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Social Customer Service ROI - Focus Roundtable

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Social Customer Service ROI




DrNatalieNews           www.kathyherrmann.com
ROI Gains

Call Center Savings:
 • Increased Agent Deflection:
     • Direct,
     • Indirect.

 • Improved Agent Productivity.
   • Lowered Average Handling Time
   • Increased First Contact Resolution Rate and
   • Knowledge Base generation.




                                                   2
ROI Costs

Common costs for social customer service
programs:

 • People,
 • Technology, and
 • Marketing (of the social customer service
   program).




                                               3
ROI Formula



  ROI = (Gains - Costs)/Costs x 100


    ROI is shown as a percentage.




                                      4
Sample Calculations




                      5
Gains




        6
Call Center Savings -
     Direct Agent Defection
FORMULAS

# New Convos answered by Customers =
(# Total New Convos Answered) x (% New Convos
Answered by Customers)

# of Direct Deflected Contacts =
(# New Convos answered by Customers) * Est
Direct Deflection Rate

Savings per period=
(# of Deflected Calls) x (Avg Cost per Call)
                                                7
Call Center Savings –
    Agent Defection

CALCULATION:

# 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 Convos
Answered per month) * 10% = 455 per month

Savings = (455 Deflected calls per month) *
($25/call) = $11,375 per month = $136,500/year.

                                                  8
Call Center Savings –
   Reduced AHT


FORMULAS

# Social Cases Impacted =
(# Social Cases per period) x (% Social Cases
Impacted)


Savings per period =
AHT x (Agent Cost per hour) x (# Social Cases
Impacted)

                                                9
Call Center Savings –
    Reduced AHT

CALCULATION

# Social Cases Requiring Assistance will be a known
metric.

For example purposes, assume based on examples
related to Agent Deflection shown above. Out of
6,500 New Social Conversations per month, a total
of 1,755 were deflected. 4,745 cases still require
agent assistance.

                                                     10
Call Center Savings –
   Reduced AHT

CALCULATION

# Social Cases = 4,745 Social Cases/mo = 56,940
Social Cases/yr

# Social Cases Impacted = (56,940 Social Cases/yr)
x 10% = 5,694/yr


Savings per period = (12 min/case) x ($30/hr x 1
hr/60 min) x (5,694 Cases/yr) = $34,164/yr

                                                     11
Costs




        12
People costs…


FORMULAS:

Burdened Compensation per Social Team Member
= (Salary + bonus + benefits load) x (% Time
Devoted to Social).




                                               13
People costs…
CALCULATION:

Cost of Manager =
($105,000/yr burdened compensation) x (20%
Time) = 21,000$/yr
Cost of data analyst =
($100,000/yr burdened comp) x (20% Time) =
$20,000/yr

Total costs = $41,000/yr

                                             14
Tech costs


FORMULA

Tech costs =
Sum of individual tech components
described above. Use incremental
costs only.


                                    15
Tech costs

Assume 3 Support Techs (shown under
People Cost example) are new hires.

Need incremental CRM seats with
Social Add-on functionality.

Also needed is modest community
solution to supplement searchability of
Facebook community.
                                          16
Tech costs

Total Tech Solution costs for example =

[Incremental seats social customer
service solution]
+ (Cost for modest Community solution)
+ (Subscription Costs for Premium
Social Monitoring)
+ Implementation Costs

                                          17
Tech costs

CALCULATION:

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
ROI




      19
ROI Formula


ROI = (Gains - Costs)/Costs x 100


ROI is shown as a percentage.




                                    20
ROI Formula


GAINS =
$136,500 + $34,164 = $170,664

COSTS =
$41,000 + $90,204 = 131,204


ROI =
($170,664 - $141,204)/$131,204 x 100 = 22.5%


                                               21
Contact information
    Natalie Petouhoff         Kathy Herrmann
DoctorNatalie@gmail.com   info@kathyherrmann.com
     DrNatalieNews         www.kathyherrmann.com

      @DrNatalie             @KathyHerrmann
      +DrNatalie             +KathyHerrmann




                                                   22

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Social Customer Service ROI - Focus Roundtable

  • 1. Social Customer Service ROI DrNatalieNews www.kathyherrmann.com
  • 2. ROI Gains Call 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. ROI Costs Common costs for social customer service programs: • People, • Technology, and • Marketing (of the social customer service program). 3
  • 4. ROI Formula ROI = (Gains - Costs)/Costs x 100 ROI is shown as a percentage. 4
  • 6. Gains 6
  • 7. Call Center Savings - Direct Agent Defection FORMULAS # New Convos answered by Customers = (# Total New Convos Answered) x (% New Convos Answered by Customers) # of Direct Deflected Contacts = (# New Convos answered by Customers) * Est Direct Deflection Rate Savings per period= (# of Deflected Calls) x (Avg Cost per Call) 7
  • 8. Call Center Savings – Agent Defection CALCULATION: # 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 Convos Answered per month) * 10% = 455 per month Savings = (455 Deflected calls per month) * ($25/call) = $11,375 per month = $136,500/year. 8
  • 9. Call Center Savings – Reduced AHT FORMULAS # Social Cases Impacted = (# Social Cases per period) x (% Social Cases Impacted) Savings per period = AHT x (Agent Cost per hour) x (# Social Cases Impacted) 9
  • 10. Call Center Savings – Reduced AHT CALCULATION # Social Cases Requiring Assistance will be a known metric. For example purposes, assume based on examples related to Agent Deflection shown above. Out of 6,500 New Social Conversations per month, a total of 1,755 were deflected. 4,745 cases still require agent assistance. 10
  • 11. Call Center Savings – Reduced AHT CALCULATION # Social Cases = 4,745 Social Cases/mo = 56,940 Social Cases/yr # Social Cases Impacted = (56,940 Social Cases/yr) x 10% = 5,694/yr Savings per period = (12 min/case) x ($30/hr x 1 hr/60 min) x (5,694 Cases/yr) = $34,164/yr 11
  • 12. Costs 12
  • 13. People costs… FORMULAS: Burdened Compensation per Social Team Member = (Salary + bonus + benefits load) x (% Time Devoted to Social). 13
  • 14. People costs… CALCULATION: Cost of Manager = ($105,000/yr burdened compensation) x (20% Time) = 21,000$/yr Cost of data analyst = ($100,000/yr burdened comp) x (20% Time) = $20,000/yr Total costs = $41,000/yr 14
  • 15. Tech costs FORMULA Tech costs = Sum of individual tech components described above. Use incremental costs only. 15
  • 16. Tech costs Assume 3 Support Techs (shown under People Cost example) are new hires. Need incremental CRM seats with Social Add-on functionality. Also needed is modest community solution to supplement searchability of Facebook community. 16
  • 17. Tech costs Total Tech Solution costs for example = [Incremental seats social customer service solution] + (Cost for modest Community solution) + (Subscription Costs for Premium Social Monitoring) + Implementation Costs 17
  • 18. Tech costs CALCULATION: 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. ROI 19
  • 20. ROI Formula ROI = (Gains - Costs)/Costs x 100 ROI is shown as a percentage. 20
  • 21. ROI Formula GAINS = $136,500 + $34,164 = $170,664 COSTS = $41,000 + $90,204 = 131,204 ROI = ($170,664 - $141,204)/$131,204 x 100 = 22.5% 21
  • 22. Contact information Natalie Petouhoff Kathy Herrmann DoctorNatalie@gmail.com info@kathyherrmann.com DrNatalieNews www.kathyherrmann.com @DrNatalie @KathyHerrmann +DrNatalie +KathyHerrmann 22