EXCERPTS
1.0
INTRODUCTION
A
call centre is
a
central place where customer and other telephone calls are handled by an
organization, usually with some amount of computer automation. Typically, a call
center has the ability to handle a considerable volume of calls at the same
time, to screen calls and forward them to someone qualified to handle them, and
to log calls. One
early definition described a call centre as a place of doing business by phone
that combines a centralized database with an automatic call distribution system.
This is close, but it is really much more than that. Call centres can be any of
the following:
-
Huge
telemarketing centres
-
Fund-raising
and collections organizations
-
Help
desks, both internal and external
-
Outsourcers (better known as service bureaus) that use their large capacity
to serve lots of companies
-
Reservation
centres for airlines and hotels
-
Catalogue
retailers
-
"E-tailing" centres and e-commerce transaction centres that don't
handle calls so much as automated customer interactions.
Call
centres are generally set up as large rooms, with workstations that include a
computer, a telephone set (or headset) hooked into a large telecom switch and
one or more supervisor stations. It may stand by itself, or be linked with other
centres. It may also be linked to a corporate data network, including
mainframes, microcomputers and LANs. Increasingly, the voice and data pathways
into the centre are linked through a set of new technologies called CTI, or
Computer Telephony Integration.
In
other words a call centre is a unit that has adequate telecom facilities,
trained consultants, access to worldwide databases and helps to provide
information support to customer. Typically a customer calls a number, which is
toll free and is assisted by the consultant. The operator can access the
databases and gives the response. This is a very useful feature in airline
reservations, hotel reservations, banking services, technology solutions, etc.
The areas, which are addressed by call centres, include sales support,
airline/hotel reservations, technical queries, bank accounts, client services,
receivables, tele-marketing, market research, etc.
Earlier
all call centres used to work on the "toll free" or the 1-800 concept.
With sophisticated query handling services, nowadays the call centre and the
client share costs. There are some premium services like technical consulting
where the caller has to pay the calling charges.
The
advances made in telecom ensure that the person who is handling the call can be
anywhere, provided that communication and interaction dimensions are handled
properly. At times, call centres are set up for internal use also, especially in
conglomerates where the demand of internal customers is very large.
1.1
The Background
Call
centres were first recognized as such in their largest incarnations: airline
reservation centres, catalogue ordering companies, consumer-oriented problem
solvers. Until the early 1990s, only the largest centres across the globe could
afford the investment in technology that allowed them to handle huge volumes.
More recently, with the development of LAN-based switches, internet-based
transaction processing, client/server software systems, and open phone systems,
any call centre can have an advanced call handling and customer management
system, even down to ten agents or less.
As
companies have learned that service is the key to attracting and maintaining
customers (and hence, revenue), the common perception of the call centre has
changed. In some industries (catalogue retailing, financial services,
hospitality) a call centre is the difference between being in business and not
being in business. In other industries (cable television, utilities) call
centres have been the centrepiece of corporate attempts to quickly overhaul
service and improve their image. It's a strategic asset that companies can use
to improve their customer relationships, and more importantly, to learn more
about their customers, and therefore serve them better. This improves the bottom
line. Call centres have evolved from cost centres to profit centres.
It's
a good working hypothesis to assume that any company that sells any product has
a call centre, or will shortly have one, because it is the most effective way to
reach (and be reached by) customers.
1.2
Origins of the Call Centre Industry
Around
30 years ago in the USA, the travel and hospitality industry began to centralize
their reservation centres into what we would recognize now as huge call centres.
This happened at around the time the first large-scale high-volume premise-based
telephone switches became available.
Banks
have also used them since the 1970s at least, and later in that decade, with the
rise of the catalogue shopping movement and outbound telemarketing, call centres
became a staple within many industries. Each industry, however, had its own way
of operating centres, its own standards for quality, and its own preferred
technologies. This trend persisted until early in the 1990s, when call centre
managers became more recognized as having a consistent set of skills and an
operational knowledge.
Technologically
speaking, call centres have advanced in the last ten years. Earlier, it was just
a labour intensive department trying to handle some customer queries. Now, it is
supposed to be a vital link in the entire process of marketing and improving
customer interaction. Unlike an airline reservation where the queries are
generally simple and easy to handle, requirements of a technology customer
support are different and need technical knowledge. A pre requisite for any call
handling person is extremely good customer relationship skills and command over
language/ accent.
1.3
The Basic Components
The
basic components of a call centre are computers, interactive voice response
systems, EPABX and an automatic call router. The earlier adopters of call
centres were able to reduce the cost of sales, become more responsive to their
customer requirements and thus, get a competitive edge.
The
costing of the call depends on the value of the service provided by the call
centre. The international call centres will be driven by a globalization,
increased competition, customer expectations and the fact that products are
becoming more and more commoditised with improvement in computing and database
management skills. The reason why international call centres are looking at
locations like India is because of staff costs, which are almost 65% of total
cost overseas, is about 50% or less in a country like India. It is not so easy
to shift because of lower staff costs. Lower staff costs should be backed by a
skill set, which is language and cultural specific. The other things that impact
operations of an international call centre are real estate expenses and telecom
expenses.
1.4
Types of Call Centres
Call
centres can be of different types. A regional call centre implies that a centre
in America to handle America, Europe to handle Europe and a centre in South East
Asia and Australia to handle Asia. This enables some economies of scale but
duplication of efforts can minimize operational efficiency. The other option is
to have a global call centre where all calls across the globe are handled. This
results in tremendous economies of scale, which is really cost effective. Such a
centre cannot afford any downtime because of lack of back up.
The
latest version of call centre is a global intelligent network, a centralized
database with advanced call handling facilities, managing a typical end-to-end
service. The network is spread across the globe with local resources tapping it.
This requires technically qualified manpower to maintain the backbone and
telecom infrastructure management skills. This global internal network allows
access to worldwide staff and ability to match languages, skills and resources.
This is the first step towards a global virtual call centre.
Interactive
Voice Response (IVR) has been the most significant productivity gain. 70 - 80%
of calls can be handled without agent intervention, which helps reduce operating
costs. In some extremely competitive markets like financial services, airlines,
etc., IVR systems is a necessity.
2.0
COMMONLY USED TERMS
2.1
Inbound and Outbound Centres
An
inbound centre is one that handles calls coming in from outside, most often
through toll free numbers. These calls are primarily service and support calls,
and inbound sales.
An
outbound centre is one that does mainly outgoing telemarketing.
Inbound
is the biggest component of call centre traffic these days, though perversely,
outbound represents the area of largest projected growth in the next few years.
In truth, the majority of centres contain some element of both inbound and
outbound.
2.2
Service Bureau
A
service bureau is a call centre for hire, or an outsourcer. It is what is
commonly known as a Third Party Call Centre. There are hundreds if not thousands
of service bureaus in the US. These outsourcers often run networks of
interlinked centres, and are used by companies that need to cover a sudden surge
in call volume, or that are interested in testing out a promotional program
that's going to generate calls, but aren't willing to invest in the expensive
technology and personnel at the first get-go.
2.3
Call Centre Manager
A
call centre manager's job consists of ensuring the continued daily operation of
the centre. He or she is responsible for setting service standards for the
centre (i.e., how long before calls get answered, on average, or how many
contacts per hour outbound agents are required to make).
The
manager is responsible for solving intra-day problems, arranging for having the
correct number of agents in the right number of seats, and for making sure that
the centre operates with enough of the right kinds of technologies to make the
customer experience a positive one. The call centre manager's job is to put out
fires all day long, and it's truly an impossible one.
2.4
Rep/Agent
A
rep/agent answers the phones. A rep takes a day's worth of complaints from
customers and comes back tomorrow. A rep puts up with long hours and not enough
motivation from his or her supervisors, and usually doesn't stay at the job for
very long. A rep ensures that the customer experience is the best it can
possibly be.
2.5
Agent Turnover
It
depends on the industry and the cultural conditions within a given company, but
a turnover rate of 35-50% is said to be common. A recent benchmarking study by
Purdue University found that turnover varies between full and part time
employees, and between inbound and outbound reps.
Following are the average of
Agent Turnover figures:
|
|
Median
|
Average
|
Highest
Value
|
|
Part-time
inbound
|
20.0%
|
33.6%
|
300.0%
|
|
Full-time
inbound
|
19.0%
|
26.0%
|
252.0%
|
|
Part-time
outbound
|
15.0%
|
35.5%
|
480.0%
|
|
Full-time
outbound
|
10.0%
|
21.3%
|
210.0%
|
2.6
Automated Call Distributor (ACD)
An
automatic call distributor is a type of phone switch designed for high-volume
routing of inbound calls. It is generally premise equipment, distinguished from
central office equipment. Several vendors make this type of switch.
Use
of an ACD
The
ACD's job is not just to route calls, but to manage the information associated
with those calls as well. "ACD" is really a function that can be
carried out by a wide variety of different kinds of processors.
The ACD is
being changed by two dramatic trends in the call centre. First, it is being
asked to channel more information, of many different kinds, in more directions.
A few years ago, there were two kinds of information: the call itself, and raw
log information about the calls in aggregate. Little else was needed, and if you
did need more details about what was coming through the ACD you could analyze
the data (which often came out of a serial port) on your PC with a cumbersome
third-party tool.
High-end
ACD vendors have added data management modules at a rapid clip. Also there are
many outside programs that can connect to the ACD and funnel data in and out.
These include workforce management tools that forecast load, and software
systems that put real-time and historical data into any form needed (like
reports and reader board displays).
The
other dynamic change is in what kinds of calls the ACD has to route. Sometimes
this is referred to as alternate methods of call delivery. Call centres
have been integrating ACDs with IVR for years, and the same goes for the
combination of ACD and fax. Now we're seeing vendors grapple with the Web and
the Internet, with calls that terminate in databases instead of agents.
Another
thing that has shaken up ACD design is skills-based routing. At first, this was
a feature that was added to switches more because the technology was possible
and cool than because call centres were clamoring for it.
Skills-based
routing is a highly interesting and advanced system for distributing calls that
come into an ACD. Traditional routing is based on two factors—an equitable
distribution of calls among available agents, and the random nature of incoming
calls. Skills-based routing changes this somewhat: it routes calls to the agent
"best qualified" to handle the call, measuring "qualified"
by agent parameters you set.
Finally,
changes have been hastened by the need and desire to link call centres together
into multi-site call centre networks. In some ways, this is operationally an
extension of skills-based routing: it's not enough to choose the best available
agent—often you have to choose the best available agent at the most
appropriate location (based on time of day, traffic at one or more sites, skill
clusters or call priority).
Vendors
of standalone ACDs are pushing the technology envelope with their switches. Some
are concentrating on software development to add value to the core switch.
Others are paying more attention to integration with third-party call centre
technologies.
Long
hold times can be tackled by putting an IVR
system in front and gathering as much information automatically. Alternatively,
one could use messaging on hold (a very cheap solution) to tell people what to
expect and what information to have ready when the rep comes on the line.
As
for measurements, one could look at things like hold time, abandon rate, and
cost side things like how many calls each rep handles per day.
