Contact Center Solutions Featured Article

Next Generation Outsourcing: Bundling and Partnership Skills Are Critical Components

November 20, 2007

In a simpler era, when teleservices customers had problems with a single product and an 800-number for their inbound calls was the only solution available, service agents could typically deliver on-target answers with little delay. The range of possible problems and inquiries was much smaller and often leveraged a single database.

 
For better or worse, the customer’s expectation of the same instantaneous solution has carried through to today — an era when it is not unusual for providers to sell a multi-product bundle of wired and wireless phone, high-speed Internet, and cable TV. While this convergence is exciting, it comes with significant service challenges that will need to be overcome to deliver an efficient, next-generation solution.
 
To meet expectations, the modern teleservices representative (TSR) must be able to efficiently access a dizzying basket of information about multiple service and product lines, while not keeping the customer waiting long for answers and resolution.
 
Because outsource vendors are the customer interface and must deal with these challenges, there are certain next-generation skills and components that are coming to the forefront in delivering outsourcing solutions that meet or exceed customer expectations. A sophisticated vendor:
 
  • Has tracked and adapted to these customer-service trends and can accommodate whatever method the customer uses to make contact.
  • Adds value and profitability to functions that have traditionally been a teleservices cost center, most often through an ability to bundle services such as tech support and sales into a single call strategy of upselling.
  • Serves as trusted, knowledgeable advisor, leveraging its previous experience.
  • Establishes balanced call metrics based on customer value that ensure success on both sides.
 
Solution Bundling
As more clients serve themselves through online or IVR (interactive voice response) options, the simple interactions like credit balances and password changes are siphoned away and the complexity of calls goes up. The convergence of bundled services — such as a vendor that offers a package of cable television, digital phone, high-speed Internet services and maybe a cellular phone — means that the basket of goods and services the customer may need to address has grown exponentially.
 
For example, a customer may call to request more minutes on their cell phone. However, while they have the agent on the line, they mention that their Internet connection is too slow, ask for the balance on their bundled account, request a specialty cable station be added to their television package, and request a cell phone minutes increase.
 
Because the customer does not like to be handed off to different people for each separate issue, the TSR must be able to quickly access all of the different data silos for that customer. Obviously TSRs cannot possibly have expertise in all of the different areas, but they should be able to instantly access them within just a few clicks of a mouse. If there are lengthy pauses between the TSR and the customer, if the customer is on hold frequently, or if there is a pattern of calls requiring escalation to a supervisor, then clearly there is a data structure or training breakdown that must be addressed.
 
Not only is it important for the outsourcing vendor to handle the calls quickly, but a more sophisticated, next-generation vendor should proactively offer suggestions that may turn a cost center into a revenue opportunity. If the vendor is contracted to handle technical support calls, why not build in an upselling opportunity? Perhaps the technical support was required because the customer had an older product, making it a perfect opportunity for a well-trained TSR to offer a product upgrade that would neutralize the support issues altogether. The call handle time would lengthen, but the end result would be a product sale and its resulting revenue. This type of progressive, value-based thinking is critical in next-generation outsourcing.
 
Balanced Metrics
As growing give-and-take relationship trends indicate, next-generation outsourcing will succeed largely because the client trusts the vendor to act as a true partner, translating intelligence previously gained to the initiative at hand and demonstrated by a relationship with ongoing, honest communications. Because the vendor is at the front line of customers — hearing their frustrations, successes and watching trends develop — you will not see outsourcing as a pure price and task play. That method quickly precludes the vendor from having an interest in improving interactions. After all, if their metrics are based on call-handle times, why would they spend time with a client to thoroughly troubleshoot their problems and suggest long-term solutions? The client is happy, but the vendor ends up penalized due to the long handle time. Even up-selling a package or product lengthens the call-handle time, so the vendor would end up punished for driving revenue. It just doesn’t make sense.
 
Promoting a fluid dialog between outsourcer and vendor will improve performance jointly through an open information flow. Even if it isn’t profitable in the short term, a next-generation vendor would be looking at other aspects of the outsourcer’s business to see other opportunities for improvement.
 
Forrester Research analyst Julie Gearie commented on this phenomenon. “What needs to happen,” she said, “is something Forrester is calling ‘adaptive outsourcing,’ or an arrangement that evolves as customer needs change over time.” While there shouldn’t be wild swings in the metrics, they should be qualitative rather than purely operational. Really want to make an outsourcing vendor happy? Include an upside along with performance penalties. Offering a bonus for exceptional performance underscores a value-based partnership at its best.
 
Outsourcing initiatives may also run aground when clients over-measure, inundating their outsourcer with 15 separate metrics on a project. Granted, there may be cases where this is appropriate, but a vendor is more likely to prove its value by determining what the client is actually trying to accomplish. Often, the list can be pared down to three or four key metrics that will quickly accomplish the client’s goals, perhaps keeping other metrics as targets rather than requirements. Through open communication, a qualified outsourcer negotiates a balanced contract that works for both parties.
 
How do you determine what is worth measuring? Focus on what matters to the client’s end-user, their customer. You can’t go wrong emphasizing what is important to the customer. The vendor should also focus on creating value for their outsourcer. It is a win-win strategy.
 
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With over 20 years experience in outsourced business services and information technology including his current role as Senior Vice President, Sales and Marketing at eTelecare Global Solutions, and his past roles as partner at Accenture with a specialty in CRM and call centers, and manager of 14+ outsourcing vendors for AT&T, Glenn Dispenziere offers significant expertise in business process outsourcing and innovation. eTelecare is a leading provider of business process outsourcing (BPO) focusing on the more complex segments of customer-care services, basing its North American offices out of Scottsdale, Arizona.
 
 



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