Contact Center Solutions Featured Article

As the year draws to a close and Alpine Access celebrates its 10 year anniversary, I find myself reflecting on the changes the call center industry, and the home-based segment in particular, has experienced over the past few years. The compelling economic benefits continue to drive adoption of this efficient and scalable service model. Unfortunately, in an effort to drive down cost, much of the industry has lost sight of what got us here in the first place – a desire to provide quality, customer service. Achieving a balance between cost and quality is not easy, but I believe it is possible. By staying true to our roots and focusing on providing valuable service, our industry can continue the growth and transformation of “cost” center to revenue-generating partner.

 

 

The idea of a traditional call center began in earnest in the 1980s. In those early days, the location of a center was based primarily on the availability of a technical infrastructure and a concentration of young, transient workers. As the telecommunications network spread, so did the number of call centers. By the 1990s companies were sold on the benefits of outsourcing but needed to reduce expenses. With fixed connectivity and overhead costs, finding less expensive labor seemed like the only alternative. Some companies searched for and found a cheaper labor force outside the US, which was now accessible through a reliable telecommunications network. Offshore outsourcing was born and remains a satisfying solution for certain markets.

 

The home-based or virtual customer service center emerged in the late 1990s. This model took an opposite approach to reducing costs. By using the latest technology advancements to bring the work to the people rather than the people to the work, it radically redefined the traditional infrastructure and eliminated much of the fixed costs associated with traditional brick and mortar centers. It also removed geographical barriers for hiring and opened up an enormous talent pool of customer service professionals. Now, clients could pay less and still have calls answered by skilled employees.

 

Obviously this is an extremely high-level overview of the dynamics that shaped the call center market. Nevertheless, to fully comprehend the changes this particular segment has experienced, it helps to understand the economic climate in which the home-based model was introduced.

 

Initially, the virtual call center was viewed as a solution for highly seasonal businesses such as flowers for Valentine’s Day. Additionally, home shopping networks needing extra staff to handle sales spikes found the flexibility of home-based centers ideally suited for their needs. Yet, what these companies quickly discovered was that the quality of service provided by home-based employees exceeded the performance of their own staff. Home-based customer care professionals (CCPs) were consistently better at call resolution, up selling, and satisfying customers. The key was in a virtual center’s ability to recruit and hire employees according to the client’s requirements rather than simply those who lived in the area. A seasoned CCP with a travel agent background in another state, for example, was better able to help a customer with airline reservations. The model made more sense and it produced better results.

 

 

What began with the question “why do people need to come into an office to help customers?” has turned the outsourced call center industry upside down, improving business results, creating job opportunities, preserving the environment and helping the nation compete globally. The proven achievements within the seasonal business market have now been expanded into other industries. Over the last few years, this movement from “order taker” to “problem solver” has transformed the type of clients, the type of service and the type of employees behind home-based contact centers.

 

Type of Clients

The virtual nature of the business offers the ability to create customized teams of employees with the exact skills sets to appropriately handle even the most complex transactions. As a result, financial institutions, healthcare corporations, information technology firms and other organizations with complex call types have selected home-based contact centers to meet their needs,

 

Along with an expanding customer base comes a broader, yet specialized, range of services. Instead of primarily handling seasonal business with lots of peaks and valleys, virtual call centers now provide year-round service with the added benefit of being able to adjust to sale fluctuations in real-time. Examples of new high-touch offerings being provided through home-based employees include IT help desk support, collections, and sales.

 

Types of Employees

As the industry matured, so did the home-based employee. Initially, the workforce was comprised of mostly part-time personnel. These people were either using home-based positions to supplement their full-time jobs or were stay-at-home moms. Now however, virtual call centers offer a more stable work environment with over 80 percent full-time employees. These CCPs take their jobs more seriously, resulting in less turnover and higher customer satisfaction scores.

 

Looking Toward the Future 

 

As I mentioned at the beginning, the “at-home phenomenon” as coined by analysts at Robert Baird & Co. is the fastest growing area of the call center market. IDC estimates that the number of at-home CCPs will triple by 2010. The reason can be found in a statement from Baird that “the use of at-home agents can equate to a 10-15 percent cost reduction and increased agent productivity of up to 10 percent for clients.” Yes, it is clear that home-based contact centers reduce costs while increasing the quality of service. But as the CEO of a large home-based contact center, I see the potential to offer our clients so much more.

 

Consumers are savvier than ever. They expect businesses to know what they want and when they want it. They demand that problems are solved faster and more completely. Our position on the front lines gives us an opportunity to gather and analyze critical customer data. Ever-advancing technology also can offer valuable insight into how corporate actions impact customers. But having access to the information isn’t enough. We must use this knowledge to continuously track, change, evaluate and improve customer satisfaction. Tough economic times demand smart strategies that capitalize on every opportunity to close deals and create loyal customers. Home-based contact centers and their teams of highly qualified, skilled employees can be the partner you need to succeed. I wish all of you a prosperous and happy new year.

 

Christopher M. Carrington is President and CEO of Alpine Access, Inc. a Denver, Colorado-based provider of call center services using home-based customer service and sales employees. Carrington has more than 25 years of business service experience. Alpine Access clients include J. Crew, Office Depot, the IRS and a number of Fortune 100 financial institutions.