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BLUE PUMPKIN IMPROVES CUSTOMER SERVICE WHILE DECREASING COSTS FOR BORDERS GROUP

Company Achieves 53 Percent Agent Productivity Increase With a 33 Percent

ICCM - Chicago, IL - Blue Pumpkin Booth #1025 -July 31, 2001 - Blue Pumpkin Software Inc., today announced that its multi-channel, multi-skilled enterprise workforce optimization solution is a driving force behind Borders Group's (NYSE: BGP) improved customer contact center, enabling it to increase agent productivity by 53 percent with a 33 percent reduction in expenses, while improving customer service levels.

By using Blue Pumpkin's software to plan, execute and evaluate workforce strategies that focus on quality interactions, Borders was able to better balance the demands of its seasonal business, multi-skilled workforce and profitability objectives.

"Borders understands the strategic nature of contact centers and their revenue implications," said Charlie Moore, director of customer service for Borders Group. "Contact centers are a balancing act because you need to deliver excellent customer service and at the same time contribute to the profitability of the company by keeping costs down and producing sales. Blue Pumpkin software clearly enabled us to successfully balance these different factors."

Blue Pumpkin's workforce optimization engine enabled Borders to increase the number of calls handled per agent by 53 percent by allocating agents' time and skills more efficiently and effectively over operating hours.

Dynamic Seasonal Business Requires Insightful Planning Supporting customers by delivering exceptional customer service during the holiday season is particularly essential for Borders Group, which transacts a high volume of its business during the holiday season. During this period, there is an over 35 percent surge in call volume. With so much at stake, ensuring that the right staff was available at the right times was critical.

In addition to planning for highly fluctuating demand, Borders Group had a variety of complex criteria to be considered in developing the optimal schedule that included 15 contact center skills, employee preferences and seniority. Based upon the plan generated by Blue Pumpkin's skill-based workforce optimization software, Borders Group hired short-term temps. Management was able to be very specific on skill and shift requirements, making hiring the right people much easier.

Moreover, by isolating the two most required skills instead of cross-training on multiple skills, Borders was able to get seasonal staff on the phones 33 percent faster, allowing them to be productive in one week instead of three. Borders' plan was successful as demonstrated by achieving customer service levels of 88 percent during the holiday period with most calls answered in under 10 seconds.

According to Borders, the company was also able to reduce turnover of non-seasonal employees from 15 percent to 10 percent. These factors contributed to a 25 percent reduction in overall recruiting and training expenses.

"Borders Group clearly demonstrates the quantifiable gains from using Blue Pumpkin workforce optimization software that directly impact profitability," said Bill Seawick, executive vice president and chief marketing officer, Blue Pumpkin Software. "More and more companies like Borders Group recognize that workforce optimization solutions are strategic to business success, which puts them ahead of the curve in deploying the next wave of enterprise applications."

About Borders Group
Borders Group, Inc., (NYSE: BGP) a FORTUNE 500 company, is a leading global retailer of books, music, video and other information and entertainment items with stores in the United States, United Kingdom, Australia, New Zealand, Singapore, and the commonwealth of Puerto Rico. Headquartered in Ann Arbor, Mich., Borders Group employs 30,000 worldwide and operates over 340 Borders domestic superstores, 17 International Borders stores, 32 Books etc. locations, approximately 860 Waldenbooks stores and Borders.com. Information for journalists is available at www.bgimediacenter.com. Financial data is hosted on www.bordersgroupinc.com and information on Borders stores is available through www.bordersstores.com.

About Blue Pumpkin
Blue Pumpkin is at the forefront of a new wave of enterprise software applications and services for businesses that want to achieve higher levels of employee and customer satisfaction resulting in increased revenue. Blue Pumpkin's multi-channel workforce optimization software helps businesses plan, execute and evaluate strategies that focus on the quality of personal interactions by helping them make the most of their most critical resource: their people. Blue Pumpkin has more than 700 customers in a wide range of industries. Customers include ADP, Apple Computer, Airborne Express, AOL/CompuServe Europe, AT&T, Kaiser Permanente, KitchenAid, TimeWarner Cable and Verizon. For more information about Blue Pumpkin and its products, please visit http://www.bluepumpkin.com

© 2001 Blue Pumpkin Software, Inc. All rights reserved. Blue Pumpkin is a registered trademark of Blue Pumpkin Software, Inc., Blue Pumpkin Software and the Blue Pumpkin logo are trademarks of Blue Pumpkin Software, Inc. All other trademarks are the property of their respective owners. Data contained herein is based on a collaborative validation study between Borders Group and Blue Pumpkin Software.
 
Editorial Contact:
Renee Maler
Blue Pumpkin Software
925-968-9495
rmaler@bluepumpkin.com
 
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