Today we’re excited to share a new tool to help customer service, trust & safety, and risk teams evaluate whether Modria’s online dispute resolution (ODR) platform will deliver positive ROI. We call the tool Return on Resolutions™, and you’ll find it at the link at the bottom of this blog. Before you jump there (and we hope you do!), let me tell you the story behind the tool.
We’ve been fortunate to have hundreds of conversations with online marketplace ops teams, as well as conversations with a wide range of other organizations doing commerce online. From those discussions, we’ve discovered a pattern of customer service technology adoption.
Ops teams constantly strive to strike a balance between service, cost, and fraud prevention to create a trusted marketplace environment which, in turn, allows assortment, features, and marketing to drive transaction growth. As transaction volume scales, however, so do the demands on the ops team.
Early on in a marketplace’s customer service (CS) lifecycle, all of the issues from buyers and sellers can be managed by a small team. All cases are handled manually (even on small CS teams). With growth comes the need to add staff, process, policies, and of course technology. So, CS turns to Product and IT and starts to build or buy tools. This is where the pattern of technology adoption emerges, and it goes like this:
What we’ve learned is that right around “Make it Macro” and “Harmonize Policies” the case volume is hitting 300 to 1,000 issues a month that are getting escalated to dispute resolution, which is the most challenging subset of the total customer contact volume. It’s at that point the CS team writ large realizes that the software tools used in the early days are no longer robust enough to support the workflows needs to manage “resolutions” (case volumes).
Exactly WHO owns this problem is part of the challenge. Is it Product? Is it the Fraud team? Inbound CS? Or the T&S team? It’s not necessarily clear from organization to organization who will own it. But it is clear that the online marketplaces that successfully navigate this transition smoothly see higher gross margins and higher buyer reactivation.
This pattern has been consistent across companies, and we get pulled in right when the team is asking whether it’s worth either building or buying a solution to improve the resolution journey for customers while at the same time reducing costs. And this is where we get asked, “What is the return on my investment in Modria?” We love this question! After all, we’re all about data. Here’s the best way to unpack the Modria ROI question:
- If today, I spend x dollars on labor and y dollars on “protection payments”
- Then, after putting in Modria, will the savings in labor and/or protection payments be more than what I end up spending on the Modria subscription? If so, by how much?
To make this wicked easy, we built a Return on Resolutions™ calculator so you can answer this question for yourself.
As you play with the RoR tool, you can be confident that we didn’t puff this up with the soft savings that also come from having a robust online resolution process (things like buyer reactivation growth). Instead, we made it easy for you to play with assumptions and see the business case.
Let us know what you think.