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Module 3
Reducing resource cost
Area 1: Drive volume to lower
cost channels |
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Background
This series on cost control
addresses three components to call center costs: handle
time, cost of resources and volume of contacts. In this
module, specific recommendations are
made for systematically reducing resource costs in your
contact center by driving volume to lower cost channels. The descriptions and action steps described
below are summaries of the detailed information and
checklists provided in the
Cost Control e-Toolkit.
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| Reducing resource
costs |
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| Reducing the
cost of resources includes three primary areas that relate
to the cost of people, equipment or facilities necessary to
handle customer contacts. The major branches include:
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Area 1: lower cost channels |
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Area 2: agent payroll costs |
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Area 3 : overhead costs |
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| Area 1 - Drive
volume to lower cost channels |
Driving contact
volume to lower cost channels is one of the most effective
ways of reducing the cost of resources. Methods to direct
volume to lower cost channels include:
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1. Implement voice
response system for automated routing |
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2. Implement voice
response system for self-service |
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3. Implement
web-based self-service |
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4. Provide
incentives to use lower cost media |
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5. Outsource to
lower cost center |
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6. Enable email as
a contact channel |
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| Implement voice
response system for automated routing |
| Voice response
systems (also called VRU or IVR) enable customers to listen
to menu options and make a selection based on why they are
calling. This functionality replaces human operators who
would perform a similar function. The cost of performing a
routing or transfer function with a VRU application is a
fraction of the cost compared to human operators.
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| Implement voice
response system for self-service |
| Voice response
systems can be used to provide answers to
many types of customer inquiries and redirect the call
volume from live agents to lower cost IVR applications. IVR
self-service applications are used in nearly every industry
today for everything from banking transactions to status
requests. |
| Implement web-based
self-service |
| Internet
self-service is the general term used to refer to any type
of web-based service that may avoid a telephone call to a
live agent. These services could range from simple
information presented about the company's products or
services to complex search and troubleshooting applications
to solve technical problems. Today's call centers typically
do not control the website for their company. |
| Provide incentives
to use lower cost media |
| Using customer
incentives has been effective in redirecting call volume to
lower cost channels. Incentives are usually financial (e.g.
making it cheaper to buy over the internet then by talking
with an agent over the telephone). These type of incentive
programs result from a financial analysis of the cost of
providing the service via each media and offering a
fraction of the savings for lower cost channels to the
customer. |
| Outsource to lower
cost center |
| Outsourcing all
or part of your call center contacts to an outside vendor
may result in lower costs to handle some types of contacts.
An analysis is required to compare your cost structure and
cost per call minute with outsourcing vendors. It is also
possible to outsource only a fraction of the total call
volume during busy periods to avoid staffing based on peak
calling periods. The Outsourcing e-Toolkit provides a process
and supporting resources for implementing a successful outsourcing
arrangement. |
| Enable email as a
contact channel |
| Email is the
most commonly used technology application for customer
contact as an alternate to voice calls. Email contact
channels must be developed carefully to avoid adverse
affects for the call center. If email contact channels have
long response times, customers may also telephone the call
center resulting in twice the contacts per inquiry. In
addition, first
time resolution rate for email are typically lower than
phone contacts since customers do not always provide the
required information in the first email. This increase in
average number of contacts to complete the inquiry
potentially makes the total cost per inquiry higher even if
the cost per each email contact is lower than each phone
contact. |
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Better Call Centers Through Research
Participate in Leading Call
Center Research Today! |
Centerserve is conducting the 2009 Call
Center Benchmarking survey and invite you to
participate. Participation is free and open
to call center managers, supervisors and
other call center operations and management
roles. As a thank you for your
participation, Centerserve will provide you
a copy of the 2009 Call Center Benchmarking
Report.
To
participate in this study click here:
http://www.call-center.net/benchmarking/index.pl |
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Don't reinvent the
wheel!
Controlling Call
Center Costs e-Toolkit
"A truly comprehensive guide for
reducing call center costs.
A resource with this perspective is long overdue."
Gerald Tschikof, Founder of Center Partners
Order this e-toolkit and have it
delivered straight to your Inbox! No shipping costs! |
Module 1
and Module 2 of this
series.
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HOME
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resources:
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Next week: Area 2
Reducing Agent Payroll Costs |
