News & EventsLatest News
Lifeblood of Companies
The call center industry has transformed and evolved over the last decade, away from the focus on customer service and customer satisfaction, to bottom line revenue and outsourced services. Not surprisingly, we have seen steep declines in customer satisfaction and loyalty, and a significant increase in churn. This obsessive focus on the bottom line has led to many large companies going offshore for customer service and technical support, with other companies playing “follow the leader”. The result, overall customer satisfaction has declined significantly.
Customer Relationships: The Lifeblood of all Companies
A poll by Opinion Research indicates 69 percent of Americans are less likely to do business with a company after one bad call center experience. Yet, according to a 2007 Aspect Index report, customers are 33 percent more likely to do more business with a company after a positive customer experience.
Offshoring services fail to tell the whole story—no one mentions customer satisfaction plummets due to the inability to deliver service that fulfills the expectations of an American customer. This has led to a loss of customer satisfaction and customer retention for many companies.
We Have Outsourced Our Most Important Person in Today’s Economy: The Customer!
The 21st Century needs a new call center model to transform the industry, focused on the customer, not the cost of doing business with that customer. The industry needs to look at the value, not simply the cost of call center services with the ultimate goal: to provide extreme customer satisfaction, which will yield an enthusiastic customer who will, in turn, stimulate strong word-of-mouth loyalty, which ultimately leads to higher revenues.
Yes, cost is key and some outsourcing can help save costs, but the siren call of the bottom line obscures the high risk of customer dissatisfaction, which is inevitable due to language barriers, extended length of calls, comprehension issues, Plus there is a lack of cultural context. This lack of language comprehension and cultural awareness kills productivity. The net effect of extended calls is a productivity decline of 39 to 105 percent.
In addition, many of the behaviors that Americans intuitively expect from call center representatives are literally and figuratively foreign to international representatives. Representatives need to be able to empathize with customers and respond in a culturally appropriate manner. It is reported that problems with comprehension occur in an average of 18 percent of offshore calls (about one in five calls), which is a prime cause of customer frustration.
Offshore Call Center Support and Service is the Life Time Value (LTV) of a Loyal Customer and Customer Retention
Whether it’s a loss of customers due to the fact they reached a foreign country for call center service and immediately hung up, or a customer who had a bad experience, current industry practices are causing an increase in costs to retain existing customers and gain new customers—to convert prospects!
We have to recognize that not delivering on the promise of extreme customer satisfaction not only inhibits a company’s word of mouth references, but can also destroy a company. An individual’s campaigns against a company, either face-to-face with family and friends or via social media, allows that story to be told again and again and again, and a company is unable to remove or control these negative references.
The key is not just reducing call center costs, but improving overall return on investment (ROI) of the customer experience. It’s not about how quickly are calls answered or first call resolution. A real contact center partner should understand the traditional variables, but also recognizes the value of an extremely satisfied customer. This means call center managers must understand what it takes to satisfy a customer’s needs. The call center manager must develop a long-term relationship with the customer to continue to evaluate, recognize and support the customer’s ongoing needs—to build a relationship with the customer that transcends a single interaction.
This industry must look at offering their services as solutions providers, not body shops. We must understand each client’s specific objectives and the service and support needs of our client’s customers. The only way to meet these objectives and provide extreme customer satisfaction is to evaluate the processes and procedures of every touch point of customer contact. We must then determine how to support and implement call center services that positively affect these specific areas, so the client’s customers receive excellent support and service.
Re-Evaluate and Re-Invent the Call Center Industry to Make the Customer Number One
The new call center market is based on three things: the innovative use of technology, a closely knit partnership between the outsource organization and the company it supports, and a unique workforce model.
For our industry to be successful, we must design and implement support systems that use state-of-the-art hosted on-demand technologies. We must solve customer service and technical support issues with the appropriate technology that achieves the best results, whether voice, e-mail, chat and allows the contact center and remote representatives to be closely integrated and monitored, ensuring the highest level of customer satisfaction.
We must develop and implement a strategic workforce management model, which uses “natural human resources” available in America such as students, retirees, stay-at-home parents, special needs individuals and veterans. We must take responsibility to not only look at the bottom line, but to provide education, training and call center jobs in the United States.
The Call Center Industry Must Change
We must elevate customer service and technical support so people are satisfied by the contact, not matter what form. We must deliver a customer experience that responds to the people’s expectations so they are do not dread their call center experience. We must provide call center services that respond appropriately to the cultural context of the customers.
Providing call center services that respond appropriately to the cultural context of the customers will turn customers into loyal followers, and even evangelists, because the experience will align with the customer’s values. For the companies who employ the new call center model, increased customer satisfaction will help attract and retain customers, develop customer loyalty and through the “value-added experience,” feed the emotion of the customer, which has far-reaching benefits.
As an industry, we must demonstrate that onshore call center services that are cost effective and price competitive. We need to deliver exceptional expected services that are culturally appropriate, work with our customers to define the most appropriate response to their customers’ needs and deliver extreme customer satisfaction, better than is currently provided.
We must re-invent this industry to meet our customer’s expectations. We must bring call center services careers back to America to perform customer support more effectively, so as not to waste a customer’s most important resource: time.
First published on Customer Management IQ.
Getting Started
Having a virtual work-from-home platform can be hugely beneficial to a business but how does one go about doing it? Getting started can seem daunting but we can help you make a smooth transition. Before switching to a virtual platform, you must decide how you will hire and train employees, what type of equipment you will use, and what additional resources your employees will need. Determining a strict work-from-home program is essential to maintaining control.
Once this is established you will need to consider the different employment models. The first model consists of hiring independent contractors who are responsible for their own payroll taxes and they might be subject to business incorporation fees. It is important to note that the taxes these contractors incur are tax deductible and the advantage for contractors is that this structure allows them to work on multiple contracts. The second model is more traditional where the employee receives the same benefits as a brick and mortar employee. This may be more expensive to the employer but the employees’ loyalty and motivation is the payout. With this model, many companies prefer to hire employees from a certain radius or drive-time. An example of this solution is JetBlue who requires its virtual platform employees to live within two hours of their Salt Lake City facility. Having agents live relatively close may be a good idea if you want them to come in for training or have periodical “check-ins.” Many companies have agents begin at physical facility and later allow them the ability to work from home. A third option is to simply hire employees regardless of location. With this method employees would go through virtual training which may become more popular as many students and entry level workers are becoming accustomed to the online-course model.
Upon deciding which model works best for your company you can determine what equipment your employees will provide themselves and what you will provide them. Most businesses that use the virtual platform provide their agents with their own PCs although the employees must obtain their own high-speed internet while others require that employees provide their own computers (as long as they meet system requirements). It’s also a good idea to tell employees that they must dedicate a room or area in their home that is quiet and free of distractions while they work. After you have worked out these details you will be on your way to using one of the most innovative and beneficial work models.
VoIP as the Standard
As with any technology within a year it will be outdated. One must choose carefully what type of technology will be the most cost-effective and have a longer “life span.” Here experts weigh in on the future of virtual platforms and whether or not they are here to stay and for how long. Is Voice Over Internet Protocol (VoIP) really convenient for businesses or is it just a trend that doesn’t really provide benefits in the long run? For many companies it is becoming increasingly difficult to keep their facilities running (rent, maintenance, furniture, etc) as well as their operations going. VoIP is the answer to these common problems because when employees work from home through a virtual platform, you lower costs and increase productivity. This is just one of the many benefits of VoIP that makes it very likely that it will one day become the dominant platform.
Donna West from Focus Communications is a prime example of how virtualization can help propel a business for short-term and long-term goals. She set up three remote locations that all used VoIP which meant that her company could keep its local phone numbers and not have any long distance charges. Furthermore, the employees that she otherwise would have had to lay off because they could not work at the new locations were given VoIP access from home. As West put it, “If employees are given the opportunity to excel in this kind of situation, they will thrive.”
One of the top advantages that make VoIP a shoe-in for further success in the future is the ability it gives you not only to choose from a wider pool of employees but also the potential to reach many more clients worldwide. A virtual platform has no geographical limits (while there is a reliable internet connection). This allows your company employees to give presentations to clients via virtual platforms or to have virtual meetings. Cutting unnecessary travel costs is in itself a huge advantage.
Just as the internet has become an indispensable part of how we do business, so will VoIP be to various industries. Ray Shaw of Business and Professional Exchange, Inc. recommends that for VoIP to continue being a staple, you must work closely with your internet service provider. Specifically you need to make sure that Quality of Service is in place and that voice data is getting priority over other data. According to Shaw and other experts it’s better to get used to working with VoIP now because one day it will most likely be the only platform used. Slowly but surely, virtualization is here to stay.
Managing It All
So you have a virtual call center with agents that work from home and perhaps you also have some employees overseas. Business is booming. But how do you manage employees that are hundreds of miles away? How do you bring everyone together and achieve the feel of a united company, all while maintaining a satisfied customer base?
While it’s a great asset to your business to use a virtual platform, it can be difficult to manage groups of people who are nowhere near you geographically or who maybe don’t speak the same language as you due to outsourcing. What you need in order to succeed is workforce management tools. You have to be able to deal with a span of time zones, schedules, and language. However there are a few components that make it much easier to integrate your employees.1. Consistency. When working with people that are scattered all over the world, it is very important that your technology is the same in each setting. The systems and programs you use should be consistent no matter where your call enter representatives are located. Having the same technology helps keep costs down. However, you should also take into consideration that the platform and software you use be offered in the languages that your employees speak. Consistency also includes the level of customer service that clients receive. You want to make sure your brand is perceived with the same yet relevant image despite language or cultural differences.
2. Strategy. Although VoIP offers myriad benefits, you need to make sure that it is the right platform for your business. If you still plan to have representatives in a single physical location and nothing else, then a virtualization is probably not needed. One of the biggest advantages of VoIP is that it gives you the potential to reach clients globally. When you do decide to use a virtual platform you need to consider how to manage virtual queues and call volume. Whether this is determined by language or whichever representative is next, you need to determine which is the best way to filter calls. It is therefore wise to use advanced VoIP-enabled management tools.
3. Size. Many large companies are turning to virtual call centers to expand their business. The great thing about VoIP is that it allows the smaller businesses to “catch up” and gives them the chance to grow exponentially. If large companies can successfully manage their virtual agents then it will be much easier for smaller companies to do so. This is because they will use the same sophisticated management tools but with less people to manage.
4. Communication. Last but definitely not least is communication. It is perhaps the most important component to optimize your business and ensure your employees are working cohesively. With a virtual platform you have the ability to monitor employees’ progress, chat, video conference, and so much more. It is imperative to use these tools to have open lines of two-way communication and enhance internal operations.
Managing virtual call centers can have complicated components because of the dispersal of employees. But with the right use of a few simple tools it’s possible to maintain a company that everyone can feel a part of no matter where they’re working from.
VoIP Regulations
With Voice Over Internet Protocol (VoIP) gaining popularity, governments are beginning to set guidelines and regulations that will affect businesses using VoIP. These regulations will most likely start in the United States where VoIP is more popular than in Europe. Some concerns about the regulations include whether these types of services should be considered “common carriers” as well as the potential loss in taxes and universal service issues.
A hearing recently took place in Brussels where a report by the consultants Analysys was presented. The report is called IP Voice and Associated Convergent Services and it examines the transition from regular public switched telephone networks (PTSN) to virtual services and its implications on technology, economy, structure, and regulations.
Here we will outline the main findings and recommendations of the report.
Firstly it is noted that there is currently a transition going on to virtual platforms (IP-based). So far the New Regulatory Framework (NRF) has been handling the transition well although there are some issues that still need to be addressed before they turn into more pressing matters. The report stated that the biggest issue right now is whether and how VoIP is classified as a publicly available telephony service. The concern regards access to emergency services (such as 911) and network integrity.
This leads into the next issue which is location and emergency access. The problem is that it might not be possible to show the location of a person calling from a VoIP service during an emergency. It is still unclear how customers are going to be made aware of this dilemma and how to provide a persons’ whereabouts during an emergency situation.
Another concern is that VoIP services may not be as accessible as a PTSN. This means that there will have to be strict guidelines to ensure that, as VoIP services become more widely used, there are always available “lines”. Once again, this is tied into emergency services.
Phone numbers may also become an issue with virtual services if it continues to grow. The geographic dispersal of VoIP subscribers needs to be taken into consideration when a virtual carrier provides phone numbers for their customers.
The last issue stated in the report was that with virtual services it is possible for people to get domestic service from foreign countries. This brings up other issues of regulation between different countries and the report recommends that this be taken into consideration.
Although it may be some years before virtualization takes over regular phone lines, these issues need to be addressed beforehand. Whatever measures need to be taken will affect regulators, broadband and other virtual providers, as well as the customers who will be using these services.