Case Study: Magellan achieves a 56% reduction in support operating expenses with Velaro live chat

Reduced Operating Support Expenses in Less Than Two Years

Magellan, the Santa Clara–based GPS navigation and consumer electronics company, faced rising technical support costs—about $1.5M annually—and heavy phone volume (more than 200,000 inquiries, 66.9% by telephone). To improve contact center efficiency, Magellan selected Velaro and implemented Velaro live chat to redirect inbound support from costly phone calls to web chat.

By deploying Velaro live chat, Magellan shifted roughly 30% of inquiries to chat, cutting telephone contacts from 66.9% to 33.1% and reducing support spend from $1,480,000 in 2013 to about $840,000 in 2014 (a 43% reduction) with a 2015 run rate near $650,000 (55.8% below 2013). Velaro’s features—simultaneous chat sessions, pre‑written responses, click‑to‑chat and proactive invites—allowed agents to handle multiple conversations and delivered the measurable cost and productivity gains.

Magellan

Hanam Vuong

Senior Manager of Customer Advocacy