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AT&T Case Study ATG

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AT&T Answers the Call for Greater B2B
Customer Loyalty and Lower Churn

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AT&T Case Study ATG

  1. 1. case study AT&T AT&T Answers the Call for Greater B2B Customer Loyalty and Lower Churn Personalized online experience increases satisfaction and doubles customer acquisition rateTH E C HALLENGE:To build ongoing customer TH E SOLUTION:loyalty through a more personal Keep the online experience relevant and resourcefulcustomer experience AT&T decided to upgrade its online commerce capabilities to support customizedTo compete in the fiercely competitive sites for its business-to-business customers. AT&T chose ATG as the platform forwireless telecom market, every player its online B2B e-commerce site. ATG offered superior capabilities and fulfilled AT&T’sis continually rolling out new offerings, vision of a personalized, highly effective customer experience.pricing promotions, and options.AT&T saw an opportunity to stand out TH E R ES U LT:by building a reputation based on a Better online resources, better customer loyalty,superior customer experience. Getting better bottom linethere required eliminating its home- Using ATG Commerce, AT&T rolled out more than 50,000 unique sites to servegrown legacy systems and re-engineering its customers – all managed centrally from the ATG platform. The wireless carrierits entire e-commerce infrastructure to achieved a dramatic increase of nearly 100 percent year-over-year in new customerprovide accurate and relevant solutions additions and significantly reduced its customer churn rate.for customers seeking online access to itswide range of products and services.
  2. 2. Breaking away from the packAs the largest wireless company in the United States, in 2006 AT&T boasted over 61 millionwireless subscribers to the nations largest digital voice and data network. AT&T’s vision:To be the most highly regarded wireless company in the world, with best-in-class salesand service. With offerings ranging from a robust voice network to sophisticated dataproducts and services, AT&T wants to build a reputation on innovation.Still, AT&T – like all wireless providers – is under tremendous pressure to increase bothrevenue and profits. But cost-cutting measures that result in poor customer experiencesare dangerous in such a hotly competitive environment, where competitors are alsocontinually rolling out new offerings and pricing promotions. Customer churn is anongoing challenge that must be combated by keeping existing customers highly satis-fied, albeit at the lowest possible cost, and by continuing to roll out a broad range ofnew products and services. To create an extraordinary customer experience, AT&T setout to reengineer the process and practices that surround the customer. Its goal wasto create an online buying and service experience for customers that would reducechurn and inspire lasting loyalty.“Treating customers with respect and providing friendly, knowledgeable, and promptservice at all touch points are important goals for us. We wanted to create the best onlinecustomer experience possible across the entire customer lifecycle – from the time wefirst engage them through our marketing programs, to the time of their purchase,through to post-sales customer service. To create that experience, we need to implementboth leading-edge marketing and commerce capabilities,” said Bob Steelhammer, seniorvice president of e-commerce at AT&T.AT&T sought to design an online commerce experience that would meet customers’individual needs and offer exceptional support.Creating the new e-commerce experienceRecognizing that customers feel most loyal to companies that know them and understandtheir needs, AT&T embarked on a business-to-business initiative for its Fortune 1500customers. The wireless leader pursued the lofty goal of setting up individualized sitesfor each of its B2B customers that would serve as full-service e-commerce solutionsthat are convenient, simple, and cost effective to use.Reaching that goal required that AT&T move beyond its current homegrown systemwhich had grown cumbersome and unmanageable. Comprised of thousand of lines ofcustom, hardwired code and no automated capabilities for making changes, the systemrequired excessive resources to manage the site and associated campaigns. Even smallchanges to marketing programs would take weeks – if not months – to implement.
  3. 3. case study AT&T“Treating customers with respect and providing friendly, knowledgeable, and prompt serviceat all touch points are important goals for us. We wanted to create the best online customerexperience possible across the entire customer lifecycle – from the time we first engagethem through our marketing programs, to the time of their purchase, through to post-salescustomer service. To create that experience, we need to implement both leading-edgemarketing and commerce capabilities.” – Bob Steelhammer senior vice president of e-commerce at AT&TThe AT&T team sought a with AT&T, their purchase history, their market, their negotiateddynamic commerce platform that would: pricing model, etc. Customers can use their site to make purchases• Help each business customer meet its own specific needs by as well as to manage their accounts. For example, they can check creating customized sites for each customer; offering a one-stop their usage information, inquire about their rate plan, set up a resource for wireless service, equipment, and accessories; and new line of service, and more. enabling new employee account activation online. “The online experience we deliver through the ATG platform• Enable the AT&T team to manage the sites centrally with a would have been unthinkable on our previous system. Now we are single platform. able to create totally different sites for each customer with a• Improve efficiency by enabling online account management and skeletal support staff,” said Wong. giving customers access to analytic tools that would quickly report on usage, rate plans, billing information, etc. AT&T further enriches the online experience by using scenarios• Streamline the customer purchase and delivery cycle by integrating defined with the ATG e-commerce platform. ATG helps AT&T learn with the customers’ enterprise procurement systems and other about, adapt to, and respond to its customers’ changing needs and approval mechanisms. preferences. It then automates the process of leading the cus- tomers toward a desired outcome (such as making a purchase, ful-After a thorough evaluation process headed by an independent filling a service need, or accessing information). ATG does this bye-commerce consultant, AT&T selected ATG. “ATG Commerce met automatically creating customer profiles based on the attributesall of our key criteria,” said Gilbert Wong, at AT&T. “Its customization set by the AT&T team. It updates customer profiles continuously,and personalization capabilities were head and shoulders above based on interactions that the user executes online, as well asthe other options we reviewed. Plus, ATG introduced capabilities other events. Using that information, AT&T then drives pre-de-that we really felt would be advantageous in the build-out of our signed dialogues that automatically adapt as customers’ behav-commerce platform, such as its integrated catalog, scenarios, and iors or actions change. For example, a customer who looks intoadvanced promotional capabilities.” purchasing a BlackBerry device and then researches a pricing plan for data and voice service can be encouraged to complete theDelivering a customized, transaction by automatically receiving a discount on the Black-optimized e-commerce experience Berry device.With ATG in place, AT&T now serves its online customers in a timely,relevant manner that vastly improves the customers’ online shop-ping experience. AT&T delivers personalized content that targetsspecific customers, using some 150 different elements that can bevaried based on a customer’s unique profile. As a result, differentcustomers gain a unique and relevant experience based on theirrelationship
  4. 4. case study AT&T AT&T also uses ATG’s targeting capabilities in its online marketing campaigns. Using information gleaned from customers’ behaviors on To date, AT&T has created their sites, the AT&T team identifies areas of particular interest and offers relevant promotions. For example, if a customer visits the site 50,000 unique sites for its and shows interest in a particular phone, but doesn’t complete the sale, a personalized e-mail can be sent automatically to that customer different B2B customers, with a promotional offer for the phone. all centrally managed on the Keeping customers loyal with a personal touch ATG platform with significantly To date, AT&T has created 50,000 unique sites for its different B2B customers, all centrally managed on the ATG platform with significantly fewer resources than were fewer resources than were required to manage the old system. With required to manage the old this new platform in place, AT&T achieved a dramatic increase of nearly 100 percent year-over-year in new customer additions and, at the same system. With this new platform time, significantly reduced its customer churn rate. in place, AT&T achieved a “The growth we realized with the new platform was tremendous. We believe this increase is due largely to the customized, relevant dramatic increase of nearly customer experience we can now provide. The use of custom pricing we deliver with scenarios, the personalized campaigns we create 100 percent year-over-year in with ATG’s personalized promotional capabilities, and the highly relevant feature items we display to individuals using ATG’s targeting new customer additions and, capabilities are all letting us continually delivering one-of-kind at the same time, significantly experiences for our customers day after day,” said Wong. reduced its customer churn rate.about ATGATG (Art Technology Group, Inc., NASDAQ: ARTG) provides the e-commerce platform and e-commerce optimization services that the world’s most customer-conscious companies useto power their e-commerce Web sites, attract prospects, convert them to buyers and ensure their satisfaction so they become loyal, repeat, profitable customers. Our e-commercesuite is ranked the #1 current offering and #1 in strategy by the industry’s most influential analyst firms, and powers more of the top 300 internet retailers than any other vendor.Our eStara brand of e-commerce optimization services – including the world’s most widely used click to call offering – dramatically increase conversions and order size and enhancecustomer support. ATG’s solutions are used by over 900 major brands, including AT&T, Best Buy, Bulgari, Coca Cola, Continental Airlines, CVS, Dell, Diane von Furstenberg, DirecTV,eLuxury, El Corte Ingles, Expedia, France Telecom, Harvard Business School Publishing, Hewlett-Packard, Hilton, HSBC, Intuit, Jenny Craig, Louis Vuitton, Macy’s, Mercedes Benz, Meredith,Microsoft, Neiman Marcus, New York & Company, NutriSystem, OfficeMax, PayPal, Philips, Procter & Gamble, Sears, Sony, Symantec, Target, T-Mobile, Tommy Hilfiger, Urban Outfitters,Verizon, Viacom, Vodafone and Walgreens.©2008 Art Technology Group, Inc. ATG, Art Technology Group and the ATG logo are registered trademarks of Art Technology Group. All other trademarks are the property of their respective holders.NASDAQ:ARTG AT0808_0308