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Major Insurance Provider Saves $50,000 First Month

Our Client is a leading global insurance organization serving businesses and individuals with a broad range of insurance needs, and is one of the largest insurance providers in the United States. Facing intense industry competition, the Client needed to reduce expenses to maintain its competitive position and profitability. A corporate-wide initiative called for business units to reduce expenses in the current fiscal year. Specifically, the Voice Network Services Group (VNSG) needed to reduce its voice communications spending.

Challenges

The Client was already running a “lean” VNSG that supported more than 20,000 employees in 52 locations. Existing long-term agreements made it impossible to negotiate lower carrier rates in the current fiscal year. Telecom audits were exhausted.

The Client chose to focus on driving down inappropriate use of voice services. By increasing awareness of employee telabuse, they aimed to reduce monthly usage by 10%. But with limited staffing, they lacked the bandwidth to implement and operate a reporting tool in-house. Adding to the financial strain, they needed to realize a rapid return on investment (ROI) to affect the current fiscal year.

Solution

To provide visibility and accountability as quickly as possible, SAI implemented our Sierra Gold On-Demand solution: a corporate-wide Web-based usage management and reporting system with no up-front capital costs. Implementation costs were included in the monthly service fee for recovery over three years.

We moved quickly to plan and implement the Sierra Gold service across all 52 locations by:

  • Managing the installation of call collection units at each location
  • Converting and importing the Client's employee listing and organizational hierarchy
  • Configuring reporting to reflect the Client's custom tariff rates

After a short pilot period, we assisted the Client with the rollout of the Web-based reporting to over 400 line managers.

Success

  • Usage-related voice costs dropped 12% in the first month after implementation— a savings of $50,000.
  • Net savings should reach in excess of $400,000 annually.
  • The VNSG line managers see the Web-based reports as invaluable tools for managing staff phone productivity.
  • Because of the short ROI they realized on voice usage, the Client plans to increase reporting value and cost savings by incorporating cell-phone usage into the monthly Web-based reporting cycle.