Convergys

Convergys Case

Convergys classifies its customer accounts into 3 tiers: A, B & C and given all the challenges the company has gone through recently, the idea of internally segmenting customers to most effectively allocate company resources is an effective strategy. However, this strategy must be designed in such a way that it reflects the maximum number of factors with highest impact on the industry. In other words, the customer segmentation must take into consideration all metrics measuring industry trends while assessing Convergys’s economic performance and growth.

In this case analysis, I am providing some recommendations in terms of the best metrics that could be more effective in scoring value of customers. In fact, metrics such as Convergys’s revenues alone described as client spending on Convergys’s and client’s sales do not provide good measurement of the potential customers we are trying to measure in this exercise

The most important metric that should be used to measure client’s potential is the Average Revenue Change Score which is computed as the difference between what the client spent with Convergys in 2005 versus what the client is spending with Convergys in 2006. The value of this metric is that it provides the sales team a concise indication of the growth of the client’s account and can be a sign of potential future sales for Convergys.

The second most important metric is to measure the strength of the relationship between the customers and Convergys. This is a good measurement of the level of commitment of Convergys customers. This can be measured by looking at the customers’ willingness to refer or recommend Convergys’s services to others.

In addition to the recommendation, the relationship can also be measured by the number of years the client committed on the signed contract: the longer the duration of the contract is, the longer the relationship is going to be. This is a very good indication of the client’s interests in growing...