Call Centers & Change

© 2004, 2003, 2002, 2001, 2000, 1999, 1998 by

All rights reserved. 773-325-9400

Call Centers & Change

Mitchell A. Lieber

President, Lieber & [email protected] 773-325-9400

Your Free Library of Call Center Tips is the Knowledge Base at www.LieberAndAssociates.com

CADMEF Academic Update May 14, 2004

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What We’ll Cover

• How the Telephone Fits In

• Call Center Change – How It Got Here, Where It’s Going– Regulation and Privacy– Off-Shore and Internationalization– New Contact Media due to New

Technologies

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2-Way Interactive

1:1 Media

Via Telephone

One-Way

Mass Media &

Segmented Media

Message Flow

How The Telephone Fits In

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Think Integrated

• One-Way Media• Interactive Telephone• Their Strengths Are

Complimentary• Applications…

2-Way Interactive

1:1 Media

Via Telephone

One-Way

Mass Media &

Segmented Media

Message Flow

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•

Call Center Change How We Got Here,Where Its Going

• New FTC/FCC Rules – More Calling and Dialing Automation– Increased Sales Resistance– Consumer Privacy

• Fiber Optics and Internationalization– Off-Shore Call Centers

• The Internet New Contact Technologies– Web, E-Mail, Voice-Recognition

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Consumer Privacy

SalesResistance

Articles Books DMA TelephonePreference

ServiceUtilization

Legislation

Indicators of Interest

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Privacy Articles Increase

Source: 1998 Study of Periodical Index

Number of Articles Per Year

0

50

100

150

200

250

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

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Privacy Books Multiply

Source: 1998 Study of Library of Congress Data

Number of Privacy Books - 5 Year Totals

0

20

40

60

80

100

120

140

1970-1973(4 yrs.)

1974-1978 1979-1983 1984-1988 1989-1993 1994-1998

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OverCalling

• Success because...

• Novel

• Personal Medium

• Interactive Medium

• In Excess...

• Over-fishing• Radio-clutter• Call Pollution• Repercussions

• Sales Rates• Legislation

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State Legislation

• Patchwork quilt of regulations• Do-Not-Call Lists (many preceded the national list)• Caller ID (many preceded the national law)• Calling hours and days - a few ban Sunday calling• No rebuttal & permission to continue laws • Monitoring/Eavesdropping – one party and all-party states• Registration

– Fees, Bonds, Lists of reps, Copies of scripts, Some exemptions

• Jobs and off-shore legislation pending• Charitable solicitation acts for fund-raising calls• State Legislation Proliferates – New State Laws Every Year

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Federal Legislation

Year

Agency

Law Count

1990 ------------ -------------- 0

1991 FCC Telephone Consumer Protection Act

1

1995 2002 2003

FTC FTC FCC

Telemarketing Sales Rule Revised TSR + DNC List Revised TCPA + DNC List

2

2

2

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Recent FTC (& FCC) Rules

• Do Not Call List – August 2003• Predictive Dialers and Abandoned Calls• Transmitting Caller ID (FCC Fax Rule)• Automatic Billing of Consumers• No Trial Periods, Followed By A Charge• Demand Drafts• Disclosures, E-mails, Faxes, Inbound Calls• Exemptions • FTC Rules = All except Fax; FCC = first 3 only

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Results of New FTC Rules

• Impact of DNC List Phases In• Smaller Allowable Lists

– More Interest or Sales Resistance?

• Retention Programs OK• Cross-Sell Programs• Shifts to Other Channels • Generate 800 Number Calls, Web

Responses

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Solutions to Privacy &Sales Resistance

• Profiling Customers• Targeting Lists & Overlays• Predictive Modeling

• Of Sales

• Opt-in Approaches• Generate Toll-Free Responses• Generate WWW Responses• Call House Lists - People You Know

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Solutions to Privacy &Sales Resistance (More)

• Have a Great Offer• Something consumers want, need, must have• Compelling• Segmented & individualized offers

• Converse & Consult• Listen• Dialogue• Consumer-focused responses

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• Sell Value

• Segment to Tailor Value

• Mass Customization

• Make It Feel 1:1

Example- Improving an Offer

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Staffingand Internationalization

• Call Centers Boomed in the 1990’s • Most Had Trouble Staffing (until 2000 bust) • Fiber Optic Cables Under Oceans

– Solved international technical issues

• Off-Shore Call Centers Began• India, Caribbean, Mexico/Central America• As low as 50 - 60% of U.S. Costs• Grew Quickly in Recent Years

• Pros & Cons - Limitations, Legislative activity

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TechnologyInternet As Contact Medium

• DSL/Cable Modems Changed the Net

• The Web & E-mail & Chat• Newest Media• Newest Reply Devices

• Web Chat and IM• Impact of Changes in Instant Messaging

• The Web & Call Centers• Click for a Call Back• Click for Live Chat

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The Emerging Contact Center

• Live Agents• E-mail Response• Web Call-back • Web-chat• Very minimal

– Web-calling - VoIP– Web-assist/Guidance/Page Pushing (minimal)

• Voice-recognition IVR• Fax, Fax-on-demand (fading fast)

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TechnologyVoice Recognition

• Early Voice Recognition Systems• Vocabularies Now• IVR & Auto-Attendant• Order Status• Current Applications

• German Trains, United Airlines• American Express, Home Shopping, UPS

• Voice Portals to the Web

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Conclusions

• Integration is Key• With Mail, Broadcast, Print, Web

• Cold Calls Are Fading• Profiling For Targeting, Use Predictive Modeling

• Some Prospecting Efforts Shifting Media• “Opt-in” to a Call

• Opt-in Via the Web, E-mail or Toll-Free Call

• Relationships are Key to Revenue - LTV• Retention• Friendly Cross-Sell and Up-Sell

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Conclusions - More

• Off-Shore • Will be used for cost-sensitive calls, such as service• Will be used for basic non-sales calls (e.g., audit & circ calls)• Outbound relationship calls are very rough sledding • Complex inbound calls are rough sledding• Continued backlash – service quality and jobs legislation

• Routine Inbound Calls via Self-Service • The Web• Voice Recognition

• Contact Centers Replace Call Centers– E-mails– Web chats

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Call CenterQuality Practices Audit - 2004

The Big Questions

5. Focusing on Building Relationships?

4. Integrating with Other Media?

3. Using New Technology for Profit?

2. How Adapting to Labor Availability?

1. Biblical to Prospects & Customers?

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THE “SECRET” RULE FORCALL CENTER SUCCESS

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Call Centers & Change