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Can you help ZedCar reduce their customer service costs?

Updated: Apr 12

Here is a typical case interview question of a medium complexity. Can you solve it? Example answer is available here.


Context

ZedCar is a car-sharing club, based and operating in London. In order to support customers with breakdowns and accidents, they set-up a customer service team which operates 24 hours/day, 7 days/week.


They’ve started small with only a few customer service representatives in London, but the high growth drove a 10-fold increase in size of the customer service centre and they now occupy a full floor in ZedCar’s HQ. As a result ZedCar are thinking about relocating the customer service centre to the North of the UK, where wages and real estate costs are generally lower.

Q1: What factors should ZedCar consider when making the decision?


Q2: ZedCar's COO is particularly interested in evaluating Newcastle, UK as the new location. Based on the exhibits below, how long will it take ZedCar to breakeven on the costs of the move?

Note: 100 jobs (FTEs) need to move; assume none will be willing to relocate (300 miles)

Q3: In addition to relocation, ZedCar COO is looking for ideas to further reduce the cost of the call centre. What would you suggest her?

Recommendation: As your team is discussing the case over lunch, the CEO walks in looking for an update. The team looks at you, what will you say?

Feel free to post your questions or answers in the comments. Don't forget to review the preparation plan for tips on approaching this and other cases. Book a coaching session to get expert feedback on your performance and ways to improve.

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ABOUT US

Consulting Case PRO was started by Ben Gutkovich.

Ben is a former Engagement Manager with McKinsey & Company and an MBA graduate from London Business School. At LBS, Ben secured offers from McKinsey, BCG and Bain. At McKinsey, he led the firm’s recruiting efforts at top UK universities.

 

Ben helped 100+ candidates secure an offer from top tier consulting firms since leaving McKinsey, and started Consulting Case PRO to give more candidates access to his exclusive interview preparation techniques. 

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