Leveraging the Best of the Contact Center Across the Enterprise

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1 Analyst White Paper Leveraging the Best of the Contact Center Across the Enterprise Table of Contents Introduction... 1 Before Contact Centers... 2 Contact Center Attributes Worthy of Replication... 2 What CRM and BPM Solutions are Missing...4 When Human Latency Becomes Business Latency... 5 Managing Task Selection... 5 Early Service Delivery Solutions...6 Agile Service Delivery Optimization.6 Extending Genesys Contact Center Excellence with iwd... 7 About the Author...8 Introduction One of the main themes in the enterprise communications market in the past few years has been deploying unified communications (UC) and leveraging the presence technology it delivers across the organization in order to ensure a superior customer experience. But UC doesn t solve another prevalent issue standing in the way of providing first class customer service the need for better efficiency and consistency in real-time back-office and order fulfillment processes in the rest of the organization. While these back-office processes are equally important in the delivery of service to customers, they often do not perform with the same the level of effectiveness and reliability resulting in sub-optimal customer care. This paper examines the best practices and capabilities of the contact center and the value in extending them across a broader set of service delivery processes and resources in the organization. The paper then closes with a brief description of the dramatic improvements one company realized by meeting service objectives and customer expectations after successfully applying a new contact center-based software solution to the entire service delivery process. August 2009

2 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 2 of 8 Before Contact Centers Before delving into the benefits that might be derived from applying contact center concepts and practices across the enterprise, let s take a look at what it was like to interact with a business in the pre-call center world. The 1876 invention of the telephone preceded the first modern call centers by about one hundred years. In industrialized countries like the United States, the United Kingdom, and Australia, household penetration of telephones exceeded 60% by 1950 and approached 80% just ten years later. As a result, people became increasingly used to interacting with businesses by telephone. A call to a company was typically answered by an attendant or operator who would determine the reason for the call and connect the caller to the right person. However, more often than not the call would not be answered, leading to the need for a secretary to take a message remember little pink message slips? As the volume of calls increased, the number of operators and secretaries required also increased, and the number of message slips exploded. Finding the right person or department to answer a call was one of the problems that the Automatic Call Distribution (ACD) was designed some 35 years ago to address. These centralized groups of telephone operators were replaced in many companies, such as banks, insurance companies, and telecom providers, with a dedicated group of employees called agents, to deliver the first level of customer service. However, while the ACD was once regarded as state-of the-art technology, it has by now lost any of the fascination it might have once held. In the intervening years, solutions that go well beyond the mere routing of calls have been developed that improve the efficiency of using pooled resources, from routing based on best available skilled agent, to reporting systems that monitor agent activity and measure resource utilization. Effectiveness has also been addressed, with screen pops that deliver caller information and, most recently, solutions that deliver other types of inquiries that come from customers, such as and Web chats. Contact Center Attributes Worthy of Replication So what contact center functions could also prove valuable if extended to additional job roles related to customer service? These can easily be summarized in three words: queuing, routing, and reporting. Queuing a defining activity of contact centers is certainly a function that easily translates to non-contact center activities. Queues exist because resources are limited compared to the demand on those resources. In contact centers, queries that arrive when all agents are busy are queued until an agent becomes available. Therefore, couldn t such things as insurance claims, Digital Subscriber Line (DSL) orders, or customer mortgage refinancing applications each benefit from having a sophisticated queue model applied to them, based on the value and priority of the item, as opposed to today s very loosely adhered to model of first in, first out?

3 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 3 of 8 The benefits of contact center-like reporting could be easily applied to a wide variety of work tasks in a business. Basic contact center queuing assumes a center with equally skilled agents and homogeneous calls. In practice, however, agents may not all be equally trained, and centers may handle different types of interactions. Further, agents generally only handle a subset of the interaction types that are served by the contact center. This means that the software has to be sophisticated enough to route calls only to agents that are skilled at serving specific interactions. Two kinds of problems are solved using skills-based routing agent selection and interaction selection. With the agent selection problem, when a particular type of interaction arrives and two or more agents are idle, there has to be a rule to decide which agent should receive the interaction. With the interaction selection problem, when an agent becomes idle, and one or more interactions for which the agent has the required skills are waiting to be served, the software must be able to choose which interaction to serve first. If we apply this to our examples above, the analogy holds. For example, an insurance claim might require someone licensed in a specific state. A DSL order for an existing customer may be easier to process, while processing orders for a new customer may be more difficult, therefore requiring a more highly skilled agent. But how do we judge the effectiveness of queuing and routing work items to employees? Real-time and historical reporting systems allow line supervisors and managers to manage the day-to-day running of the contact center. They also allow a company to have a proactive view, ensuring that activity is aligned to business objectives. Contact center reporting solutions allow management to identify processes or personnel issues that, if addressed, could lead to improved performance. For instance, a catalog company agent with a consistent call handling time that averages four minutes suddenly spikes to seven minutes. Real-time reporting screens that can recognize and highlight the change help management quickly uncover systematic issues, such as a catalog that dropped before the agent has been trained, and lead to a timely resolution of the issue. In addition, the benefits of reporting could also be easily applied to a wide variety of work tasks in a business. While it is nice to know that X number of faxes, s, or orders were processed in a day the typical amount of detail available that does not give management the information they need to understand how performance can be improved, to perhaps X plus 10% of items in the same or even less time.

4 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 4 of 8 What CRM and BPM Solutions are Missing One might imagine that existing software solutions already address the issues outlined above. Don t customer relationship management (CRM) and business process management (BPM) solutions already provide a way to optimize business processes? Let s look at these applications, the reasons they were developed, the value they provide and, finally, where they can fail. Before CRM applications began to appear, customer information tended to exist, if at all, in multiple and distinct databases. The basic idea behind CRM is for an organization to collect, in one place, every piece of information it has about a customer. The CRM application then allows the organization to plan, implement, and analyze their marketing campaigns, identify and prioritize sales leads, and manage customer contacts whether in person, within customer call centers, or over the Internet. CRM applications are designed to give all customer-facing employees a complete view of customer information, and provide sales agents with the tools they need to successfully cross-sell and up-sell. BPM leverages technology to automate, coordinate, and monitor the interactions between disparate business processes the activities that yield some value to the enterprise. For example, the business processes that compose the accounts payable function yield value because an enterprise must pay its bills on time to remain in business. Most approaches to BPM focus on how the disparate business applications can be integrated to share data to support transaction-intensive processes processes which ideally involve minimal human intervention. Many of these business processes, however, require a substantial level of human involvement, including activities such as claims processing, loan approval, accounts payable, and telephone company line provisioning, just to name a few. In these cases, the same issues that plague manual systems can cause automated systems to fail. BPM initiatives often deliver less than the projected return on investment because few processes can be completely automated, and those that can will have a percentage of exceptions and fallouts requiring manual intervention. In fact, while BPM and CRM solutions provide value, what is typically missing is a real-time element. Most existing solutions are limited to focusing on processes that can be optimized and managed using technology with little or no insight into any required steps completed via human intervention. At best, CRM and BPM solutions alert a human of the need to complete a process step, but generally then remain queued, in wait mode, until the human completes the process.

5 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 5 of 8 When Human Latency Becomes Business Latency The term human latency first began appearing a few years ago, no doubt in reaction to a world where processes that were supposed to be automated still became bogged down at times. It refers to a situation where a business process simply stops while waiting for human response and action. An example of human latency might be a telephone company system that delivers a service establishment order to a work bin but, instead of being the typical single line for a single business, it s a complex order requiring tens of lines in multiple locations. Because it looks more complicated than any other task in the bin, worker after worker chooses a different task to work on. As a result, the order that has the greatest potential revenue revenue that doesn t begin to accrue until service is established remains in the bin, hour after hour. A more widespread problem is the inability of organizations to identify, process, and respond to incoming messages in a timely manner. Most organizations that encourage clients to use do not have a good way to manage those communications, particularly how to discern which ones have time-bound consequences. In these situations human latency is causing a business latency a lag between the moment that important business information becomes present and the time when an organization intelligently acts on it. Business latencies are causing organizations to lose revenue, productivity, and customer loyalty. There is an urgent need to find ways to minimize and manage both human and business latency. Managing Task Assignment One of the key issues leading to human and business latency is the notion of workers having the latitude to pull work items from a collection of tasks to be done, as opposed to having that work pushed to them. A pull paradigm is in place when individuals are made aware of work items that require execution, and the items are assigned to a shared work list. The commitment to undertake a specific task is initiated by the person rather than the system. When push methods are used, work items are allocated to specific individuals by the system. The problem with pull control is that the pace of work is determined by people who can select which item to handle and when to start. In a push model, it is possible to not only select a specific resource, but the one most appropriate to the task (for example, not allocating experts to work on simple tasks, and ensuring that the most valuable and highest priority tasks are completed before simpler, less valuable tasks). Paired with this traditional inability to assign work in an optimal fashion is the inability of current solutions to evaluate the performance of individuals relative to one another. If Mary and Jim take wildly different amounts of time to complete 10 work items, is it because they work at a different pace, or because the work items each completed vary in complexity or most likely some combination of the two? In the absence of answers to these seemingly basic questions, customer service suffers.

6 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 6 of 8 Early Service Delivery Solutions Returning to the notion of the contact center, calls (or s or chats) are typically just the beginning of a process that begins and ends with the customer. Having the ability to route, report, monitor, and measure the front-end of the process, without also having the ability to apply those same metrics and standards to every phase of issue resolution, results in sub-par customer service. An approach to the problem of prioritizing and distributing work known as service delivery optimization began to appear in Service delivery solutions sought to improve how businesses managed their value-producing people. But customer service is technology intensive. It requires complex and expensive IT infrastructure and systems. A typical company has interaction routing, a voice portal, outbound dialing software, a recording and quality monitoring system, SMS servers, workforce management applications, CRM, and a complex Web site for both delivering information and accepting transactions and customer inquiries, along with a host of vertical-specific support systems. These systems generate a huge amount of raw data every hour. Almost all of this data is trapped in disparate systems, which makes it very difficult for managers to discover how the customers are treated by the contact center, self-service, Web site, and back-office channels. Such a complex environment and set of systems does not give business managers the flexibility to fine-tune the application based on changing business conditions. While some BPM and even CRM vendors position their solutions as helping companies address the issue of managing front- and back-offices processes more holistically, the solutions themselves are often as complex as the problems. Agile Service Delivery Optimization What has been needed is an easy-to-administer software solution that can apply what s best about the contact center to the entire service delivery process. It would be one that works with existing systems, including BPM and CRM, and optimizes the distribution of work to resources within the organization. And it would also be one where time-tovalue is short and the path is clear. In evaluating a solution for time-to-value and agility, ask the vendor for a demonstration. If all a company can show is a series of diagrams, with databases, applications, and servers connected with two-way arrows, you will spend a lot of time and expense on integration planning and consulting. An agile service optimization delivery solution with a user-friendly, browser-based tool allows the vendor to ask the company about the types of tasks a company has and how they want to prioritize them. It lets the user add new rules and work types on the fly and change priorities in real time. It is more about the business needs and requirements than technical design and architecture.

7 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 7 of 8 iwd in Action In 2008, a telecommunications company found themselves handling almost 8 million service inquiries annually from tens of millions of customers. A broad portfolio of products meant the company had a dozen separate systems distributing tasks to a workforce of 2,000. The only way to measure end-to-end performance was after the fact in other words, after the opportunity to positively impact how service was delivered to the customer was lost. Using the Genesys intelligent Workload Distribution (iwd) solution, the company was able to create 2,000 business rules that are applied in real time to prioritize customer interactions according to business value and distribute them to the most suitable worker. Customer satisfaction rates improved by 15%. Extending Genesys Excellence with intelligent Workload Distribution Genesys understands the potential for extending its core capabilities to activities outside the traditional contact center, and has for several years offered a capability for managing non-contact center tasks with the Open Media feature of its Customer Interaction Management platform. In 2009, Genesys extended this capability with a software application that provides out-of-the-box functionality designed specifically for the business user that integrates resources, contact center capabilities, and internal business processes. Genesys has announced a service delivery optimization solution, called intelligent Workload Distribution (iwd). By leveraging the core capabilities of the Genesys Customer Interaction Management platform, Genesys is working with companies to extend a wide variety of business tasks, rigorous practices, and results typically found in the contact center. As detailed in the case study on this page, a leading telco company found that applying the rigors of the contact center to a variety of service delivery processes not only improved worker productivity, but also increased customer satisfaction by a significant margin. It is not surprising that they entrusted this project to Genesys, a longtime leader in contact center solutions.

8 Analyst White Paper: Leveraging the Best of the Contact Center Across the Enterprise page 8 of 8 About the Author Sheila McGee-Smith, the founder of McGee-Smith Analytics, is a leading communications industry analyst and strategic consultant. With a practice focused on the contact center and unified communications markets, Ms. McGee-Smith works on a daily basis with both solution providers and enterprises to help them develop strategies to meet the escalating demands of today s consumer and business customers. Ms. McGee-Smith s views on the communications space can be found in her weekly blog at Ms. McGee-Smith has spent twenty years in the communications industry, including 12 years with the New Jersey-based analyst firm The PELORUS Group. Prior to joining The PELORUS Group, Ms. McGee-Smith held sales management, market research, and product management positions at AT&T Dun & Bradstreet. She received a bachelor s degree from Barnard College, Columbia University and an MBA from the Kellogg Graduate School of Management at Northwestern University. This custom white paper was funded by Genesys, an Alcatel-Lucent company Genesys Worldwide Genesys, an Alcatel-Lucent company, is the world s leading provider of contact center and customer service management software with more than 4,000 customers in 80 countries. Genesys software directs more than 100 million interactions every day, dynamically connecting customers with the right resources self-service or assisted-service to fulfill customer requests, optimize customer care goals and efficiently use agent resources. Genesys helps organizations drive contact center efficiency, stop customer frustration and accelerate business innovation. For more information visit: or call GENESYS or v.1-08/09-U.S. Americas Corporate Headquarters Genesys 2001 Junipero Serra Blvd. Daly City, CA USA Tel: Fax: info@genesyslab.com Europe, Middle East, Africa EMEA Headquarters Genesys House 100 Frimley Business Park Frimley Camberley Surrey GU16 7SG United Kingdom Tel: Fax: Asia Pacific APAC Headquarters Genesys Laboratories Australasia Pty Ltd Level 17, 124 Walker Street North Sydney NSW 2060 Australia Tel: Genesys and the Genesys logo are registered trademarks of Genesys Telecommunications Laboratories, Inc. All other company names and logos may be registered trademarks or trademarks of their respective companies and are hereby recognized Genesys Telecommunications Laboratories, Inc. All rights reserved.

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