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Top Three Cost Reduction Areas

The Call Center Learning Center is proud to present a tutorial series focused on reducing the cost of call center operations. This tutorial series will pull from Prosci's research-based toolkits and best practices reports. The first module in the series gave an overview of the 3 top areas for reducing call center costs.  The next three modules look at each specific area and what can be done to reduce costs.  This fourth and finale cost control module focuses on ways to reduce contact volume.

Module 4: Reducing Contact Volume


Background

 

The following tutorial uses the Cost Reduction Diagram as a framework for controlling call center costs.  This model will provide a checklist for areas that impact the bottom line of your call center.  The checklist provided in this tutorial will allow you to evaluate your current performance in optimizing contact volume.  You may find this a useful tool for discussion with other managers in your call center.

For an expanded view of the cost reduction model, click on the diagram below to open a new window. 

 

 Cost reduction diagram

Cost Reduction Diagram

 

Reducing contact volume

 

Reducing the volume of contacts includes three primary areas as shown in the figure above. The major branches include:

  • eliminate reason for contact
  • minimize misdirected calls
  • reduce repeat calls

 


Area 1: Eliminate reason for contact

 

 

The best way to reduce contact volume is to remove or eliminate the root cause of the contact. This strategy does not necessarily apply to contact centers oriented toward sales unless they can identify ways to close the sale without the contact taking place. Examples of methods to eliminate the root cause of customer contacts include:

  1. Reduce product defects.

  2. Provide proactive notifications and status.

  3. Make bills and statements easy to read.

  4. Create easy-to-use product documentation.

  5. Improve delivery of products and services including meeting service commitments.

  6. Make products easier to install and use.

 

This section - more than any other in the cost control tutorial series - is dependent on why your customers are contacting you. Identifying the root causes of the contact is the first step to removing the reasons customers are calling, and these reasons are very company specific.

Note: Many of the root causes for customer contact may fall outside the control of the call center. That does not mean that the call center management should avoid these areas for controlling cost by reducing unwanted contacts. The call center should initiate and support cross-organizational initiatives to reduce contact volumes in cooperation with other departments in the company.

 


Area 2: Minimize misdirected contacts

 

 

Some fraction of your contacts are most likely misdirected contacts intended for some other part of the organization. These contacts not only add to the queue but they also take time away from handling other contacts. Methods to minimize misdirected contacts include:

  1. Provide clear contact information on statements and bills.

  2. Provide clear and accurate contact information on marketing and product documentation.

  3. Make menus in voice response system easy-to-use.

  4. Ensure accurate and easy-to-use phone directory listings.

  5. Reduce inter-company transfers.

 


Area 3: Reduce repeat contacts

 

 

Call volume can be reduced by minimizing the number of repeat contacts (referred to as call-backs for phone calls).

  1. Improving first contact resolution rates.

  2. Improve contact closings.

  3. Using proactive follow-up processes.

 

 

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.

 


For more information on cost control, check out Prosci's Cost Control Toolkit.t.

Click here to find out more


 

Recommended Resources:

Controlling the Cost of Call Center Operations
How to cut costs in your call center;  a systematic approach to expense reduction, this toolkit provides over 50 initiatives to cut costs, including short-term quick-hits, mid-term tactics and long-term strategies.

Call Center Best Practices - Operations Edition
Benchmarking report - Over 240 call centers from around the world share how they have improved service quality, productivity and customer satisfaction. This report shares lessons learned by call center managers regarding their most effective management practices. It also identifies the operational changes that are having the greatest impact on customer satisfaction and call center efficiency.

Call Center Business Performance Packages                                        
Find a call center package to meet your needs and save 20-25% off the list price!

 


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