Bob Explains… Mattersight Hype, Deconstructed

MATR-Call-Math-2015Bob, in additional reflection on the 2,000 seat routing engagement announcement:

If this customer applies the MATR solution to 2,000 agent positions and with an uber-conservative, fully-loaded cost of $50,000/yr (comp, benefits, facilities, tech, telecom, management, etc) then this customer is spending on the low end, $100 million dollars a year for their customer service operation (but likely more as this would be applied to the best, most expensive agents).

If MATR’s solution can provide the claimed benefits, then such a customer could save $10-$30 million per year and achieve the same results, or increase revenue by a similar amount (assuming the cost of the operation is equal to or less than the value it generates.

Either MATR is leaving money on the table because they lack pricing power due to their precarious financial situation which the customer uses against them in contract negotiations, or the solution doesn’t provide the benefits claimed and the business-case justifications aren’t realized….

That analysis is… Spot on, sez me.