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Are you listening to your call center?

Supposedly low-value calls may convey important information. Mining their content can help companies diagnose problems and make lasting business improvements.

What do you do when the call volumes and costs of your call center are on the rise? If you’re like many managers, you try to automate further. That’s sensible, since automated self-care menus and other applications let you handle higher call volumes and be stingier with staff. In addition, call lines unclog and customers stay relatively happy.

But wait. Those routine informational queries and requests that you’re trying to funnel into automated channels can hold valuable messages for senior managers. So-called low-value calls may be signaling more fundamental problems in areas such as customer record keeping, billing systems, or even product quality. Mining the content of those calls can help you diagnose underlying ills and provide for lasting business improvements.

That’s what a European telecom operator learned when it tried to reduce call center costs while responding to high—and increasing—call volumes. The company had already run out the string on automation by successfully adding voice recognition and other such tools. So it focused on understanding the reasons for the low-value inbound-call inquiries its agents were handling. The goal: perhaps to eliminate both the calls and any underlying service problems.

Getting to the root causes for the calls wasn’t easy. The system that agents used to categorize calls had become complicated over time as new products were introduced (a common situation in many call centers). Few agents fully complied with the tracking procedures. Worse, cooperation between the call center and key business units—marketing and sales, service provisioning, billing, and postsales service—was strained. The business units were convinced that the call center was solely responsible for poor service outcomes. The absence of incentives linking call center activity to the different units’ P&Ls only reinforced the negative attitudes.

To address these problems, the company created what it called a customer care council—a small, permanent team, drawn from across the organization, that was tasked with analyzing incoming calls and identifying problems, determining their causes, and recommending improvements. This group reported to a new cross-functional executive committee, which evaluated the business rationale behind the ideas for improvement and oversaw any changes. Meanwhile, managers created new tracking procedures, performance criteria, and incentives to encourage the business units and the call center to cooperate and focus together on customer service issues.

The effort quickly began to pay off. The call center’s operating expenses and the number of low-value calls fell by 1.5 percent within six months. Customers reported no ill effects. Subsequent pilot projects identified additional moves that managers expect will lower operating expenses by an additional 3 to 4 percent within a year. Notably, many of the recommendations unearthed marketing and communication problems that hadn’t been identified previously (exhibit). Some of the fixes were even product related, including the elimination of a personal identification number that turned out to be a little-known but persistent source of irritation to customers whenever they activated service or upgraded to a new tariff plan.

By tearing down organizational silos that inhibit cooperation, companies can both make call centers more efficient and begin to use the rich customer data they generate as a way to diagnose problems elsewhere. Improved products and services and better communication with customers can follow.

About the Authors

Raffaella Bianchi is an associate principal in McKinsey’s Milan office, and Mauricio Janauskas is a consultant in the São Paulo office.

Recommend (78)
  • 29 JUNE 2010
    Elangovan Balasubramanian
    EVP
    Helios & Matheson
    India

    I am completely agreed that causal analysis is the only (best) way to save money on reducing the incoming calls....

    .
    Elangovan Balasubramanian
    EVP
    Helios & Matheson
    India

    I am completely agreed that causal analysis is the only (best) way to save money on reducing the incoming calls. At any point of time, all systems will have 2-5% of residual defects in any format (functionally/technically). In order to eliminate those percentages, we have to do causal analysis as a normal process within our day-day activities.

    .
  • 5 MAY 2010
    Ketharaman Swaminathan
    Founder CEO
    GTM360 Marketing Solutions Private Limited
    Pune, Maharashtra, India

    ...when customers call their call centers, most of them insist on knowing the account number, telephone PIN number, and other info that is the voice equivalent of a log on. They do this even when customers only intend to ask...

    .
    Ketharaman Swaminathan
    Founder CEO
    GTM360 Marketing Solutions Private Limited
    Pune, Maharashtra, India

    Banks, telcos and others provide so much generic information on their Web sites, which can be accessed by their customers without any log on. However, when customers call their call centers, most of them insist on knowing the account number, telephone PIN number, and other info that is the voice equivalent of a log on. They do this even when customers only intend to ask for generic info that is not specific to their accounts, for example, what’s the GBP:INR exchange rate today? If only call centers provided this kind of generic info quickly and without any fuss over collecting identity info, they will not only improve the customer experience but also reduce call times, thus saving time and money for both themselves and their customers. Of course, they should insist upon authentication to those subset of customers who are calling to know their account balance, last bill amount, and other account-related info.

    .
  • 3 MAY 2010
    Prashant Chowdary
    Sr. Executive
    HCL Technologies
    Chennai India

    ...I agree with Tiffany Fiacco on the standards of training. A call center executive should be trained enough to make decisions on his own...

    .
    Prashant Chowdary
    Sr. Executive
    HCL Technologies
    Chennai India

    This article is simple and precise yet throws light on the realistic scenario of how call centers work. This article has touched the crucial pain points which should be weeded out. I agree with Tiffany Fiacco on the standards of training. A call center executive should be trained enough to make decisions on his own for responding to slightly different requests. This will save time.

    .
  • 17 APRIL 2010
    Tiffany Fiacco
    Business Analyst
    Modis
    Colorado, United States

    ...I find management blaming the call center agents for high handle time and not understanding the products being sold. However, I notice that the call center agents are not properly trained...

    .
    Tiffany Fiacco
    Business Analyst
    Modis
    Colorado, United States

    This article reflects the reality of most companies and their call centers. I’ve worked with call centers for the past 7 years and I’m amazed the majority of time how the different groups such as marketing and the sales accountants do not communicate information to the call centers. In addition, I find management blaming the call center agents for high handle time and not understanding the products being sold. However, I notice that the call center agents are not properly trained, and the majority of time are working with a poorly laid out application (GUI layout is not efficient and effective), lack of communications of new products and services, etc. I sometimes wonder if upper management think call centers are not worth their time and is a money pit. I think call centers are the face of the company when people need help and have questions. When a company understands this aspect, I think then a company will truly understand its customers and now how to deliver quality service and obtain customer loyalty.

    .
  • 16 APRIL 2010
    Kenneth Beard
    Managing Director
    Symbionics
    Johannesburg, Gauteng, South Africa

    ...Inbound call centres are often desgined (inside-out) to deal with calls rather than genuinely achieve successful customer outcomes (outside-in)...why else would anyone want to phone a call centre if the matter raised is not resolved...

    .
    Kenneth Beard
    Managing Director
    Symbionics
    Johannesburg, Gauteng, South Africa

    Seeing that they represent a Moment of Truth as a contact point, call centres deserve more attention to make the intended impact, and play a positive role in managing customer expectations. This article assumes the call centre strategy is correct, but often this is a problem in itself. It arises from failure to manage customer experience in its entirety from end-to-end with an integrated approach.

    The second issue certainly is related to managing the call centre operation. Inbound call centres are often desgined (inside-out) to deal with calls rather than genuinely achieve successful customer outcomes (outside-in), which is their orginal intention—why else would anyone want to phone a call centre if the matter raised is not resolved, hopefully right first time without referral? For a call centre with a low level of operational maturity, the first emphasis may be on productivity of the call centre, which serves only to reinforce the inwards focus. Call categorisation is a critical success factor for effective operation but seldom well-selected as it may not be done from a customers’ (users) perspective taking all stakeholders into account, especially the needs of customers and those that impact overall performance of the service or product.

    As also pointed out in this article poor, or the absence of, rigorous root cause analysis contributes greatly to under utilisation of this potential asset. Besides catering for routine matters, several of which may be successfully automated (rater than simply routed, very few call centres are able to deal effectively with difficult or complex matters that need to be quickly identified and refered upwards. Since these calls are typically associated with high value clients expecting a high-touch service, they may be partcularly dissatisfied with the standard offered—a double whammy! With the proliferation of call centres, let’s ensure they play their role with the efficacy desired, and it will remain imperative to understand and have insight into all calls on an ongoing basis.

    .
  • 16 APRIL 2010
    Lindda Small
    VP-Customer Service
    ATBD
    Los Angeles, CA USA

    This article is too basic and fundamental to be of current value; matrix management, eliminating silos, organizational ownership is all ten years old within corporate America. I am looking for methodology changing conversation.

    .
    Lindda Small
    VP-Customer Service
    ATBD
    Los Angeles, CA USA

    This article is too basic and fundamental to be of current value; matrix management, eliminating silos, organizational ownership is all ten years old within corporate America. I am looking for methodology changing conversation.

    .
  • 15 APRIL 2010
    Mrinal Singh
    Business Development Manager
    Pyramid Consulting
    India

    ...Integrated communication channels should help corporations in reducing cost without compromising service. Providing incentives to customers who adapt to self-service in different ways can also help in reducing the support cost.

    .
    Mrinal Singh
    Business Development Manager
    Pyramid Consulting
    India

    Interesting insight, some corporations treat back office operation as a cost center. When that happens, customer satisfaction can be affected. Automation might be an option but is not a panacea. As a number of marketing strategists suggest; customer acquisition cost is predominantly higher than customer retention cost. A strategy that corporations can adopt is to ensure close integration and seamless flow of information within the enterprise. Integrated communication channels should help corporations in reducing cost without compromising service. Providing incentives to customers who adapt to self-service in different ways can also help in reducing the support cost.

    .
  • 15 APRIL 2010
    Abhishek Jain
    Technology Lead
    Infosys Technologies Ltd
    Mechelen, Belgium

    Having worked for a Belgian telecom client I can very much relate to the issue covered by the article. It’s true that most of the organizations today are running to automate almost everything...

    .
    Abhishek Jain
    Technology Lead
    Infosys Technologies Ltd
    Mechelen, Belgium

    Having worked for a Belgian telecom client I can very much relate to the issue covered by the article. It’s true that most of the organizations today are running to automate almost everything and meanwhile neglecting the important data they generate through call centers. Ideally the oganizations should classify the calls in the domains like for a telecom company billing, order management, etcetera. Then they should try to do the root cause analysis and they will find that 80% of the calls come because of 20% main problems (Pareto rule). Targeting these 20% of problems will help them avoid many calls and gain on revenues front. Call avoidance cannot be looked down as it can help companies to save a significant amount of money. Especially in an economic downturn when every organization wants to save every penny, call avoidance can turn out to be gold mine. Generally in growing telecom companies, the focus is more on launching new products/promotions but then they ought to also focus on call center which is important source of information.

    .
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