The Contact Centre is often viewed as a necessary evil, by both companies and their customers. To companies, it can be an expensive cost centre that produces vague and immeasurable results. To customers, it can represent an unsatisfactory end to a frustrating quest through the labyrinth of an Interactive Voice Response (IVR) menu.

Here at Voyager we are exploring new ways of thinking about Contact Centres, in order to transform them from a large expense on the balance sheet to a business differentiator that actually creates value for both you and your customers.

WHITE PAPER Contact Centres

A look at the changing face of Contact Centres.

WHITE PAPER Contact Centres

Contact Centre’s generate value primarily in the “buy” and “service/support” phases of the customer lifecycle. Value in the “buy” phase is simple to explain, any sales function has a clearly definable business metric that pays its own way. The biggest challenge faced by most organisations is with the service and support function, the link to downstream business value creation is less obvious, while the cost to the organisation of running a Contact Centre is often painfully apparent.

With the rise of the Web, the role of the Contact Centre has expanded to include “e-service,” which includes devices such as mobile phones and modes of interaction such as chat and video. The essential challenge for organisations today is to find the balance between managing costs in the Contact Centre and understanding the impact of Contact Centre interactions on customer behavior downstream.

Traditional Call Centre’s are run using very tight operational metrics but with little view of how their customer interactions affect factors such as customer retention and long-term revenue. In the current economic climate it’s essential to examine how changes in customer expectations, empowered by technology are changing the calculus and increasing the complexity of decision making in the Contact Centre environment.

1. Contact Centres of the 21st Century.

Traditional Contact Centre’s are undoubtedly trying to change. However, many of the metrics used to measure success – such as first contact resolution, speed to answer and customer satisfaction – seem to be moving in the wrong direction. Contact Centre’s still struggle with the double negative of low agent utilisation and high rates of staff attrition, which has dire impact on costs. This is a situation that is not likely to encourage organisations to make further investments. Nonetheless, on the cost control side, companies are taking steps in the right direction, with investments in IP telephony, IVRs and other automated systems, outsourcing, virtualisation, and integration of web and voice functions, the problem is if they are poorly executed they can lead to more serious customer dissatisfaction.

2. Customer Satisfaction – A priority

One other factor to consider is the clear disconnect between Executive perception and Customer reality.

If you ask any Executive to name their top 3 strategic business priorities, customer satisfaction is guaranteed to be one of them. And quite right too, in these barren times of course customer retention trumps customer acquisition.

Firstly it’s important to understand where the Contact Centre fits in the overall customer relationship lifecycle.

2

3. Consumer have a difference of opinion

Take a look at Facebook as an example; there are over 80 Contact Centre Groups on the site, the majority of which are derogatory, with both Customers and Contact Centre staff using the site as a platform to bear their grudges. This is not an isolated example, the connected consumer is becoming the norm, their voices are now heard and their influence is growing.

In the past the consequences of poor service in the Contact Centre were not always apparent, not so today. At a time when companies should be working harder to make their customers happy and persuade them to continue spending their hard-earned cash, many seem to be getting it very wrong, according to new research conducted by YouGov. They revealed that only one in 12 of those questioned “feel valued” by the companies they are doing business with, after dealing with their call centre.

When companies should be investing in ensuring a positive beginning-to-end experience for their customers with their organisations, it was found that the majority of those questioned (76%) have contacted customer service because of problems that could be perceived by consumers to have been avoidable if the company had taken more care with their products and services (i.e. billing errors, technical issues, and problems with deliveries or missed service calls).

When consumers attempt to deal with issues, the negative perception of their service / product providers’ attitude towards them is reinforced, with many of those questioned reporting giving up without having their problems solved - 63% when using online facilities and 48% after phone contact. And over a third of those questioned had to re-contact customer services to get their issues dealt with completely when they do persevere.

No wonder over a 1/4 of those questioned for the survey have actually postponed making contact with a supplier to address a problem, presumably because they couldn’t face dealing with the hassles and delays associated with the call centre. And that 34% of those questioned reported that they now expect to get poor service when they finally get do get through to a customer service agent.

With this kind of data, it is clear that the Contact Centre experience is an important part of the overall customer relationship and needs to be transformed.

34% of people calling a contact centre expect to get poor customer service

48% people giving up after one contact without having their problems sorted

69% expect a complete resolution on the first call

3

In the past the consequences of poor service in the Contact Centre were not always apparent, not so today.

WHITE PAPER: Contact Centres.

4. Consumers in the driving seat.

In the midst of all the challenges facing Contact Centres today, a new complication has arisen. A new generation of empowered customers has arrived, with the both the desire and the ability to take control. Armed with the power of the Internet and the many options it provides for sharing information, consumers are now in the driver’s seat. We are dealing with a new generation of consumers who have different skills, different expectations, and different needs. They share experiences and influence opinions in blogs and social networking communities. They create and share content on YouTube and Flikr, and get involved in consumer-driven product development efforts. They have product reviews at their fingertips, and can write their own reviews to share their experiences with others. They enjoy nearly ubiquitous connectivity, allowing them to access information and services from nearly anywhere, using their choice of device. They have grown to expect personalisation, customisation, and the ability to serve themselves whenever and however it is most convenient for them.

All of these new customer-empowering capabilities have raised consumer expectations across the board. Customers want a consistent, high-quality service experience regardless of how and when they interact with the Contact Centre. Organisations have responded by adding e-service components, but without necessarily connecting them with existing service channels, especially the call centre. The result is the worst of both worlds: more complexity to manage, but little credit from customers, and few of the business benefits that accrue from the multi channel environment.

The Customer Conversation report from Forrester puts this into context.

5. Customer expectations – Customers want a consistent, high quality experience…

> 69% expect a complete resolution on the first call > 57% are dissatisfied with contact center experience > 38% try an alternative channel first > 35% want to reach a live agent when required

…But Companies interact inconsistently across Channels

> Only 43% of firms know about a problem before a customer does > Only 43% alter service based on a customer’s profitability > Only 37% know if they share a customer with another division > Only 23% of phone agents can see customers’ web activity

Not only do new technology tools give customers higher expectations, they also give them a greater ability to broadcast their negative interactions to a mass audience in a very compelling way.

In the midst of all these challenges there are also some very positive opportunities presented by the empowered consumer.

4

Customers have grown to expect personalisation, customisation, and the ability to serve themselves whenever and however it is most convenient for them.

23% of phone agents can ses customers’ web activity

37% know if they share a customer with another division

6. Short and long term effects on the business.

The upcoming generation is more comfortable with self-service and automation than previous consumers, if these services are well executed. They are also looking to new channels, such as the mobile Internet and SMS messaging, through which to manage their service interactions. These new expectations and capabilities are beginning to force a redefinition of the Contact Centre, which will undoubtedly accelerate over the next three-to-five years.

Meanwhile, in the face of these rising expectations and new modes of service and support delivery, organisations continue to make short-term decisions to manage costs, which can have highly significant impact on the long-term health of the business.

So here’s the key question:

Can companies have it both ways?

Can they improve their customers’ experience with the Contact Centre and reduce costs?

We believe they can.

7. System integration is key to a less fragmented experience for customers.

While Contact Centres have expanded their reach in terms of the channels and modes of interaction, they have not necessarily created an integrated customer service experience. Web teams have developed standalone web services without integrating them into the main Contact Centre infrastructure. In-store customer service agents do not have access to customers’ online or call centre history. The result is a fragmented, fractured experience for customers. Without integration, customers see the added electronic channels as a means of reducing call traffic, but not necessarily as a way of improving customer service.

5

New expectations and capabilities are beginning to force a redefinition of the Contact Centre, which will undoubtedly accelerate over the next three tofive years.

6

Gaining knowledge at every customer touch point to continuously improve the service experience.

8.The integrated experience.

The next Contact Centre evolution will be one that takes us from a disconnected, siloed service and support approach to a rich, integrated, multi-dimensional experience. This new customer-centric Contact Centre experience offers a rich experience at every touch point, encompassing all of the following:

Multiple channels deliver the service experience consistently, coherently and cost effectively through any device or channel of access that makes sense for the customer.

Multiple modes deploy the full range of Web 2.0 and multimedia interaction tools to deliver a relevant, engaging and satisfying service experience across channels, devices and stakeholders. Five years ago, we wouldn’t be discussing contact modality - it was voice, or voice. With the rise of the Internet, Web 2.0 tools, and broadband, the mode of interaction becomes a potentially powerful tool in the service and support toolkit. The array of possibilities is dizzying – from “click-to-chat,” to virtual worlds and social networks.

Multiple stakeholders extend the network of service and support providers to deliver an outstanding service experience by including other corporate knowledge holders, partners and customers through use of collaboration tools. The enablers are the new technologies and new business processes that liberate expertise, wherever it may reside, to be shared with customers, wherever they may reside.

9. Maximising investments.

Finally, this approach is able to derive Multi-point insight from interactions across the service experience, gaining knowledge at every customer touch point to continuously improve the service experience.

To fully understand the value impact of a truly multi dimensional Contact Centre experience, we need to manage and measure Contact Centre’s in a more holistic way that recognises the overall short-and long-term effects of our decisions. Most Contact Centre’s have to manage to very tight operational metrics, primarily cost per contact. Managers do not always have downstream visibility into how customers behave when they move out of the Contact Centre: Do they purchase more products? Or do they defect to a competitor? What is their annual per-customer revenue?

Without being able to see this downstream cause and effect, Contact Centre managers are in danger of making short-term decisions to meet cost performance goals without being able to see their long-term effect. For example, cutting seats or putting pressure on associates to get customers off the phone more quickly will have the required effect on Contact Centre costs, but could adversely impact overall revenue and profitability.

WHITE PAPER: Contact Centres.

Managers need a new multi-dimensional view into service interactions to maximise Contact Centre investments.

The magnitude and relative importance of the various value drivers changes dramatically across industries. There is no “one-size-fits-all” prescription. The precise balance between experience improvement and cost reduction will depend on the particular industry, especially on the revenue per customer and churn rates.

So what do you need to get started in the process of transforming a Contact Centre into a Customer Experience Centre?

You begin by asking the right questions.

Executives can use these questions to start identifying what kind of opportunities they have, what kind of experience they may want to create, and how to develop a roadmap to transition today’s one dimensional, cost intensive Contact Centre into a strategic asset that delivers sustainable competitive differentiation.

In beginning this transformation process, use all the technology tools and capabilities that are available and appropriate to meet the empowered customer on the customers’ terms. Understand the rich mix of interaction channels and modes, always take an integrated, customer centric approach, and look at the long-term impact of your Contact Centre decisions.

And finally, optimise your Contact Centre strategy by aligning customer needs with your business model to create value for customers, and your organisation.

The result will no longer be a cost-draining call centre, but a competitively differentiated, value-creating “customer experience centre.”

7

Transforming a Contact Centre into a Customer Experience Centre.

Source: Cisco IBSG, 2008

MulTI – ChAnnEl

> What are the most appropriate access points for customers?

> What is the role of each channel ?

> What is the cost to serve by channel?

> What role can technology play?

MulTI – ModAl

> how do we develop the right content for the right customers in the right channel

> how do we ensure consistency across content types

> how do we measure effectiveness of different modes of interaction?

> how do we develop and manage compelling, engaging content on an ongoing basis?

MulTI STAkEholdEr

> Where does expertise reside? > Enterprise > Partners > Customers> how can the expertise be connected to the point of customer access?

> how empowered are employees to solve problems for customers?

> how are experts

MulTI – PoInT InSIghT

> how do we measure short and long term impact of service experience on customer value drivers?

> how do we derive insight across channels and modes of interactions?

> What economic model will help us understand relative benefits of service channels, and the interaction modes most appropriate to our operating model?

network InfrastructureFrom consultancy and design through to implementation and management.

Professional ServicesAn addition to your IT department offering you flexible, highly professional Network specialists.

Managed network ServicesComplete management of your Communications. Network giving you the time to manage your business.

unified Communications Simplifying and integrating all forms of communications in view to reducing response times and increasing efficiencies.

SecuritySecuring your entire network at every level for piece of mind and protection to your critical network.

MobilitySeamless integration across all your communication devices allowing real mobile working.

our strategic partners.

The value to our customers is our expertise. We have invested heavily in our people so they become experts in the UK’s leading IT vendors products and services. Our established and trusted partnerships along with the highest vendor accreditations ensure our customers receive the highest levels of support and advice with the most advanced and innovative solutions.

Voyager Networks helps organisations achieve growth, operational cost reduction and increased staff productivity through advanced communications technologies.

The unified Communications Experts.

VO

Y | CON

CEN01

Voyager networks limitedVoyager House, Sir William Lyons Road, University of Warwick Science Park, Coventry, CV4 7EZ. 02476 417 417 02476 414 817 info@voyager.net.uk www.voyager.net.uk

© Voyager Networks Limited. This document is the Intellectual Property of Voyager Networks Limited. Its contents should not be reproduced in whole or in part without the prior permission of Voyager.

T F E W

Voyager has implemented a variety of solutions, many of which are pioneering in their sector. For more information on these projects please contact us using the methods below.

Talk to our team today on 02476 417 417 Or visit us online at www.voyager.net.uk