7/29/2019 Bell Solutions Case

1/4

TO: Bell CanadaToronto

FROM: Algoma Business Consultants

DATE: May 28, 2007

SUBJECT: How can Bell Canada solve customers communication problems in an efficient

method?

Recommendations and Implementation:

Short-Term (1 Week)

Segment customers based on type of problem, which are all telecommunications in this case, sothat customer service knows how to assist the customers properly.

Segment customers based on the bill price, then service higher bill prices first because they wouldbe a greater loss for Bell.

Segment customers based on specific need that needs to be addressed to help ensure customersare satisfied with results.

Medium Term (2-4 Weeks)

Specific solutions to each of the four customers needs will be provided. They will be givendifferent options to choose from along with the prices. This will show the customers that their

needs are taken into consideration and that Bell values them as a customer.

Long-Term (5+ Weeks)

Inform customers of promotions and new services provided by Bell to continuously satisfy them. Create bundled package pricing to increase market share in three areas of service they provide

and lower total monthly bills for customers.

Allow Bell cell phones to operate like a land line when at customers residence to attract newcustomers and gain more market share.

Control and Feedback

All four customers will receive surveys either by phone or mail on how their new services are working

and will have a section for any feedback they wish to provide Bell. They will also be called to make sure

that they understand how the features work and the operator can answer any questions that the customers

might have. Their current and next three months bills will also be reviewed to ensure that the new

features have decreased their average monthly bill amount.

Contingency Plan

If the new implications are unsuccessful, other options may be considered. They can return to status quo,

however this will not please the customers and they risk having them go to another telephone provider.

Another option is giving the customers a one month free-trial of the new services that they are interested

in to see if it meets their needs. They will be automatically be billed the following months unless they call

and request to cancel the service. For segmenting, another option may be to categorize them from oldest

to newest customers before deciding who to assist first. The hardest thing for a company is to find and

keep customers so it may be in Bells best interest to satisfy the needs of older clients before anyone else.

7/29/2019 Bell Solutions Case

2/4

Executive Summary

Introduction

Bell Canada started in 1877 by Alexander Graham Bell and Reverend Thomas Henderson. The pair

would lease wooden hand telephones for use on private lines. In 1882 the company began to manufacture

their own telephone sets. By 1892 it was put into the charter that any future increases in telephone rates

must be first approved and regulated. By 1974 customers were able to purchase telephones off the store

shelves to simply plug into pre-installed jack. In 1999 Bell expands its service to the western provinces.

Today Bell is the largest communications company in Canada with several million customers. They

provide television, cell/home phone, and internet services throughout the country. With all the markets

that Bell serves many problems can arise. How can Bell Canada solve customers communication

problems in an efficient method?

Recommendations and Implementation:

Short-Term (1 Week)

The customers must first be segmented into categories before deciding how to address each problem. The

first segment is the type of problem which will between home or cell phone telecommunications, internet

or television. All of the clients fit under the home telecommunications category. The second segment will

be based on the bill price which can be at the bottom, median or top points. The top percentiles will be

serviced first because it would be a bigger loss for bell to lose them as customers. The third segment is

based on the specific needs that each customer has. They could choose any one, or a combination of the

following: long distance, call waiting, caller id, blocking specific numbers, voice mail, call answer, call

forwarding and call tracing.

Medium Term (1-2 Weeks)

Bell representatives will offer specific solutions to each customer as they have different needs to fix their

problem. The customers are listed below along with their segmentations and solutions that Bell can

provide to correct the complication. (Prices based on 2012 rates).

Winston Chen- telecommunications, top 2% bill price, makes frequent calls to Vancouver andSouth Asia but has larger bill than usual. Mr. Chen will benefit from having unlimited world

long-distance which covers 70 countries 24/7 all for $36.90 a month. The basic long-distance rate

without this plan would be $0.69 per minute which is only 53 minutes compared to the monthly

price of $36.90 unlimited. Bell will also give him a small credit to the current bill to keep him

satisfied with the company.

Marie Portillotelecommunications, median price range, missed important calls because of busysignal and makes occasional Mexico/South America calls. Marie will be offered call waiting,which notifies people of incoming calls while already on the phone. This feature is $8.95 a month

on its own or she can receive a new plan that is $35.92/month that includes local calling, call

display and call waiting. Another feature she will be extended is the extra-international long

distance calling which offers extra low rates on calls all over the world for only $4.95 a month.

Eleanor Vanderbilt telecommunications, bottom 10% bill price, receiving obscene calls fromunknown person. A Bell representative will advise Eleanor of the call display feature. This allows

people to see the number that is calling their phone before they answer and is $10.95 a month.

7/29/2019 Bell Solutions Case

3/4

She could also subscribe to the Home Phone Basic plan which is $35.92 a month and comes with

local calling (all of Ontario), call waiting and call display. Bell also offers call tracing which

traces numbers that are making harassing calls and reports them to the police for a one-time fee of

$5.00.

Richard Robbins telecommunications, 75% percentile bill price, noises due to answeringmachine with a few calls to the US. Richard will be informed and offered voice mail which isessentially an answering machine extension attached to the customers number. Also, for

$12.90/month he can receive a 500 minute block of time to make long distance calls anywhere in

Canada and the US 24/7.

Long-Term (3+ Weeks)

Bell Canada will continue to offer new features to their customers on a regular basis. This will be done by

reviewing customers that have relatively high bills (top percentage), calling them and offering services

that Bell already provides to help give more value to the higher bill prices that they are paying. The

company will also send e-mail alerts of new services or special offers to customers that have a Bell e-mail

address or who have provided personal e-mail addresses. This will be done to keep customers satisfiedand discourage their thoughts of possibly switching providers in search of lower prices. The company will

also start what is called bundled pricing, which allows the customers to receive discounts for having

more than one Bell service (TV, phone, Internet). This may also increase the total market share that Bell

has in each category because customers will receive special pricing and will only have one bill. Another

way that Bell can attract more customers is by allowing cell phones to be used as house phones. When the

customer is at their home address they would be able to make domestic calls and have free incoming calls

any time during the day without any extra fees. This would be beneficial for people who travel often, or

have businesses that dont want to worry about different phone numbers and waiting for specific times to

make calls.

Control and Feedback

All four customers will receive surveys either by phone or e-mail on how their new services are working

and will have a section for any feedback they wish to provide Bell. They will also be called to make sure

that they understand how the features work and the operator can answer any questions that the customers

might have. Their current and next three months bills will also be reviewed to ensure that the new

features have decreased the average monthly bills of the top percentile customers.

Contingency Plan

If the new implications are unsuccessful, other options may be considered. They can return to status quo,

however this will not please the customers and they risk having them go to another telephone provider.

Another option is giving the customers a one month free-trial of the new services that they are interested

in to see if it meets their needs. They will be automatically be billed the following months unless they call

and request to cancel the service. For segmenting, another option may be to categorize them from oldest

to newest customers before deciding who to assist first. The hardest thing for a company is to find and

keep customers so it may be in Bells best interest to satisfy the needs of older clients before anyone else.

7/29/2019 Bell Solutions Case

4/4

Bibliography

BCE Inc. (2012).BCE History. Retrieved 05 20, 2012, from Bell: http://www.bce.ca/aboutbce/history/

BCE Inc. (2012).Home Phone. Retrieved 05 20, 2012, from Bell: http://www.bell.ca/Home_Phone

Lovelock, C. (2008). Four Customers in Search of Solutions. In C. Lovelock, J. Wirtz, & H. S. Bansal,Services Marketing (p. 479). Toronto: Pearson Canada Inc. .