Call Centres
Call centres are communication hubs that connect one or more businesses with current and potential customers and play the roles of extended sales and customer service departments. They contribute to fulfilling corporate objectives, including generating revenue and leads, by providing information and answers to customers’ queries, whether general or related to billing, sales, order status updates or technical support, resolving customers’ concerns and enhancing the overall customer experience.
Call Centre Management
Some aspects of call centre management include recruiting personnel, providing them with training and development, keeping them motivated, generating schedules for shifts, managing daily operations, and ensuring optimal customer interaction. The more effective the management, the smoother it is for call centre agents to ask customers the right questions, resolve simple issues, transfer complex ones to relevant departments, collect data, and complete routine transactions efficiently and at low cost. Call centre management also enables organisations to cross-sell and up-sell their products and services.
What is Customer Service Management (CSM)?
Businesses use a set of strategies, tools and technologies called customer service management (CSM) to enable their support teams to simultaneously tackle, evaluate and analyse multiple customer interactions. CSM focuses on developing, maintaining and enhancing long-term customer relationships and emphasises the entire customer lifecycle.
Types of Call Centers
Organisations may have in-house call centres if their business demands extensive customer support, or they may use the services of contract call centres. As a result, personnel who answer customers’ calls may be based on the business premises or away from it. Using external parties is referred to as BPO or business process outsourcing. Some companies may opt for off-shore call centres in other countries, which present lower labour charges, although language barriers must be overcome if using this option.
Another way to classify call centres is by the nature of their operations or services rendered. Agents at inbound call centres receive calls from customers who present their queries for information or requests for problem resolution or technical support concerning a company’s products or services. Agents at outbound call centres call current and potential customers to promote sales, raise funds or conduct surveys. Some call centres provide blended services.
Virtual call centres can provide inbound, outbound or blended services without needing all agents to be physically present at a single location. Instead, services can be decentralised with agents working across various locations and time zones and in different languages, using appropriate software and a strong and reliable internet connection.
Automated call centres are also an option that some businesses use since automation reduces the need for personnel and, thereby, the cost of call management. Staff is required at automated centres only to instal and maintain systems and perform specific tasks beyond the scope of automation. Such centres manage voicemails, assist customers in locating stores, and use interactive voice responders to help callers navigate the call menu and transfer them to agents as needed.
While phone calls are the core function of call centres, customers now seek to contact businesses through various other platforms. Consequently, some call centres adopt a multichannel approach by expanding their services to include communication via fax and text messages and other digital channels, such as emails and social media. However, each channel functions in isolation on separate systems managed by specialised teams and does not have an insight into a customer’s preferences or activities on another channel. When customers switch channels, they must explain their issues all over again, which may be frustrating and time-consuming for them and costly for businesses.
Omnichannel call centres take the multichannel approach further and provide more coordinated and customised customer services. Using integrated systems, they connect a customer’s information, history and interactions on the back end. This methodology of using various channels to gain a holistic view of customers can lead to faster problem resolution and greater customer satisfaction.
Whisper Coaching
An evaluating and training approach, whisper coaching allows managers, supervisors or trainers at call centres to listen in on calls between agents and customers without interrupting the conversation. If there is a need to intervene, the person listening in may speak to the agent without the customer hearing them. The announcement on service calls that the call may be monitored for quality assurance or training purposes relates to whisper coaching. Some advantages of whisper coaching include reassuring new staff that they are not alone, providing them with immediate and constructive feedback, encouraging them with positive observations, allowing managers to train staff in real-life situations and improving overall customer experience and satisfaction.
Call Barging
Calls to call centres may be monitored and recorded for later reference to evaluate their quality and assess an agent’s performance to optimise both from the point of view of customer experience and satisfaction. Whisper coaching allows trainers to monitor and assist agents while they are on call with customers without the customer sensing any interruption or interference. Call barging further enables trainers, supervisors or managers to participate in live calls between agents and customers. It works to the advantage of both the agent and the customer as the supervisor as trainers, managers or supervisors can assist in providing information about new products and services and help resolve problems about existing ones purchased by the customer if the agent cannot do so independently.
Call Centre vs Contact Centre
Companies may settle on opening their own or hiring the services of external call centres or contact centres based on specific organisational and communication requirements and budgets. The starting point of creating a customer support system is a thorough analysis of what customers require and prefer. Factoring in variables, such as call volume, wait times and potential automation, helps them decide the most suitable option.
Some of the technological tools that call centres and contact centres use may be different from each other. Call centres typically use only telephone services to allow interaction between customers and call centre agents. Agents help resolve customer queries and issues with the help of phone and computer technology. Contact centres use a multi-channel approach, which includes messaging, emails, texting and phone calls to communicate with customers and address their concerns. However, call centres are also integrating the multi-channel approach into their operations.
Since calls are the only way for customers to contact call centres, they may be placed on hold until an agent is free to take their call. However, since contact centres use diverse communication methods, even a virtual live chat with a bot, the speed of response to customers is higher. Customers wishing to speak firsthand with an agent may still do so while having the choice to use alternative methods of requesting after-sales service or ordering a product or service. Contact centres may thus be a favourable choice for larger companies.
Since automation technology lies at the core of contact centres, companies can find it economical to use their services rather than hire a large number of employees to interact with consumers. Automation and remote work have also reduced the need for contact centres to run their services within large physical spaces, resulting in cost savings.
Companies may also economise on costs and boost customer satisfaction by opting for an approach to customer care that blends automated responses with interactions with call centre or contact centre agents.
Call Centre Managers vs Client Services Managers
Call Centre Managers, whether in-house or at outsourced facilities, hire and manage call centre operations and personnel, establish goals and motivate their agents to meet them while also evaluating staff and call centre performance using key metrics. However, client services managers directly interact with clients to build and maintain long-term relationships that enhance customer experience. They aim to generate and implement the organisation’s client service strategies to boost company revenue and increase sales and customer satisfaction.
Metrics or Key Performance Indicators (KPIs)
Establishing metrics or KPIs is critical for a call or contact centre to measure the consistency and quality of its customer service. Each metric measures a specific business capacity, and decisions are based on historical and real-time data.
Some metrics critical for inbound call centres to measure are given below.
Abandoned Call Rate (ACR): The ACR is the number of calls hung up by callers before agents answer them, divided by the total number of inbound calls. Typical reasons callers hang up are long wait or hold times or inefficient IVR (interactive voice response) systems. This metric must typically be 5% or lower to comply with the service-level agreement (SLA).
One way to reduce it is to start the call with a ring rather than an Interactive Voice Response (IVR) system to allow agents a few moments to wrap up their current call. Giving callers a realistic wait time estimate is advisable as this information makes them willing to wait longer. Providing self-help options via the website through your IVR system, allowing callers to leave voicemail messages requesting callbacks, and ensuring adequate staff to manage peak hours are other ways to reduce the ACR.
Average Speed of Answer (ASA): The ASA is the average time in which agents must answer a call. This metric is a core component of the service level agreement (SLA) which is a commitment by the service vendor to respond to a fixed number of calls in a set amount of time. ASA is calculated by dividing the total waiting time by the total number of inbound calls received within a specific timeframe. Typically, it should stay within 28 seconds.
A lower ASA score signifies fewer customers in queue to have their calls answered. A higher score likely indicates inefficient customer service, meaning that ASA impacts customer satisfaction and contributes to a high score. A lower ASA also reduces the number of abandoned calls and vice versa, boosting the first contact or call resolution rate. Call centres can raise their ASA by streamlining their call routing and ensuring customers can access the relevant person in one go.
Average Handle Time (AHT): The AHT is the average time an agent spends handling customer issues or transactions. The metric is calculated by dividing the total of an agent’s talk time, hold time and after-call work time by the total number of calls.
Call Transfer Rate (CTR): The CTR tracks the percentage of calls transferred to a different department, supervisor or queue. Repeating the issue can frustrate customers, which makes this an important metric.
Cost Per Contact (CPC): The CPC is the total expenses of running a contact centre, including operational costs, employee remuneration and benefits, divided by the total number of contacts handled. Each answered call has an associated cost for the call centre in terms of staff salary and expenses on the infrastructure, such as software, hardware and electricity. The importance of this metric lies in evaluating the most effective channels from among phone, email, live chat, SMS and social media.
Customer Lifetime Value (CLV): The CLV is a key metric of customer experience programs. It measures a customer’s value to the business in terms of each purchase they make and across the entire relationship between the company and the customer. The marketing department uses CLV to identify a business’s best customers and target promotions, services or perks at them.
Call centres use CLV to prioritise outbound calls, delegating customers with high CLV to more experienced or specialised agents and those with low CLV to less senior or general call centre representatives. CLV is calculated by multiplying the annual customer revenue by the number of years of a customer’s relationship with the business and subtracting from it the total costs of acquiring and serving the customer.
Customer Satisfaction Score (CSAT): The CSAT indicates how happy a customer is with the inbound contact with the call centre. It is calculated through responses to questions that form part of a customer’s feedback on the quality and outcomes of their interaction with an agent. This metric is important since customer satisfaction translates into organisational profitability. The CSAT score can be raised by individualised coaching and ensuring that the use of best practices keeps other metrics performing well.
Customer Retention Rate (CRR): The CRR is the percentage of current customers or users who continue to be part of a business’s pool of consumers after a specified period. CRR is calculated by first choosing a time frame, then subtracting the number of new customers gained within it from the total number of customers at the end of it, dividing the result by the number of active customers at the start of the period, and converting the result into a percentage.
Churn/Attrition Rate: It is the percentage of customers a business loses over a specified period. It is calculated by dividing the number of customers who left during the period by the number of customers at the start of the period and converting it into a percentage value.
These two metrics evaluate the retention capability of an inbound call centre in terms of the quality of its customer service. An annual 5-7% churn rate is typically considered a healthy average, which implies a monthly churn rate of 0.5% or lower. Customer Retention teams or departments can help call centres boost their retention rates and lower churn by resolving complex issues.
First Contact Resolution (FCR): The FCR is the number of customer issues resolved during the first contact with an agent at the call centre, the industry standard being 70-75%. This metric is significant in a company’s customer relationship management strategy as it demonstrates a centre and agent’s capacity for problem-solving, clarifying customers’ queries and supporting customers when they first call, reducing their effort and wait time and enhancing their experience.
Facing the Music
The music one hears when placed on hold on a call with a call centre agent is now considered a branding tool. Specialist companies help businesses turn the on-hold time into a marketing opportunity to reinforce brand identity while enhancing customer experience since being placed on hold is typically unwelcome. A verbal message and music together approximate an advertisement rather than just an easy-listening jazz piece and help customers feel optimistic about the company they are in contact with.
An on-hold marketing campaign may begin with a “caller experience” audit that considers aspects such as the frequency with which the same person calls and the longest hold time. For instance, a three-minute loop may be unsuitable for an average hold time of five minutes. Companies generating the on-call experience also factor in the demographics to tailor and optimise the experience suitably.
The on-hold music and accompanying message must be tailored to the client’s objectives, product or service, and customer. They must eventually contribute to generating an overall pleasant and positive customer experience on the call.
Music companies may factor in the number of beats per minute of a song to suit the type of queue, sales or service and what sort of action they would like the callers to take. They may also consider whether the hold music should be in a major or minor key to suit the emotional cues that must be conveyed to the callers.
Awards exist even for the genre of hold music and messaging, such as the MARCE Awards (MARketing & Creative Excellence), an annual competition held by the Experience Marketing Association. Humour on hold is yet another way to engage customers while they wait.
The Shape of Things to Come
Customers today wish to access customer service and communicate with companies through various pathways, such as social media, mobile apps and live chat, and receive prompt responses. As a result, although call centres traditionally rely only on telephonic contact between customers and agents, the multi-channel approach is growing in importance. It blends diverse technologies, such as customer relationship management (CRM), automation, cloud-based software and video chat, to make the customer experience smoother, faster, more efficient and cost-effective.
The Internet of Things (IoT), or the interconnectivity of devices connected to the internet and which can communicate with each other, is rapidly changing and advancing the call centre industry. Proactive customer service is becoming more accessible and goes beyond reactive service. It makes call centre operations more efficient by preventing or resolving problems anticipated or caught before they occur and even before the customer becomes aware of them.
The Internet of Things (IoT) or the interconnectivity of devices connected to the internet and which can communicate with each other, is changing and advancing the call centre industry rapidly. Proactive customer service is becoming more accessible and goes beyond reactive service. It makes call centre operations more efficient by preventing or resolving problems anticipated or caught before they occur and even before the customer becomes aware of them.
Advances in voice biometrics technology have enabled the collection and use of “voiceprints” as a security measure to confirm a person’s identity. While personal information risks theft, voice biometrics record nuances of speech, such as the size and shape of the speaker’s mouth, that cannot be easily replicated.
Current Scenario
The employment outlook of a particular profession may be impacted by diverse factors, such as the time of year (for seasonal jobs), location, employment turnover (when people leave current jobs), occupational growth (when new roles are created), size of the occupation, and industry-specific trends and events that affect overall employment.
Increasing automation and cloud-based software have led to a rise in remote working possibilities for call centre staff. Artificial intelligence (AI) tools to handle routine customer queries allow call centre agents to focus on more complex issues that demand human problem-solving skills and knowledge of products or services. While AI can help boost efficiency and save costs, customers may continue to prefer human interaction. As a result, future call centres may use a hybrid approach. One view is that call centre staff may not prefer more complex tasks, while another is that the challenge will add to job satisfaction and employee retention.
Furthermore, while phone calls are the traditional medium of contact between call centre agents and customers, call centres are transitioning to the multi-channel approach, using a blend of phone calls, text messages, emails, live chats, mobile apps, social media and other platforms.
As a result of evolving technologies, there is a risk that the need for call centre agents will continue to decline, eliminating some jobs or changing them so much that retraining will be required to help agents adapt to working alongside and with technology. Companies are expected to increasingly transition to AI systems that can enhance customer experience at lower costs. Some companies use AI-driven software to advise and coach agents during live calls, which means that AI is changing and supporting jobs currently rather than eliminating them.
Potential Pros & Cons of Freelancing vs Full-Time Employment
Freelancing Call Centre Managers have more flexible work schedules and locations. They fully own the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.
On the other hand, full-time Call Centre Managers have company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.
When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.