Monday, November 24, 2008

Seven Keys to Cutting Costs Effectively

Because of the nature of random call arrival and the reality of queues, simply reducing costs across the board does not work well in a customer contact environment. Insufficient staff or other resources can quickly lead to long customer queues, additional contacts and intolerable agent occupancy rates.

Those who get the best results are more savvy – they focus on leverage points, and have an organizationwide perspective. Here are seven key principles to keep in mind as you look for ways to minimize and reduce expenses:

1) Clarify your strategy and approach. Before making major changes, it is essential that your internal management team agree on the services the call center will provide. Your “customer access strategy” should define issues such as the customer segments you will serve; access channels (telephone, email, Web, etc.); telephone numbers, email addresses, URLs; hours of operation; service level objectives; services provided; and how you will capture information on customer interactions to strengthen processes, products and services. Without this strategic framework, cost cutting efforts are likely to head off in many unrelated directions.

2) Identify organizationwide opportunities. Rather than focus on cost-cutting in a vacuum, look for ways to maximize cross-functional resources. For example, marketing managers may be willing to provide the call center with budget to capture and analyze information on consumer trends and expectations, when shown they can save money on target marketing. Similarly, maintaining effective after-sales services can provide valuable research and development input, leading to sustained market share, better sales and money-saving process improvements throughout the organization.

3) Redouble your efforts to prevent unnecessary and unprofitable contacts before they happen. Chances are, about 20 percent of call types account for something like 80 percent of the call load your center handles. In the context of your customer access strategy, explore options for preventing, handling or deferring a greater percentage of these contacts – versus trying to cut back across the board.

4) Pool agent group resources as feasible. The powerful pooling principle is an immutable law – all things equal, if you take small, specialized agent groups, effectively cross-train them and put them into a larger group, you’ll have a more efficient environment. The objective should be to keep things as simple and pooled as possible without jeopardizing the services specific contacts and customers require.

5) Optimize staffing and schedules. Being even slightly understaffed will cause big problems in terms of low service levels, high occupancy and heavy telecom network usage. On the other hand, those increments (i.e., half hours) of the day producing service levels of 100% may indicate that you have far more people at those times than needed. Getting forecasting, staffing and scheduling tuned up is a sure path to better cost performance – and customers, employees and shareholders all come out ahead.

6) Work on process improvements. Errors and process inefficiencies are particularly troublesome in call centers – they consume valuable staff time, drive up network costs, and contribute to repeat calls. The good news is, even modest improvements to processes can yield dramatic results.

7) Keep your eye on the biggies: customer loyalty, revenues, and market share. Customer expectations are evolving rapidly and customers are more sensitive to perceived value and service than ever. In an uncertain economy, customer care has become a key battleground, and it’s important to assess decisions in the context of how your customers will be impacted. In other words, don’t let short term measures undermine longer term success. These decisions require foresight and a healthy dose of good instinct.

Brad Cleveland
Senior Advisor; former President/CEO ICMI

Brad is passionate about helping organizations improve the effectiveness of their customer contact services. As former President/CEO and longtime owner of ICMI, Brad led the firm to international recognition and an eventual sale to Think Services. He now serves as a Senior Advisor to ICMI/Think Services and delivers keynotes and consulting across the globe. Brad is author/editor of eight books, including Call Center Management on Fast Forward, which received an Amazon.com best-selling award. He can be reached at bcleveland@think-services.com.

Tuesday, November 18, 2008

2008 “Product of the Year" Runner-Ups


While most publications in our industry like to jump on the “hot product” bandwagon, I enjoy writing about the contact center solutions that just missed making a big splash. I’ve always been a sucker for the underdog in general– those smaller yet noble competitors that persistently fight and claw and scratch in an attempt to make it to the top, only to get squashed in the end by a stronger player with more experience and a bigger exhibit booth budget.

The following new contact center tools and applications may not have won any awards or gotten much press this past year, but that doesn’t mean the vendors that supply them don’t know how to send me gifts in return for a little recognition.


CustomerCoercion™. These days it’s all about the customer, and this innovative, though controversial, tool – from Goomba, Inc. – will help just about any contact center achieve high customer satisfaction ratings.

CustomerCoercion is a robust automated post-contact survey system that asks callers about their experience immediately following an interaction with an agent. What makes this survey tool so unique is that, rather than alert a manager whenever the system detects an unsatisfied customer, CustomerCoercion suggests that the customer seriously reconsider his or her survey responses.

For example, let’s say a customer, while responding to the post-call survey, rates the agent poorly on “product knowledge”; before CustomerCoercion logs the customer’s survey responses, the system might respond with “Do you want to know what happened to the last guy who said our agents were stupid?”, then ask the customer if they want to change their rating. Or if, for example, the customer indicates via the survey that their issue was not fully resolved, CustomerCoercion may come back with, “Is that so? Well, how bout I come over to your house and resolve all your problems, buddy?”

In early focus-group testing of the CustomerCoercion survey tool, customer satisfaction rates increased by an average of 75% among 25 participating contact centers. When asked whether such threat-based improvements were truly valid, Goomba, Inc. President Joey Mancuso said that if we ever questioned his company’s methods again, he’d punch our families in the stomach.


MindShift Headsets™. Voices Calling, LLC., the makers of this innovative product, believe that it’s no longer enough for headsets to merely be comfortable and provide clear sound quality; they need to also subtly alter agents’ natural thought patterns and emotions to help reduce depression, anxiety and turnover.

A recent study by the National Institute of Apathy (NIA) revealed that contact center staff are five times more likely than any other employee type to cry on the job, and seven times more likely to hold their supervisor hostage in an abandoned shed. No doubt that the agent position is a highly taxing one, which is why Voices Calling created MindShift Headsets – the only headset on the market that whispers encouraging and deceptive messages directly into the ears of agents throughout their shift to keep them from, like, totally losing it.

Here’s how they work: State-of-the-art micro-sensors in the headset are able to detect any negative emotions – be it sadness, anger, boredom, humiliation, inadequacy, etc. – that the agent is feeling between calls, and then deliver subliminal messages to help trick the agent into thinking that their job doesn’t suck and that they are going to be ok. Agents thinking of quitting might hear something like, “You are an invaluable member of this team, and without you providing the outstanding service you are known for, some customers may die.” Or agents who are simply underperforming due to general sadness and hopelessness may hear, “Puppies and kittens in a fireman’s boot! Puppies and kittens in a fireman’s boot!”

MindShift Headsets come in regular and extra strength, the latter of which, in addition to delivering mind-altering subliminal whispers, injects liquid Valium directly into agents’ ears.


TeleCommunes™. Home agent initiatives are all the rage these days – enabling contact centers to expand their recruiting reach, retain highly qualified reps, enjoy more reliable and flexible staffing models, and be more eco-conscious by reducing the amount of employee commuting to and from work. However, some companies are still a bit wary about sending agents home to handle customer contacts, fearing that the isolation will wreak havoc on team-building efforts and morale. That’s why innovative call center design firm, Façade Inc., has developed TeleCommunes – strategically located compounds that house up to 15 agents who live in the same geographic area.

Agents not only handle calls from these regional compounds, they live there with their coworkers – in very cramped spaces, with only minimal food available. The idea is to emulate a bleak communist environment, thus fostering a spirit of brotherhood and cooperation among the agents and stripping them of any sense of ego or individualism – traits that have been known to interfere with corporations’ mission, vision and values.

It’s a win-win for both the company and the TeleCommunists: The company enjoys the typical benefits of home agent initiatives while still maintaining a sense of team among staff, while the TeleCommunists get a much shorter commute, get to try gruel for the first time and learn to handle calls in Russian while huddling to keep warm.

Greg Levin
Creative Projects Coordinator
ICMI

Thursday, November 13, 2008

An Example of what TO DO in a down economy…

This morning we were greeted by the staff of the Hilton Antlers Hotel in Colorado Springs. The staff included one of their Executive Chefs - cooking the HDI/ICMI office breakfast. It was their way of saying thank you for being a great customer. You see, we do a lot of business with the Hotel because HDI/ICMI is in the business of getting people together. We hold a lot of meetings and events.

Here is the point; CEO’s, CFO’s, and other executives are mandating cuts, cuts, and more cuts because they are anticipating or realizing difficult financial conditions. They are telling their management, the people that deal with customers, that we must be more frugal, and no expense is off the table. Now I have no issue with reviewing expenses and doing business efficiently, but there is a line between efficiency and effectiveness.

The further you are from the customer, the easier it is to recommend cuts. But I will argue that what the Hilton did here at our offices is what we need to do at our organizations; wow the customer by investing and standing out from all of the competitors that are cutting. In your support organization you play a critical role in keeping the entire organization efficient. As a Contact Center, you are the face of the customer and have the ability to stand out, and up for your customers in these difficult economic times. We should be encouraged both motivationally and financially to find ways to WOW our customers to improve their experiences with our organizations. Because business will continue, even though it may be less business than last year, don’t we want to be the company they choose to do that business with?

Taking care of your customer like the Antlers Hilton did here today at our office, builds loyalty and tells me, they know how to treat their customers. Where will I want my customers to stay; at a hotel that is cutting staff and services, or a hotel that understands there is never a good time to skimp on customer service?

We have difficult choices to make in the near future but investing in your customer is never a bad business decision.

Are you investing or cutting your services to your customers? I would love to hear from you. Let me know what creative things you have done to reduce costs but improve customer services. Being so close to the customer we know how important it is - now more than ever - to invest in our business, not retract it…

Rich Hand
Executive Director of Membership
HDI/ICMI

Monday, November 3, 2008

The new ICMI Blog has launched!

If there is one aspect of our business that remains constant; it is change. Change is both a challenge and opportunity for both our professional and personal lives. 2009 will be one of the most challenging we have faced in generations. It is more important than ever to stay connected to understand the challenges, but more importantly, how to navigate successfully in this turbulent economic environment. We will do our best here at ICMI to bring you up to date information on current conditions, and the best information we have to help you succeed in these challenging times.

Brad Cleveland, one of the leaders in our industry shares with you some of the ways to be more competitive in this global and difficult economy. Brad will be a frequent author here, and I hope you read and respond to his posting below.

As you may know, I have been bringing together IT Support Professionals for over five years now at HDI, and I am proud of the results that we have achieved by building an interactive community of Support Professionals. My position is simple; serve the membership by providing the services they need to be better at what they do both personally and professionally.
ICMI has a long history of providing services to the Call Center Professional, and I hope to build on that success by incorporating more opportunities to network, share, and contribute to the value that we provide as a community. I am a firm believer in a simple concept; ask the membership what they need, and deliver it!

In the near future I hope to provide you with additional opportunities to share your knowledge and wisdom with others, by introducing some local Call Center events, construct a Strategic Advisory Board made up of you, the members, and to add to the value you already receive from the ICMI membership experience.

I hope to meet each and every one of you to hear how I can better serve you through the ICMI membership experience. I will continue to share with you any changes that we plan to make to the membership experience, and I look forward to hearing directly from you regarding the services you need to be successful.

I look forward to the changes, and great opportunity we have to continue to move the Call Center industry forward.

Blog on!

Warm Regards,
Rich Hand
Executive Director of Membership

Economic Challenges Create Window of Opportunity

Customer contact services are more important than ever during economic downturns… this is your chance to shine!

I recently talked to a group of managers from different verticals who are responsible for their organizations’ customer contact services. Many relayed a similar theme: That they have come so far; they understand and are meeting customer expectations better than ever; they have learned the art and science of staffing and scheduling; they have invested in technology, spent untold hours training their people; and, continue to improve processes. “I just don’t want that work to be for not [if we get into an economic slump],” summed up one.

My take? This is a season of great opportunity! Customer contact services are more important than ever during economic downturns… and this cycle is certainly no exception. Consider a recent (and obvious) example: Financial organizations that provide easy access and competent services reassure customers and add to their confidence – in a crises of confidence, that directly contributes to the organization’s continued wellbeing.

But you don’t have to be a bank or mutual fund to make a significant positive difference. When managed well, the call center’s contributions generally fall into eight areas. When you think about your call center’s ability to help the organization through this season, think through these areas – running on “all eight cylinders” is essential when the stakes are so high:

1. Boosting customer satisfaction and loyalty. The call center ensures that the organization is "easy to do business with," which helps measurably bolster customer satisfaction and loyalty. As customers shop around and competition for wallet share sharpens in an economic downturn, this becomes more essential.

2. Improving quality and innovation across the organization. By capturing a constant stream of data from individual contacts, the call center can pinpoint quality problems early and capture customer input that can lead to significant product, service and customer-communication innovations.

3. Better leveraging marketing initiatives. By tracking buying trends, capturing customer feedback and analyzing demographic information, marketing campaigns can be focused around a better understanding of customers’ real needs and wants.

4. Enabling more focused products and services. By capturing and analyzing customer comments and input, the call center can help the organization to design products and services that resonate with them.

5. Delivering efficient services. Efficient service delivery is a fundamental role of call centers, as they pool resources (people, processes and technologies) in order to provide on-demand assistance efficiently and effectively.

6. Encouraging the use of self service systems. Call centers not only provide support to customers who need help with Web or IVR services – they also capture information that can help improve the systems themselves, and are instrumental in giving customers the encouragement and confidence to use them.

7. Preventing further escalation. Think of this one in the reverse: One of the unintended consequences of cutting call center services is that customers find alternative routes into the organization – ultimately burdening individuals and departments with distracting workloads and resulting in poor or inconsistent service.

8. Contributing to additional revenue and sales. By enabling customers to reach agents who are trained in relationship building skills, the call center can provide powerful up-selling and cross-selling opportunities.

In a general sense, focusing on delivering quality services during these times will be an important enabler to maintaining service levels and an efficient cost structure across the board. Consider the impact on the organization's overall workload and quality when the call center helps manufacturing pinpoint specific glitches in products or manuals; or enables marketing to better address the evolving concerns and needs customers have; or helps IT design more elegant processes that encourage self-service use; or supports publicity efforts using customer-specific examples. When you have an eye on the larger implications of processes and services, that will positively impact the entire organization's workload, productivity, quality – and, ultimately, viability in a difficult season.

How far the financial crisis reaches into the real economy remains to be seen. Organizations will be impacted differently, and no one would wish for a bad economic climate. But the services that customer contact centers provide are never more important than when the pressure is on. This test is a window of opportunity, and my encouragement to you is to roll up your sleeves and go after it! How you perform now will impact your customers, organization, call center, and your own career far beyond the current challenge.

Please drop me a note with your stories, comments, feedback… I’d love to hear from you.

Brad Cleveland
Senior Advisor; former President/CEO ICMI

Brad Cleveland is considered one of the world’s foremost experts on call centers and customer service, and he has delivered keynotes and consulting across 45 states and in over 60 countries. Brad has appeared in media ranging from The New York Times and Wall Street Journal to NPR’s All Things Considered. He is author/editor of eight books, and received an Amazon.com best-selling award for his book, Call Center Management on Fast Forward. Brad can be reached at bcleveland@think-services.com..