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

E-value International to Launch in Thriving Romanian Contact Center Market

According to a recent article published by The Diplomat, E-value International (EI) has opened a call center in Romania. The new facility is the latest addition to a growing contact center market in the country. [ Read More ]
03/31/2015

Satmetrix Finds Costco, USAA, Amazon.com and Apple Rank Highest for Customer Loyalty

Obviously one of the most important metrics for answering the question, "so how are we doing?" when it comes to providing compelling customer experiences is customer loyalty. In fact, measuring customer loyalty in general and against competitors is critical. In a world where alternatives are always a click away, and where customer acquisition costs are much higher than retaining existing ones, reducing churn and having permission to upsell is huge. [ Read More ]
03/31/2015

Report: Customer Service a Primary Concern for Consumers, Businesses

In the latest report from The Economist Intelligence Unit, "Creating a seamless retail customer experience," it asked consumers what exactly they want in their customer service and asked companies how they felt they deliver positive service through new technologies. [ Read More ]
03/30/2015

JD Power VoX: Holistic Approach to Customer Experience Monitoring and Management

One of the more interesting challenges in a world where enhancing the customer experience is now at the top of C-level lists everywhere is how to analyze and optimize those experience to drive financial results. For over 45 years, Westlake Village, California-based J.D. Power has specialized in helping organizations better understand the voice of the customer, and they have just introduced something that is sure to capture executive attention. [ Read More ]
03/27/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!