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It was only ever a matter of time before Virgin broke in to the mobile phone
market. The conditions were perfect: massive public confusion over tariffs; an
array of different operators; and very poor customer service all round.
Virgin knew it could put things right. Its reputation for
straight-talking and good value, backed by the best possible
service was just what the mobile phone generation needed. It was
natural Virgin territory. Since launch Virgin Mobile has grown
rapidly and now has in excess of four million subscribers.
background
When Virgin set its sights on the mobile phone market, it knew it
had to take a radically different approach from everyone else.
First, it wanted to make it easier for customers by offering a
single tariff system, but a wide choice of phones. Second, all its
handsets would be equipped with advanced e-commerce facilities so
users could access online Virgin services such as discount
holidays, flights and CDs. Third, Virgin would provide superb
end-to-end customer service via the internet, telephone and retail
outlets. In short, Virgin set out to turn the whole mobile phone
market upside down.
delivering the virgin promise
Virgin Mobile was under no illusions about the challenge it faced, especially with
customer service. It wanted to able to sell phones through all the different channels
simultaneously and offer the same service, the same stock information and give the same
delivery promise to everyone.
That meant having a back office system, linked to all the sales channels, that would
provide consistent stock control data, order processing and delivery. In other words,
no matter how people contacted Virgin Mobile, they would get up-to-minute information
and spot-on service.
There was no shortage of companies offering a solution. The problem was that Virgin needed
proven technology, something its managers could see working in front of them before
they signed on the dotted line. Secondly, they wanted the whole system up and running
in just nine weeks, so they would be ready to launch the business in time for the peak
buying season.
Most IT companies failed on both counts: all they could show was a theoretical solution
that might work, and they needed months of development time to implement their software.
However, Virgin finally found the right partner in Strategix and its enterprise management
system that integrates the needs of high volume distribution and e-commerce. The Strategix
team were able to demonstrate their system immediately and make a firm commitment to meeting
Virgin's demanding launch schedule.
Even before the ink on the contract was dry, the Strategix team got started on the
project. They worked day and night and over every weekend to complete the implementation
and test the system so that it was ready and working on the day Virgin Mobile launched.
the multi-site solution
The focal point of the Virgin Mobile operation is the Customer
Service Centres which, with approaching 1,000 seats, handle any orders placed via the phone or the Virgin Mobile
web site.
Strategix Business Components have been embedded into the call handling software at
the Customer Service Centres and into the web site. These components ensure seamless integration between
these front ends and the full Strategix enterprise management system. This guarantees
that everyone gets consistent real-time information about stock availability and the
same level of service, whether they call in by phone, access the web site or make contact
through a retail outlet.
Once an order is placed, it is processed immediately. Credit card authorisation is automatic,
the stock is allocated in the warehouse, accounts are updated and the despatch process is
started - all within a few seconds of the customer confirming the purchase.
Over 30 warehouse staff in Virgin Mobile's warehouse in Daventry have access to Strategix,
which provides both internal and external logistics support. It is also integrated with
the delivery system used by Virgin Mobile's carrier.
Strategix is also heavily used at Virgin Mobile's headquarters in London, where some 50
managers use it to monitor sales, check buying patterns and ensure that the whole order
processing and delivery system is running smoothly.
Strategix also manages product returns for Virgin Mobile. It handles pick-ups from
customers and cross-checks that all the necessary items have been returned. In addition,
Strategix monitors the product regrading process and amends stock records once the
products have been checked for quality and put back into the system, automatically
crediting customer accounts where appropriate.
system performance
The Strategix system was given a baptism of fire, according to Andrew Ralston, Customer
Relationship Director of Virgin Mobile. "We launched Virgin Mobile just before the busiest
buying season of the year, so Strategix was in at the deep end. It had to work perfectly
right from the start."
Virgin Mobile sold tens of thousands of phones in the first weeks of its operation, and
the business is growing faster than anyone expected with sales flowing through all three
channels. "We have been especially pleased with the way the web channel has been working,"
added Mr Ralston.
As for Strategix, Virgin Mobile is delighted with its solid reliability. "Strategix
does the back office job very well. It was a pretty tall order for it to do all the
things we wanted, but so far it has delivered and we are pleased with the level of
support we receive from the Strategix team," said Mr Ralston.
the benefits
Strategix has helped Virgin Mobile live up to its promise. Virgin really is changing
the way the mobile phone industry works and is setting new standards of customer service.
Much of the success is down to the efficiency of its back office.
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