Case study - Repairing refunds

Flight Centre Travel Group (FCTG) is an iconic Australian business that has had much success since its founding and operates globally. Many digital travel agencies have arisen over the years and have threatened FCTGs business model.

We were tasked with supporting their digital transformation to compete with the likes of Booking.com and Expedia by ironing out many friction points in their fragmented Retail and Digital divisions, creating a true OMNI Channel experience.

Outcome

Outcome

Improved refunds experience for both customers and employees through greater transparency, reduction of agent processing delays and significantly improved and digitised process. NPS and eNPS results improved as a result.

Capabilities used

Service Design
Python
Strategic Design
UX Design
The problem

Both customers and employees were constantly complaining about Flight Centres clunky refund process.

Part of the refund process was for Flight Centre to wait for Airlines to process the refund back to Flight Centre before the refund could be processed back to the customer.

This would take approximately 12-18 weeks and was assumed to be the cause of all refund complaints.

Description of image 1
The key insight

48% of all service related complaints were refunds. 40% of refund delay complaints relate to delay in agent processing rather than supplier delays.

This insight highlighted that a process and system improvement within Flight Centre could significantly improve both customer and employee experience.

Refunds data split
Querying data with python
Challenges

Many Flight Centre leaders were under the impression that despite the high volume of refund complaints, the root cause was not worth solving as the problem was on the supplier end.

The insights our team generated from our discovery proved that there was much within the remit of Flight Centre to work with and improve the refund experience for both customers and employees.

Insight summary
Insight detail
The approach

Before jumping right into discovery, we like to gather resources and documents from teams across the business so we can leverage the work that has already been done, avoiding duplication and unnecessary re-work.

We received many PPTs, PDFs, and Excel documents from various teams across the business around both customer and employee complaints.

We then used our Python programming capability to run queries across all documents drawing findings and insights about attitudes, behaviours and verbatim about refunds from both customers and employees.

This helped us draw the initial key insight that most refunds were a result of an agent processing delay instead of supplier delays. This insight helped us form the narrative to present to the executive team that the initial perception of refunds being outside Flight Centre’s control was not being backed by data.

Refund Python queries
Stakeholder map
Synthesis example
The impact

Our service blueprint and insights deck highlighted the friction points across the entire refunds experience (retail & online) for both customers and employees.

We also provided recommendations to better digitise and streamline the refunds process so ensure agent processing delays were reduced to <2% and provide greater transparency for both customers and employees.

Results of working with Saj
NPS improvement
18 point
eNPS improvement
15 point

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