Social Customer Service ROI - Focus Roundtable

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Social Customer Service ROI - Focus Roundtable

  1. 1. Social Customer Service ROIDrNatalieNews www.kathyherrmann.com
  2. 2. ROI GainsCall Center Savings: • Increased Agent Deflection: • Direct, • Indirect. • Improved Agent Productivity. • Lowered Average Handling Time • Increased First Contact Resolution Rate and • Knowledge Base generation. 2
  3. 3. ROI CostsCommon costs for social customer serviceprograms: • People, • Technology, and • Marketing (of the social customer service program). 3
  4. 4. ROI Formula ROI = (Gains - Costs)/Costs x 100 ROI is shown as a percentage. 4
  5. 5. Sample Calculations 5
  6. 6. Gains 6
  7. 7. Call Center Savings - Direct Agent DefectionFORMULAS# New Convos answered by Customers =(# Total New Convos Answered) x (% New ConvosAnswered by Customers)# of Direct Deflected Contacts =(# New Convos answered by Customers) * EstDirect Deflection RateSavings per period=(# of Deflected Calls) x (Avg Cost per Call) 7
  8. 8. Call Center Savings – Agent DefectionCALCULATION:# New Convos Answered by Customers =(6,500 New Convos Answered/month) x 70% =4,550 New Convos Answered by Cust per month# Direct Deflected Calls = (4,550 New ConvosAnswered per month) * 10% = 455 per monthSavings = (455 Deflected calls per month) *($25/call) = $11,375 per month = $136,500/year. 8
  9. 9. Call Center Savings – Reduced AHTFORMULAS# Social Cases Impacted =(# Social Cases per period) x (% Social CasesImpacted)Savings per period =AHT x (Agent Cost per hour) x (# Social CasesImpacted) 9
  10. 10. Call Center Savings – Reduced AHTCALCULATION# Social Cases Requiring Assistance will be a knownmetric.For example purposes, assume based on examplesrelated to Agent Deflection shown above. Out of6,500 New Social Conversations per month, a totalof 1,755 were deflected. 4,745 cases still requireagent assistance. 10
  11. 11. Call Center Savings – Reduced AHTCALCULATION# Social Cases = 4,745 Social Cases/mo = 56,940Social Cases/yr# Social Cases Impacted = (56,940 Social Cases/yr)x 10% = 5,694/yrSavings per period = (12 min/case) x ($30/hr x 1hr/60 min) x (5,694 Cases/yr) = $34,164/yr 11
  12. 12. Costs 12
  13. 13. People costs…FORMULAS:Burdened Compensation per Social Team Member= (Salary + bonus + benefits load) x (% TimeDevoted to Social). 13
  14. 14. People costs…CALCULATION:Cost of Manager =($105,000/yr burdened compensation) x (20%Time) = 21,000$/yrCost of data analyst =($100,000/yr burdened comp) x (20% Time) =$20,000/yrTotal costs = $41,000/yr 14
  15. 15. Tech costsFORMULATech costs =Sum of individual tech componentsdescribed above. Use incrementalcosts only. 15
  16. 16. Tech costsAssume 3 Support Techs (shown underPeople Cost example) are new hires.Need incremental CRM seats withSocial Add-on functionality.Also needed is modest communitysolution to supplement searchability ofFacebook community. 16
  17. 17. Tech costsTotal Tech Solution costs for example =[Incremental seats social customerservice solution]+ (Cost for modest Community solution)+ (Subscription Costs for PremiumSocial Monitoring)+ Implementation Costs 17
  18. 18. Tech costsCALCULATION:Tech costs=[($200/user per mo for CRM/SCRM) x(3 seats)]+ ($4,167 per mo Community)+ ($1,500 per month Social Monitoring)+ $15,000= $90,204 for first year. 18
  19. 19. ROI 19
  20. 20. ROI FormulaROI = (Gains - Costs)/Costs x 100ROI is shown as a percentage. 20
  21. 21. ROI FormulaGAINS =$136,500 + $34,164 = $170,664COSTS =$41,000 + $90,204 = 131,204ROI =($170,664 - $141,204)/$131,204 x 100 = 22.5% 21
  22. 22. Contact information Natalie Petouhoff Kathy HerrmannDoctorNatalie@gmail.com info@kathyherrmann.com DrNatalieNews www.kathyherrmann.com @DrNatalie @KathyHerrmann +DrNatalie +KathyHerrmann 22

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