Why Contact Centres are Costing More than They Should & How to Fix This!
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I share SIX insights on why contact centres are costing more than they should. 1. We're not embracing self-service automation to the max. Often, it's because we think customers prefer to speak to a human. As it turns out, most customers actually prefer interacting with well-designed self-service systems. 2. We're dealing with too many repeat + transferred + escalated contacts. Research shows that nothing erodes customer loyalty more than instances where customers have to make 'more than one contact' to resolve an issue. 3. Most of our 'first-time' contacts could be prevented in the first place. We're getting good at reacting to service failures. We need to get much better at preventing service failures from happening in the first place. 4. Our contact centre group structures are unnecessarily specialised. We tend to split our contact centres into smaller agent groups not because we should, but because we can. This means we're not benefiting, as much as we should, from 'economies of scale'. 5. Our 'slim-fit' AHT's (Average Handle Times) aren't as healthy as they appear to be. We tend to look at AHT purely as a number that needs to be met, not as a behaviour that needs to be managed. 6. Our people aren't as productive as they should be. We tend to rely too much on 'offering juicier carrots' or threatening with 'bigger sticks' to improve performance. Our focus needs to shift towards creating a culture that is intrinsically motivating. Now here's the thing… Not only do the above factors cost more they also more likely to damage customer loyalty. So this has a 'double-negative' impact on an organisation's bottom line.
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Why Contact Centres are Costing More than They Should & How to Fix This!
- 1. Here’s reasons why contact centres are costing more than they should… & how to fix this! 66
- 2. #1Reason… We’re not embracing self-service/ automation ‘to the max’.ContactCentreSmart 2
- 3. How do most of customers prefer interacting with an organisation? How do most of customers prefer interacting with an organisation? Seriously Fun Quiz… Phone Preference Self-service Preference or ContactCentreSmart 3
- 4. Most service leaders believe that customers prefer… Seriously Fun Quiz… Phone ContactCentreSmart 4
- 5. But the reality is… most customers have a preference for… Seriously Fun Quiz… ContactCentreSmart 5
- 6. “I can do it myself!” 6
- 7. 57 55 52 47 42 40 43 45 48 53 58 60 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 21 - 30 31 - 40 41 - 50 51 - 60 61 - 70 71 & Older Customer Preference for… Self-service Phone Phone Preference Web Self- service Preference Source: CEB n = 879 customers ContactCentreSmart AGE
- 8. What’s the BIGGER challenge? Getting customers to… What’s the BIGGER challenge? Getting customers to… Seriously Fun Quiz… Use self- service or ContactCentreSmart 8 Stay with self- service
- 9. Most service leaders believe the BIGGER challenge is to get customers to… Seriously Fun Quiz… ContactCentreSmart 9 Use self-service
- 10. But the reality is… the bigger challenge is to get customers to stay with self-service… Seriously Fun Quiz… ContactCentreSmart 10
- 11. In most cases customers try using self-service firstthen live-service (not the other way around) ContactCentreSmart 11
- 12. So why are customers channel hopping away from self-service channels? 12 • TMI… Information • TMJ… Jargon • TMO… Options
- 13. We must not confuse channel avoidance with channel preference ContactCentreSmart 13
- 14. 14ContactCentreSmart Self-service is… 5 - 10 X cheaper than Live-service Source: Yankee Group research report (2006)
- 16. What % of customer contacts…could be self-serviced? 16ContactCentreSmart
- 17. 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Calls Offered Current Self-service Impact Self-service What to look for…? • Routine questions e.g. account balance • Repetitive answers to FAQ’s • Faulty self-service e.g. Web FAQ’s & IVR Impact 5 - 10% 17ContactCentreSmart
- 18. ContactCentreSmart Most people prefer self-service AND it’s a lot cheaper than live-service! Tangible 2-do Why contact centres cost more than they should… Self-service automation not fully embraced! 11 22 Identify interactions (in & outbound) that could be easily self-serviced or automated. Find out where and why customers are opting out of existing self-service channels. Insight! #1#1
- 19. #2Reason… We're dealing with too many repeatcalls. ContactCentreSmart 19
- 20. Which scene below is BIGGEST destroyer of customer loyalty a. Being treated ‘like a number’ b. More than one contact to resolve an issue c. Repeating the same information over & over d. Being transferred from ‘pillar to post’ Seriously Fun Quiz… 20ContactCentreSmart
- 22. The nominees are… Experience with the Rep Rep confidence Rep listening ability Personalization of service Rep knowledge Rep concern Demonstrate ownership Certainty of follow-through Customer Effort Number of transfers Repeating information First contact resolution Number of contacts to resolve Perceived additional effort to resolve Ease of contacting service Time to resolve Moments of ‘Wow!’ Willingness to go “above & beyond” Applying knowledge about customer Exceeding customer expectations Teaching the customer something new Offering valuable alternatives to the customer ContactCentreSmart 22
- 23. And the winners are…
- 24. LoyaltySpectrum More Loyal Source: CEB 2013 n = 97,176 customers More Disloyal 0.86x 2.52x Neutral Moments of Wow: Teaching customer something new 0.14x Effort: FCR Effort: More than 1 contact to resolve 0.52xRep Experience: Generic service 0.46xEffort: Repeating information Effort: Perceived effort to resolve 0.23x 0.20xEffort: Number of transfers 4x
- 25. b. More than one contact to resolve an issue c. Repeating the same information over & over d. Transferred from ‘pillar to post’ Seriously Fun Quiz… a. Being treated ‘like a number’ Which scene below is BIGGEST destroyer of customer loyalty? 25ContactCentreSmart
- 27. What % of customer contacts…is repeat callsand how can we reduce this? 27
- 28. 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Calls Offered Current Repeat Call Impact Repeat Calls What’s causing them? • Broken promises • Customers looking for ’better’ answers • Staff errors e.g. wrong info given wrong capture details Impact 10 - 20% 28ContactCentreSmart
- 29. ContactCentreSmart Repeat contacts cost more AND wreck loyalty! Tangible 2-do Why contact centres cost more than they should… Dealing with too many repeats! 11 22 Identify the number of repeat contacts and why customers are needing to repeat? Find out what percentage of contacts are not resolved on first contact and why? Insight! #2#2
- 30. #3Reason… Most 'first-time' contacts could be prevented. ContactCentreSmart 30
- 31. Heroic reaction is good! But the best service is still…NO service! React less Pro-act more
- 33. What % of incoming demand…is preventable and how can we reduce this? 33ContactCentreSmart
- 34. 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Calls Offered Current Preventable Impact Preventable What’s preventable? • Predictable events • Unclear customer communication • High impact issues know what’s ‘broad’ and what’s ‘isolated’ Impact 5 - 10% 34ContactCentreSmart
- 35. ContactCentreSmart The best service is still NO service! Tangible 2-do Why contact centres cost more than they should… Most contacts could be prevented! 11 22 Identify the number and type of contacts that could have been prevented. Move beyond FCR – First Call Resolution into NIA – Next Issue Avoidance! Insight! #3#3
- 36. #4Reason… Our call centre groups are unnecessarily specialised.
- 37. Contact blending ? PoolingSpecialisation Product A Sales ASales A Service A Service A Product B Sales BSales B Service B Service B Product C Sales BSales B Service C Service C All ProductsAll Products SalesSales ServiceService ContactCentreSmart
- 38. ‘Specialisation’ in action… Brokers Members Agents 96 All Customers 87 Agents before? Suppliers AHT 240 Calls 600 SL 80/20 Occ 92% 240 240 240 80/20 80/20 80/20 200 200 200 83% 32 83% 32 83% 32 87 Agents after? ContactCentreSmart 38
- 40. Is our contact centre agent group structure optimal? ContactCentreSmart 40
- 41. That's The Way We’ve Always Done It! Beware of the curse of…
- 42. Contact blendingPro’s & Con’s PoolingSpecialisation Factors Occupancy Planning Complexity Transferred Calls AHT Training Time Quality Cost Effectiveness Higher Lower LowerHigher LowerHigher HigherLower LongerShorter Lower Higher HigherLower ContactCentreSmart 42
- 43. ContactCentreSmart Just because you can split your agent groups doesn’t mean you should! Tangible 2-do Why contact centres cost more than they should… Agent groups are too specialised! 11 22 Identify groups where agents can be cross- trained and put them into a single group. Don’t let ‘TTWWADI’ get in the way of the ‘Powerful Pooling Principle’. Insight! #4#4
- 44. #5Reason… 44ContactCentreSmart Our SLIM-FIT AHT’s are out of shape
- 45. Defining AHT... Time Welcome + IVR Wait in Q: Music + Announcement + More music… RingTime Talk with Agent Put On Hold After- call Work AHT is this… 0 45ContactCentreSmart
- 46. If AHTwere a Facebook relationship status it would best be described as… 46ContactCentreSmart
- 47. AHT? Good AHT Bad AHT So AHT is really a lot like… 47ContactCentreSmart
- 50. HIGH AHT can be GOOD LOW AHT can be BAD AHT AHT
- 52. What part of AHT…is badand how can we minimise this? 52ContactCentreSmart
- 53. 100 120 140 160 180 200 220 240 260 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual AHT Current Waste Reduction BAD AHT What to look for…? • System navigation issues • Asking the wrong questions • Solving the wrong problems Impact 5 - 10% 53ContactCentreSmart
- 54. What part of AHT…is good and how can we optimisethis? 54ContactCentreSmart
- 55. 100 120 140 160 180 200 220 240 260 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual AHT Current Fruitful Booster GOOD AHT What to look for…? • Celebrate customer culture & events • Forward-resolve unstated needs • Clean data • Sell something Impact 5 - 10% 55ContactCentreSmart
- 56. ContactCentreSmart Don’t just measure a number …manage a behaviour! Tangible 2-do Why contact centres cost more than they should… Our slim-fit AHT is out of shape! 11 22 Identify biggest AHT time wasters and implement waste reduction plan. Look to resolve unstated needs, clean data, sell something or celebrate events. Insight! #5#5
- 57. #6Reason… 57ContactCentreSmart Our people aren't as productive as they should be.
- 58. Factors Is the agent in control of this…? Occupancy Service Level Transferred Calls Average Handle Time (AHT) Calls Handled Call Quality Adherence to Schedule First Call Resolution (FCR) Agent Productivity In Control? 0% 100% YesNo ContactCentreSmart 58
- 59. What’s the best way to get people to perform? ContactCentreSmart
- 60. !!
- 61. Offer a juicier carrot or threaten with a bigger stick ContactCentreSmart
- 62. Really…? This is not what science is telling us! ContactCentreSmart
- 63. Science is telling us carrot and stick incentives often don’t work! ContactCentreSmart
- 65. Why? They can become addictive What’s the next best thing after a Lexington? Another ____________! ContactCentreSmart
- 67. Focus less… Focus more… GREATcompanies are realising that… ContactCentreSmart
- 68. GREATcompanies are also realising… 68ContactCentreSmart
- 70. How can we RAMP up Autonomy, Mastery & Purpose in a fun way!
- 71. ContactCentreSmart Stop relying on incentives to fix failure! Start studying & spreading success. Tangible 2-do Why contact centres cost more than they should… Sub-optimal people productivity. 11 22 Study what your best people do, say, think and spread success by teaching it to all. Ignite intrinsic motivation by giving people opportunities to master their strengths. Insight! #6#6
- 72. So maybe our contact centres are costing more than they should?
- 73. How do we FIX this… ??
- 75. The IDEA is this… 1st1st Know what’s driving demandand supply in your contact centre. 75ContactCentreSmart
- 76. DemandDemand Calls Offered Calls Abandoned Abandoned Immediately Abandoned after Delay Self-serviceable calls Repeat calls Preventable calls Valid calls handled Calls Answered Calls Answered 76ContactCentreSmart
- 78. The IDEA is this… 2nd2nd Know what’s driving costs in your contact centre… 78ContactCentreSmart
- 79. First, find out what’s YOUR… Cost per seat? 79ContactCentreSmart
- 80. Cost Factors Cost – R Cost – % Agent Salary 6 000 Management/Support Salary 4 000 Technology 2 500 Communication 2 000 Seat Infrastructure 1 500 Consumables 500 Other/Sundry 500 Total Cost per seat p.m. 17 000 Cost per Seat p.m. 35 % 24 % 15% 12% 9% 3% 3% 80ContactCentreSmart
- 81. Then, find out what’s YOUR…Cost per contact? 81ContactCentreSmart
- 82. ContactCentreSmart Factors Variables Explanation a. Total Cost per seat p.m. 17 000 b. # of Scheduled Agents 25 c. Calls Offered 35 500 d. AHT (in seconds) 215 e. Total Cost p.m. f. Cost per Call g. Cost per Call Minute Cost per Call / Call minute 425 000 # of Scheduled agent required Average Call Offered p.m. Average AHT p.m. Calculated cost per seat p.m. a x b 11,97 e / c 3,34 f / d * 60
- 83. Now, let’s see where we can save our organisation some money…
- 84. ContactCentreSmart Factors Self-service Repeat Calls AHT a. Calls Reduced p.a. 12 000 24 000 - b. AHT Seconds Saved 60 300 20 c. Minutes Saved p.a. d. Cost per Call Minute 3,34 3,34 3,34 e. Total Cost Saved p.a. Cost Savings p.a. 12 000 * (35 500 Calls x 12 months x 20 seconds ) / 60 40 092 120 000 400 917 142 000 * 474 419
- 85. The IDEA is this… 3rd3rd Show the strategic value of your contact centre… 85ContactCentreSmart
- 86. ‘Cost savings’ is only half the story… 86ContactCentreSmart
- 87. ‘Cost savings’ is only half the story… Show strategic value 87ContactCentreSmart
- 88. “Don’t focus on what your contact centre can’tdo. Show what it cando!”
- 89. People Smart People Smart Operations Smart Operations Smart Contact centre… Customer Smart Customer Smart Strategy Smart Strategy Smart Hierarchy of Value Image: http://www.kingtutone.com/pyramids/information 89ContactCentreSmart
- 90. Be…Operations Smart Service Level (SL) Powerful Pooling Principle Occupancy Average Handling Time (AHT) Forecast accuracy Adherence to Schedule Cost (or Revenue) per contact 90ContactCentreSmart
- 91. Be…People Smart Staff satisfaction Staff engagement Staff retention Coaching effectiveness Hiring effectiveness CultureCohesion™ LeaderMojo™ 91ContactCentreSmart
- 92. Be…Customer Smart Net Promoter Score (NPS) Customer Effort Score (CES) Customer Satisfaction (CSat) Customer Lifetime Value (CLV) Quality monitoring First call resolution (FCR) Next Issue Avoidance (NIA) 92ContactCentreSmart
- 93. Highlight your contact centre’s role in providing insights that improves: • Quality and innovation • Marketing initiatives • Products and services • Service delivery • Self-service • Word of mouth Be…Strategy Smart 93 ContactCentreSmart
- 94. Hopefully we’ve created better… Awareness which will lead to better… Choices which will lead to better… Results ContactCentreSmart
- 95. ContactCentreSmart Dismantling Frustration. Engineering Happiness For more information… Hilario Fiandeiro hilario@ContactCentreSmart.com www.ContactCentreSmart.com
- 96. About the author...Hilario Fiandeiro Hilario is the owner of ContactCentreSmart, an independent consulting practice, specialising in ‘dismantling frustration and engineering happiness™’ in customer-facing environments. He has more than fifteen years experience, as an operations manager, facilitator and management consultant, across various industries, in the customer experience and contact centre space. As a professional consultant operating from Johannesburg, South Africa, Hilario focuses exclusively on making customer-serving professionals more successful and customer interaction experiences more rewarding. Hilario’s academic background includes a Bachelor of Commerce from the University of the Witwatersrand (1994) and an MBA from Edinburgh Business School (2010). Hilario is a ICMI /CIAC Certified Management Consultant (CCMC) having achieved his certification in 2012. Contact me on: hilario@ContactCentreSmart.com www.ContactCentreSmart.com