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

Survey: Mobile Experience Trumps Brand Loyalty Among Gen Y, Millennials

Retailers be warned - brand loyalty counts for less and less among younger consumers, who are likely to head to competitors if their mobile experience isn't what they think it should be. [ Read More ]
10/30/2014

Xerox Virtual Customer Care Agent Soon to Enter the Market

Today, many companies are working toward simplifying the workplace so that they can allocate more time and resources to their core business. WDS is one such company dedicated to making it customer's life easier. Recently, the company has introduced an intelligent, virtual customer care agent that can recognize and resolve customer questions in the same way a human agent would. [ Read More ]
10/29/2014

Cyara Partners with GlobalNet

Cyara, a provider of integrated, automated customer communication systems testing software, recently announced that GlobalNet, a company that provides customer experience innovation lifecycle services, has joined the company's Expert Partner Program. As a result, Cyara's contact center testing software has been integrated with GlobalNet's Customer Experience Innovation Lifecycle, expanding Cyara's market in North America. [ Read More ]
10/29/2014

The Personalization of Patient Care

There is little dispute that the healthcare system is not just one of the largest vertical markets for the consumption of modern technology in general but for ICT-related solutions specifically. Whether it is the digitization of medical records, the establishment of healthcare exchanges in the U.S., telemedicine, enhanced communications for first responders, etc. The appetite for ICT is almost insatiatable. [ Read More ]
10/28/2014
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!