Just the Facts on Customer Sat

In late 2009, The CFI Group released an excellent research paper in which they measure and discuss “How contact center customer satisfaction impacts the bottom line.” Based on online surveys of over 2,200 participants, respondents evaluated their most recent contact center experience. (In addition, CFI Group uses the University of Michigan’s American Customer Satisfaction Index – Considered to be the gold standard in customer sat measurement). The research should give considerable pause to those travel companies that currently outsource with a low cost offshore service provider: Customers who believe they have

reached a contact center inside the U.S. are nearly twice as likely to recommend the organization to others, compared to those who think they are speaking with someone offshore (43%).

Customers are nearly three times as

likely to defect if they are serviced by an offshore contact center (20%) vs. domestic (7%).

Offshore agents provide first call issue

resolution to just 42% of customers, compared to 68% domestically.

U.S. call centers leave just 6% of issues

unresolved, while offshore centers are

unable to resolve issues for 11% of

customers.

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Lowest Price - A Race to the Bottom In 2007, Holman, Batt, and Holtgrewe on behalf of The Global Call Center Project published the first large scale international study of call center management and employment practices. The GCC is a collaborative network of over 40 scholars from twenty countries and the research covered nearly 2,500 contact centers in 17 countries. The survey-based report addresses several areas that best travel companies might want to consider relative to contact center outsourcing. Staff Turnover: A typical call center reports a total turnover rate of 20% per year. This includes promotions, voluntary quit, retirements and dismissal. There is, however great variation in turnover, ranging from a low of 4% in Austria to 40% in India. The median turnover for USA is 28%. (Trase Miller’s 2010 YTD annualized attrition rate is 11.7%) Workforce Tenure: Another measure of the research shows that inexperienced workers are less productive or less able to provide quality service because they do not have the critical knowledge that more experienced workers have.

continued…

Perspective: Why Best Travel Brand’s Contact Centers Are USA Based

Race Continued… Across all the countries in the GCC study, approximately 1/3 of the call center workforce has tenure of less than one year at their work. This varies markedly from less than 10% in countries like Sweden to almost 60% in India. In the USA 28% of those surveyed had less than one year of tenure. (Trase Miller’s CCR average tenure is 9 years. Management average tenure is 14 years.) The GCC study concludes: “There is ample evidence to show that heavy reliance on a cost focused model not only creates low quality jobs but also breeds customer dissatisfaction and employee turnover.” Even best-in-class travel companies have been pressured to deliver contact center services at the lowest possible price. Trase Miller’s premium contact center solutions are a viable alternative for companies that understand the importance of investing appropriately in the customer experience. We are 100% onshore USA.

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Getting Onboard is Easy We are in the unique position to scale quickly.

Getting Onboard With Trase Miller We have the capability (and experience) of flash hiring based on expandable facilities and our virtual work force initiatives. Equally as important, we have a buttoned-up and erudite onboarding process that fosters a foundation for long-term, healthy partnerships. Step 1: Collect comprehensive client input to map out specific solution needs. (NDA governed) Generate “discussion document” for a check on understanding. Step 2: Analyze proprietary historical data including client’s customers purchasing trends and demographic data as needed. Step 3: Identify appropriate solution configuration and deal constructs. Step 4: Generate proposal inclusive of LOI. Step 5: Scope Meeting. Have operations teams meet to clearly define solution functionality, technology integration requirements and key customer touch-points. Define business reporting needs and capabilities. Step 6: Draft MSA inclusive of a Statement of Work, Service Level Standards, Term and Standard Terms. Step 7: Conduct Transition/Integration planning and training meetings. Step 8: Execute Agreement and schedule kick-off meetings. Step 9: Provide ongoing customer service, solution management and maintenance. Step 10: Evaluate results and update solution, as appropriate.

Perspective: Why Best Travel Brand’s Contact Centers Are USA Based

Introduction By Frank Silzer – Trase Miller General Manager Trase Miller is in the premium contact center solutions business and the travel industry continues to be an exciting place to specialize. We have evolved our business with continuous investments in technology, and we have adjusted due to seismic consumer behaviors shifts to online booking. The convenience of booking online is a no-brainer to many of us that truly enjoy the do-it-yourself experience (DIY). But savvy consumers know that travel can be complex and that often enough things do not go as planned. Being able to easily talk to a live person remains the pervasive consumer expectation in travel purchasing and travel problem resolution. Our company heritage (MTI Vacations founded in 1972) is rich with travel industry experience and insight. We participated in and played an integral role in the maturation of the industry. For many large travel companies, maniacal focus on customer service and customer satisfaction have been traded for an obsession about the bottom line. This obsession of course invited low-cost, offshore outsource service providers to the party. Not surprisingly, we have seen steep declines in customer satisfaction and loyalty. In this brief perspective, we will look at recent research that quantifies the benefits of onshore contact center services and the impact of sourcing with low-cost offshore providers. We will also discuss the importance of a stable agent workforce and management team. Lastly, we have included a check list of our business partner onboarding process. Thank you for your interest and feel free to call if you have any questions or comments. F.S.

Trase Miller Premium Contact Center Solutions for the Leisure Travel Industry

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Perspective: Why Best Travel Brand’s Contact Centers Are USA Based

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#510 May, 2010