The document discusses challenges in customer service today including more technically savvy customers who want to troubleshoot issues themselves. It argues traditional call centers are ill-equipped to meet these demands due to measuring performance based on cost reduction rather than value creation, and agents lacking sufficient technical skills. It describes how best-in-class companies are transforming call centers into contact centers that are integrated with other functions and staffed by technically competent agents. Comcast is highlighted as offering a self-installation option that reduces costs while increasing customer satisfaction.

1. he challenges facing customer service Unfortunately, the traditional call cen-
T today are formidable, as customers
are becoming increasingly more tech-
nically savvy—and demanding. Individual
ter—established more than 30 years ago
to deal with customer inquiries—is ill-
equipped to succeed in this environment.
consumers want to install equipment, trou- Why? First, these call centers measure per-
bleshoot, and fix problems on their own, as formance in terms of cost reduction, not
long as your customer service stands ready value creation because of the prevailing
to assist them 24/7. Business customers notion that customer service is but a cost to
have established their own internal tech- be minimized. Second, their frontline
Customer nology organizations that expect a high
level of service from your company’s tech-
agents often lack technical skills and train-
ing to serve today’s customers adequately
Service That nical support operations. Both service areas
now require well-trained, technically com-
and to drive revenue. Third, the call centers
tend to be isolated from other functions in
petent resources to provide them with the the organization, which impedes productiv-
Helps Your support they need. These demands on your
frontline agents are further exacerbated by
ity and sales.
What can you do to counteract these prob-
Customers— the proliferation and complexity of new
products. In addition, there’s subscriber
lems? Best-in-class companies are redefin-
ing operational excellence in customer care.
And You Too turnover and decreasing order values that
require lots of cross-selling and up-selling
They are transforming their traditional call
centers into leading-edge “contact” centers
Operational excellence in to offset. All this, plus the relentless pres- and their frontline agents into “virtual”
sures for operational efficiency. service technicians. These enhanced capa-
customer care boosts
customer loyalty, profitablility,
Figure 1: What Makes Customers Happy?
and growth.
Brand awareness
Awareness of Product and service
ROB ROWELLO future needs availability
Co mp l et e
Quality of C u st o mer Ease of
service Exp er i en ce buying
Usage quality Ease of
installation
Welcome experience
© 2006 PITTIGLIO, RABIN, TODD & MCGRATH, INC. 1

2. bilities allow companies to take advantage
of their customers’ rising knowledge of
technology. For example, some companies
are using consumer self-installation and
Comcast Cable’s Win-Win
self-help strategies, which reduce operat-
ing costs and increase customer satisfaction
Solution
at the same time—especially in the rapid-
ly growing technology-services industries.
D
o the math—the typical operating cost for home installation of high-speed
And in the business-to-business area, com- Internet service at most cable companies is between $40 to $60. By offering
panies have recognized the value-creation a self-install option, cable companies are able to reduce their operating costs
opportunities of providing “enhanced serv- by more than 60%. Great for the company, but what’s in it for the customers?
ices” to key clients. Comcast Cable recognized early on that many of their customers had grown weary
of waiting home all day for the cable guy to arrive. By introducing the self-install kit
four years ago, Comcast gave its customers the flexibility to install their own service
Rethinking Customer Care: on their own time—a welcomed convenience. And it’s a simple process to follow: con-
The Contact Center nect the new cable modem to your cable feed, insert a CD-ROM into your PC, and
you’re done. In fact, in most cases, customers never need to speak to an agent. To
Everyone knows that simply providing a sweeten the deal, Comcast offers self-installation at a 60% discount from a profes-
great product or service is no longer sional installation.
enough. The quality of your customer’s However, if something does go wrong, Comcast has dedicated teams of skilled tech-
experience depends on the performance nical agents ready to assist customers via phone 24/7. These teams are trained not
of all functions involved in customer lifecy- only on the specific device and software, but can also troubleshoot broader Microsoft
cle management (Figure 1). Windows and home-networking issues. Because of the enormous variability of cus-
Many companies want their customer tomers’ PC configurations, these virtual technicians are provided with high-level
service to play a broader and more strategic training and troubleshooting tools to quickly diagnose and resolve issues. Like field
role in today’s organization. In the past, technicians, these agents are trained to think through the customer’s issue as if
inadequate coordination and communica- they were doing the installation themselves.— Rob Rowello
tion between call centers and other func-
tions, such as product development,
engineering, sales, marketing, and techni-
cal operations, led to many missed produc-
tivity and sales opportunities. To correct mation on products, services, promotions, centers, top-performing companies, espe-
this problem, best-in-class companies have and the like. To service their technology- cially in the high-tech, services-based sec-
established “contact centers,” which do far savvy customers better, contact centers use tors, have developed an entirely new
more than answer customer phone calls. In a variety of communications channels— approach. Customers today expect their
contrast with siloed call centers, contact not only incoming calls, but also online call to be answered by a technical specialist
centers are integrated with other key func- interactive support and web chat. who will solve their problem quickly, effec-
tions to provide timely and accurate infor- When it comes to staffing these contact tively, and courteously. The large, non-tech-
© 2006 PITTIGLIO, RABIN, TODD & MCGRATH, INC. 2

3. nical teams used by traditional call centers many companies that have invested heav-
don’t fit the bill. Instead, you need smaller, ily in these solutions have not succeeded in High-quality, post-sales
skill-based, and highly specialized teams tailoring their content effectively. While no
to help with specific problems in areas like silver bullet applies to all situations, compa- support is critical for
technical support, sales, and billing, or to nies that actively solicit and incorporate establishing a trusting
serve specific product lines. direct feedback from their agents are gen-
erally more satisfied with their systems relationship with your
and more successful in using them.
Create “learning labs” within your con- customers
Turning Agents into Virtual
Service Technicians tact centers—By shifting from traditional
classroom-based training to more hands-on
Traditionally, technical know-how has instruction and product-specific training,
been the purview of field technicians, a your agents will gain direct experience with technical skills. Instead of posting ads in the
select group considered to be the highest the products they support. Often the venue “customer service” section of the classi-
tier of technical support. Since field techni- of choice for formal training by both inter- fieds, recruiters are now more likely to post
cians were dispatched onsite to fix nal trainers and vendors, these labs also in the “technology” section. Some compa-
customers’ most challenging problems, provide opportunities for “self-teaching” nies partner with local vocational tech
they received the most training and had during breaks and downtime. schools to recruit the best candidates.
the best “hands-on” knowledge of products One telecom company we worked with Others look for prospects at local technol-
and services. Many organizations now real- recently deployed a state-of-the-art learning ogy job fairs. Recruiters are also changing
ize that they can save money, increase lab within its largest contact center so its entry-level job descriptions and adopting
customer satisfaction, and differentiate agents could test the same equipment their new tactics to attract qualified candidates—
their products by creating “virtual” field customers were using. The company also for example, highlighting important
technicians out of their frontline agents. now offers accredited evening classes benefits and career advancement opportu-
In technology-based industries, going this through a local community college and oper- nities. Strong candidates are typically eager
extra mile is proving to be the key source of ates a full reference library. As a result, the to invest in their future. Many will consid-
competitive advantage. company has seen considerable improve- er a contact center position for a couple of
However, creating a field-technician cul- ment in employee morale, productivity, and years if they believe it will help their careers.
ture within a traditional call center is agent churn. Internal agent promotions, for Rethink your performance metrics—For
difficult, and many managers are scram- example, has increased by 30%. Clearly, most traditional call centers, time is
bling to learn how. We’ve found in our investing in people has paid off. money—period. But preoccupation with
work with clients that the following tactics Change your hiring practices—Leading minimizing the “average handle time” per
are effective: companies now view the hiring of candi- call backfires when the goal is to maximize
Provide your frontline agents with well- dates with the right mix of technical and value from each customer. With contact
organized and useful knowledge—Today’s soft skills as the most important factor in centers, companies now aim to develop
knowledge-management systems allow providing quality customer support. Many metrics systems that are more relevant to
agents to simulate customer problems and companies launch targeted recruiting cam- their business objectives. For example, to
quickly find the right solutions. However, paigns to find applicants with specific promote revenue generation, a company
© 2006 PITTIGLIO, RABIN, TODD & MCGRATH, INC. 3

4. should consider sales productivity and ices, it is now a standard practice to ship Finally, always have knowledgeable agents
churn-reduction metrics. Or it can look at self-install kits and pre-provisioned devices on standby as a safety net for customers
ways to better calculate “first call resolu- to consumers, rather than dispatch a tech- who run into trouble. High-quality, post-
tion” and use this measure to drive personal nician. Specialized and highly trained sales support is critical for establishing a
accountability for resolving customer issues. customer service teams stand ready to assist trusting relationship with your customers.
Since unintended consequences are like- these customers in the installation process If customers feel abandoned by your com-
ly to creep in, management must carefully by fielding technical and device-specific pany, they are likely to reciprocate.
balance metrics and incentives to avoid questions.
loopholes in the system. For example, a Considering a self-installation strategy?
client of ours in the telecom industry had a Here are a few pointers. First, do it if your Supporting Key Business Customers
contact center with an inbound sales queue products are straightforward to configure
that measured its agents on “total month- and use, easily bundled and shipped, sold In the business-to-business area, new
ly revenue.” When management remotely through traditional retail or e-commerce opportunities abound as well. Many large
monitored calls in this queue, it learned channels, and employ standard interfaces business customers have internal staff to
that some agents were abruptly terminating and operating systems. interface directly with vendors and suppli-
calls with customers deemed unlikely sales Second, develop a detailed implementa- ers for technical support. These technical
prospects in order to quickly move on to the tion plan and be sure to include all internal managers have first-hand knowledge of
next call. To change this behavior, manage- organizations that directly affect the sale, their company’s needs and are often direct-
ment adopted a new metric, “revenue per installation, and usage of the product. ly involved in purchasing decisions.
call,” which eliminated the temptation to Clearly define the roles and responsibili- Therefore, managing their experience with
cherry-pick sales opportunities. ties of each participant in the customer your company is critical to cultivating good
support cycle to ensure that all internal customer relationships.
parties are on the same page. Recognizing the value of these interac-
Empowering “Do-It-Yourself ” Consumers Third, begin with a trial launch to test tions, leading services-based companies
the waters. Consider deploying your self- now include “enhanced technical services”
The technical experience and confidence installation program with a small group of with their product offerings to generate
of the average consumer has markedly friendly customers first. Expose only a lim- additional revenue or offer a competitively
increased in recent years and many are ited portion of your service operations to differentiated product. Simply put,
demanding easy-to-install products with any new process changes until key lessons “enhanced technical services” are tiered
self-help options. They also have become have been learned. support bundles tailored to fit the opera-
much less tolerant of poor service from Fourth, use incentives such as discounts tional needs of your most strategic
contact centers. Companies with more tech- or tiered pricing to encourage customers to customer segments.
nologically sophisticated customer service self-install. Provide easy-to-follow instruc- Take as an example the highly competitive
operations are better positioned to support tions and use language such as “quick” and business wireless sector. Many companies
these customers, while slashing the costs of “easy.” Use product packaging to your have incorporated wireless technology as a
home installation. advantage—pictures and graphics help alle- “mission-critical” element of their opera-
In industries such as cable and satellite viate confusion and reduce the stress of tions—factories use it for automation and
TV, high-speed Internet, and wireless serv- installation. production, field-service organizations use
© 2006 PITTIGLIO, RABIN, TODD & MCGRATH, INC. 4

5. it for dispatch and field communications, other functions involved in customer lifecy- infrastructure. This will help you deter-
and emergency responders use it for life- cle management. Typically, this strategy mine how offering these bundles will affect
saving communication. Given the incorporates service-level agreements with your organization, what processes and tech-
importance of these applications, leading guaranteed metrics for time to repair, time nologies they’ll require, and what the plan
wireless providers are now bundling to notify, and service availability. To maxi- for implementing this strategy should look
enhanced support with their offerings to mize the quality of service, the needs of like.
provide easy access to help should prob- customers are matched to customer care Finally, set up a cross-functional gover-
lems occur. representatives who are best equipped to nance board to ensure consistent execution
Some enhanced service bundles address service these needs. of your strategy. This board can also approve
the main “pain points” of their customers If you’re going to implement a sound customer eligibility for enhanced services
in key sectors. A bundle might include enhanced-service strategy, you need to take and arbitrate any issues that may arise.
advanced notification about planned main- a rigorous look at your business. Begin by Clearly, for most businesses today, cus-
tenance and unplanned service evaluating the customers who are most tomer service operations are no longer a
interruptions. Or 24/7 care from a team important from a strategic perspective and cost of doing business—they’re a source
of highly specialized and trained agents. determine their specific business and oper- of significant competitive advantage. To
Or detailed operational reports and direct ational needs. A number of tools, such as make the most of this strategic asset, you
access to engineering support. Such servic- Voice of the Customer, can help you make need to rethink the services you provide
es provide the extra competitive edge in these decisions. Then determine which your individual and business customers.
this market. service bundles you should offer to meet It’s what the customer wants.
The concept of enhanced services goes these needs. Make sure you can justify the
well beyond the “platinum, gold, or silver” value proposition of your strategy by weigh-
customer support strategy, where customers ing its costs against benefits (e.g., higher CONTACT:
are simply routed to specialized contact customer retention, higher price premi-
centers based on their classification. In um, lower sales costs). PRTM Principal Rob Rowello at
contrast, an enhanced-service strategy also It’s also important to map the new serv- rrowello@prtm.com or +1 202.625.7200
includes differentiated support from all ice bundles against your operational
© 2006 PRTM | REPRINTED FROM PRTM INSIGHT, VOL. 18, NO. 1 5