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.

1. © Upstream Works Software
Presented by Upstream Works
Repeat Calls:
Assessing The Damage and
Calculating the Cost

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. © 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. © 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. © 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. © 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. © 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. © 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. © Upstream Works Software
» Word of mouth
» Agent satisfaction
» Business process improvements
» Return on intelligence
Intangibles

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. © 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. © 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. © 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. © 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. © 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. © 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. © 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. © Upstream Works Software

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. © Upstream Works Software
Cost Savings
Current Agents
Current Call Volume
Time

21. © Upstream Works Software
Cost Savings
Current Agents
Current Call Volume
Cost Savings
Reduced Call Volume
Reduced Agents
Time

22. © Upstream Works Software
Reservations Center Example

23. © Upstream Works Software
Cost Avoidance
Current Agents
Current Call Volume
Time

24. © Upstream Works Software
Cost Avoidance
Current Agents
Current Call Volume
Reduced
Agents
Reduced Call Volume
Cost
Savings
Time

25. © Upstream Works Software
Reservations Center Example
Yearly Cost of Doing Nothing: $4,900,000!

26. © Upstream Works Software
1 Year Model - Attrition
Current Agents
Current Call Volume
Cost Savings
Time
Agent Volume with
No Hiring

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. © 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. © Upstream Works Software
Reservations Center Example
Realizable First Year Impact: $2,200,000!

30. © Upstream Works Software

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. © Upstream Works Software
Reservations Center Example

33. © Upstream Works Software

34. © Upstream Works Software
Customer Churn

35. © Upstream Works Software
» Revenue growth comes from not losing
customers!
Turning Churn into Growth
Churn
Replacement

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. © Upstream Works Software
Increased Revenue - Reduced Marketing
Revenue Marketing
Cost

38. © Upstream Works Software
Reservations Center Example

39. © Upstream Works Software

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. © 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. © Upstream Works Software

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. © Upstream Works Software
» Financial impact of repeat calls
» Reduced call volume
» Decreased hiring cost
» Decreased churn
» Increase up-sell
» Intangibles
Review

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. © 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. © 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. © 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. © 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. © 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. © 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. © 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. © 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. © Upstream Works Software
About Upstream Works Software

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. © Upstream Works Software
Customer Insights
Customer
Experience
Performance
Improvement
Performance
Management
Training and
Staffing
Process
Improvement
All customer channels

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. © 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. © 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