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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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© 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
© U p s t r e a m W o r k s S o f t w a r e
Overview
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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
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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
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First Call Resolution
Solving the customer’s problem right the first time so that they don’t have to call you back about it.
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FCR Overview
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How To Reduce Repeat Call Volumes
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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
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Intangibles
» Word of mouth
» Agent satisfaction
» Business process improvements
» Return on intelligence
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Why You Care About FCR
1 -www.yankeegroup.com/ResearchDocument.do?id=15571
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Reservations Example
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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
© U p s t r e a m W o r k s S o f t w a r e
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!
© U p s t r e a m W o r k s S o f t w a r e
Reservations Center Example
» 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!
© U p s t r e a m W o r k s S o f t w a r e
Reservations Center Example
» There’s no magic Monday morning!
» Assumes phasing in with a 1 Year implementation
Total First Year Saving: $2,200,000!
© U p s t r e a m W o r k s S o f t w a r e
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
© U p s t r e a m W o r k s S o f t w a r e
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
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© U p s t r e a m W o r k s S o f t w a r e
Reduced Calls» Be more effective
»Maintain original calls
»Reduce repeat calls
» Overall call volume reduction
» Lowers agent requirements
»ERLANG C
© U p s t r e a m W o r k s S o f t w a r e
Cost Savings
Current Agents
Current Call Volume
Time
© U p s t r e a m W o r k s S o f t w a r e
Cost Savings
Current Agents
Current Call Volume
Cost Savings
Reduced Call Volume
Reduced Agents
Time
© U p s t r e a m W o r k s S o f t w a r e
Reservations Center Example
© U p s t r e a m W o r k s S o f t w a r e
Cost Avoidance
Current Agents
Current Call Volume
Time
© U p s t r e a m W o r k s S o f t w a r e
Cost Avoidance
Current Agents
Current Call Volume
Reduced
Agents
Reduced Call Volume
Cost
Savings
Time
© U p s t r e a m W o r k s S o f t w a r e
Reservations Center Example
Yearly Cost of Doing Nothing: $4,900,000!
© U p s t r e a m W o r k s S o f t w a r e
1 Year Model - Attrition
Current Agents
Current Call Volume
Cost Savings
Time
Agent Volume with
No Hiring
© U p s t r e a m W o r k s S o f t w a r e
1 Year Model - Attrition
Current Agents
Current Call Volume
Time
Reduced Call Volume
Reduced Agents
Cost Savings
Agent Volume with
No Hiring
© U p s t r e a m W o r k s S o f t w a r e
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
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Reservations Center Example
Realizable First Year Impact: $2,200,000!
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© U p s t r e a m W o r k s S o f t w a r e
Attrition Rates
100 Agents
20% attrition = 20 agents
80 Agents
20% attrition = 16 agents
Hiring fewer agents = lower hiring costs
© U p s t r e a m W o r k s S o f t w a r e
Reservations Center Example
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Customer Churn
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Turning Churn into Growth
» Revenue growth comes from not losing customers!
Churn Replacement
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» Quantifiable increases in revenue
»Because you’re already doing it
»This is about reducing lost customers not gaining new ones!
Selling the CFO
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Increased Revenue - Reduced Marketing
Revenue Marketing Cost
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Reservations Center Example
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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
© U p s t r e a m W o r k s S o f t w a r e
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
© U p s t r e a m W o r k s S o f t w a r e
© U p s t r e a m W o r k s S o f t w a r e
Intangibles
» Improved business process
» Lower hiring and training expenses
»Lower attrition
» Return on intelligence
» Net promoter score1
1 - Fred Reichheld – The Ultimate Question
© U p s t r e a m W o r k s S o f t w a r e
Review
» Financial impact of repeat calls
»Reduced call volume
»Decreased hiring cost
»Decreased churn
» Increase up-sell
» Intangibles
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Financial Example
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Finance 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
© U p s t r e a m W o r k s S o f t w a r e
Financial Institution Example
T o ta l Im p a c t: $ 2 6 ,2 8 5 ,0 0 0
© U p s t r e a m W o r k s S o f t w a r e
Utility Example
© U p s t r e a m W o r k s S o f t w a r e
Utility 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
© U p s t r e a m W o r k s S o f t w a r e
Utility Example
T o ta l Im p a c t: $ 4 9 0 ,0 0 0
© U p s t r e a m W o r k s S o f t w a r e
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
© U p s t r e a m W o r k s S o f t w a r e
Contact
» Rob McDougall
» www.upstreamworks.com
» 905 660 0969 x 358
» Twitter: @up_rmcd
» See the full webinar recording at www.upstreamworks.com
© U p s t r e a m W o r k s S o f t w a r e
Summary
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About Upstream Works Software
© U p s t r e a m W o r k s S o f t w a r e
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
© U p s t r e a m W o r k s S o f t w a r e
Customer Insights
Customer Experience
Performance
Improvement
Performance
Management
Training and Staffing
Process Improvemen
t
All customer channels
© U p s t r e a m W o r k s S o f t w a r e
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.
© U p s t r e a m W o r k s S o f t w a r e
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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© U p s t r e a m W o r k s S o f t w a r e
Next In Series
» FCR in the Details
www.upstreamworks.com – Download the whitepaper from our website: Increasing Call
Center Effectiveness Through First Call Resolution