Using Interactive Voice Technologies to Reduce the Burden on IS,
Customer Service and Finance Utility Payment Conference Slide 2
What is an IVR? An Interactive Voice Response system (IVR) is
essentially a man/machine interface Uses the telephone as an
interface tool to add information to and extract information from
an existing data base Slide 3 Goals Maintenance of Staffing Levels
(not replacement of existing employees) More Effective Use of
Customer Service Representative (CSR) Time and Effort Expansion of
Service to Nights and Weekends Expanded Report Capabilities and
Record Keeping Improved Customer Contact and Communication
Reduction in Late Payments and Subsequent Disconnects for Non-Pay
Slide 4 CSR Tasking The average CSR handles many types of
transactions during an eight hour day. Among those transactions
are: Account inquiries Payment collection and terms Includes Credit
Card and E-Check payments General information Connects, disconnects
and re-connects Call direction/transfer Slide 5 Time is Money The
average CSR works 238 days per year Research shows that the average
call length of a customer call is 3.3 minutes Results: a CSR at 90%
efficiency can handle approximately 17 calls per hour or roughly
191 calls in an eight hour day (less lunch, breaks, etc.) Annual
call handling capability, as a result, is approximately 28,322 (17
1x 238 days) per CSR. Slide 6 Time is Money Estimated Total Hard
Cost of a CSR Annually Cost Category Compensation (Wage/Salary)
Hourly Compensation (Wage/Salary) $10.00$15.00$20.00 Annual
Compensation (Wage/Salary)$20,800$31,200$41,600 Employee Benefits
(40% of Compensation)$8,320$12,480$16,640 Employee Training
(Estimated 5%)$1,040$1,560$2,080 Employee Overhead (Estimated
15%)$3,120$4,680$6,240 Total Annual Per Employee
Cost$33,280$49,920$66,560 Slide 7 IVR Call Handling Comparison A
standard keypad activated IVR typically handles customer service
calls in 1.5 minutes. That means that each telephone line connected
to the standard IVR can handle 40 calls an hour. 40 calls times
eight business hours per day, times 253 days [non-weekend and
non-holiday days], totals 80,960 calls per line annually. Slide 8
Adding Voice Recognition With voice recognition: average call
length is 52 seconds Requires customer familiarity with the system
As a result, each telephone line can handle 69 calls per hour or,
using the same calculation done for the standard IVR, 139,656 calls
annually. Slide 9 Results More calls answered with fewer employees
Less organizational overhead Allows Customer Service Reps to spend
more time handling the more difficult customer calls Increased
customer service Slide 10 Time is Money Average Cost of an 8 port
IVR = $42,000.00 Resource Cost$32,687$42,000 Annual Calls Taken
28,322161,920279,312 Per Call Cost$1.15$0.26$0.15 Relative
Cost100%23%13% Calculation of Per Call Cost Customer Service
Standard IVR with Voice Representative IVR Recognition Slide 11 Per
Call Cost Over Ten Years Customer Service Standard IVR with
Representative IVR Voice Recognition 1 st Year Resource Cost $
32,687$ 47,250 2 nd Year Resource Cost$ 32,687$6,300 3 rd Year
Resource Cost$ 32,687$6,300 4 th Year Resource Cost$ 32,687$6,300 5
th Year Resource Cost$ 32,687$6,300 6 th Year Resource Cost$
32,687$6,300 7 th Year Resource Cost$ 32,687$6,300 8 th Year
Resource Cost$ 32,687$6,300 9 th Year Resource Cost$ 32,687$6,300
10 th Year Resource Cost$ 32,687$6,300 Cumulative Resource
Cost$326,870$103,950 Adjusted Annual Cost$32,687$10,395 Annual
Calls Taken28,322161,920 279,312 Per Call Cost$1.15$0.064$0.037
Relative Cost100%5.5%3.2% NOTE: The $6,300 annual cost for the
standard IVR and IVR with voice recognition reflects maintenance
and support costs. Slide 12 SoShould a utility replace all its CSRs
with an IVR System? Absolutely not! Slide 13 A Mixed Use Model A
mixture of CSRs and an automated voice system with voice
recognition provides the best (most effective) approach to
providing high quality customer service for utility customers while
holding the line on expenses for the utility. Slide 14 CSRs offer
effective service for: Handling complex situations such as
complaints or exceptions to normal procedures Handling non-routine
business that requires extensive research or other skills
Completing transactions such as arranging for new service or
purchase of utility products or services Handling customers who
prefer/demand talking with a live operator Slide 15 An automated
system with voice recognition offers effective service for:
Handling routine inquires and business transactions Handling calls
during peak calling periods Handling calls during non-business
hours (24/7 service) Handling customers who prefer quick response
time over being placed on hold or operator assistance Slide 16
Handling a variety of customer notification tasks such as past due
notification, cut-off notification, load management notification
and customer surveys Providing general utility information
Marketing utility products & services Slide 17 After Hours IVRs
have the additional benefit of being available 24/7 Available:
Nights Weekends Holidays Greatly impacts call loads Typically moves
from 20% to 35% of call volume to after hours, reducing call loads
during peak daytime hours Standard CSR time on line increases due
to type of call being handled Slide 18 IVR Misconceptions 1.My
customers will hate it! 2.I have to use it all the time 3.I already
have voice mail and automated attendant so I cant add a separate
IVR 4.Im not manned 24/7 so theres no one to monitor the system
5.Others? Slide 19 Summary Customers receive better customer
service Customer service is consistent Utility improves customer
service while obtaining operating costs savings Employees better
utilized when helping customers, while free from monotonous
inquires and tasks Slide 20 Contact Information John R. Abrams
Director of IVR Development [email protected]
850.380.8275
