A leading mobile network company faced a significant issue with its customer contracts. At the end of a 24-month handset and network contract, the company continued charging customers for handsets even though the contract stipulated that payments for the handset should cease. The onus was placed on customers to cancel the contract manually, an approach that was neither transparent nor customer-friendly.
Using the I.M.P.I. ™ Model (Idea, Model, Protocol, Implementation) developed by Joseph Ngala as outlined in the book, “I.M.P.I. ™ From Outsider Thinking – The Why and How,” we can determine that the technology used to manage billing and agreements can be configured through a protocol that automatically stops payments for the handset after the 24-month contract, regardless of whether a new contract is requested. The network usage can also be automatically reviewed based on the defined period by the company. It should have been ensured that the payment for the handset stopped automatically, giving the customer the option to keep their phone and switch to a SIM-only plan or update to a new handset.
Application of the I.M.P.I. ™ Model to solve this systematic issue:
Applying the I.M.P.I. ™ principles (Idea, Model, Protocol, and Implementation) to address this issue, the following approach was taken:
Idea
The core idea is to ensure that customers are billed accurately and ethically, as per the terms of their contracts. At the end of the contract term, Three should transition customers to suitable plans automatically or provide clear options, such as switching to a SIM-only plan or upgrading to a new handset.
Key Insight: Billing practices should prioritize customer fairness and eliminate unnecessary manual actions on the customer’s part.
Model
A conceptual framework was designed to identify gaps in Three’s contract and billing processes. The model highlighted the four critical areas requiring improvement:
- Individual: Customers should experience fair treatment and accurate billing aligned with contractual agreements.
- Machine: The billing system must automatically recognize the end of a handset contract and adjust charges accordingly.
- Process: A robust, automated process should be implemented to stop handset charges at the end of the contract term and seamlessly propose new options.
- Interface: The customer interface should clearly communicate contract terms, remaining handset payments, and available options before the contract ends.
Protocol
Protocols were developed to ensure seamless execution of the new model.
- Customer notifications: Three should notify customers 60 days before the contract end, outlining upcoming changes and offering tailored options such as SIM-only plans or handset upgrades.
- Automated billing system: Billing systems must be updated to automatically cease handset charges once the contract term ends unless the customer opts to upgrade or extend.
- Transparent processes: Clear terms and conditions should be established, ensuring customers are fully aware of their rights and responsibilities.
- Feedback loops: A feedback mechanism should be implemented to address customer concerns promptly and improve system accuracy.
Implementation
The model was put into action through the following steps:
- System upgrade: Three invested in a robust billing system capable of automatically transitioning customers at the end of their contract.
- Customer communication overhaul: New communication protocols were implemented to ensure customers received timely and transparent updates regarding their contracts.
- Staff training: Employees were trained to handle customer queries effectively and guide them through contract transitions.
- Monitoring and evaluation: Continuous monitoring ensured that errors were identified and corrected swiftly, fostering trust and satisfaction among customers.
Outcome
By applying the I.M.P.I. ™ Model, Three was able to:
- Eliminate unethical and inaccurate billing practices.
- Increase customer satisfaction through transparent communication and fair treatment.
- Streamline internal processes, reducing manual intervention and error rates.
- Strengthen its reputation as a customer-centric company, ultimately driving retention and loyalty.
Strategic Takeaways
By adhering to the I.M.P.I. ™ principles, the root causes of the issue can be identified and corrective actions can be implemented to ensure fair treatment of customers and ethical use of technology.
It is crucial for the company to address these issues and deliver a transparent and fair resolution to customers. This requires a comprehensive and transparent approach, considering factors like Intellectual Independence and diffusion of responsibility, to establish protocols that prioritise customer interests over profit.
This case example emphasises how corrupt leadership can exploit customers using technology. In this situation, large organisations using technology train their agents to focus solely on financial gain without considering the customer’s needs. For instance, in this case, the agent directed the customer to renew or cancel the contract without addressing the existing payment issue.
The application of the I.M.P.I. ™ model in this scenario helps identify where the system breakdown occurred and provides a framework for rectifying it. Additionally, this case underscores the significance of leadership and organisational culture in prioritising customer interests over profit. The I.M.P.I. ™ Model, through its “Step Further Solution” approach of how we can regulate technologies, can help regulators to establish standards and more proactive idealised regulatory frameworks to tackle such issues.
In conclusion, addressing issues like the one presented in this case requires a balanced approach that considers both technological and ethical factors. For investors and business leaders, this case showcases how structured methodologies like the I.M.P.I. ™ Model can drive sustainable, customer-focused improvements in both processes and outcomes.
In conclusion:
- Focus on customer interests over profit maximization.
- Leverage technology and transparent processes to address systemic gaps.
- Demonstrate a commitment to ethical business practices, setting a standard for the industry.