Re-think your channel migration expectations

The rationale behind the drive for local authorities to encourage more people online and to deliver more services over the web is that it is a less expensive fulfillment option which can achieve significant savings.

The reality, though, is somewhat different. 

While there may be the opportunity for cash savings to be achieved at some point, the real benefits of channel migration come through the creation of a better environment for engagement with customers.

SOCITM tells us that a face-to-face service delivery costs £8.23 per transaction, that a telephone call costs £3.21 and that online delivery costs pennies. The generally accepted business case is that, if you can shift cost-bearing interactions to cost-free online options, the resulting savings can be significant.

Management loves to hear this kind of talk and is often the stimulus behind digital communications programmes being given the green light.

The problem is that, while online delivery of services is more convenient for both the customer and the authority, these efficiencies do not necessarily translate into immediate cash.

Shifting 10,000 telephone calls to web self service will not result in £32,100 in your pocket; the saving would only be achieved over time by reducing staff and fixed infrastructure or asset costs such as premises and systems.

Some aspects of channel migration can achieve immediate cash savings; eg sending communications by email or appointment reminders by SMS instead of by post where the financial requirement for print and delivery is reduced. Or discouraging payments to be made by cheque.

A dedicated programme of digital communications and social engagement will encourage more customers to visit your website more regularly and, over time, will enable more services to be delivered through the low-cost rather than the high-cost fulfillment options.


In addition, you will build the foundation for longer-term customer engagement - which brings a whole host of collaborative and service-oriented benefits.

Customers will believe in your ability to work on their behalf; to better understand and have respect for your decisions; and to think more favourably of you.


This is the true value of channel migration.


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