repeat calls - assessing the damage and calculating the cost

© U p s t r e a m W o r k s S o f t w a r e

© 2007 Upstream Works SoftwareAll Rights Reserved

Repeat Calls: Assessing The Damage and Calculating the Cost

By Upstream Works


Overview


Anatomy of a Repeat Call

» 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


The Result of Repeat Calls

» 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


First Call Resolution

Solving the customer’s problem right the first time so that they don’t have to call you back about it.


FCR Overview


How To Reduce Repeat Call Volumes


5 Ways Repeat Calls Impact Dollars

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


Intangibles

» Word of mouth

» Agent satisfaction

» Business process improvements

» Return on intelligence


Why You Care About FCR

1 -www.yankeegroup.com/ResearchDocument.do?id=15571


Reservations Example


Reservations Example» 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 Center Example

» Cost Savings of FCR improvement

» Assumes you aren’t growing and you reduce capacity

Total Yearly Cost of Doing Nothing: $4,400,000!



» Cost Avoidance through increased capacity

» Assumes you are growing and don’t need to increase capacity

Total Yearly Cost of Doing Nothing: $4,900,000!



» There’s no magic Monday morning!

» Assumes phasing in with a 1 Year implementation

Total First Year Saving: $2,200,000!


Why You Care About Repeat Calls

» Yearly financial impact

»Reservations – 125 seats - $4,400,000

»Utility – 25 seats - $600,000

»Bank – 500 seats - $25,000,000


What You’ll Find Out» The 5 financial impacts of repeat calls

»Reduced call volumes

»Reduced hiring costs

»Reduced customer churn

» Increased cross selling

» Intangible benefits that mean money


Reduced Calls» Be more effective

»Maintain original calls

»Reduce repeat calls

» Overall call volume reduction

» Lowers agent requirements

»ERLANG C


Cost Savings

Current Agents

Current Call Volume

Time


Cost Savings

Current Agents

Current Call Volume

Cost Savings

Reduced Call Volume

Reduced Agents

Time


Cost Avoidance

Current Agents

Current Call Volume

Time


Cost Avoidance

Current Agents

Current Call Volume

Reduced

Agents

Reduced Call Volume

Cost

Savings

Time



Yearly Cost of Doing Nothing: $4,900,000!


1 Year Model - Attrition

Current Agents

Current Call Volume

Cost Savings

Time

Agent Volume with

No Hiring



Current Agents

Current Call Volume

Time

Reduced Call Volume

Reduced Agents

Cost Savings

Agent Volume with

No Hiring



Current Agents

Current Call Volume

Reduced Call Volume

Reduced Agents

Agent Volume with

No Hiring

Cost Savings

Attrition Replaced

By Hiring

Time



Realizable First Year Impact: $2,200,000!


Attrition Rates

100 Agents

20% attrition = 20 agents

80 Agents

20% attrition = 16 agents

Hiring fewer agents = lower hiring costs


Customer Churn


Turning Churn into Growth

» Revenue growth comes from not losing customers!

Churn Replacement


» Quantifiable increases in revenue

»Because you’re already doing it

»This is about reducing lost customers not gaining new ones!

Selling the CFO


Increased Revenue - Reduced Marketing

Revenue Marketing Cost


Increase Cross Sells

» Customers who don’t have their issue resolved are unsellable

» Sales rates are calculated on the total volume

Sales Base =100

Sales

=5

Unsellable

Sales Base = 70

Sales=5


Increase Cross Sells

» Reduce the unsellable calls by improving FCR

» Sales “rates” stay constant

» Sales “numbers” go up!

Sales Base =100

Sales

=5

Unsellable

Sales Base = 70

Sales=5

Sales Base = 85

Sales

=6

Unsellable


Intangibles

» Improved business process

» Lower hiring and training expenses

»Lower attrition

» Return on intelligence

» Net promoter score1

1 - Fred Reichheld – The Ultimate Question


Review

» Financial impact of repeat calls

»Reduced call volume

»Decreased hiring cost

»Decreased churn

» Increase up-sell

» Intangibles


Financial Example


Finance Example» Target: Become a world class provider of customer service



» Improve revenues



Financial Institution Example

T o ta l Im p a c t: $ 2 6 ,2 8 5 ,0 0 0


Utility Example


Utility Example» Target: Become a world class provider of customer service



» Improve revenues



Utility Example

T o ta l Im p a c t: $ 4 9 0 ,0 0 0


Improving FCR

» 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

For more information: see our whitepaper on “Increasing Call Center Effectiveness Through First Call Resolution” at www.upstreamworks.com in the downloads section

http://www.upstreamworks.com/


Contact

» Rob McDougall

» [email protected]

» www.upstreamworks.com

» 905 660 0969 x 358

» Twitter: @up_rmcd

» See the full webinar recording at www.upstreamworks.com

mailto:[email protected]



Summary


About 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

©Upstream Works Software


Customer Insights

Customer Experience

Performance

Improvement

Performance

Management

Training and Staffing

Process Improvemen

t

All customer channels


Business Interaction Pain Points

» Problem: No methodology or technology used provides a single comprehensive and auditable view of how customers interact with a business.

» Result: Averages are used to allocate funds to drive customer loyalty and reduce costs across the multiple interaction channels in use today.


Upstream Solution

» 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

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Next In Series

» FCR in the Details

www.upstreamworks.com – Download the whitepaper from our website: Increasing Call

Center Effectiveness Through First Call Resolution
