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Reducing resource
costs
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:
- lower cost channels
- agent payroll costs
- overhead costs
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:
-
Implement voice response system for
automated routing
-
Implement voice response system for
self-service
-
Implement web-based self-service
-
Provide incentives to use lower cost media
-
Outsource
to lower cost center
-
Enable email
as a contact channel
Area 2:
Reducing agent payroll costs
Reducing payroll costs is a more problematic area for cost reduction
but should not be overlooked given that payroll
costs make up 70% to 80% of the total costs for a majority of
contact centers. In some cases, reducing payroll costs can be achieved
without adverse affects on service quality or turnover. In other cases,
there is a clear trade-off between cost and service quality. Methods for
reducing agent payroll costs include:
-
Reduce hours
of operation
-
Increase agent
utilization
-
Reengineer contact handling
processes to allow for lower
payroll cost structure
-
Reduce base
salary for new hires
-
Reduce staffing levels
-
Relocate or add center in lower labor
cost area
-
Reduce benefit
offerings
Area 3:
Reducing overhead costs
Reducing overhead costs includes all
cost elements other than direct agent cost. This would include cost elements
such as facilities, management, toll and network costs, training, IT, human
resources and any other support functions. Methods to reduce overhead costs
include:
-
Reduce network
and toll costs
-
Enable remote
agents to reduce facility costs
-
Redesign facility
usage or use shared workspace
-
Consolidate
call centers
-
Reduce turnover
-
Increase supervisor
span of control and reduce
number of supervisors
-
Reduce cost of
support services including training, HR, IT and
quality control
For specific recommendations on how to systematically reduce the
cost of resources in your contact center including detailed information and checklists
look in the
Cost Control Toolkit.
Next in this tutorial series: reducing volume of contacts |
