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-What is the benefit of home-based vs. brick-and-mortar customer care to retailers?
-How do home-based call centers increase customer loyalty and customer spend?
-How can home-based customer contact centers increase flexibility in uncertain times?
-How does a transition to a home-based call center impact your financials?
-How has VIPdesk helped improve the performance of its retail clients?
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How do home-based call centers increase customer loyalty and customer spend
How can home-based customer contact centers increase flexibility in uncertain times
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Home Based Call Centers Retail Survival Tool 021709
1. Cover Slide
Home-Based Call Centers:
Retail Survival Tool for
2009 and Beyond
Sally Hurley
President
VIPdesk
February 17, 2009
VIPdesk
324 N. Fairfax Street
Alexandria, VA 22314
(703) 299.4422
http://www.vipdesk.com
Confidential- Proprietary VIPdesk Information solutions@vipdesk.com
2009 VIPdesk Virtual Contact Center Plan™ 1
2. About Today’s Presentation
We will answer the following questions:
• Whatretailers are successfully using home-based call centers
today?
• What is the benefit of home-based vs. brick-and-mortar customer
care to retailers?
• How do home-based call centers increase customer loyalty and
customer spend?
• How can home-based customer contact centers increase flexibility
in uncertain times?
• How does a transition to a home-based call center impact your
financials?
• How has VIPdesk helped improve the performance of its retail
clients?
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 2
3. About Today’s Presenter
Sally Hurley
President, VIPdesk
• Co-founder
• 20+ years experience delivering premium
customer service
• Has a passion for the customer experience
• Committed to building a culture that supports work-life balance
• Proud to be a green company- supporting thousands of
individuals that work from home across North America
• Current President of Entrepreneurs Organization in D.C.
• shurley@vipdesk.com or 703.837.3518
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 3
4. VIPdesk is the pioneer of virtual contact
center solutions for national brand leaders,
providing premium customer experiences
through our home-based Brand
Ambassadors™.
Changing Business. Changing Lives.
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 4
5. Leading the Homeshoring Revolution
• Provider of premium outsourced customer care
services for national brands
• Pioneer of home-based model
• Support over 40 clients committed to brand
reputation, customer retention and growth
• Known for servicing complex, intuitive customer
contacts
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 5
6. VIPdesk’s Home-Based Customer Care
Inbound and Customer loyalty &
outbound customer personalized
service Concierge Services
• Premium customer care • Dining reservations,
• Sales: cross-sell/up-sell entertainment tickets, trip
planning, etc.
• Order processing
• Event management
• Surveys
• Travel and tourism –
• Peak volume
complete travel agency
management
capabilities
• Customer profile
• Experiential packages
enrollment
• Rewards and redemption
• Email/chat services
services
• Special offers and
discounts
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 6
7. Brands Using Home-Based/Virtual Call Centers
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 7
8. Benefit of Home-Based Customer
Care to Retailers
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 8
9. Virtual vs. Brick-and-Mortar
Virtual Traditional
Call Center Call Center
CSRs
High Retention (85%) √
Improved Quality (15%) √
Virtual Model
National Labor Pool √
Targeted Recruiting √
Decreased Overhead / Facilities Costs / √
Expansion
Improved Continuity / Disaster Recovery √
Peak / Overflow Management √
Customer Impact
Higher Quality of Interaction √
Increased Customer Satisfaction Levels √
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 9
10. Reasons to Deploy a Home-Based Call Center
Compelling Advantages
Retailer Benefits Agent Benefits
• Higher quality • Flexible scheduling
• Unlimited recruiting pool • Pay for performance
• Superior cost model • Elimination of commute
• Higher retention • Enhanced work/life
• Reduced training/recruiting balance
costs • Reduced expenditures
• Seasonality adjustments
• Comfort of working from
• Operational efficiency home
• Business continuity
• Cultural understanding
• Carbon reduction
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 10
11. Current Retail Industry Challenges
• Consumer confidence in spending is down
• Unpredictable economic environment
• Seeking to cut costs without sacrificing quality
• Greater need for infrastructure flexibility
• Desire to maintain continuity across channels
• Increased need to retain current customers
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 11
12. Common Retail Call Center Challenges
• Overhead costs
• Fixed infrastructure
• Scalability
• Operational adaptability
• High turnover/attrition
• Limited disaster recovery
• Limited recruiting pool
• Limited access to highly skilled agents/CSRs
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 12
13. Opportunities for Retailers
• Leverage a model that allows for flexibility-
seasonal and intra-day
• Experienced; highly skilled; loyal agents
• Reduce expenses
• Focus on core strengths, products, core brand
• Align in-store and at-home customer
experiences
• Improve metrics - converting more contacts to
sales; increased AOS, etc.
• Improve customer satisfaction
• Maintain and grow current customers
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 13
14. Increasing Customer Loyalty
and Customer Spend
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 14
15. Customer Experience Considerations
• Every contact is critical
– In-store, phone, email and online chat
• Conversion of contacts to sales
– Driving performance with each interaction
• Agents that have a passion for your brand
– Individuals who are already a fan of your brand
• Flexibility with coverage
– Staffed when customers need you
• Overall satisfaction
– A key driver for repeat customers
• Increasing loyalty and spend with customers
– Much easier than marketing to new customers
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 15
16. Home-Based Customer Care is the Answer
The People
• Unlimited recruiting pool
• Profile of home-based CSR is educated, experienced, mature
• Opportunity to recruit for specific skills and interests
• Low attrition leads to highly productive, knowledgeable team
The Flexibility
• Meet spikes, rapid expansion for growth, new call patterns
• Meet SLAs without overstaffing
• Reduce “lost revenue” opportunities from abandoned calls
• Performance-based scheduling
Dynamic Workforce
• Results and metrics driven – performance based compensation
and scheduling
• High level of job satisfaction – translates into positive customer
experience
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 16
17. Financial Impact of
Home-Based Customer Care
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 17
18. Key Questions
• Is your customer service operation a cost
center or a profit center?
• What are your highest expenditures?
• How would you like to better align your
revenue with your expenses?
• Are your top performers working key
shifts/hours?
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 18
19. Traditional Customer Care Fixed Investments
Infrastructure costs
– Building/leasing costs
– Utilities and maintenance
– Facilities management
– Furniture/fixtures
– Technology costs
– Telecommunications costs
Personnel costs
– Recruiting and hiring
– Turnover
– Management
– Training
– Cost of unproductive time
Now you can impact these costs
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 19
20. The Home-Based Solution
Infrastructure Cost Reductions:
– Eliminate/reduce costly capital expenditures
– Eliminate/reduce costly ongoing expenses
including facilities, management, support
– Eliminate/reduce costs of idle infrastructure
Personnel Cost Reductions:
– Reduced recruiting/hiring costs
– Reduced training costs
– Reduce cost of turnover associated with
productivity loss
– Reduce costs of overstaffing required to meet
SLAs
– Reduce management costs
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 20
21. The Home-Based Solution (cont’d)
• Further cost reductions through the
automation of business processes
– Recruiting/on-boarding
– Training
– Metrics driven management
– “Virtualize” culture and communications
• Align business objectives with virtual agents
– Empowerment of business owners
– Objective and clear performance criteria
– Performance-based compensation and scheduling
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 21
22. VIPdesk Success Stories
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 22
23. VIPdesk Client Bluefly Awarded
2008 International Service Excellence Award
• In November 2008, Bluefly was awarded the
International Service Excellence Award
– Category of Business-to-Consumer Contact Center
– Awards are given to organizations in all industries worldwide in
recognition of their commitment to customer service excellence
• VIPdesk has provided Bluefly’s e-mail, phone, and
online chat customer support since July 2007. Results
include:
– Increased total service sales by 23% year-over-year
– Increased sales conversion
– Reduced cost per contact 18% year-over-year
– Virtually no attrition
– Within 3 months:
• 87% customer satisfaction phone and e-mail
• 94% customer satisfaction in chat
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 23
24. Other Client Results
Exceeded dollars/order goals through holiday season
while ramping agents to double capacity
Reduce AHT by 31% over the first year of operation
Client 1
Reduced shrinkage by 14% over two months
Handled 200%+ of forecasted volumes during season
periods where weather impacted client’s internal center
Enabled client to consolidate in-house call centers down
to one during the first year, handling 67% of peak
traffic in year two
Improved email contact completion rate by 41%
Client 2
Improved service levels by 60%
Reduced AHT for the client by an average of 22 seconds
Improved overall first-contact resolution
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 24
25. Home-Based Model Summary
3 Ways Home-Based Customer Care Provides Flexibility for
Retailers
1- Facilities- reduce costs
• No need for permanent investments
• Affordable disaster recovery
2- People- leverage top talent
• Provide staffing to meet fluctuating volumes
• High quality of agents provide business model adaptability
• Limit ramp up time for expansion
• Leadership/management
3- Performance- increase results
• Capture more
• Convert more
• Retain more
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 25
27. More Information on Home-Based
Customer Care
• November 2008 Retail Customer Experience Magazine
article, “Top Five Tools Retailers Need to Survive”.
– http://www.retailcustomerexperience.com/article.php?id=741&p
rc=59&page=69
• VIPdesk and IDC co-authored a whitepaper on the home-
based customer care market
• This whitepaper can be downloaded at
www.vipdesk.com/whitepaper
• Subscribe to Virtual Voice – a
monthly newsletter clipping of
relevant articles covering the
virtual call center space
• Industry-wide information,
not just VIPdesk specific
• Subscribe via email at:
virtualvoice@vipdesk.com
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 27
29. Questions?
• Submit your questions now using the
“Questions” function in the Webinar
interface.
• You can also email questions to
press@vipdesk.com or call 703-837-
3507 for follow-up after today’s
Webinar.
Confidential- Proprietary VIPdesk Information
2009 VIPdesk Virtual Contact Center Plan™ 29