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Call Centers & Change

Call Centers & Change. Mitchell A. Lieber President, Lieber & Associates M_Lieber@LieberAndAssociates.com 773-325-9400 Your Free Library of Call Center Tips is the Knowledge Base at www.LieberAndAssociates.com CADMEF Academic Update May 14, 2004. What We’ll Cover.

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Call Centers & Change

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  1. Call Centers & Change Mitchell A. Lieber President, Lieber & Associates M_Lieber@LieberAndAssociates.com 773-325-9400 Your Free Library of Call Center Tips is the Knowledge Base at www.LieberAndAssociates.com CADMEF Academic Update May 14, 2004

  2. What We’ll Cover • How the Telephone Fits In • Call Center Change – How It Got Here, Where It’s Going • Regulation and Privacy • Off-Shore and Internationalization • New Contact Media due to New Technologies

  3. How The Telephone Fits In Message Flow 2-Way Interactive 1:1 Media Via Telephone One-Way Mass Media & Segmented Media

  4. Think Integrated 2-Way Interactive 1:1 Media Via Telephone One-Way Mass Media & Segmented Media Message Flow • One-Way Media • Interactive Telephone • Their Strengths Are Complimentary • Applications…

  5. Call Center Change How We Got Here,Where Its Going • New FTC/FCC Rules • More Calling and Dialing Automation • Increased Sales Resistance • Consumer Privacy • Fiber Optics and Internationalization • Off-Shore Call Centers • The Internet New Contact Technologies • Web, E-Mail, Voice-Recognition

  6. Indicators of Interest

  7. Privacy Articles Increase Source: 1998 Study of Periodical Index

  8. Privacy Books Multiply Source: 1998 Study of Library of Congress Data

  9. Success because... Novel Personal Medium Interactive Medium In Excess... Over-fishing Radio-clutter Call Pollution Repercussions Sales Rates Legislation OverCalling

  10. State Legislation • Patchwork quilt of regulations • Do-Not-Call Lists (many preceded the national list) • Caller ID (many preceded the national law) • Calling hours and days - a few ban Sunday calling • No rebuttal & permission to continue laws • Monitoring/Eavesdropping – one party and all-party states • Registration • Fees, Bonds, Lists of reps, Copies of scripts, Some exemptions • Jobs and off-shore legislation pending • Charitable solicitation acts for fund-raising calls • State Legislation Proliferates – New State Laws Every Year

  11. Federal Legislation

  12. Recent FTC (& FCC) Rules • Do Not Call List – August 2003 • Predictive Dialers and Abandoned Calls • Transmitting Caller ID (FCC Fax Rule) • Automatic Billing of Consumers • No Trial Periods, Followed By A Charge • Demand Drafts • Disclosures, E-mails, Faxes, Inbound Calls • Exemptions • FTC Rules = All except Fax; FCC = first 3 only

  13. Results of New FTC Rules • Impact of DNC List Phases In • Smaller Allowable Lists • More Interest or Sales Resistance? • Retention Programs OK • Cross-Sell Programs • Shifts to Other Channels • Generate 800 Number Calls, Web Responses

  14. Solutions to Privacy &Sales Resistance • Profiling Customers • Targeting Lists & Overlays • Predictive Modeling • Of Sales • Opt-in Approaches • Generate Toll-Free Responses • Generate WWW Responses • Call House Lists - People You Know

  15. Solutions to Privacy &Sales Resistance (More) • Have a Great Offer • Something consumers want, need, must have • Compelling • Segmented & individualized offers • Converse & Consult • Listen • Dialogue • Consumer-focused responses

  16. Example- Improving an Offer • Sell Value • Segment to Tailor Value • Mass Customization • Make It Feel 1:1

  17. Staffingand Internationalization • Call Centers Boomed in the 1990’s • Most Had Trouble Staffing (until 2000 bust) • Fiber Optic Cables Under Oceans • Solved international technical issues • Off-Shore Call Centers Began • India, Caribbean, Mexico/Central America • As low as 50 - 60% of U.S. Costs • Grew Quickly in Recent Years • Pros & Cons - Limitations, Legislative activity

  18. TechnologyInternet As Contact Medium • DSL/Cable Modems Changed the Net • The Web & E-mail & Chat • Newest Media • Newest Reply Devices • Web Chat and IM • Impact of Changes in Instant Messaging • The Web & Call Centers • Click for a Call Back • Click for Live Chat

  19. The Emerging Contact Center • Live Agents • E-mail Response • Web Call-back • Web-chat • Very minimal • Web-calling - VoIP • Web-assist/Guidance/Page Pushing (minimal) • Voice-recognition IVR • Fax, Fax-on-demand (fading fast)

  20. TechnologyVoice Recognition • Early Voice Recognition Systems • Vocabularies Now • IVR & Auto-Attendant • Order Status • Current Applications • German Trains, United Airlines • American Express, Home Shopping, UPS • Voice Portals to the Web

  21. Conclusions • Integration is Key • With Mail, Broadcast, Print, Web • Cold Calls Are Fading • Profiling For Targeting, Use Predictive Modeling • Some Prospecting Efforts Shifting Media • “Opt-in” to a Call • Opt-in Via the Web, E-mail or Toll-Free Call • Relationships are Key to Revenue - LTV • Retention • Friendly Cross-Sell and Up-Sell

  22. Conclusions - More • Off-Shore • Will be used for cost-sensitive calls, such as service • Will be used for basic non-sales calls (e.g., audit & circ calls) • Outbound relationship calls are very rough sledding • Complex inbound calls are rough sledding • Continued backlash – service quality and jobs legislation • Routine Inbound Calls via Self-Service • The Web • Voice Recognition • Contact Centers Replace Call Centers • E-mails • Web chats

  23. Call CenterQuality Practices Audit - 2004 The Big Questions 5. Focusing on Building Relationships? 4. Integrating with Other Media? 3. Using New Technology for Profit? 2. How Adapting to Labor Availability? 1. Biblical to Prospects & Customers?

  24. THE “SECRET” RULE FOR CALL CENTER SUCCESS

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