Call Center Benchmarking and Best Practices

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							  Achieving Competitive Advantage
Through Contact Center Benchmarking


   TPPA Marketing & Customer Service
          Annual Conference

             San Antonio Texas
              March 4, 2002
About Our Team

Strategy
Organization/Staffing
Market Measurement

   R. W. Beck    & Partner Communications
                        Implementation
                        Technology
                        Internal Measurement


  Competitive Expertise for Customer Service
Keys to Customer Satisfaction
and Loyalty

Three factors directly contribute to Customer Satisfaction

                  Service
                  Quality



                               Customer      Willingness to
                  Product     Satisfaction   Switch
                  Offering     & Loyalty     Pressure to Opt in




                   Price



Customer satisfaction directly impacts community
pressure to opt in and customer retention.
Competitive Strategy
 Competitive
  Strategy

                       Service
                       Quality
     Differentiation
      Strategies




                                   Customer      Willingness to
                       Product    Satisfaction   Switch
                       Offering    & Loyalty     Pressure to Opt in




                        Price



Service is a value-oriented differentiation strategy
that can work well in local markets.
Using Customer Service
to Gain Loyalty
This utility’s excellent service produced strong customer loyalty
as evidenced by the low inclination to switch to another electric
provider if choice were available:
             Influence of Current Service on Electric Customer Loyalty

                                                       Overall Service Grade
                                           ‘A’ Grade       ‘B’ Grade          ‘C’ Grade

 Percentage of Business Customer
 who would not switch to another utility      73%               57%                42%


 Percentage of Residence customers
 who would not switch to another utility      76%               58%                42%


                                                         Base: All commercial respondents, n = 400
                                                               All residential respondents, n = 403
                                                         Question applied to all electric customers.

Excellent Service is worth an additional retention
of over 30% of customers over average service.
Customer Service Impact
Learnings from other industries:
   Customers are five times more likely to leave you
    because of poor service than they are for product quality
    or price

   Seventy percent of customers change suppliers
    because of poor service

   Customers who receive poor service tell 14 other
    people -- customers who receive good service only tell
    one other person

   It costs five times more to obtain a new customer than
    to retain an old one

   A decrease in customer defections of 5% increases
    profits by 25-85%
Implications of Service Strategy
Implementing Customer Service as your COMPETITIVE
STRATEGY is a fundamental change in orientation:

  From:                  To:
     Required Function     Competitive Tool

     Internal Focus        Customer/Market Focus

     Cost Center           Frontline of Customer Retention
                           and Sales

     Cost Minimization     Service Value Maximization


     Low Priority          High Priority
How to Begin

Learn what aspects of customer service are important to
  YOUR customers
     Market research – the customer viewpoint

Organize to deliver superior service
     Process analysis, organization and staffing

Implement the tools to deliver superior service
     Technology/communications analysis and improvement

Know the level of service that you are providing
     Benchmarking and continuous measurement
Make customer satisfaction the most important
measure of your success!
Details Count
   Provide a single face to the customer

   Provide anyway, anytime, anywhere customer access

   Provide fast response to every interaction

   Provide customers with self-service; however, give them easy
    access to a human

   Resolve every issue on the first call

   Personalize every contact

   Match customer service delivery to the needs and values of the
    customer

   Empower and expect employees to deliver world-class service

   Design measures, processes, and systems against
    world-class standards

Benchmarking your delivery of customer service
at your contact points is essential!
Customer Satisfaction –
A Corporate Imperative

   The Contact Center
      Has the most customer contact and is the most

       important customer-facing organization

   However, Normally…
       Is functionally focused and operates in a silo
       Is considered a cost of doing business
       Strives to reduce costs, which lower Customer
        Service levels
       Has the lowest paid, lowest trained and lowest
        empowered employees; even though, it has the
        greatest potential impact on customers
 Customer Service Migration

 Company-Centric                                                                                               Customer-Centric

                                                                                         Continuous                       Mass
                             Startup                     Mass Production                Improvement                   Customization
                             Phase 1                        Phase 2                       Phase 3                        Phase 4
Organizational                                                                                                       CRM -- Customer
                      Centralization of Functions      Specialization               “One Stop Shopping”
Imperatives                                                                                                           Relationship Management
Culture               Consistency                      Sweat Shop                   Quality                       Sales/Learning
                                                                                                                     Market Leadership
                      Consolidate Function             Efficiency
Objectives            Repeatable without Errors        Availability
                                                                                      Effectiveness                 Cross Selling
                                                                                                                     Customer Retention
                                                        Calls/Day/CSR
                      Fewer Complaints                                               First Call Resolution         Customer Satisfaction
                                                        ASA
Measures              Cost Based
                                                        Abandonment
                                                                                      Quality Measures              Business Contribution
                      Talk Time                                                      TQM                           P&L
                                                        Blockage
                                                                                                                     Intra-Organizational
                                                                                                                      Reengineering
                                                        Departmental                 Intra-Organizational
                      Manual                                                                                        Single View of Customer
Processes             Iterative
                                                        Early Automation              Automated Workflow
                                                                                                                      Contacts
                                                        Multiple Call Transfers      Some Empowerment
                                                                                                                     Automation
                                                                                                                     Scripting
                                                                                      CTI
                                                        CMS                                                         CRM Desktop
                      PBX/ACD                                                        Quality Monitoring Tools
                                                        IVR                                                         Integrated Applications
Technology            3270
                                                        Forecasting/Scheduling
                                                                                      Image
                                                                                                                     Expert Systems
                      Paper                                                          FAX
                                                        Dialers                                                     Data Mining
                                                                                      Home Agent
                                                        Hourly                       Team Based                    Business Incentive Based
Employee Profile      Hourly                           Part Time                    Unit Incentives               Empowerment
                                                        High Turnover                Some College                  Continuous Learning
Strategy              Reduce Cost                      Cost Center                  Alternate Channels            Integrated Channels
                      Order Entry                                                    Customer Management           Customer Segmentation
                                                        Inbound/Outbound
Capabilities          Complaints
                                                        Fulfillment
                                                                                      Telemarketing                 Relationship Management
                      Service                                                        Market Research               Business Rules Routing
Performance Model

                          Contact Flow


                          Customer Access




Customer Satisfaction   Customer Interaction   Workforce Management




                            Fulfillment
Measurements Drive Behavior


           Measurements
          Must Be Aligned
        to Desired Outcome


        Those I Publish
        Those I Watch
Customer Access

    What is it?
    How fast and easy do I get to the right person or place that can
    handle my inquiry

    From The Outside Looking In




 It Includes?                                   Measurements
• Telephone Numbers                             • Service Level
• Call Prompting                                • Abandon Rate
• IVR                                           • Misdirected Calls/Call
• Messages/Music on Hold                          Transfers
• Voice Mail                                    • % of Calls Handled by the
• Email                                           IVR
• WEB
• Chat
• Video
Customer Access - Benchmark
   Speed of Answer
        80% of calls within 20 seconds
        Abandon Rate < 3%
        ASA 5 – 7 seconds
   Call Transfers
        One soft transfer
   IVR (uneducated customer)
        No more than 4 menu picks
        No more than 2 levels
        No more than 30 seconds in the IVR
        Always “0” option for an Agent
        “9” for repeat of options
   Email
        Response within 4 hours
Customer Interaction

    What is it?
     Once a customer gets to the right person or place, how are they
     treated and how empathetic, responsive and decisive is the
     response




It Includes?                                 Measurements
 • Customer relationship                     • Quality Monitoring
 • Problem/question/need                        – Call Handing
    identification                              – Technical
 • Analysis/decision making of               • Call Handle Time (AHT)
    the resolution                              – Talk Time
 • Commitment to action                         – After Call Work
 • IVR/Email/etc. Applications               • Number of people for
                                               resolution
Customer Interaction - Benchmark
   Quality Monitoring
        Random call and screen navigation monitoring
        Minimum 10 calls per month
        Evaluation of
             Call Handling techniques – 50%
             Technical skills – 50%
        One-on-one feedback within 24 hours
        Rating System with goals and targets
        Part of employee evaluation system – 35%
   Average Handle Time (AHT)
        Averages – driven by call type
        Look for high and lows
        Identify Stars and training/performance issues
   Number of people to resolve and issue
        First Call Resolution
        One soft transfer
Fulfillment

    What is it?
     Keeping commitments to customers. Completing the transaction
     after the customer hangs up.




It Includes?                              Measurements
 • Sending/Faxing material or             • First call resolution
    information                           • Number of times a
 • Making adjustment to                     customers has to call to get
    account as promised                     resolution
 • Service Rep/Sales Rep                  • Satisfaction with the
    showing up when scheduled               resolution
 • Calling back as promised
Fulfillment - Benchmark

   First Call Resolution
        Customer perception
        Direct correlation to customer satisfaction
   Number of times a customer has to call to get resolution
        One time !!!
Workforce Management

    What is it?
     Get agents to be where, behave as and do the things you want
     them to.




It Includes?                                 Measurements
 Agent behavior and                          • Adherence to schedule
    performance                              • Customer availability
 • Compliance to schedules                      • Handling a call
    and work rules                              • Waiting for a call
 • BIC – Bodies in Chairs                    • Quantitative Measures
 • Incentives                                • Qualitative Measures
 • Training                                  • Attendance
 • Expectations                              • Employee evaluation
Workforce Management - Benchmark

   Customer availability -- Occupancy (working on a call or
    waiting for a call ) – 90%

   Adherence to schedule – 95%

   Performance Evaluation

        Qualitative    35%

        Quantitative   35%

        Adherence      20%

        Other          10%
Customer Satisfaction

    What is it?
      The customers’ perception of the organization and are they
      satisfied enough to purchase from the organization again or
      recommend it to someone else




It Includes?                                  Measurements
 • Other contact centers set                  • Overall satisfaction with the
    customer expectations                       interaction
 • The entire call flow process               • Resolution on 1st call
 • How other internal                         • Loyalty
    organization/groups service
    customer.
Customer Service - Benchmark
   External Survey – Satisfaction with the Recent Contact
        Monthly/Quarterly
        Keep to five questions or less
        Driven by a recent contact
   Key Survey Questions
        Overall how satisfied with the interaction?
        Was your issue resolved on the first call?
        If you have a choice, would you select us or recommend us to
         someone else?
        Excellent or “A” rating in the 65% - 70% range
   Other Important Questions
        Acceptable wait time to answer
        Number of calls to get resolution
        Number of people talked to
        Usability of the IVR
        Satisfaction with the resolution
10 Steps to a “World Class”
Contact Center

1. Develop a “Vision”
2. Set “World Class” Performance Standards
3. Develop performance measuring systems
4. Implement Customer Satisfaction Surveys
5. Implement a Quality Monitoring Program
6. Link business results to Contact Center performance
7. Freely publish team/group/organization/business results
8. Communicate and train employees, plus get feedback
9. Link results to team/group/organizational
   incentives/performance
10. Continuously review and adjust
In Conclusion

   You are in a competitive market
   Customers have many more choices
   Differentiating your company with product or price will
    be difficult
   Customer loyalty is driven by customer service
   Profits significantly increase with a reduction in
    customer defections
   98% of customer contacts are through the contact
    center; to your customer, it is your company
   Customer expectations are not set by your competition
    but by every other contact center
   Establishing a world-class contact center is the most
    effective way to drive customer loyalty
Questions and Answers

           For more information:
                 Wendy Warner
                R. W. Beck, Inc.
                Denver, Colorado
             Direct: (303) 299-5345
             wwarner@rwbeck.com

                  Patricia Cruz
                R. W. Beck, Inc.
                 Austin, Texas
             Direct: (512) 795-9007
              pcruz@rwbeck.com

                  Doug LoPresti
          Partner Communications, LLC
              Direct: (203) 985-3450
             dlopresti@partnerc.com

						
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