8ontra8 dengan. leh 8arena itu CCC wascreated untu8 menyedia8an pelanggan dengan nomor telepon dan orangGorang profesional terlatih whocould efe8tif menjawab beberapa pertanyaan sehingga CUP dapat memenuhi apa yang dibutuh8an 8onsumen masalah loyalitas pelanggan andeliminate. 0engan demi8ian$ target mere8a mengurangi sampai !! untu8 ting8at thelapse$ semua pengaduan mendapat8an dicapai$ dan semua lini produ8 beingo6ered 8epada pelanggan. > PBEB <-B@-B -@TE@=A; proses bisnis internal CUP memili8i TujuanUntu8 mempersing8at proses untu8 memberi8an layanan yang lebih bai8 bagi pelanggan. Pengu8uran yang diguna8an adalah wa8tu usinga#erage bagi pelanggan untu8 dilayani$ dan target adalah untu8 mendapat8an (" dari penyelidi8an couldhandle oleh CCC di telepon pertama.
adalah jumlah 8aryawan pelanggan 8ompetensi untu8 menangani panggilan$ andalso topi8 8eluhan oleh pelanggan bisa dipecah8an. Perusahaan memili8i target yang werethat CCC bisa menjawab pertanyaan umum tentang lini produ8$ dan dapat menjawab spesicinuiry tentang topi8 baru. CUP memili8i pelatihan personil memadai dan orang 8urang 8husus berdasar8an perspe8tif pembelajaran dan pertumbuhan. Hadi orangGorang tida8 mampu tida8 bisa gi#eser#ice dan informasi yang pelanggan butuh8an. Fesimpulan CCC dapat diguna8an untu8 mengatasi masalah antara CUP dan pelanggannya. Pelanggan helpthe CCC 8eti8a mere8a tida8 bisa mencapai agen mere8a dengan 8onta8 CUP langsung melalui CCC.CCC dapat memberi8an informasi apa yang pelanggan butuh8an sehingga a8hirnya dapat menurun8an selang rate.There beberapa fa8tor 8eberhasilan utama dari CCC; !. 1engenai 8epada pelanggan Perusahaan secara 8eseluruhan$ secara proa8tif mengambil dan ditarget8an 8elompo8 yang paling menguntung8an$ dan Aearn1ore tentang pelanggan. Pada saat yang sama$ ia juga membela pelanggan yang ada basethrough menjadi sensitif terhadap sinyal awal pembelotan$ pemantauan hatiGhati memicu peristiwa$ dan mencoba untu8 memulih8an IhilangI 8ontra8. 2. Esiensi dalam hal pengolahan informasi 1enyedia8an pelanggan dengan satu nomor telepon dan orang profesional terlatih whocould efe8tif menjawab berbagai pertanyaan. %al ini juga bisa ca8upan masalah manajer senior dari massa 8ritis 8urangnya. '. CCC sebagai stru8tur organisasi prot center di luar perusahaan %al ini a8an memung8in8an untu8 menandatangani 8ontra8 8erja yang lebih &e8sibel dan memili8i norelationship dengan di#isi operasional di perusahaan$ CCC dapat mening8at8an nya performancee6ecti#ely. e8omendasi
24 0e#elop a balanced measurement system showing how the measures and measurement lin8s to whatyou belie#e are the 8ey success factor of CCCK
=ccording to the case$ we ha#e found that the 8ey factors that bring CCC to success are in many factorsfollowing; !.Time =ccessibility. CCC wor8s on 2: hours and * days. This means that the centre opens all the timeand customers can call them at any time. 2.-mmediate Bol#ing Problem. They pro#ide customers with fast respond. (" percent$ they can handleand sol#e the problems within the rst call. '.Centrali7ation and Btand alone centre ser#ice unit. CCC is Centrali7ation which is separated from the parent company.They also ha#e their own mission to support their own system and strategies.
Therefore$ to lin8 the
,enerally$ the internal business process perspecti#es help rm to enhance its producti#ity and uality performance whereas customer perspecti#es can help the rm to impro#e its performance on ser#icedeli#ery and to increase the le#el of customers9 satisfaction in certain ways. Therefore$
24 1engembang8an sistem pengu8uran yang seimbang menunju88an bagaimana lang8ahGlang8ah dan lin8 pengu8uran untu8 whatyou percaya adalah 8unci 8eberhasilan dari CCCK
1enurut terjadi$ 8ami telah menemu8an bahwa fa8tor 8unci yang membawa CCC untu8 su8ses dalam banya8 factors following; !.Time =8sesibilitas. CCC be8erja pada 2: jam dan * hari. -ni berarti bahwa pusat membu8a semua pelanggan timeand dapat memanggil mere8a setiap Boal time. 2.-mmediate Bol#ing. 1ere8a menyedia8an pelanggan dengan respon cepat. (" persen$ mere8a dapat handleand memecah8an masalah dalam call. '.Centrali7ation pertama dan
:.Empowerment dan ?le8sibilitas. Faryawan memili8i 8e8uatan penuh untu8 membuat 8eputusan mere8a sendiri dalam respondingand memecah8an masalah. 1ere8a harus tahu apa yang harus mere8a la8u8an untu8 menangani dengan pelanggan. =nd&e+ibility dalam jang8a jam dan 8ompensasi 8erja 8epada 8aryawan. 1emberi8an compensationdepends berapa jam yang Aayanan Pelanggan dan 8aryawan wor8. 5.Luality 8epuasan. CCC memili8i layanan ber8ualitas tinggi dengan 8ecepatan respon$ lebih sedi8it 8esalahan$ informasi yang a8urat dan ramah dengan customers.
Therefore$ untu8 menghubung8an
:.Customers. 1engguna8an pelanggan untu8 menentu8an cacat ting8at$ du8ungan pengembangan produ8.
