Reducing Costs in the Contact Center, Part 2 of 2

In part one of this two-part series, which appeared in the Dec. 18 edition (click here to review part 1), I presented a step-by-step guide to conducting a postseason analysis of your contact center as a baseline for process improvement and cost reduction. In this second and final installment, I’ll examine potential opportunities for major cost savings within your contact center.

Once you’ve decided on a postseason review, assemble a team from across the organization. This team should comprise representatives from fulfillment, merchandising, HR and the contact center. Include as many areas of the contact center as possible, from the director to managers, supervisors, traffic/scheduling, training and quality, to a few of the agents who’d be open and willing to participate. Keep in mind, though, that more than a dozen participants is usually too difficult to manage. Here are some areas to focus on for potential savings and increased productivity.

1. Self-evaluation of the contact center management team is a great starting point. This work brings the entire team together, developing trust amongst team members. The management staff should ask itself these questions:

* Did we have the right amount of leadership/support staff for the season?

* Was the leadership staff able to assist with most of the issues that developed throughout the season?

* Was the organization’s leadership able to support the needs of the contact center for the season?

If the answer to any of these raises further questions and/or concerns, evaluate the concerns and develop the proper training and support system to be successful in the coming year.

2. Agent adherence and scheduling can be an area of contention for the entire organization. Understand how it impacts your service level throughout the season. With agent labor being your greatest expense — consisting of 60 percent to 70 percent of all contact center expenses — it’s mission-critical.

For an ideal starting point, I recommend a simple review of Erlang C — a process for calculating and modeling telecommunications queuing systems and the importance of everybody in their seats at the right time. It’s also wise to review the service levels that have been committed or assigned to the contact center. If staffing is an issue or the labor expense is out of line, you may want to rethink your service level.

Using a benchmarking service is vital to the success of your metrics. Incorporate comparisons to others to develop a greater understanding. See if you’re measuring the appropriate standards and achieving a best-in-breed service. Also try to identify an organization that can provide the needed support when benchmarking. For areas that prove too difficult to handle on your own — and these are inevitable — allow for a third party to work with you to ensure success.

3. Attrition. Know when, where and why your staff is leaving. Challenge HR to help get a handle on this issue. Using prehire screening and testing is a great alternative to just taking the first soul with a pulse for the position. It benefits the entire organization to have a well-staffed and well-trained workforce.

4. Training program. Can you make it more beneficial to the agents? Is there waste that needs to be eliminated? It’s vital that your training classes are actually training! On-the-job training isn’t an efficient or cost-effective process to get agents up to speed on your programs. Using an e-learning program for the basics could be very useful. It allows you to train consistently and efficiently. Most importantly, it allows you to focus on role-playing and product-knowledge training.

Most systems training can be automated. Engage a consultant or an instructional designer to assist with training content development. Content is one of the most overlooked and undervalued parts of the process in a contact center. But it ultimately has the most impact on agents’ learning and, as a consequence, their tenures. Spend the time and attention needed to make this successful; it will only benefit the organization in the long run.

5. Outsourcing. After taking a long, hard look at your postseason review, what you find may be so discouraging and challenging that you’ll realize it’s necessary to outsource the peak business. Don’t be ashamed of this! In fact, you should be commended for realizing there’s a place and niche for outsourcing relationships. Now the challenge is finding the right fit for your organization. It’s not as easy as opening the phone book and finding a pizza-delivery company. You’ll need to solicit RFPs from potential outsourcers, make site visits and work through a transition.

6. Voice of the Customer. The most important questions are, “Were customers taken care of?” and “will they return?” Implementing a “Voice of the Customer” (VOC) program is a great way to ensure future success. There are several sources you can use for developing a solid platform to work with your customers throughout the year. Consider a third party to assist in the formulation of a VOC program. This is a benchmark you’ll want to develop and keep an eye on throughout the year.

Curt Barry is president of F. Curtis Barry & Co., a multichannel operations and fulfillment consulting firm with expertise in multichannel systems, warehouse, call center, inventory and benchmarking. Learn more online at www.fcbco.com.