29 Oct 2026
John Callachan - GoFusion - Why Customer Resolution Matters More Than Cost Reduction
CX Files Episode 437: John Callachan – Why Customer Resolution Matters More Than Cost Reduction
Guest: John Callachan, Director, GoFusion, UK
Hosts: Mark Hillary and Peter Ryan
Published: 29 October 2026
Episode Summary
Is the customer experience industry becoming too focused on reducing costs and avoiding customer interactions rather than actually solving problems?
In episode 437 of the CX Files, Peter Ryan talks to John Callachan, Director of GoFusion, a UK-based business transformation advisory company. Drawing on decades of experience in Business Process Management, outsourcing, and business leadership, John challenges several assumptions about how customer experience should be delivered.
John argues that businesses have become obsessed with offering more contact channels, introducing automation, and reducing the cost of customer interactions. But these investments can be counterproductive when they fail to address what customers actually want: recognition, empathy, and a resolution to their problem.
The conversation also explores how automation is transforming the role of contact centre agents, why companies need to rethink training and compensation, and why the relentless pursuit of cheaper outsourcing may ultimately damage customer relationships.
Key Topics Discussed
1. More contact channels don't necessarily create better CX
John challenges the assumption that customers need access to every possible communication channel. Offering telephone, email, chat, and social media support is meaningless if the channels operate independently. Companies should design connected customer journeys around how people want to interact, rather than simply adding more channels.
2. Customer resolution versus contact deflection
Too many organisations use technology primarily to deflect interactions and reduce costs. John argues that unresolved problems inevitably return, creating additional contacts, increasing costs, and damaging customer loyalty. The objective should be resolving the customer's problem, not simply removing an interaction from the contact centre.
3. Customer experience is a long-term investment
Companies that build their entire business around customer needs can create sustainable competitive advantages. John highlights examples from the UK energy and travel markets to illustrate why customer-centric businesses can outperform competitors over time.
4. Automation is making human customer service more demanding
As AI and self-service technology handle routine enquiries, human agents are increasingly left dealing with complex complaints, disputes, vulnerable customers, and situations requiring genuine empathy. The industry is removing the simpler tasks without fully recognising how demanding the remaining work has become.
5. Contact centre agents need better pay, training, and career opportunities
John argues that the traditional model of treating customer service as a low-skilled, entry-level occupation is increasingly outdated. Agents now require advanced problem-solving abilities, emotional intelligence, and knowledge across several disciplines. Longer training periods, better compensation, career development, and support for mental health are essential.
6. The dangers of outsourcing based primarily on price
Despite years of industry discussion about moving beyond labour arbitrage, John observes that outsourcing providers continue to compete by undercutting one another. Clients often treat outsourcing as a commodity purchase, without examining whether the price allows sufficient investment in people, training, and service quality.
7. Outcome-based pricing alone won't fix outsourcing
Although outcome-based commercial models are attracting increasing attention, John argues that changing the pricing mechanism cannot resolve the industry's deeper problems. Clients and BPO providers need to develop genuine partnerships that balance commercial performance with long-term investment in people and customer outcomes.
The Bigger Question
John's central message is that customer experience should not be treated simply as an operational cost that needs to be minimised.
Businesses need to reconsider what they measure, how they invest in their employees, and whether outsourcing relationships are genuinely designed to support their customers over the long term.
The real measure of successful customer experience isn't how cheaply a company handles an interaction. It's whether the customer gets their problem solved and wants to come back.
Connect with John Callachan
John is Director of GoFusion, an advisory business helping companies translate strategy and operational transformation into measurable business outcomes.
Find John on LinkedIn or visit go-fusion.co.uk to learn more.
https://www.linkedin.com/in/john-callachan-7376981/
The CX Files is hosted by Mark Hillary and Peter Ryan, exploring the people, businesses, and ideas shaping the future of customer experience and business process outsourcing.
