0')'1&#22'3#1$#)4,4#-)-#45-&)51)&0#)6'17'13)6-5+)84#$&)956&:,-#;) '17#4#17#1&2.)$517%$&#7)-##,-$0)'1&5)325

MARKET INTELLIGENCEFinancial services contact centres: Technology adoption trends 2012

2

Executive summaryThis intelligence paper reports on the findings from Aspect Software’s independently conducted research into global contact centres operating in the consumer financial services industry in the UK. Conducted in January 2012, the research contacted senior IT and business decision-makers in order to understand the technology and personnel challenges, concerns and barriers to technology and multiple channel adoption, as well as deliver a comprehensive overview of the contact centre landscape.

The findings of this research show that financial organisations are operating in a complex and vast contact centre landscape. On average, they are challenged with operating seven contact centre sites, managing 600 agent seats, with a 25 per cent agent attrition rate. This alone creates issues with maintaining a high standard of customer service across all sites, as well as integration considerations across multiple applications from different vendors and communication channels.

The vast majority (94 per cent) cite their primary objective as customer service, but of those that also have a sales and marketing function, one in three consider the contact centre their primary source of revenue or sales. The fact that only one in five respondents (19 per cent) cite being seen as a cost centre within the business as a potential barrier to technology adoption is an encouraging sign. However, contact centres in the financial services industry are on the whole yet to ‘unlock’ the added value that customer interaction can bring. Only 17 per cent have implemented voice analytics, for example, but it is the fourth most popular technology of choice for decision makers in the next 12 to 18 months, with 13 per cent planning to adopt it in this time. Whilst customer experience is high on the agenda, it’s clear to see that cross functions are failing to capitalise on customer insight, which if they did would eventually improve customer experience.

Most of the organisations surveyed faced conflicting goals and concerns. While the majority see improving the customer experience as the primary business goal (56 per cent), most also want to reduce cost by implementing new technology (68 per cent), but are blocked by initial investments in technology to help them achieve this (60 per cent cited this as the biggest barrier to adoption).

Financial services organisations have already invested heavily in a good base of customer relationship management (CRM) (57 per cent) and computer-telephony integration (CTI) technologies (53 per cent), but the next generation of contact centres see cheaper, more convenient methods of communication driven by the Internet, as playing a big part in future customer engagement. Social media leads the way with almost one in five (18 per cent) planning to implement it in the next 12 to 18 months, closely followed by instant messaging (IM) with 15 per cent.

Compliance is a top concern for over half of those surveyed (51 per cent), closely followed by data security with 46 per cent. Operating in a highly regulated industry by the Financial Services Authority (FSA) means that compliance will always be at the top of the contact centre manager’s agenda, and both compliance and data security are absolutely central to protecting the customer, however, technology has yet to alleviate this concern.

The twin aspirations of financial services contact centres are to improve the customer experience, but at a cheaper price. The research found that they are aiming to achieve this with investment in web technology, although slowly. We know that customer communication habits are changing, but financial services organisations will continue to face challenges in getting customers to accept new ways of engaging with the contact centre.

Compliance will

always be at the top

of the contact centre

manager’s agenda,

and both compliance

and data security

are absolutely central

to protecting the

customer

MARKET INTELLIGENCE - Financial services contact centres: Technology adoption trends 2012

3

Methodology and samplingIn January 2012, Vanson Bourne conducted research on behalf of Aspect Software to discover the challenges, barriers to technology and multiple channel adoption and experiences of financial services contact centres in the UK.

The research surveyed 150 senior IT and business decision makers within the consumer financial services sector, of which operate at least one contact centre site.

Of those surveyed, the job titles with the largest proportion of responses were IT manager or director, with 60 per cent of the total. The operations function made up 16 per cent of those surveyed, stating that operations manager or director best described their job title. Team leaders represented 12 per cent of the total respondents, with the remainder covering other functions including contact centre manager.

Of the 150 respondents, over half (54 per cent) were from a bank or building society, with almost a third (30 per cent) representing an insurance provider or broker. The remaining 16 per cent came from a range of other consumer financial services providers including credit rating agencies, private equity management, intermediation and advisory and outsourcers.

This intelligence paper summarises the results of this research. It will examine the current landscape for financial services contact centres in the UK, as well as the levels of adoption for multiple channels, the concerns and challenges for organisations running different sized contact centres, as well as what the future holds for new technology adoption.

Which of the following best describes your job?

Which best describes your organisation?

Of those surveyed,

the job titles with the

largest proportion of

responses were

IT manager or

director, with 60 per

cent of the totalQ� IT ManagerQ� IT DirectorQ� Team LeaderQ� Operations ManagerQ� Operations DirectorQ� Contact Centre ManagerQ� Other

39%

21%

12%

9%

7%

3%9%

Q� BankQ� Insurance provider (motor, life, home, pet etc)Q� Insurance brokerQ� Building societyQ� OutsourcedQ� Intermediation and advisoryQ� Private equity managementQ� Credit rating agency

47%

23%

7%

7%

5%

5%3%3%

4

1. Financial services contact centres: landscapeOver a third of financial services organisations operate 10 or more contact centres, creating cultural, technological and integration issues that challenge customer service.

Our research has found that the vast majority of financial services organisations operate at least five (60 per cent) contact centres, with the minority operating just one (11 per cent). Furthermore, over one third of respondents state that they operate over 10 contact centres of varying sizes. On average, financial services organisations are challenged with managing seven contact centre sites.

Managing multiple contact centre sites presents its own set of challenges, from maintaining a consistent and standard level of service across all locations, as well as interoperability between systems and disparate silos of customer data. Cultures too, may be different, or they may each perform a different function, all of which contribute to the complexity of the landscape.

Size, or the number of agent ‘seats’ across all contact centre sites, is also a critical issue for decision makers, not only for the factors mentioned above, but for many personnel and service quality issues, which will be discussed in detail later in the report. The average number of agent seats across all sites totals 600, with the vast majority of those surveyed operating over 250 agent seats (60 per cent), which is perhaps not so surprising for an industry where customer service is a core business process, and for many, a critical differentiator.

How many contact centre sites does your organisation operate globally?

How big is your contact centre in total, across all sites?


Q� 1 contact centreQ� 2-4 contact centresQ� 5-10 contact centresQ� Over 10 contact centres29%

24%

36%

11%

Q� 1-10 seatsQ� 11-50 seatsQ� 51-100 seatsQ� 101-250 seatsQ� 251-500 seatsQ� 501-1,000 seatsQ� More than 1,000

13%

13%

18%

29%

5%9%

13%

Managing multiple

contact centre sites

presents its own

set of challenges,

from maintaining

a consistent and

standard level of

service across all

locations, as well

as interoperability

between systems

and disparate silos of

customer data

5

2. The complexity of contact centre managementMixed function contact centres are now the norm, which has increased the pressure on finding both well skilled employees and the technology needed to support two-way communications.

Of those surveyed, the majority are handling both inbound and outbound communications (80 per cent), with two thirds of these communications being inbound (64 per cent).

Interestingly, just a small proportion (3 per cent) handle outbound on its own (where primarily these will perform a telemarketing, collections or research function), with a further 17 per cent handling only inbound communication.

In handling multiple inbound and outbound campaigns in blended contact centres (or agents, or agent teams) are issues such as training and retention of skill sets. This is particularly pertinent for smaller contact centres who cannot afford to have different agent teams specialising in one particular area, which is why many contact centres are blending inbound and outbound communications and requiring both skill sets from agents. Blending enables contact centres to find a balance between inbound and outbound operations and utilise as much capacity as possible, so that there are enough agents to handle calls when the call volume rises and productivity isn’t affected during quiet periods. This is particularly critical in collections contact centres. Skills-based routing, automatic call distribution (ACD) and advanced computer telephony integration (CTI) are all technologies and tools that can be used to ensure that multiple campaigns are handled effectively, whilst maintaining high levels of productivity.

Furthermore, the research discovered that the larger the contact centre is, the more likely it is to perform a mixed function. Of the smaller contact centres (up to 100 seats), 62 per cent are blended; of the largest (more than 1,000 seats), almost all (98 per cent) are blended.

Is your contact centre...?

Q� Mixed inbound and outboundQ� InboundQ� Outbound

80%

17%

3%

Blending enables

contact centres

to find a balance

between inbound and

outbound operations

and utilise as much

capacity as possible

6

3. Contact centre objectivesNine out of 10 contact centre managers fail to see the customer insight opportunities made possible through contact centres.

When asked what their contact centre’s primary objectives are, a complex picture is painted for contact centre managers. Whilst the majority stated that customer service was a primary objective (94 per cent), only a little over a half (55 per cent) said they performed sales and marketing activities from the contact centre, with just under a third executing some sort of collections service (29 per cent). The survey also found that the more contact centre sites an organisation operates, the more likely it would be to have a customer service as well as a sales and marketing function – in particular those with over 10 contact centre sites where almost two thirds (62 per cent) selected this answer.

Which of the following best describes your contact centre operation?

Customer serviceDelving a little deeper into the customer service objective, when asked about the business objective of their customer service activity, the overwhelming majority of organisations describe their sub-objective as to improve the overall customer experience (56 per cent). 14 per cent said that the contact centre generates additional revenue from upselling/cross-selling, in particular banks, of which 17 per cent selected this answer, compared to 11 per cent of other organisations. Just 9 per cent of respondents with a customer service concern claimed that gaining customer insight/business intelligence was an objective. Whilst it could be argued that some of the sub-objectives do contribute to a better overall customer experience, it is perhaps interesting to note that the customer experience is imperative to the majority of contact centres in the financial services sector. Financial services contact centres are particularly attractive to the media, especially when things go wrong. Naturally, brand image or reputation is just one of the factors that influence a consumer’s choice of supplier.

Thinking about the customer service aspect of the contact centre’s function, which of the following best describes the business objectives of your contact centre?

94%

55%

29%

Q� Customer serviceQ� Sales/marketingQ� Collections

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

56%

14%

9%

9%

8%

4%

Q� Improve the overall customer experienceQ� Generate additional revenue from upselling/cross sellingQ� Provide a consultancy/advisory serviceQ� Gain customer insight/business intelligenceQ� Contribute to a consistent brand experienceQ� Customer retention

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%


The overwhelming

majority of

organisations describe

their sub-objective as

to improve the overall

customer experience

(56 per cent)

7

Sales and marketingThe contact centre has long been thought of as a cost centre, a necessary evil that strategically, does not fit into or align with business goals. There are may signs however that this perception is changing. For financial services organisations, upselling and cross-selling is a big chunk of their revenue.

Over half of respondents with a sales and marketing objective identified their primary goal as to generate additional revenue from upselling/cross-selling (53 per cent). Well over a third (35 per cent) considered the contact centre as responsible for their main revenue stream/sales.

Again, for those with a sales and marketing objective, very few respondents saw gaining customer insight as a primary objective (polling 10 per cent and 2 per cent respectively). Given that attaining the ever-elusive single view of the customer, and getting to know customers better is a key part of improving the customer experience, insight from customer interaction appears to be fairly low on the decision maker’s agenda.

For most consumer-focused financial organisations, the contact centre is the face of the business. It is the customer’s first (and often only) point of contact with the organisation, but it is easy to capture just the important information and put it into the CRM database. Listening to what the customer is saying, and using technologies such as voice analytics to derive value from unstructured data (from buying habits to analysing customer feedback in the context it was provided) can bring about a wealth of additional information that can be ploughed back into customer strategy to better understand the people buying the products and services and deliver a high quality experience. Thinking about the sales and marketing aspect of the contact centre’s function, which of the following best describes the business objectives of your contact centre?

53%

35%

10%

2%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

Q� �Generate additional revenue from upselling/cross-selling

Q� Main revenue stream salesQ� Raise awareness of promotionsQ� �Gain customer insight from

market researchGetting to know

customers better is a

key part of improving

the customer

experience, insight

from customer

interaction appears

to be fairly low on

the decision maker’s

agenda

8

CollectionsCollections represented the smallest proportion of financial services contact centres surveyed. The majority state that their objective is to recover bad debts (55 per cent), with the remainder acting as a consultancy/advisory for re/payments (27 per cent) or obtaining promises to pay (PTP). Most collections contact centres are undoubtedly primarily outbound in nature (with some degree of inbound) but these organisations have an entirely separate set of challenges including a bigger focus on first call resolution rates, certainty of customer engagement and special agent skill sets. Contact centres with a collections remit have had somewhat of a busy time during economic uncertainty, as households struggle to pay bills and loans. Different contact strategies based on who owes what and their ability to pay means it is very much a more complex operation to achieve ‘success’, whether that is moneys recovered or settling a long-term payment plan.

Thinking about the sales and marketing aspect of the contact centre’s function, which of the following best describes the business objectives of your contact centre?


56%

14%

9%

Q� Recover bad debtsQ� Consultancy/advisory for re/paymentsQ� Obtain promises to pay (PTP)

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

Contact centres with

a collections remit

have had somewhat

of a busy time during

economic uncertainty,

as households

struggle to pay bills

and loans

9

4. The multi-channel mazeEmail is now as important as the telephone but seamless monitoring and response is not watched as closely as calls.

Financial services contact centres are typically multi-channel, as demonstrated by our study. Most respondents claim to operate telephone (inbound and outbound) as well as email.

Telephone is still number one when it comes to engaging with financial services suppliers, with the majority (93 per cent) citing inbound telephone calls as the primary communication channel. However, the research shows that email has come of age, with almost 80 per cent of organisations surveyed using it in some form, and it is even more likely to be used than outbound telephone calls (77 per cent).

Although a convenient channel for the customer – due to the widespread availability of broadband and not having to wait in call queues – email management is an art. Although historically viewed as an assisted channel to the telephone, customers expect a seamless transition between all channels. Ensuring there are service levels in place for agents, so that no email goes unanswered, as well as tracking enquiries to resolution and training agents to correctly reply to emails are all essential. Although there are no official guidelines on email response times, these should be managed effectively to make these as short as possible and within customer expectations.

Instant methods of interaction, including IM and perhaps in the future, video calling and Skype, may be more attractive to customers for offering resolution to more urgent enquiries. As the population gets older, generational divides could have some impact on adoption of more modern methods of engagement.

Which channels does your contact centre use?

Base: All respondents

Telephone - inbound

Email

Telephone - outbound

Post

Online self-service

SMS

Fax

Social media - Facebook

Social media - Twitter

Chat/instant messaging

Video conferencing

Social media - other

Other

Base

Total

93%

79%

77%

54%

47%

37%

32%

21%

20%

18%

13%

5%

1%

150

1 contact centre

100%

82%

76%

59%

18%

24%

41%

29%

29%

0%

0%

0%

12%

17

2-4 contact centres

91%

82%

59%

50%

36%

39%

32%

20%

25%

11%

11%

5%

0%

44

5-10 contact centres

89%

72%

86%

58%

56%

44%

28%

31%

25%

25%

19%

8%

0%

36

10+ contact centres

96%

81%

87%

54%

58%

37%

33%

13%

10%

25%

13%

4%

0%

52

1-100 seats

98%

90%

63%

53%

28%

20%

25%

20%

23%

10%

8%

0%

5%

40

101-1,000 seats

90%

76%

76%

55%

52%

45%

37%

25%

24%

18%

19%

9%

0%

67

1,001+ seats

95%

74%

93%

53%

56%

42%

30%

16%

12%

26%

7%

2%

0%

43

Customers expect a

seamless transition

between all channels

10

The post-room is still alive and well in just over half of financial services contact centres (54 per cent). Due to the nature of the products sold by financial services organisations and high levels of regulatory compliance, it has always been a paper-intensive business. Whilst some financial services organisations (in particular bank and building societies, and some insurers) enable customers to manage their accounts from a secure website, the ability to digitally sign documents is still not widely embraced, which is perhaps the main stumbling block for leaving paper behind.

Another tactic used to reduce cost per interaction as well as the need for customers to engage with the contact centre is to use online self-service, such as an FAQ or knowledgebase. This ensures that the most frequently raised enquiries can be dealt with by the customer and hopefully resolved at that point. According to our research, this tool is more likely to be used in medium to larger contact centres, with more than half of organisations with greater than 100 agent seats operating an online self-service channel.

The use of social media is a hot topic in customer strategy circles. However, it is customer attitudes that will likely push social media into the contact centre in the future. The shift in the way we communicate with each other means organisations are no longer operating on a one-to-one model, but a many-to-many. Word-of-mouth is increased and comes from a wide range of sources from friends and family to experts and influential people. It is also worth considering that financial matters by their nature need a certain level of privacy, security and trust, so this will have some impact on the channels used by consumers.

The report found that small to medium sized contact centres, operating up to 1,000 seats, are much more likely to use the likes of Twitter and Facebook than the largest. Larger contact centres are actually much more likely to employ the use of IM, with 26 per cent of those with over 1,000 seats acknowledging its use.

The adoption of new channels over the next 12 to 18 months shifts the model. IM and online self-service lead the way with almost a fifth (19 per cent) of contact centres of all sizes planning to implement the technologies in the near future. Social media channels, in particular Facebook, follows behind in third, fourth and sixth place. Fewer than four in 10 organisations do not plan to adopt any extra channels in the next 12 to 18 months.


Larger contact centres

are actually much

more likely to employ

the use of IM, with

26 per cent of those

with over 1,000 seats

acknowledging its use

11

According to the Society of Information Technology Management, the telephone is typically the most expensive cost per interaction for any contact centre other than meeting face-to-face, at an average of £2.90. An electronic interaction over the web - be it email, IM or via a messaging service - costs just 32p1. So whilst the telephone is still the channel of choice for most consumers, it is also the most expensive for contact centres, which is why many are turning to cheaper methods or attempting to resolve enquiries before the customer even has to make contact. IM, as an instant, less costly method of interaction, is slowly becoming the financial services contact centre’s channel of choice, not only serving to alleviate cost but also to deliver a personalised and one-to-one level of communication achieved previously only via telephone or in-branch. It is this that adds to the experience, making a happy and satisfied customer.

Which channels are you planning to implement at your contact centre in the next 12-18 months?

Total

19%

19%

17%

16%

15%

13%

9%

6%

4%

3%

3%

1%

37%

2%

150

1 contact centre

0%

12%

12%

6%

12%

6%

6%

0%

0%

0%

0%

0%

59%

6%

17

2-4 contact centres

34%

27%

14%

14%

14%

16%

7%

16%

9%

2%

9%

0%

32%

0%

44


14%

28%

25%

19%

19%

25%

14%

6%

6%

8%

0%

3%

25%

3%

36

10+ contact centres

17%

8%

17%

19%

13%

6%

8%

0%

0%

0%

0%

2%

42%

2%

52

1-100 seats

10%

20%

20%

8%

13%

18%

10%

3%

8%

3%

5%

0%

45%

3%

40

101-1,000 seats

25%

19%

16%

19%

15%

13%

7%

9%

4%

4%

3%

3%

34%

1%

67

1,001+ seats

19%

16%

16%

19%

16%

9%

9%

5%

0%

0%

0%

0%

33%

2%

43


Chat/instant messaging

Online self-service

Social media - Facebook

Social media - other

SMS

Social media - Twitter

Video conferencing

Email

Telephone - outbound

Telephone - inbound

Post

Fax

None

Other

Base

Whilst the telephone

is still the channel

of choice for most

consumers, it is also

the most expensive

for contact centres

1 http://www.socitm.net/press/article/167/making_public_services_digital_by_default_new_socitm_guide_explains_the_why_and_the_how

12

5. Future technology adoptionOnly a third of contact centre managers are involved with developing and deploying new technology, creating risks in IT delivery.

Technology, from the headset to the customer relationship management (CRM) database, is the lifeblood of a productive contact centre. When asked about the decision-making process for technology investment, it is the IT function, rather than operations or the contact centre manager that has the most influence across contact centres of all sizes.

In all, the IT manager is involved in decision making 60 per cent of the time, whereas the contact centre manager is involved in only one in three instances. The larger the contact centre operation, the more likely it is that the financial director is involved. As the contact centre becomes a bigger concern for financial services organisations, naturally the financial investment – particularly licences, hardware and managed services – grows exponentially.

This highlights potential issues between the disparity between the requirements of these job functions, from a focus on fiscal resources to needing a technology that is a best fit for achieving goals and raising productivity. This could impact the success of an implementation. The contact centre manager is responsible for ensuring that their operation is achieving business goals, meeting key performance indictors (KPIs) and therefore choosing the best strategy in order to do so. This lack of involvement could cause issues such as agent adoption of the technology, or that the selected system is not aligned with strategy goals.


60%

33%

35%

33%

26%

19%

3%

Q� IT DirectorQ� Managing DirectorQ� IT ManagerQ� Contact Centre ManagerQ� CEOQ� Financial DirectorQ� Other

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

The IT manager is

involved in decision

making 60 per cent

of the time, whereas

the contact centre

manager is involved

in only one in three

instances

The research also indicates that financial services contact centres are a technologically advanced environment. CRM continues to be a mainstay of the industry, with the majority having some form of CRM-focused technology (57 per cent), closely followed by computer-telephony integration (CTI) (53 per cent). Organisations using email management, voice over IP (VoIP), business process management (BPM)/workflow and KPI monitoring all represent just under half of the total surveyed. As these contact centres increase in size, the likelihood of CRM being installed increases, and this is also true for a number of other technologies, including CTI and BPM.

Which of the following technologies have you implemented in your contact centre?

13

Total

57%

53%

47%

44%

43%

41%

41%

35%

35%

34%

33%

31%

31%

31%

30%

23%

22%

19%

19%

19%

18%

17%

15%

12%

4%

0%

150

1 contact centre

53%

24%

35%

35%

24%

18%

35%

6%

24%

18%

6%

12%

24%

6%

6%

24%

18%

24%

6%

12%

0%

0%

0%

6%

6%

0%

17

2-4 contact centres

41%

41%

43%

48%

41%

43%

39%

23%

23%

34%

20%

43%

32%

27%

27%

27%

16%

16%

14%

11%

18%

18%

7%

9%

5%

0%

44


61%

61%

47%

44%

50%

50%

53%

42%

39%

39%

47%

31%

28%

31%

39%

22%

36%

25%

25%

19%

14%

14%

19%

17%

3%

0%

36

10+ contact centres

69%

67%

56%

44%

46%

38%

37%

52%

48%

37%

42%

29%

37%

42%

35%

21%

19%

17%

25%

29%

27%

23%

25%

13%

4%

0%

52

1-100 seats

40%

28%

48%

33%

18%

33%

28%

15%

28%

15%

15%

8%

25%

10%

10%

15%

8%

15%

10%

13%

10%

5%

5%

8%

10%

0%

40

101-1,000 seats

61%

54%

51%

49%

49%

39%

48%

34%

34%

36%

33%

37%

34%

30%

31%

25%

31%

25%

24%

13%

21%

21%

18%

12%

0%

0%

67

1,001+ seats

67%

77%

42%

47%

56%

51%

42%

56%

44%

49%

49%

44%

33%

51%

47%

28%

21%

14%

21%

35%

21%

21%

21%

16%

5%

0%

43


Customer relationship

management (CRM)

Computer-telephony integration

(CTI)

Email management

VoIP

Workflow/business process

management (BPM)

Call back

Key performance indicator (KPI)

monitoring

Knowledgebase

Self-service/FAQ

Skills routing

Multi-channel contact

IVR

Virtualisation

Predictive dialler

Workforce management/

optimisation

SMS management

Cloud computing

Social media

Call recycling

Lead selection/generation

Web chat/IM

Voice analytics

Call blending

Unified interface

None of these

Other

Base

14

Looking ahead at the technologies that organisations plan to implement in the next 12 to 18 months, social media wins out with 18 per cent, closely followed by IM with 15 per cent. Self-service represents 14 per cent of the total, as does SMS management, which many banks have already successfully used as a key tool and marketing tactic. Other technologies being implemented in the near future include voice analytics (13 per cent) and cloud computing (11 per cent). Only around two in 10 organisations do not plan to implement any new technologies in the next 12 to 18 months.

Which of the following technologies are you planning to implement in your contact centre in the next 12-18 months?


Total

18%

15%

14%

14%

13%

11%

11%

9%

9%

9%

9%

8%

7%

7%

7%

7%

7%

6%

6%

6%

6%

5%

3%

6%

21%

3%

150

1 contact centre

6%

12%

6%

0%

0%

18%

6%

6%

12%

12%

0%

6%

12%

12%

0%

6%

12%

6%

12%

0%

6%

0%

6%

6%

29%

6%

17

2-4 contact centres

20%

23%

9%

23%

9%

14%

11%

16%

20%

9%

16%

2%

5%

9%

9%

5%

11%

5%

7%

9%

9%

5%

2%

0%

16%

2%

44


25%

11%

25%

19%

25%

11%

8%

8%

3%

14%

8%

14%

14%

6%

11%

14%

6%

6%

3%

14%

8%

14%

6%

17%

17%

3%

36

10+ contact centres

15%

13%

13%

8%

12%

8%

13%

6%

4%

4%

6%

10%

4%

6%

4%

4%

2%

8%

6%

0%

2%

2%

2%

4%

27%

2%

52

1-100 seats

18%

13%

5%

5%

0%

13%

13%

8%

13%

10%

5%

5%

10%

8%

3%

8%

13%

8%

8%

3%

5%

5%

5%

8%

20%

5%

40

101-1,000 seats

15%

15%

18%

19%

18%

9%

13%

13%

10%

10%

10%

9%

6%

9%

12%

7%

4%

6%

6%

9%

9%

7%

3%

6%

22%

3%

67

1,001+ seats

23%

19%

16%

14%

16%

14%

5%

5%

5%

5%

9%

9%

7%

5%

2%

5%

5%

5%

5%

5%

2%

2%

2%

5%

21%

0%

43


Social media

Web chat/IM

SMS management

Self-service/FAQ

Voice analytics

VoIP

Cloud computing

Unified interface

Email management

Predictive dialler

Key performance indicator (KPI)

monitoring

Workflow/business process

management (BPM)

Knowledgebase

Call back

Multi-channel contact

Skills routing

Customer relationship

management (CRM)

Computer-telephony integration

(CTI)

Workforce management/

optimisation

Call blending

IVR

Lead selection/generation

Call recycling

Virtualisation

None of these

Other

Base

15

6. New technology driversNew channels such as social media are the easiest way to reduce costs but customer satisfaction will be damaged – at least over the short to medium term.

When asked the reasons why a contact centre in the financial services industry might invest in new technology, twin aspirations emerge; to improve the customer experience with new technology, but do so at a cheaper price (68 per cent and 66 per cent respectively). Unsurprisingly, the importance of this increases with size.

On the surface, this is a dream scenario. As we have already seen, financial services contact centres are planning to make engaging with them easier and more accessible by increasing the number of channels and technologies that they have, more notably investing in those that are typically cheaper to run in the long-term, such as IM. However, there are a lot of issues to consider such as security, agent productivity, compliance, if enquiries can be resolved at the same or better rate as telephone, and whether the customer demand for these methods of interaction is there. All of this impacts on the ability to provide an improved customer experience, and rate of customer satisfaction with their provider.

What are the key drivers for implementing new technologies in your contact centre? (Respondents were asked to select their top five)

Productivity further compounds the issue if size is considered; contact centres with under 100 seats place a higher importance on improving staff productivity, with almost two in three contact centres claiming it is a key technology driver. For larger contact centres (more than 1,000 seats), productivity was only identified by just over four in 10 organisations (42 per cent). Smaller contact centres may have reduced resources available to them so there is a need to maximise the use and efficiency of agents to work at optimal capacity and reduce idle time.

Total

68%

66%

49%

33%

28%

26%

23%

23%

22%

17%

16%

15%

13%

13%

8%

7%

1%

150

1 contact centre

65%

71%

65%

35%

35%

6%

18%

6%

6%

29%

6%

24%

24%

12%

6%

6%

6%

17

2-4 contact centres

66%

70%

50%

39%

25%

30%

18%

25%

18%

14%

16%

16%

16%

14%

5%

7%

0%

44


61%

61%

58%

28%

28%

33%

17%

25%

36%

22%

28%

11%

17%

11%

14%

8%

3%

36

10+ contact centres

77%

65%

38%

33%

29%

25%

35%

25%

21%

12%

12%

13%

6%

13%

8%

8%

0%

52


Reduce cost

Improve the customer experience

Improve staff productivity

Streamline/automate business processes

Compliance with regulation (eg FSA)

Meeting KPIs (eg first call resolution rates

Improve interoperability between

applications/technologies

Improve ROI

Create agility for business change

Disaster recovery/business continuity

Maximising use of agent skills

Reduce customer effort

Flexibility working/working from home

Improve corporate reputation

Deliver analysis and insight from customer

interaction

Create a multi-channel environment

Other

Base

Financial services

contact centres are

planning to make

engaging with

them easier and

more accessible by

increasing the number

of channels and

technologies that

they have

16

7. Barriers to adoptionFinancial services contact centres are a strategic asset, but capital expenditure and legacy systems are blocking investment.

By far and above any other, capital investment is the number one barrier to adoption of new technology in the financial services contact centre, with almost two thirds citing this reason. The economic outlook is still uncertain, and budgets are firmly at the top of every agenda. Organisations want to reduce cost and improve ROI in the long term, but the high initial investment in systems creates an obstacle that leaves many organisations in a catch-22 situation.

What are the barriers to adopting new technology in your contact centre?

In a similar vein, the second most cited barrier was legacy systems for four in 10 contact centres (43 per cent), a problem particularly pertinent to organisations with over 1,000 seats, which was identified by almost two in three contact centres of this size. Typically, legacy systems that cannot be upgraded either require a costly ‘rip and replace’ operation or investment in additional technology to integrate their function. Legacy systems particularly impact a contact centre’s ability to adapt to business change or growth, as they lack the flexibility and scalability required and cause business process bottlenecks. They often do not integrate with newer technology or channels, and adversely impact operational efficiencies and therefore the customer experience.

What is particularly interesting about the industry response here is that just under one in five contact centres (19 per cent) cite that the contact centre is still seen as a cost centre within the business, and this would affect the level of investment that a business makes in it. We have already seen that over half of those surveyed claim that their contact centre performs a sales and marketing function, and that huge value is placed on it as a strategic asset, which could influence this low figure.


60%

43%

23%

21%

19%

19%

Q� Capital investmentQ� Legacy systemsQ� Difficulty proving ROIQ� Multiple sitesQ� Cost of training and learning curveQ� Seen as a cost centre within the business

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

Organisations want

to reduce cost and

improve ROI in the

long term, but the

high initial investment

in systems creates an

obstacle that leaves

many organisations in

a catch-22

17

As previously mentioned, additional factors such as gaining customer insight to develop better customer service strategies, create value that positively impacts the bottom line so that the contact centre becomes a driver for business growth. However, the response here concurs with our other findings that very few organisations are committed to this (with a mere 8 per cent claiming this is a driver for investment).

Compliance will continue to be a big issue for the financial services contact centre. Regulatory bodies such as the FSA enforce standards such as Treating Customers Fairly (TCF), Payment Card Industry (PCI) DSS for securing customer payment data, as well as a set of regulations specifically for financial services contact centres. Organisations are battling with multiple compliance issues as well as ensuring that its technology supports them. Over half of the respondents surveyed (51 per cent) stated that compliance with regulation is the number one technology challenge in running their contact centre. A critical issue with financial matters, security, was nominated second biggest challenge (46 per cent), whilst reducing costs (43 per cent) appeared again as number three.

What are the three main technology challenges/issues you face in managing a financial services contact centre?

51%

46%

43%

21%

21%

Q� Compliance (eg with FSA regulations)Q� Data securityQ� Reducing costQ� Technological infrastructure issuesQ� �Handling multiple applications

and technologies at the agent interface

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

Over half of the

respondents surveyed

(51 per cent) stated

that compliance

with regulation is

the number one

technology challenge

in running their

contact centre

18

8. The human factorStaff attrition is the biggest challenge to customer service and the industry is failing on the basics to put this right.

It’s no secret that any contact centre has its set of personnel challenges. The biggest issue cited by respondents in the research is being able to attract and retain skills/talent, which was identified by over half of the organisations surveyed (51 per cent). One in three contact centres (29 per cent) also claim that staff attrition is an issue, and given that the number one business objective is to improve the customer experience (and also the second biggest personnel challenge), it is the human factor that is just as important in providing high service quality.

Contact centres require a wealth of different skills from their employees, not just to handle inbound and outbound, but for different campaigns, products and services, multimedia and various channels and so forth. Maintaining the right skilled agents means that service is of a consistent and high standard, therefore increasing customer satisfaction and achieving business goals. Whilst technology goes some way in assisting lower skilled agents with intuitive interfaces or scripting, it can also be the death knell, especially if organisations use a multitude of legacy systems and applications and agents are expected to juggle them all whilst listening to a customer. Choosing the right technology ensures that agents are sufficiently supported, as well as enables them to use their communication skills and concentrate on the customer.

To the best of your knowledge, in the last 12 months, what was your agent attrition rate?


Q� Under 10 per centQ� 11-25 per centQ� 26-50 per centQ� 51-100 per centQ� Over 100 per cent

45%

28%

10%

0%

17%

Choosing the right

technology ensures

that agents are

sufficiently supported,

as well as enables

them to use their

communication skills

and concentrate on

the customer

19

The reported agent attrition rate is perhaps not as high as some might perceive. Over the last 12 months, financial services contact centres are mostly likely to have experienced an attrition rate of between 11 per cent and 25 per cent. This is in line with the industry average of 21 per cent, as recently reported by ContactBabel2, which also suggests that attrition rates tend to go hand in hand with economic growth and more opportunities outside of the contact centre industry. Those with fewer than 100 seats are more likely to experience an attrition rate of between 51 per cent and 100 per cent, with one in 10 of contact centres of all sizes experiencing this attrition rate.

To the best of your knowledge, in the last 12 months, what was your agent attrition rate?

When asked what they believe was the main cause of attrition in the contact centre, responses were fairly mixed. The top answer was remuneration, cited by one in three respondents (33 per cent), followed by the lack of a visible career path, identified by almost one in four (23 per cent), a figure that increases with contact centre size. Ensuring that agents are sufficiently trained and empowered to use their skills can help job satisfaction to a degree, as can making sure that they do have a visible career path to more senior positions in the organisation. Agent attrition can be combated at the hiring stage as well, by ensuring that candidates are the best fit for the organisation and can add value to business processes.

In your experience, what is the main cause of agent attrition in financial services contact centres? (N.B. only showing five most popular responses)


Under 10 per cent

11-25 per cent

26-50 per cent

51-100 per cent

Over 100 per cent

Average (attrition rate)

Base

Total

17%

45%

28%

10%

0%

25.24%

150

1 contact centre

24%

29%

12%

35%

0%

36.62%

17

2-4 contact centres

26%

40%

23%

11%

0%

24.48%

44


11%

39%

42%

8%

0%

27.15%

36

10+ contact centres

13%

59%

26%

2%

0%

20.74%

52

1-100 seats

18%

41%

23%

18%

0%

29.04%

40

101-1,000 seats

22%

40%

28%

10%

0%

25.15%

67

1,001+ seats

12%

56%

30%

2%

0%

21.92%

43

33%

23%

11%

10%

8%

Q� RemunerationQ� No visible career pathQ� Low moraleQ� Repetitive tasksQ� �Skills aren’t being used

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%

2 http://www.contactbabel.com/pdfs/nov2011/2011_11_News-Agent-attrition-jumps-by-31-percent(UK-HROB-2011-1).pdf

20

9. ConclusionThe findings in this report provide a comprehensive overview of the primary challenges faced by contact centre managers operating in the financial services sector. They are not only dealing with a vast and complex landscape of multiple sites, hundreds of agents and a multitude of technology, but also budget restraints and push back from senior board members.

Despite heavy investment in the a technology ‘base’ of CRM, CTI and workflow/BPM, contact centres in the financial services sector require technology solutions that alleviate continuing concerns including retaining skilled agents, cost and legacy systems.

The fact that these contact centres are really beginning to be seen as a strategic asset is encouraging, however, the lack of investment in tools to help ‘unlock’ the hidden value in customer interactions shows we have a long way to go in seeing it as more than a sales channel.

Contact centre technology still has a lot still to live up to in order to allay financial services organisations’ concerns around data. Changing consumer habits and expectations are giving way to a multitude of new channels, which although organisations are investing in, have yet to match their security credentials to more mature channels like web applications or even the telephone. Financial service organisations also face massive compliance pressures, which remain a concern despite technology investment.

Contact centres in the financial services industry are developing their channels, the majority are investing in new technology – most of which involves the Internet in some capacity – and almost all are aware of the need to significantly increase the level of customer service they provide. However, they continue to be challenged by many sector specific issues, and many are concerned that their technology is not up to scratch in solving them. External factors such as the economy and customer demand will always place some pressure on how financial services contact centres develop over the coming months and years, but the future looks bright for the next generation of financial services contact centres.


External factors such

as the economy and

customer demand

will always place

some pressure on

how financial services

contact centres

develop over the

coming months and

years, but the future

looks bright for the

next generation of

financial services

contact centres

21

Notes

22


Notes

23

Notes

2 The Square, Stockley Park, Uxbridge, Middlesex UB11 1ADtelephone 020 8589 1000 facsimile 020 8589 1001 website www.aspect.com/uk

About Aspect

Aspect builds customer-company relationships through a combination of contact management, workforce optimisation and Microsoft unified communications and collaboration platform solutions, enabling organisations to meet the expectations of today’s social consumer by bringing customer contact to every enterprise function. Aspect is recognised by industry analysts for its success in helping companies of all sizes, including nearly two-thirds of the Global Fortune 100, achieve strategic objectives, deliver operational efficiency and enhance customer satisfaction through the power of time-tested software and professional services. For more information, visit www.aspect.com/uk.

Follow Aspect on Twitter at @AspectUC

Read our blogs at http://blogs.aspect.com

Aspect, Unified IP and Aspect Software are either trademarks or registered trademarks of Aspect Software, Inc., in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners.

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