What Makes An Industry Leading Call Center?

Transcription

1 What Makes An Industry Leading Call Center? A select few companies consistently deliver high-quality customer service, while topping the charts in customer satisfaction. The Ascent Group, publishers of Customer Service Quarterly, Call Center E-Journal, and Service Delivery Advantage interviewed the executives and managers of these companies to discover their roadmaps for outstanding contact center operations and award-winning best practices. Continental Airlines Yellow Transportation First Direct Harrah's Entertainment EarthLink Dell Computer PPL Electric Utilities Ritz-Carlton Hotels Lexus Southwest Airlines State Farm Insurance Tesco USAA FedEx We picked these companies based on their exemplary customer satisfaction, as defined by their rankings in the American Customer Satisfaction Index or as measured by other third parties such as J.D. Power and Associates. Our aim was to learn more about the contact center practices and winning strategies that lead to high customer satisfaction. Our industry-leading companies provided close to 200 winning strategies and best practices that are thoroughly documented in our report, Call Center Strategies of Industry Leaders. One interesting trend is that nearly half of our industry leaders answer incoming calls with "live agents" not IVRs or auto-attendants. In fact, several companies mentioned that they purposely avoided IVR technology in favor of live agents. The remaining 57 percent either use the IVR only as a routing tool to deliver the caller to the appropriate agent group or have developed the IVR as a self-service option for callers, handling anywhere from 10 percent to close to 70 percent of incoming call volume. Appropriate deployment of customer-facing technology is a key determinant of customer satisfaction. Our industry leaders have either chosen to avoid IVR technology, deploy it as an overflow tool, or have worked very hard to design customer-friendly self-service IVR options that meet their customer s needs.

2 With the exception of our technical support companies, our industry leaders averaged a customer wait time of less than 30 seconds. Average Speed of Answer seconds Characteristics of Industry Leaders While our target companies demonstrated various winning strategies, there were some underlying traits that were common to all. We ve tried to summarize the most prevalent traits for your review. 1. Corporate Culture or Vision Perhaps the biggest undertone from our research was the presence of a strong corporate culture or company vision within our industry leaders. As an example, Tesco, as part of its organization renewal in the 90s, created a company-wide vision that centers on a core set of beliefs The Values. About a dozen values define how the company will work with its employees, including treating people with respect, listening more than dictating, and treating people as you d like to be treated, and so on. The Values are high on everyone s agenda. As part of the performance management process, we as managers have to demonstrate good tangible examples of living the Values. Living the Values is driven from the top and lived from the top as well, says Ian Russell, head of Customer Service for Tesco. Mechanisms have been designed into the performance management approach to reward employees for living the Values. For instance, if a managers sees an employee who has accomplished something more than they d expected, the employee can be given a Values award just a way of recognizing good behavior and not necessarily a monetary reward. This makes it easier for us to be consistent throughout the company, says Russell. 2

3 Southwest Airlines is another company that has an infamous corporate culture. We believe in managing from the heart. We practice the Golden Rule at Southwest, in management and at the front-line. Treat others as you d like to be treated yourself. This is very effective in leading people, adds Rob Lalim, Director of Reservations Automation at Southwest Airlines. All agents handle all calls, with the exception of the group desk that handles group reservations. Southwest has no booking or talk time goals for agents. We give employees the freedom to utilize their time as they see best to provide the best customer service, whether it s for a booking or handling an inquiry, adds Lalim. Southwest Airlines is renowned for its fun culture. Herb Kelleher, now Chairman of the Board for Southwest, was the maverick. Southwest s emphasis on fun plays a major role in its competitive edge. Fun combined with excellent service makes a lasting impression on customers. Anyone who flies Southwest experiences a fun flight passengers enjoy it, and employees too. We use caution not to create a kindergarten-type environment to motivate employees. Our motivation efforts are geared towards treating employees like adults. For instance, we provide continual feedback on monitoring and performance. We also host fun-event days and internal contests to motivate bookings. Friday has always been fun day at Southwest everyone dresses up or down, except pilots, who still need to wear the uniform. When the workplace is fun, employees enjoy coming to work. In addition, others want to work in a fun place, so there is usually a large pool of interested candidates. 2. Data mining and CRM Tactics One trend that appears to be gaining speed is the use of data mining in combination with tactical CRM. While many companies are struggling to install a CRM system, our industry leaders are mining their customer data to glean ways to better the customer experience. Take Harrah s Entertainment, for instance, now famous for their CRM efforts. Rather than compete on the basis of lavish attractions or new facilities, Harrah s decided to build a strong Harrah s brand identity, promote it across all properties, and expand into new markets. A new customer loyalty program was implemented, Total Rewards, designed to reward customers who played at multiple properties. The strategy was to build lasting relationships with customers. A data warehouse was developed and card-reading machines were installed in all the properties to collect patron information as well as track the rewards program. The new approach shifted the way marketing was conducted at Harrah s. Marketing offers are now based on market segmentation analysis and customer profiling. As a result of the new strategy, Harrah s has created a strong brand identify for its casinos. Many customers wager at more than one property, the individual casinos 3

4 are now operated in a more integrated manner, and guest rewards are consistent across the properties. In addition, customer responses to Harrah s marketing offers have doubled, driving up the number of calls to the reservations centers, trips into the casinos, and revenues. 3. Actively Measuring Customer Satisfaction and Expectations One trait that was prevalent in all our industry leaders was the attention to customer satisfaction measurement and the customer experience. Several companies were very proactive in their measurement, even recognizing potential dissatisfying situations before the customer. It s no surprise that these companies rank high on the customer satisfaction charts it s a key driver of their corporations. For example, EarthLink surveys customers randomly to learn more about the effectiveness of its tech support organization. At least seven contacts are randomly selected each day per tech. Customer surveys are sent by , targeted to each specific interaction how well did the tech do on the call? Was the customer satisfied? Did the tech follow this procedure? The survey also questions the customer s experience overall with EarthLink. Because the survey is delivered by e- mail, response if quite high, averaging about 15 percent. This has worked well, reports Scofield. Combining customer satisfaction scores with quality monitoring scores and call handling statistics provides a fairly balanced view of individual performance. EarthLink has also had good success with a new proactive support program, in which data is routinely gathered and analyzed to learn more about each customer s connection experience. EarthLink has established a group of techs to identify customers having problems and to proactively contact the customer by phone or e- mail to say, we ve noticed you re having problems getting connected, let s see what we can do to help While this approach presents challenges from a resource standpoint, it really scores a home run in customer satisfaction and may ultimately reduce inbound call volume. As another example, at the conclusion of each support call, Dell s business customer is immediately queried as to whether or not the problem was resolved and if he/she was happy with the call. If there is a problem with technical resolution, the customer is immediately transferred to a high-level rep; if there is a problem with the process, the customer immediately transfers to a manager. The goal is to catch and solve the problem before the customer hangs up don t let the customer leave unhappy. When Dell began conducting surveys, obtaining real-time customer feedback, it found that the IVR menus were too cumbersome. The Company responded immediately, reducing menuing from three minutes to one. A second major complaint was the length of hold time, and Dell alleviated that by initiating training 4

5 that enables the tech to keep the customer engaged while getting technical expertise behind the scenes (chat technology). Two years ago, Dell s high-level techs began calling customers the following day to ask if problems were resolved and if the customer was satisfied. If the customer expresses dissatisfaction, the tech s goal is to solve the problem immediately. This has been huge for us, states Jan Uhrich, vice president, Technical Support - Business (Americas). Customers don t expect a high-level tech to call them the next day. It was a dramatic win for us. It s fun to get positive feedback from customers. We put the verbatim comments back to the techs so that they can see actual customer comments. 4. Hiring the Right Employees The best foundation for service excellence is your people. Our industry leaders have turned hiring into an art form, not only the process but also the identification of the right type of employee. In a service business, the employees are the company and hiring is critical. First Direct recognizes the importance of its people in making the company what it is today, a bank recognized for its excellent customer service and highly innovative, fully integrated banking service. The Company, therefore, understands that its people are its most important asset, forming the foundation of truly personal banking. Recognizing the importance of people making the Company what it is today, First Direct gives recruitment and training top priority. First Direct s approach to recruiting customer-facing people centers on employing individuals with excellent communication skills and who enjoy serving customers. First Direct has determined that it is easier to teach the necessary skills, than to teach employees how to enjoy working with customers. Southwest Airlines takes great care in the employee selection process to recruit the right people with the right attitude, including a sense of humor. We look for motivated employees, people that are enthusiastic about wanting to work for Southwest. We hire for attitude and train for skill, adds Lalim. It s much easier to teach proficiency than it is to change an attitude. Employees are encouraged to be themselves and to be individuals. Humor can help people thrive during change, remain creative during pressure situations, work more effectively, play more enthusiastically, and stay healthier. Fun is the company s philosophy and fun is in the attitude. 5

6 If you re a highly motivated, people-oriented, outgoing individual who wants to become part of a winning airline team you ve come to the right place, states a poster on the walls of the People Department at Southwest. Southwest s screening process commences with a computer system that matches applicants to open positions. Because Southwest receives nearly 200,000 resumes each year for 6,000 open positions, the software comes in handy during the screening process. Southwest relies primarily on initial group interviews, followed by a peer interview. Experience shows that the best personalities shine through during a large group interview. Southwest s large group interview panel is typically comprised of frontline employees and supervisors. They are the ones that know best what it takes to do the job, what it s like working in a call center and being on the phones for an extended period of time, states Lalim. Other screening techniques include asking applicants how they have used humor in a work environment, as well as asking for examples of how humor can be used to defuse a difficult situation. Interviewers also ask applicants to prepare a five-minute speech to be presented to the rest of the applicant group. Interviewers then look for applicants who are supportive to those presenting by actively listening, as opposed to those who are silently perfecting their own speech. 5. Extensive Training to Relay Culture and Teach Job Specifics Our participants also took great care in the training of new and existing employees. Most deployed an extensive training program that combines traditional classroom training with hands-on training through role-playing, computer-based training and job simulation. Several companies pay particular care to instill the corporate vision and culture starting on the first day on the job. Take the Ritz-Carlton Hotel Company, for example, it s famous for its new hire training program. Once selected, all new employees undergo a month-long certification program that introduces them to The Ritz-Carlton s service philosophy and core values the Gold Standards. After the initial training period, and annually thereafter, employees must complete a detailed training certification program that includes both written and practical demonstrations of the philosophical and technical aspects of the job. The Gold Standards form the basis for all ongoing training. Management views the training as an investment in quality. The cost of rework, or repeating a service that was done inadequately the first time is what endangers profitability. In fact most hotels keep a safety margin of staff on duty at all times to cover rework. Employees who are quality engineers have enabled The Ritz- Carlton to reduce the number of hours worked per room. Housekeeping cost per room has also fallen, as has the time clean to a room. All of this has contributed to a profit per room figure five times that of the industry average. The Ritz-Carlton also encourages employees to strive for continual personal and professional development. Because of this, new employees receive a minimum of 6

7 310 hours of training during the first year of service and are paired with Departmental Trainers to ensure comprehension of the skills, knowledge and standards necessary to successfully complete the job. Employees are also encouraged throughout their career to continue to participate in a variety of personal and professional development courses. After 90 days of employment, every reservations consultant is required to stay at least one Ritz-Carlton hotel. Even though there is no Ritz-Carlton hotel in Salt Lake City, the location of their main reservations center, management feels that the visit is essential to the development of the employee. A stay at a Ritz-Carlton hotel reinforces initial training and also helps employees feel a part of The Ritz-Carlton family. Employees get to experience the mystique, meet other employees, and better understand the business and the Company. Other Leading Traits These were the top five characteristics demonstrated by our industry leaders. We did document several other traits that we believe are critical to high customer satisfaction and service excellence: Respect for employees and customers. Empower employees to do what is right. Customer-friendly technologies matched to customer needs and expectations. Provide a variety of customer service options and choices for customers. Leverage technology to improve internal processes. Offer career and development opportunities for employees. Incentives and recognition programs in place to reward exemplary employee performance. Extensive internal communications. Involve employees in the company through improvement teams, communication forums, and other avenues. Emphasis on softer performance measures; such as call quality, customer satisfaction, and 1 st call resolution. Continual improvement. Well-recognized as leaders through awards and accolades. You can read more about each of our industry leaders in our report, Call Center Strategies of Industry Leaders, which is available in hard copy, on CD-Rom and online. provides in-depth case studies that profile each company s call center operations, including technology, people processes, and performance. Learn why the best are the best. This comprehensive 100+ page report provides a detailed inside view of some of the world s best call centers. Contact the Ascent Group at (478) for more information or visit our web site at and order online through our secure server. 7