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First Contact Resolution –The Performance Driver! A focus on the right metrics for the right reasons can properly position the Support Center to add business value. Peter McGarahan President / Founder McGarahan & Associates
About The Speaker 12 years with PepsiCo/Taco Bell IT and Business Planning Managed the Service Desk and all of the IT Infrastructure for 4500 restaurants, 8 zone offices, field managers and Corporate office 2 years as a Product Manager for Vantive Executive Director for HDI 6 years with STI Knowledge/Help Desk 2000 5 years with McGarahan & Associates 2 years as Chairman, IT Infrastructure Management Association (www.itimassociation.com) 2
Pay It Forward 3
Learn from Your Mistakes “The definition of insanity is doing the same thing  over and over again and expecting different results”. Albert Einstein 4
Challenge Yourself Attitude  It’s yours to change. Ownership It’s yours to follow-up and follow-through.   Is it the way you would want to be treated. Service Are you in learning / continuous development mode. Skills Together Everyone Achieves More. Teamwork
What’s Your View of The World? In tough economic conditions, the focus must be on YOUR customer.... Focus on three things: The Customer experience & touch points. Increase ROI & Utilization from existing investments. Streamlining & continually improving service delivery for efficiency, consistency and value. The Service-Profit chain establishes the interconnected relationships among internal service quality 6
Industry Benchmark Metrics Password reset Between 20% to 35% Password resets handled by Level 1 cost, on average, $12 per transaction, while Web self-service costs $2.  Queue time: 20 seconds to 53 seconds. Average 36 seconds Talk time 5 minutes to 8 minutes Average 7 minutes	 Abandonment rate Between 7% to 8% Average range of 1st level contact resolution between 54 and 77% of calls. Average 63% Cost of 1st level call $18-$23	 Cost of 2nd level call $35+	 Cost of 3rd level call Starts at $100 The cost of supporting a device   Between $70 and more than $130 Average case per support professional (L1) per month Range 450 to 530 Source: Gartner, 2009 7
Implement a “Shift-Left” Service Strategy Level-2 Level-1 Level-3 Level-0 $100 + Technologists/Developers $35+ Escalated call Cost $18-$23 First contact resolution $2 - $12              Cost savings, SLA & Cust. Sat improvements Automated self-service Categorize Call Types in Level they are Resolved in Call Elimination Mean time to resolution Bring visibility to repetitive, costly issues, especially the ones being continually escalated to more costlier levels of support. Examine all problems and escalations to rationalize processes and push problem resolution to the most-efficient and cost-effective support level. Tracking percentage of resolved cases by group, levels and cost in the organization.  Understand which levels (groups) are resolving which cases, how many and what cost.   Calculate a cost per call/resolution analysis. 8
Impacting Your Cost Structure Link Costs to Demand  ,[object Object],Reduce resource costs ,[object Object],Change operating practices ,[object Object],9
Calculate a Cost Per Call Analysis Prove Financial Impact. From all initiatives. Show Value. Compare and contrast. Know you baseline. Justify Investments. Use Financial Metrics Reduce Costs. Run IT like a Business Source: HDI 2009 Practice & Salary Survey 10
11 Reduce the Cost of Support  Know what call types you resolve at FC. Know what call types you escalate. Increase FCR / FLR Lower Cost Per Resolution. Target call types for FCR  that are currently being escalated. Work with L2 managers  to provide training, access, and knowledge articles. Handle all Requests / Resets / FAQs Through  Self-Service Portal (L0).
Service and Support Best Practices First Contact Resolution You should use all of our available resources (team members, training, tools, documentation, past incidents, etc.) to facilitate solving our customers issue on the first contact. It leads to a higher level of customer satisfaction, improves image, allows L2 teams to be more responsive and improves customer productivity.  Team work Empowering the team to make front-line decisions and coordinate best practice processes is the only way Support Center can survive and thrive in today's ever demanding role as the Customer Advocate and single point of contact for all customer issues and requests. Being Proactive Spotting trends, related issues and reoccurring issues and working to ensure that we minimize business impact, communicate appropriately and work to learn from the situation.  12
Service and Support Best Practices Total Contact Ownership Is built upon the premise that the Support Center will continue to address a customer's issue/request and follow up, validate and communicate status  until the issue or question is resolved to the customer's satisfaction.  Quality Ticket Documentation Research, diagnose, prioritize and document thoroughly (it did not happen if it's not documented in the ticket).  13
Service Differentiation Without Customers there would be no business and therefore no need for my services Think differently, creatively about your daily performance. Innovate and work hard to treat every. customer like they were your only customer. Do something for them they wouldn’t expect.
FCR / FLR Definitions FCR FLR When you improve FCR  you’re improving quality, reducing costs, and  improving customer satisfaction,  all at the same time. is achieved when the individual who takes the initial report  is the same person who resolves the issue to the customer’s satisfaction  is the same support professional  resolving the customer’s issue or problem after some research It is important to note that only one contact was made by the customer and only one resource was used, the support professional.  15
The Dos and Don’ts of FCR The customer perception of FCR is most important and requires follow-up, closure, feedback and monitoring. Make FCR reflective of customers’ values, expectations and perceptions. Use FCR results to drive Continuous Improvement (CI) at all levels. Give support professionals the proper training, empowerment, tools to support higher levels of FCR. Market and communicate – reward and recognize FCR contribution, achievements and results.  DON’T focus on FCR alone w/o multiple perspectives. DON’T only measure that It was done (checklist) vs. how was It resolved and what was the experience. DON’T make it self-serving in scope, definition and data collection and manipulation. It’s not about “Hitting the numbers.” DON’T be more concerned with call resolution than issue resolution. DON’T only measure FCR; balance with other quality metrics. It’s a key driver of continuous improvement and a key determinant of customer satisfaction.  If you don’t measure it you can’t improve.` 16
The FCR Tool KitWhat you Need to Succeed! Integrated Customer Service Management Tool An integrated, out-of the box solution that enables best practice process for seamless, transparent and superior service delivery.  Best practice workflow engine. VoIP Solution  Integrated voice and data to enable the functionality of ACD, IVR and CTI. Knowledge Management An integrated Knowledge data base that is supported by a KM strategy and process. Remote Support Providing support professionals in any location the ability to access, troubleshoot, diagnose, upgrade, or fix any computing device anywhere around the world – without ever leaving their desks. Reporting/Dashboards  The ability to know where your team is performing with critical operational metrics – real-time. IM IM capabilities to access the various Subject Matter Experts real –time without escalation. 17
The Benefits of First Contact Resolution Level-1 On average, every 1% percent increase in first-contact resolution (FCR) results in a 0.64% increase in customer satisfaction. Drive total support cost down while continuing to offer self-service solutions. Efficiency metrics: Resolution cost & Resource utilization. Effectiveness metrics: Timely closure, Quality resolution, Customer satisfaction index.  Costs Decrease Customer Sat. Increases Level-3 Level-2 18
FCR – The Ripple Effect! As Knowledge Base Utilization (KBU) increases…  ,[object Object]
 Customer satisfaction.
 Productivity.
 Quality/Consistency.
 Average mean time to   resolve.
 Average talk time.
 Total support costs.

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First Contact Resolution - The Performance Driver!

  • 1. First Contact Resolution –The Performance Driver! A focus on the right metrics for the right reasons can properly position the Support Center to add business value. Peter McGarahan President / Founder McGarahan & Associates
  • 2. About The Speaker 12 years with PepsiCo/Taco Bell IT and Business Planning Managed the Service Desk and all of the IT Infrastructure for 4500 restaurants, 8 zone offices, field managers and Corporate office 2 years as a Product Manager for Vantive Executive Director for HDI 6 years with STI Knowledge/Help Desk 2000 5 years with McGarahan & Associates 2 years as Chairman, IT Infrastructure Management Association (www.itimassociation.com) 2
  • 4. Learn from Your Mistakes “The definition of insanity is doing the same thing over and over again and expecting different results”. Albert Einstein 4
  • 5. Challenge Yourself Attitude It’s yours to change. Ownership It’s yours to follow-up and follow-through. Is it the way you would want to be treated. Service Are you in learning / continuous development mode. Skills Together Everyone Achieves More. Teamwork
  • 6. What’s Your View of The World? In tough economic conditions, the focus must be on YOUR customer.... Focus on three things: The Customer experience & touch points. Increase ROI & Utilization from existing investments. Streamlining & continually improving service delivery for efficiency, consistency and value. The Service-Profit chain establishes the interconnected relationships among internal service quality 6
  • 7. Industry Benchmark Metrics Password reset Between 20% to 35% Password resets handled by Level 1 cost, on average, $12 per transaction, while Web self-service costs $2. Queue time: 20 seconds to 53 seconds. Average 36 seconds Talk time 5 minutes to 8 minutes Average 7 minutes Abandonment rate Between 7% to 8% Average range of 1st level contact resolution between 54 and 77% of calls. Average 63% Cost of 1st level call $18-$23 Cost of 2nd level call $35+ Cost of 3rd level call Starts at $100 The cost of supporting a device Between $70 and more than $130 Average case per support professional (L1) per month Range 450 to 530 Source: Gartner, 2009 7
  • 8. Implement a “Shift-Left” Service Strategy Level-2 Level-1 Level-3 Level-0 $100 + Technologists/Developers $35+ Escalated call Cost $18-$23 First contact resolution $2 - $12 Cost savings, SLA & Cust. Sat improvements Automated self-service Categorize Call Types in Level they are Resolved in Call Elimination Mean time to resolution Bring visibility to repetitive, costly issues, especially the ones being continually escalated to more costlier levels of support. Examine all problems and escalations to rationalize processes and push problem resolution to the most-efficient and cost-effective support level. Tracking percentage of resolved cases by group, levels and cost in the organization.  Understand which levels (groups) are resolving which cases, how many and what cost. Calculate a cost per call/resolution analysis. 8
  • 9.
  • 10. Calculate a Cost Per Call Analysis Prove Financial Impact. From all initiatives. Show Value. Compare and contrast. Know you baseline. Justify Investments. Use Financial Metrics Reduce Costs. Run IT like a Business Source: HDI 2009 Practice & Salary Survey 10
  • 11. 11 Reduce the Cost of Support Know what call types you resolve at FC. Know what call types you escalate. Increase FCR / FLR Lower Cost Per Resolution. Target call types for FCR that are currently being escalated. Work with L2 managers to provide training, access, and knowledge articles. Handle all Requests / Resets / FAQs Through Self-Service Portal (L0).
  • 12. Service and Support Best Practices First Contact Resolution You should use all of our available resources (team members, training, tools, documentation, past incidents, etc.) to facilitate solving our customers issue on the first contact. It leads to a higher level of customer satisfaction, improves image, allows L2 teams to be more responsive and improves customer productivity.  Team work Empowering the team to make front-line decisions and coordinate best practice processes is the only way Support Center can survive and thrive in today's ever demanding role as the Customer Advocate and single point of contact for all customer issues and requests. Being Proactive Spotting trends, related issues and reoccurring issues and working to ensure that we minimize business impact, communicate appropriately and work to learn from the situation. 12
  • 13. Service and Support Best Practices Total Contact Ownership Is built upon the premise that the Support Center will continue to address a customer's issue/request and follow up, validate and communicate status until the issue or question is resolved to the customer's satisfaction. Quality Ticket Documentation Research, diagnose, prioritize and document thoroughly (it did not happen if it's not documented in the ticket). 13
  • 14. Service Differentiation Without Customers there would be no business and therefore no need for my services Think differently, creatively about your daily performance. Innovate and work hard to treat every. customer like they were your only customer. Do something for them they wouldn’t expect.
  • 15. FCR / FLR Definitions FCR FLR When you improve FCR you’re improving quality, reducing costs, and improving customer satisfaction, all at the same time. is achieved when the individual who takes the initial report is the same person who resolves the issue to the customer’s satisfaction is the same support professional resolving the customer’s issue or problem after some research It is important to note that only one contact was made by the customer and only one resource was used, the support professional. 15
  • 16. The Dos and Don’ts of FCR The customer perception of FCR is most important and requires follow-up, closure, feedback and monitoring. Make FCR reflective of customers’ values, expectations and perceptions. Use FCR results to drive Continuous Improvement (CI) at all levels. Give support professionals the proper training, empowerment, tools to support higher levels of FCR. Market and communicate – reward and recognize FCR contribution, achievements and results. DON’T focus on FCR alone w/o multiple perspectives. DON’T only measure that It was done (checklist) vs. how was It resolved and what was the experience. DON’T make it self-serving in scope, definition and data collection and manipulation. It’s not about “Hitting the numbers.” DON’T be more concerned with call resolution than issue resolution. DON’T only measure FCR; balance with other quality metrics. It’s a key driver of continuous improvement and a key determinant of customer satisfaction. If you don’t measure it you can’t improve.` 16
  • 17. The FCR Tool KitWhat you Need to Succeed! Integrated Customer Service Management Tool An integrated, out-of the box solution that enables best practice process for seamless, transparent and superior service delivery. Best practice workflow engine. VoIP Solution Integrated voice and data to enable the functionality of ACD, IVR and CTI. Knowledge Management An integrated Knowledge data base that is supported by a KM strategy and process. Remote Support Providing support professionals in any location the ability to access, troubleshoot, diagnose, upgrade, or fix any computing device anywhere around the world – without ever leaving their desks. Reporting/Dashboards The ability to know where your team is performing with critical operational metrics – real-time. IM IM capabilities to access the various Subject Matter Experts real –time without escalation. 17
  • 18. The Benefits of First Contact Resolution Level-1 On average, every 1% percent increase in first-contact resolution (FCR) results in a 0.64% increase in customer satisfaction. Drive total support cost down while continuing to offer self-service solutions. Efficiency metrics: Resolution cost & Resource utilization. Effectiveness metrics: Timely closure, Quality resolution, Customer satisfaction index. Costs Decrease Customer Sat. Increases Level-3 Level-2 18
  • 19.
  • 23. Average mean time to resolve.
  • 25. Total support costs.
  • 26. Reduction in call types.Expand Services – Utilizing Same People! 19
  • 27. Measuring Customer Satisfaction Develop a strategy for collecting and analyzing customer feedback. Include Baseline & transactional surveys. Leverage the CSI scoring as proof that you are doing the right things for the customer. Link CSI scores to your other operational, financial and performance metrics. Weigh customer satisfaction against service costs and alternative solutions. Source: HDI Customer Satisfaction Benchmark Study - 2007 20
  • 28. Drive Customer Satisfaction Customer satisfaction MUST be a strategy. On average, every 1% percent increase in first-contact resolution (FCR) results in a 0.64% increase in customer satisfaction. Customer Satisfaction Index must be the ‘barometer’ for all other performance metrics. It must be engrained in the culture and a top priority for Management. The strategy includes baseline and transactional surveys with a focus on communicating the results and action plan to the customers. 21
  • 29. Customer Satisfaction Measurements Enhances customer satisfaction by speeding problem resolution and providing consistent, fast answers. Reduces average call length by automating ticket population, streamlining routine tasks, providing trouble-shooting tools on a single screen, and maintaining parent/child requests for high call volume incidents. Boosts SLA compliance by automating notifications based on escalation business rules. Source: HDI 2009 Practice Survey 22
  • 30. Ensuring Customer Satisfaction Provides vital quality of service information to management. It records calls/screens for scheduled evaluation. Results are included in analyst scorecards. Used for coach agent on areas of improvement. Used to recognize professionals who are star performers. Ensure consistent and professional service by: Demonstrating the importance and linkage between customer service skills learned in training and what the customers think of your service (survey). 23
  • 31. Summary – Never Settle! Solve issues When issues are solved quickly and efficiently, productivity increases. Prevent problems PerformingRoot Cause Analysis, determining the source of the problem, will provide long-term prevention.  Preventing 10% of problems is the same as solving 80% of all problems immediately. Detect problems and trends Detecting recurring problems, analyzing trends, and identifying areas in need of improvement. Leveraging Incident, Problem and Change management processes. Position for Self-Service (deflection) Even though FCR is a great metric – it still says we are solving a high percentage of repetitive calls – over and over again! Position for self-service based on issue, question and audiiance. 24
  • 32. "Being a service leader is about your view and perspective of the world around you! It’s not about you, it's about all that you can do to make other people successful.“ Thank You & God Bless! Pete McGarahan McGarahan & Associates pete@mcgarahan.com 714.694.1158 25