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Customer Care Operations Anxieties: Cost, Quality, Control & the Role of the Outsourcer Presented by Joe Feldkamp Senior Manager, Business Development Primary Anxieties to Outsourcing Care Operations Cost Quality Control Outsourcing can’t possibly be a less expensive alternative.

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Customer Care Operations Anxieties:Cost, Quality, Control & the Role of the OutsourcerPresented by Joe Feldkamp Senior Manager, Business Development


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Primary Anxieties to Outsourcing Care Operations

Cost

Quality

Control

  • Outsourcing can’t possibly be a less expensive alternative.

  • No one can know my business or customers as well as I do.

  • If I outsource my care, I lose control of my data and ability to anticipate my customers’ wants and needs.


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Balancing Cost, Quality, and Control

Wants & Needs Analysis

Conducting a true needs assessment

  • What are the client’s strategic priorities for care?

  • Is care a core competency?

  • What does the client want to accomplish?

  • How do they want to get there?

  • What is truly important vs. nice to have?

Optimal Program Mix



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How Do We Measure/Define Cost?

  • What are the typical costs?

  • What is typically left out?

This is a representation based on a tier 1 North American wireless company.


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How does an Outsourcer drive down costs?

Reduce capitalcosts

Reduce operating costs

Guaranteed cost savings

  • Lower infrastructure, technology & telecom costs

  • Higher facilities utilization

  • Contact center core competency

  • Scale of support personnel

Scale of operations

  • Fewer live agent interactions through increased self service

  • Shorter handle time

  • Less idle time

  • Less time spent in training, team meetings, etc.

  • Fewer repeat calls

Greater productivity

  • Market/site selection

  • Offshore services

  • Recruiting and training practices that reduce cost of acquiring labor

  • Manage attrition

Lower costof labor


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Where Do the Cost Savings Come From?

Technology 20–25%

  • Proprietary integration capabilities

  • Contact center automation

  • Computer telephone integration

  • Desktop Manager

  • Intelligent call routing

  • IVR / advanced speech recognition (ASR)

  • Web self service

Typical Breakdown of Cost Savings

People 30%

  • Defined program performance

    management

  • Agent desktop performancemanagement tools

  • Attendance IVR

  • Timekeeping system

  • Recruiting/training

Processes 15–20%

  • Best practices

  • Quality model

  • Customer satisfaction tool

  • Self service channels

  • Streamline call flows

Labor costs 15%

  • Market selection

  • Recruiting

Scale 15%

  • Facilities utilization

  • Scale efficiency

  • Consolidation


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Operating and Capital Expenses

  • Clients need to reduce & better define Operating Expenses (OpEx)

  • Clients need to eliminate Capital Expenses (CapEx)



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How Do We Define Quality?

  • Security. Confidence in the secure transaction and storage of customer/account information.

  • Reliability. Ability to provide consistent support and service around customer needs in all types of business scenarios.

  • Redundancy. Ability to seamlessly shift interaction from one center to another with no impact on the service level or type.

  • Scalability. Capable of ramping or declining support and service per customer (peak and valley) demands.

  • Training. Leveraging cross-trained agents to facilitate multi-functional roles (service, sales, marketing, etc.) within the enterprise.

  • Industry expertise. Having industry specific knowledge around customer facing business processes.


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How Does an Outsourcer Impact Quality?

Greater

productivity

Fewer live agent interactions through increased self service

Shorter handle time

Less idle time

Less time spent in training, team meetings, etc.

Fewer repeat calls

People

  • Agent recruiting & training that targets performance quality

  • Agent benefits & incentives that improve retention

  • Performance management that enables agents to improve

Technology

  • Proprietary integration capabilities that minimize risk

  • Knowledgebase technologies that improve data utilization

  • Interactive alert technologies that reduce cost and drive revenue growth

  • Web self service that reduces inbound call volume

Processes

  • Continuous improvement process that drives down cost

  • Quality model that improves best practices

  • Customer satisfaction tool that measures and reports in real-time


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How Does Quality Boost Revenues?

Convert more prospects

Reach more prospects

Better retain customers

Greater up-sell / cross-sell

Customer scoring& segmentation

Data warehouse

Demographicprofiling

Agent recruiting &training

Agent benefits & incentives

Agent desktop applications

Intelligent call routing

Continuous improvement

Outbound programs

Interactive alert technologies

Access to customer prospect lists

First call resolution focus

Save programs

Agent training

Call routing technologies

Typical 20 - 40%+ more revenue vs. in-house

Identify new revenue streams

Increase and retain customer base while driving new revenue growth



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How Do We Define Control?

  • Customer and brand ownership?

  • Program management?

    • Accountability

      • Business continuity planning and execution

      • Financial stability of the vendor

  • Access to a management dashboard


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Business Continuity Planning and Execution

  • It could happen to you……

  • Natural disasters and unforeseen accidents


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Financial Stability of the Vendor

  • Indicators of financial stability

    • Conservative executive management

    • Strong balance sheet

      • Cash to debt ratio (12-20%)

    • Breadth and depth of their client base

    • Long-term client relationships

    • Vertical-specific industry experience

    • Outsourcing experience


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What is a Management Dashboard?

  • Real-time, Customizable Reporting Tool

    • Information at your fingertips

    • Retention of detailed data

    • Built-in to IT infrastructure

    • Accessed via secure URL

  • What information should be available?

    Key Performance Indicators (KPIs)

    • System availability

    • Customer satisfaction

    • First call resolution

    • Average wait time

    • Average handle time

    • Agent utilization rates

    • Churn rate



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Anxieties vs. Reality

  • If I outsource my care, I lose control of my data and ability to anticipate my customers’ wants and needs.

Cost

Quality

Control

  • Outsourcing can’t possibly be a less expensive alternative.

Reality – A credible outsourcer will guarantee the promised cost reductions.

  • No one can know my business or customers as well as I do.

Reality – A credible outsourcer will provide a team of experienced, industry specific professionals to better manage your program.

Reality – A credible outsourcer will deliver exemplary program management and accountability.


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Thank You!

Joe Feldkamp

Senior Manager, Business Development

Convergys Corporation

+513.723.3777

+513.608.7423 (Mobile)

+513.784.2505 (FAX)

[email protected]


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