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Page 5 of 7
Example Cases
Learn valuable lessons from these organisations:
Ben Netherlands BV
Superior customer service contributes to rapid growth
Ben Netherlands BV signed on 1.2 million cellular customers to become its country's third largest operator in terms of revenues. Contributing to these results was the provision of superior customer service and work processes i.e.:
- The key metric for the Billing process was 100% accuracy (After service activation a high percentage of calls relate to billing enquiries, hence by minimising these their impact on managing the accelerating customer acquisition was greatly reduced.)
- Calls for routine information were outsourced and more complex calls sent to qualified internal reps.
- Rather than minimising call times CSRs were encouraged to resolve customer needs on the first call.
- CSRs/managers were empowered to find alternative solutions for customers leading to increased job satisfaction.
- CSRs had seven qualification levels and corresponding pay scales. Absenteeism was 30% below the national average and staff attrition rate was 2% per month, compared to a 7% national average. Hoffman, 2002
Midwestern US manufacturing company
Simulation modelling software assists in Call Centre design
At a Midwestern US manufacturing company complaints concerning long wait times for telephone orders were increasing. Orders were received at 6 manufacturing plants and 12 warehouses across the USA and (36) customer service representatives (CSRs) were required to service these. After consultation with staff/customers, a centralised automated call distribution (ACD) system was installed to better manage customer calls. The company used simulation modelling software to gauge service levels for the Call Centre and, additionally, used an optimising programme for determining staffing levels under various scenarios. Using these tools the company designed schedules which offered minimal customer wait times and employed (24) CSRs on various shifts. With the new system customer complaints ceased concerning telephone wait times, and orders/customer satisfaction levels increased. Customer questionnaires revealed a high correlation between customer satisfaction and CSR product knowledge/accuracy, and this enabled the firm to concentrate on improving these skills in particular. Jeffries & Sells (2004)
Hewlett-Packard
Outsourcing pays off
Should the above say.. Hewlett-Packard Co (HP) transferred its Call Centre activity to lower-cost regions and the following results were achieved:
- Call cost savings:
- Reduced by over US$5 million per year
- Cost per call less than 50% of existing rates
- Time to resolve issues were generally less, and calls per resolution were similar
- Transition costs:
- One-time transition costs approx US$100,000 per location
- Customer satisfaction and impact on profits:
- Because call volumes were added only as satisfaction scores improved customer satisfaction experienced a net increase. In the worst case, there was less than $100,000 of lost profit, measured as Net Present Value (NPV)
- Net impact:
- Overall this was positive across Call Centre partners. The break-even time for the investment was approximately 6 months. Curtland et al, 2004
Borden Chemical Inc
HR staff become strategic business partners
Borden needed HR software upgrades to restructure its HR services, however it was not comfortable with the proposals because of the investment required and possible ongoing inflexibility. Consequently HR services were outsourced under a 5 year contract with fees based on headcounts. The outsourcer managed Borden's benefits administration, payroll, and human resource management systems, and provided a toll-free support centre for employees/retirees. The Call Centre handled some 700 phone calls and emails per week and employees were able to call one location and receive consistent answers with the following benefits:
- Administration costs were reduced by 20%
- A 12 to 18 month break-even point for investment
- Accurate payment of 99% of benefits claims within two weeks
- HR personnel count was reduced by 30%
- HR fulfilled a new role as strategic business partners. Anonymous, (2004b)
MasterCard International
Training reduces staff turnover
Mastercard kept its customer services representatives (CSRs) motivated by:
- Offering incentives i.e. gift certificates, awards, and employee appreciation days.
- Creating a positive environment.
- Fostering a sense of community and fun.
- Providing opportunities for ongoing career development.
- Providing progressive levels of training in partnership with an employment agency. The training programme had a significant effect on reducing staff turnover to 2.8%; a very low figure for a centre of more than 100 agents. 3 days of classroom training was given followed by 3 days working with coaches on the Call Centre floor, 2 weeks were then spent working unassisted and answering general calls. Finally a second section of training was given which involved 10 days handling more complex calls. MasterCard also operated an 8 to 18 month internship programme for students and recent graduates. O'Herron, (2003)
Home Federal Bank
Call Centre experience leads to promotion
At Home Federal Bank (HFB) seven agents took incoming calls (600 to 900 per day) and replied to customer e-mail queries originating from HFB's Web site.
A Call Centre employee typically handled around 120 calls per shift. Because the nature of the Call Centre traffic was very time-sensitive, HFB found that adhering strictly to shift times and break times was most important. Calls were constantly monitored for quality, length, and time between calls. Close attention was paid to the times that employees were away from the phone, including lunches and breaks. To improve overall productivity the quieter times during shifts were used to complete maintenance, administrative, and clerical projects for other bank departments. Call Centre experience was a beneficial way for staff to get to know the operations of HFB, and some 60% of personnel turnover related to promotion opportunities within the bank. Feig, (2004)
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