operational efficiency

Which is more profitable, cutting costs or losing customers?

In the current economic climate, many businesses today are concentrating on achieving high levels of operational efficiency, making their activities more profitable by cutting operating costs. This works very well, as long as the business retains its customers.

Contact centers constantly grapple with the problem of how to cut costs without ruining the customer experience. The classic example is the contact center managers’ desire to reduce Average Handling Time (AHT), the length of time is takes an agent to deal with a customer, while retaining First Call Resolution (FCR)  – the percentage of calls where the customer’s request is fulfilled on the first call, and customer satisfaction scores.

If an agent adheres to the process too strictly, the customer will say s/he is “robotic”. If an agent doesn’t give the customer time to explain the problem, or s/he doesn’t work his/her way through the problem solving questions, then the customer may need to call again, because his problem wasn’t solved. The customer may also think that the agent didn’t listen and was rude.

This dilemma is not going to go away. More organizations will progress to voice activated IVRs. Customers will be routed through automated processes to meet simple requirements. They  will only speak to a human for the complex tasks. Customers are not going to like talking to machines. I’ve never met anyone who enjoyed dealing with an IVR saying “Press 1 for….., press 2 for… etc.”

As long as all the competitors in a specific industry follow this trend, the customer will have no choice.

All it takes is one player to move in the other direction, give superior human service and operational efficiency will be turned on its head.

Think carefully about your projects to improve operational efficiency, and make sure you don’t get so efficient that you lose your customers in the process!

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Hot Contact Center Issues… Are they keeping you up at night? Let’s talk.

I have been reading a lot about the most common issues that contact centers face. Id like to ask you, our readers, partners and customers how YOU handle these commonly recurring issues.

We know contact centers face many challenges. We believe these are the core.  Do you agree that the issues shown below really are the most important?  Help me to improve this list. Let me know if you feel there are additional challenges or more pressing ones than these listed.

From my reading, agent attrition is one of the most challenging issues to overcome. Many companies address this through various incentives, training programs and an active corporate culture. Is agent attrition really an issue or are contact centers able to cope with a healthy churn? Can they absorb the recurring costs of recruitment and training? What can they do to minimize recruitment and training costs? How does this affect contact center quality? What do they do to lengthen the agent life cycle and achieve effective retention?

Customer satisfaction and Customer experience is at the top of the list for some, and maybe a step behind call handling costs for others.  Is there a cultural divide between East and West on which is considered to be the most important? While the West strives for the highest level of customer service, focusing their KPIs on net promoter and CSAT scores, the East seems to be focused on reducing costs and increasing operational efficiency. I Imagine all of you would agree there has to be a fine balance between the two.  Help us to understand which of these is of a higher priority for you and your organization. Don’t forget to let us know where you are based so that we can test how real this cultural divide really is.

Managing Risk and Compliance is a combination of training, script adherence, call recording and most importantly quality monitoring.  What technologies do you rely on to protect you?  Do you find that there is a tough balance between maintaining compliance and maintaining performance? Are you recording 100% of your calls and pushing your QM team to monitor for any infringements? Are you doing anything innovative or cutting edge? We’d like to hear about it!

Many books have been written about leadership and performance. Let’s narrow the discussion down to Performance versus Motivation.  This is also a key component to employee attrition.  How do you motivate your staff to produce a better performance?  How does this affect how long they stay with you?

ZOOM is very much interested in hearing your thoughts on these topics.  Add your thoughts and comments below and let’s talk…

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