Contact Center Solutions Featured Article

Research Shows Banking Call Center Considerably Undervalued

April 09, 2008

Call centers have generally served as the point of contact between the customer and the company. While it served an important purpose, the center was also a significant drain on capital as it had no direct line of revenue that it brought into the company. Fortunately for call centers today, that perception and reality are changing.
 
In many industries, call centers act as powerful generators of new revenue. In the world of telecommunications, some companies have reported revenue generation from their call centers as high as 60 percent of new revenue. For certain credit card companies, that number is closer to 25 percent.

For retail banking, McKinsey estimates that every five inbound service agents could generate as much new retail business as a mature branch. Dedicated efforts to cross-sell during inbound service calls could effectively increase annual sales of new products by an amount equivalent to 10 percent of the retail sales generated by a bank’s entire branch network.

In a call center, the cost of sales can be covered in the first hour of each day. The challenge is that employees are virtually never engaged in anything other than talking to customers and finding new customers is not only difficult, it may not even be an option.

Call centers loom larger today in part due to their ability to generate revenue, yet it is not enough to ward off the yearly budget crunches. The same number of sales, a bank call center will take one-tenth of the people and one-quarter of the cost of sales compared to the branch network. Given these ratios, effectively selling through the call center should be an irresistible source of free profit margin.

Another reason to maximize the call center’s potential for generating revenue is the lost opportunity cost of the undervalued, under-trained, under-empowered employee. In the retail banking industry, it is never more true or applicable that knowledge workers are needed by the banks far more so than the other way around.

Yet, despite the constant boasting that people are the company’s most valuable asset, executives continue to manage employees as a cost and yet these same employees are often the only source of long-term competitive advantage that the organization has with which to compete.

At the end of the day, no company – bank or other corporation – can ignore the impact that the call center has on their overall business. The failure to recognize the value of the center will certainly guarantee that the organization will fail to maximize the potential within the call center, losing out on revenue and profit potential that can greatly impact the bottom line.
 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.

Article comments powered by Disqus

Related Contact Center Solutions Articles

Golden Gate BPO Solutions Partners with NETCAST BPO Services

When it comes to business process outsourcing (BPO) while many parts of the world are gaining traction as places to locate facilities, India and the Philippines because of their large English-speaking talent pools remain the dominant BPO places to operate. This is particularly true for companies whose majority of customers require support in English. [ Read More ]
05/21/2015

AMC Technology Contact Canvas Integrates Contact Center Apps to Microsoft Dynamics CRM

In recognition of the value-added of CRM integration with contact center capabilities, enterprise and contact center application integration software specialists AMC Technology has announced it has telephony enabled Microsoft CRM 2013 and 2015 through its Contact Canvas platform. The AMC platform allows customers to integrate business apps and communications across the enterprise, from contact center agents to knowledge workers and mobile staff. [ Read More ]
05/21/2015

Lazy Dog Restaurants Partners with RRT On Takeout Management Solution

When it comes to the business world, customer satisfaction is the real currency that keeps a company going. This is true whether talking about a retail or restaurant or a call center. Lazy Dog Restaurant and Bar just announced it is taking the next step in increasing its customer service approach thanks to an agreement with Restaurant Revolution Technologies. The agreement will allow Lazy Dog to implement an innovative takeout order management solution that is going to be supported by the compan… [ Read More ]
05/12/2015

Boston Retail Partners' Survey Reveals 87 Percent Plan on Using Gamification

The latest survey from Boston Retailers Partners reveals retailers are implementing customer relationship management (CRM) solutions as a key enabler to influencing customers. And gamification has become an important tool as part of the CRM deployment. [ Read More ]
05/12/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!