A Decade of Insight Global Contact Center Benchmarking Report 2008 Grant Sainsbury Practice Director, Customer Interactive Solutions.

A Decade of InsightGlobal Contact Center Benchmarking Report 2008Grant SainsburyPractice Director, Customer Interactive Solutions

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IP

IP

IP

IPIP

Network

Network Integration

Security

Microsoft Solutions

Data Centerand Storage Solutions

ConvergedCommunications

Customer Interactive Solutions

DATA CENTERS

CUSTOMER

BUSINESS PARTNER

SUPPLIER

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Plan Build Support InnovateImproveManage

Maximizing efficiency and intelligence in routing and managing customers through contact management architectures based on TDM, IP, or Intelligent Network (IN)

Contact Centre Integration

Automating interactions using self-service applications that allow customers to navigate intelligently, complete transactions or access information across multiple channels

Optimizing the business performance of customer processes through tools and frameworks that guide customer interaction and dynamic call resolution

Enhancing the performance of and empowering agents to provide effective and efficient service to customers through competency, workforce, quality and performance management processes and tools

Setting-up, running and enhancing an organisation’s contact centre operations to balance performance, risk and cost through full operational consulting and strategic outsourcing

Self-Service

Interaction Management

Workforce Optimization

Operations

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April 20, 2023© Copyright Dimension Data 2000 - 2006

Annual global benchmarking survey of international contact centre market

11 years of trends, performance data and best practice information

2008 Report (10th edition) includes 300 contact centres from all continents

Endorsement and support from 10 industry associations around the world

Contact Centre Strategy and Development Plan

Customer Knowledgeand Management

Performance Measuresand Metrics

Financial Rationaleand Management

Processesand Procedures Organisation Technology

Environment

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10 year comparison – performance KPIs / metrics

Performance metrics 1997 2007

% of calls answered < 10 seconds 72% ▼ 63.5%

Average % calls abandoned (total calls offered) 6% ▲13.6%

1st call resolution rate 83% ▼ 81%

Average speed to answer 23 sec ▲ 39 sec

Average wait time until call abandoned 53 sec ▼ 45 sec

% of total agent capacity utilised on speaking to customers

57% ▼56.3%

Average time taken to respond to customer message (voicemail)

11 hours ▲ 20 hours

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10 year comparison – people metrics

People metrics 1997 2007

% agent turnover - move to other role in organization 10% ▲ 13%

% annual agent attrition rate 14% ▲ 27%

% agent absenteeism rate 5% ▲ 11%

% supervisor absenteeism rate 2% ▲ 4%

Average number of training days per agent per annum 13 days 13 days

% full-time permanent agent FTEs (permanent employment)

87% ▼ 73%

Agent : supervisor ratio 1 : 12 1 : 12

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10 year comparison – selected business components

Business component 1997 2007

% of agent seats outsourced 5% ▲ 16%

% of total transactions handled by human agent channel

85% ▼ 69%

% of total transactions handled by IVR 6% ▲ 15.5%

% of total transactions via web chat /co-browsing, etc <0.5% ▲ 1.6%

% of basic/simple centers (defined by Dimension Data Contact Center Development Model (CCDM)

22% ▼ 3%

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10 year comparison – selected CRM capabilities

CRM capability 1997 2007

Multi-functional capability - service, sales, marketing 38% ▲ 45%

Gather feedback from customers on service experience 47% ▲ 55%

Initiate up/cross-selling due to inbound ‘trigger events’ 12% ▲ 26%

Single view of customer across all channels (complete and partial)

40% ▼ 34%

Measure customer lifetime value (measure and use) 14% ▼ <10%

Measure customer profitability (measure and use) 25% ▼ 18%

Utilize defined customer /market segments 19% ▲ 31%

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1997 10 year comparison 2007

• Improve service• Retain customers• Increase sales / revenues• Create direct customer relationships• Cost containment

Commercial drivers …

• Increase efficiency• Improve service• Reduce costs• Increase sales

• Face-to-face replaced by telephone• Migrate back office to front office• CRM focus (integrate sales and service)• Centralize multiple sites and teams• Rationalize duplicated functions

Key strategies and initiatives …

• Human agent to self service• Low cost location migration• Workforce optimization• Centralized single site model to virtual

model

• CRM platform• Single view of customer• Web interfaces• IVR and call routing• CLI / CTI / predictive dialling

Technology initiatives …

• IP technology• Speech recognition• IVR / web self service• WFM / agent analytics• SMS

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Performance

• CSAT Impacted Mostly by Service Basics

• Internal Metrics Bias

• Basic Efficiency KPIs Still Primary Metrics

• Increasing 1st Call Resolution Focus

Function

• Focus on End-to-End Process Management

• Process Optimization

• Self Service Expansion

Strategy

• Adequate Service at an Acceptable Cost

• Performance Efficiency Drivers

• Short Term Needs over Long Term Growth

Model

• Increased 3rd Party Utilization

• Model Redesign to Improve Efficiency

• Non Agent Channel Progress

• IP / VOIP / BC / DR Focus

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PerformanceFunctionStrategy Model

• Adequate Service at an Acceptable Cost

• Ensuring sufficient capacity available to meet current customer demand / volumes

• Service provision within acceptable costs

• Focus on cost reduction / containment & performance efficiencies

• Best Practice standard adherence no longer a key priority

• Performance Efficiency Drivers

• Increasing internal focus

• Decreasing CRM focus e.g. sales & service integration

• “Back to Basics” approach

• Reliance on basic performance efficiency KPIs

• Growth of customer value displaced by performance efficiency

• Short Term Needs over Long Term Growth

• Requirement to deliver improvements in short timescales

• Long term CRM approach / business vision replaced with immediate cost / efficiency deliverables

• Short term benefit may conflict with long term vision & value

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2.1 The 3 most important current main commercial drivers for contact centers

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2.11 Major developments carried out in last 2 years. Plans for next 2 years.

n = 201

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5.14 Call Resolution Times

n = 92

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3.7 Average cost and time per customer interaction - per channel

n = 79n = 79

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5.23 On average, daily time of each agent spent on the following:

n = 128

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PerformanceFunctionStrategy Model

• Focus on End-to-End Process Management

• Focus on visibility / control / resolution capability of complete customer transactions across channels

• Reduction in escalations / hand-offs to business areas outside contact centers

• Process Optimization

• Clear focus on efficiency improvements through process redesign

• Cost reduction through effective processes

• Self Service Expansion

• Migration of processes to self service channels for the benefit of both the customer & organization

• Speech recognition less of an impact than envisaged

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2.15 Which are the top three marketing trends affecting your contact center?

n = 186

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2.1 The 3 most important current main commercial drivers for contact centers

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• CSAT Impacted Mostly by Service Basics

• Customers want appropriate level of access

• Customers want their issue resolved efficiently

• Customers want to interact with appropriately skilled individual, capable to assisting them

• Customers want agreements to be kept

• Without these basics, more advanced CRM functions have limited impact on CSAT

• Internal Bias / Influence on Metrics

• Significant variance in definitions / measurement methods

• Accuracy of metrics is questionable

• Reflects an internal focus / target survival

• Basic Efficiency KPIs Still Primary Metrics

• Centres still reliant on basic metrics such as abandoned rates / answered rates

• Efficiency metrics such as resolution rates / agent capacity relied upon in most centres

• Sophisticated CRM metrics such as CLV / cost per segments only active in minority of centres

• Increasing 1st Call Resolution Focus

• Focus on efficiency greatly increased 1st call resolution usage

• Established as a key performance metric

Strategy Function Performance Model

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4.15 Service component that has biggest impact on customer service - if it improves or deteriorates

n = 142

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5.20 Rank terms that have the greatest impact on call resolution

n = 41

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7.9 The annual number of working days and work hours per day

n = 155

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4.15 Service component with biggest impact on customer service - if it improves or deteriorates.

n = 142

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5.6 Agent Speed to Answer (seconds)

n = 135

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PerformanceFunctionStrategy Model

• Increased 3rd Party Utilization

• Flexibility & migration of non-core services

• Migration of IT infrastructure / support / management to 3 rd Party specialists

• Increased focus on core purpose & competency

• Low 3rd Party involvement for WM reflects lack of expertise available in market

• Ops / People Management seen as core in-house skills

• Model Redesign to Improve Efficiency

• Consolidating / rationalizing / linking centres continue to be major focus

• Relocating centres to low cost locations remain priority option & solution

• Restructuring driven by efficiency / cost / flexibility / control / risk management

• Non Agent Channel Progress

• Agent phone channel remains most widely used

• Acceptance of self service IVR increasing

• Self service across all channels >25%

• Fax / correspondence levels reducing

• Growth in SMS / emails

• Driven by customer convenience/control / speed

• IP / VOIP / BC / DR Focus

• Requirement for Business Continuity / DR plans emerging as key priority

• Migration to IP is central development area for majority of centres

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2.7 In the last year, using a 3rd party provider to provide…

n = 125

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8.17 Three most important technology trends in your contact center

n = 151

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8.3 Proportion of phone handsets within the contact centre that are IP

n = 149

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8.4 Main reason for introducing IP into contact centers

n = 127

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• Dimension Data’s Global Contact Center Benchmarking website:www.ccbenchmarking.com

• Dimension Data Customer Interactive Solutions:http://www.dimensiondata.com/Solutions/CustomerInteractiveSolutions/CISOverview.htm

• Do your own benchmarking assessment:Google: “Dimension Data Performance Ranking Tool”

• Contact Dimension Data:Grant [email protected](919) 719-1055

Find out More about Benchmarking:

Thank you for listening.

Grant SainsburyPractice Director, Customer Interactive Solutions(919) [email protected]