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Dumb Delta
E-Loan offers customers a choice of processing their loan paperwork in 12 days using all-domestic workers or 10 days by bringing on some workers in India, 85 percent choose the quicker turnaround.
Delta is now considering something "similar," charging a fee to have calls handled by U.S. agents. What genius came up with this? You don't need to be a behavioral economist to predict that framing the deal this way just won't fly. Instead, offer your customers a new option; lower prices if they choose to use overseas agents. Or, as Gary Leff suggests, offer the customers shorter wait times. "All our US agents are busy right now, would you like to be directed to an overseas agent for immediate service?"
Posted by Alex Tabarrok on July 31, 2004 at 07:40 AM in Economics | Permalink
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Outsourcing Delivers Hope to India:By means of the Internet, Natarajan and nine other E-Loan underwriters -- college graduates who earn between $220 and $330 per month, a fraction of what E-Loan pays its U.S. employees for the same work --... [Read More]
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