Financial impact on VOIP

Financial impact on VOIP - The Financial Services Industry...

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The Financial Services Industry and Voice over Internet Protocol (VoIP) CHAPTER 1: INTRODUCTION Executive Summary The market dynamics that are leading to the significant adoption of) are being driven both from a cost reduction but also from a greater customer relationship management (CRM) perspective. VoIPs’ adoption varies significantly across industries, with financial services being one of the more conservative in its adoption of this technology at the high end of the industry due to security concerns and a high level of investment in existing telephone switching equipment and services. The mid-tier and low-end of the financial services marketplace however are leading adoption of VoIP technology, driven by the need to stay more focused on key customer relationships. The high end of the financial services market focuses on technologies that deliver enhanced data analytics, and the low end of the market is increasingly focusing on having a single view of their customers, strengthening relationships with them in the process. VoIPs’ early adopters in the financial services industry are more concerned with being able to stay connected with customers while significantly cutting the cost of calls and alleviating price premiums paid to traditional telephone service companies. The motivations financial services companies have in adopting VoIP as a long-term replacement for Public Switch Telephone Network (PSTN) service include cutting the costs of internal and external communications, accomplishing lower bandwidth expenses, enabling 360 degree views of customers by using both data and voice- Page 1
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based applications that enhance business processes that are customer-facing, optimizing existing infrastructure resources including a heavy reliance on Service- Oriented Architectures (SOA) and Web Services, and most critical to IT organizations, the simplifying of management of distributed architectures leading to a lower overall cost of operations. Taken together all these factors are driving the largest financial institutions to evaluate VoIP at the Chief Information Officer (CIO) level primarily as a cost reduction strategy. Yet the early adopters in mid-size and small financial services firms are relying on VoIP as the foundation for their multi- channels strategies, often linking their Internet sites and Call Centers to drive up customer satisfaction, strengthen their 360 degree view of their customers, implement more effective cross-selling and up-selling strategies online, balancing customer value and call center load in the process. This last point is accomplished when VoIP is used as the foundation for creating a synchronized online and call center strategy, where customers can seamlessly transition from one channel of communicating with the company to the other. The concept of Click-to-Callback is based on giving customers the option of either using website-based VoIP communication tools versus calling in and speaking with a call center representative. SouthTrust Bank has successfully implemented this strategy while accomplishing a
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This note was uploaded on 09/02/2011 for the course BUS 200 taught by Professor Dr.rice during the Spring '11 term at ECPI College of Technology.

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Financial impact on VOIP - The Financial Services Industry...

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