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Repeat Calls - Assessing the Damage and Calculating the Cost

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Cost justifying your FCR program just got easier. This presentation outlines the major areas where FCR saves you money, and tells you how to calculate the ROI you'll need top get past the CFO's office.
These slides all have recorded webinars with more detail. Feel free to contact me at Upstream Works for access.

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Repeat Calls - Assessing the Damage and Calculating the Cost

  1. 1. © Upstream Works Software Presented by Upstream Works Repeat Calls: Assessing The Damage and Calculating the Cost
  2. 2. © Upstream Works Software » Repeat calls and First Call Resolution » The cost of doing nothing » Effect of repeat calls – “What’s in it for me?” » FCR overview » How to increase FCR » 5 dollar impacts of repeat calls » Examples Overview
  3. 3. © Upstream Works Software » The first call is the first impression » Service has 5 times the impact of Price or Product » The repeat call(s) » You didn’t solve their problem correctly the first time » There may be multiple repeat calls Anatomy of a Repeat Call
  4. 4. © Upstream Works Software » Increased call volume » Unhappy customers » 10x the impact of call volume » Negative word of mouth » Require special concessions » Cannot up sell to them » Increased risk of losing their business The Result of Repeat Calls
  5. 5. © Upstream Works Software Solving the customer’s problem right the first time so that they don’t have to call you back about it. First Call Resolution
  6. 6. © Upstream Works Software » 30% of calls are repeat callers » Repeat calls are a significant industry problem » First Call Resolution rate is a primary indicator of customer satisfaction » Improving First Call Resolution rate reduces overall call volumes » Causes of non-First Call Resolution » Access to information » Agent authority » Agent capability » Business process » Customer FCR Overview
  7. 7. © Upstream Works Software » First Call Resolution starts at the agent’s desk » Collect detailed call information » Call reasons » Agent performance » Calling patterns » Customer behaviors » Root cause analysis » Repeat and improve How To Reduce Repeat Call Volumes
  8. 8. © Upstream Works Software  They increase your call volumes  You have to hire more people than you should  They drive customers away  Your up sell and cross sell rates are lower  Intangibles 5 Ways Repeat Calls Impact Dollars
  9. 9. © Upstream Works Software » Word of mouth » Agent satisfaction » Business process improvements » Return on intelligence Intangibles
  10. 10. © Upstream Works Software » Directly related to customer satisfaction ratings » Yankee Group – measures effectiveness and the customer1 » FCR improvement will: » Provide concrete measurement » Reduce customer churn (increase revenue) » Increase effectiveness (reduce costs) Why You Care About FCR 1 -www.yankeegroup.com/ResearchDocument.do?id=15571
  11. 11. © Upstream Works Software  Hotel chain  Medium size call center: 125 seats  Annual revenue: $225M  Customer value: $300/year  Call volume: 90,000 calls/month  Customer base: 725,000  Churn: 6%/year  43,500 customers annually Reservations Example
  12. 12. © Upstream Works Software » Target: Become a world class provider of customer service » Improve FCR from 70% to 85% » Use data collection and analysis to reduce repeat calls » Improve revenues » Continuous improvement Reservations Example
  13. 13. © Upstream Works Software » Cost Savings of FCR improvement » Assumes you aren’t growing and you reduce capacity Reservations Center Example Total Yearly Cost of Doing Nothing: $4,400,000!
  14. 14. © Upstream Works Software » Cost Avoidance through increased capacity » Assumes you are growing and don’t need to increase capacity Reservations Center Example Total Yearly Cost of Doing Nothing: $4,900,000!
  15. 15. © Upstream Works Software » There’s no magic Monday morning! » Assumes phasing in with a 1 Year implementation Reservations Center Example Total First Year Saving: $2,200,000!
  16. 16. © Upstream Works Software » Yearly financial impact » Reservations – 125 seats - $4,400,000 » Utility – 25 seats - $600,000 » Bank – 500 seats - $25,000,000 Why You Care About Repeat Calls
  17. 17. © Upstream Works Software » The 5 financial impacts of repeat calls » Reduced call volumes » Reduced hiring costs » Reduced customer churn » Increased cross selling » Intangible benefits that mean money What You’ll Find Out
  18. 18. © Upstream Works Software
  19. 19. © Upstream Works Software » Be more effective » Maintain original calls » Reduce repeat calls » Overall call volume reduction » Lowers agent requirements » ERLANG C Reduced Calls
  20. 20. © Upstream Works Software Cost Savings Current Agents Current Call Volume Time
  21. 21. © Upstream Works Software Cost Savings Current Agents Current Call Volume Cost Savings Reduced Call Volume Reduced Agents Time
  22. 22. © Upstream Works Software Reservations Center Example
  23. 23. © Upstream Works Software Cost Avoidance Current Agents Current Call Volume Time
  24. 24. © Upstream Works Software Cost Avoidance Current Agents Current Call Volume Reduced Agents Reduced Call Volume Cost Savings Time
  25. 25. © Upstream Works Software Reservations Center Example Yearly Cost of Doing Nothing: $4,900,000!
  26. 26. © Upstream Works Software 1 Year Model - Attrition Current Agents Current Call Volume Cost Savings Time Agent Volume with No Hiring
  27. 27. © Upstream Works Software 1 Year Model - Attrition Current Agents Current Call Volume Time Reduced Call Volume Reduced Agents Cost Savings Agent Volume with No Hiring
  28. 28. © Upstream Works Software 1 Year Model - Attrition Current Agents Current Call Volume Reduced Call Volume Reduced Agents Agent Volume with No Hiring Cost Savings Attrition Replaced By Hiring Time
  29. 29. © Upstream Works Software Reservations Center Example Realizable First Year Impact: $2,200,000!
  30. 30. © Upstream Works Software
  31. 31. © Upstream Works Software Attrition Rates 100 Agents 20% attrition = 20 agents 80 Agents 20% attrition = 16 agents Hiring fewer agents = lower hiring costs
  32. 32. © Upstream Works Software Reservations Center Example
  33. 33. © Upstream Works Software
  34. 34. © Upstream Works Software Customer Churn
  35. 35. © Upstream Works Software » Revenue growth comes from not losing customers! Turning Churn into Growth Churn Replacement
  36. 36. © Upstream Works Software » Quantifiable increases in revenue » Because you’re already doing it » This is about reducing lost customers not gaining new ones! Selling the CFO
  37. 37. © Upstream Works Software Increased Revenue - Reduced Marketing Revenue Marketing Cost
  38. 38. © Upstream Works Software Reservations Center Example
  39. 39. © Upstream Works Software
  40. 40. © Upstream Works Software » Customers who don’t have their issue resolved are unsellable » Sales rates are calculated on the total volume Increase Cross Sells Sales Base =100 Sales =5 Unsellable Sales Base = 70 Sales =5
  41. 41. © Upstream Works Software » Reduce the unsellable calls by improving FCR » Sales “rates” stay constant » Sales “numbers” go up! Increase Cross Sells Sales Base =100 Sales =5 Unsellable Sales Base = 70 Sales =5 Sales Base = 85 Sales =6 Unsellable
  42. 42. © Upstream Works Software
  43. 43. © Upstream Works Software » Improved business process » Lower hiring and training expenses » Lower attrition » Return on intelligence » Net promoter score1 Intangibles 1 - Fred Reichheld – The Ultimate Question
  44. 44. © Upstream Works Software » Financial impact of repeat calls » Reduced call volume » Decreased hiring cost » Decreased churn » Increase up-sell » Intangibles Review
  45. 45. © Upstream Works Software » Bank » Medium–large size call center: 500 seats » Annual revenue: $1.7B » Call volume: 275,000 calls/month » Customer value: $500/year » Customer base: 3.5M » Churn: 3%/year » 105,000 customers annually Financial Example
  46. 46. © Upstream Works Software » Target: Become a world class provider of customer service » Improve FCR from 70% to 85% » Use data collection and analysis to reduce repeat calls » Improve revenues » Continuous improvement Finance Example
  47. 47. © Upstream Works Software » Labour cost = $1,500,000 » Hiring cost = $705,000 » Lost Churn revenue = $10,400,000 » Marketing expense = $12,500,000 » Lost Up sell revenue = $1,180,000 » Total Impact: $26,285,000 Financial Institution Example
  48. 48. © Upstream Works Software » Power Company » Small size call center: 25 seats » Annual revenue: $32M » Call volume: 37,000 calls/month » Customer value: $900/year » Customer base: 37,000 » Churn: 5%/year » 1850 customers annually Utility Example
  49. 49. © Upstream Works Software » Target: Become a world class provider of customer service » Improve FCR from 70% to 85% » Use data collection and analysis to reduce repeat calls » Improve revenues » Continuous improvement Utility Example
  50. 50. © Upstream Works Software » Labour cost = $62,000 » Hiring cost = $50,000 » Lost Churn revenue = $166,500 » Marketing expense = $216,400 » Lost Up sell revenue = $0 » Total Impact: $490,000 Utility Example
  51. 51. © Upstream Works Software » Figure out the dollar impact » Educate your executives and peers » Implement continuous improvement » Contact us to receive a free financial impact assessment » Check out our whitepapers on First Call Resolution Improving FCR For more information: see our whitepaper on “Increasing Call Center Effectiveness Through First Call Resolution” at www.upstreamworks.com in the downloads section
  52. 52. © Upstream Works Software » Rob McDougall rmcdougall@upstreamworks.com www.upstreamworks.com 905 660 0969 x 358 Twitter: @up_rmcd See the full webinar recording at www.upstreamworks.com Contact
  53. 53. © Upstream Works Software » 5 financial impacts of repeat calls » First Call Resolution » Haven’t looked at any efficiency improvements » Biggest impacts: » Reduced marketing » Bottom line revenue increase Summary
  54. 54. © Upstream Works Software About Upstream Works Software
  55. 55. © Upstream Works Software Business Interaction Management Track and save the entire interaction as it happens. It’s easier to use and understand later Provide in-your-face interaction context that’s role tailored for personalized service Pre-built best practices analytics
  56. 56. © Upstream Works Software Customer Insights Customer Experience Performance Improvement Performance Management Training and Staffing Process Improvement All customer channels
  57. 57. © Upstream Works Software » Problem: No methodology or technology used provides a single comprehensive and auditable view of how customers interact with a business. Business Interaction Pain Points » Result: Averages are used to allocate funds to drive customer loyalty and reduce costs across the multiple interaction channels in use today.
  58. 58. © Upstream Works Software » Upstream Works’ Business Interaction Management, makes the collective of customer interactions visible, accountable and controllable » Combines technology and a methodology to track individual customer interactions across the business » Links outcomes to supporting interactions » Puts the collected information into a powerful form » Compliments existing applications and infrastructure Upstream Solution
  59. 59. © Upstream Works Software FCR in the Details www.upstreamworks.com Download the whitepaper from our website: Increasing Call Center Effectiveness Through First Call Resolution Next In Series
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Cost justifying your FCR program just got easier. This presentation outlines the major areas where FCR saves you money, and tells you how to calculate the ROI you'll need top get past the CFO's office. These slides all have recorded webinars with more detail. Feel free to contact me at Upstream Works for access.

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