This summer marks the 19th anniversary of C@LL
CENTER CRM Solutions which debuted in 1982 as Telemarketing
magazine. This anniversary gives me the unusual opportunity to look back
at the past, consider the present and look forward to the future. Although
the name of this magazine has evolved over the years, the spirit of the
magazine remains the same. Beginning with the very first issue, this
magazine has successfully brought its readers the latest, most valuable
information on how to find, target, service and retain customers across
all industries. We began this journey at a time when the call center,
despite its vital importance to businesses, was largely ignored and
underserved. Over the years, as others have begun recognizing the value of
the call center, we have consistently served our readers with the latest
information on the two most important elements of a successful call
center: people and technology. But just for a moment, let's go back in
time and look at the industry in its earliest days.
From Modest Beginnings To A Multibillion-Dollar Industry
Back in the early 1980s, an outbound teleservices representative would
have had three tools on his or her desk: a rotary-dial telephone, a stack
of 3x5" index cards and a pencil. Prospective leads' numbers were
gathered from telephone books, and each agent would manually dial
telephone numbers and cold-call a range of people who might or might not
be qualified customers. Agent burnout and turnover were high and the
system was very time-consuming and inefficient. Later, technology stepped
in and made the TSR's job easier with predictive and preview dialers. This
technology meant there was no longer a need for manual dialing, and TSRs
could make far more calls per hour without having to read off a list or
out of a telephone book. In fact, predictive and preview dialing increased
a company's outbound productivity by 300 percent, an advantage that
absolutely turbocharged the industry.
Inbound Or Outbound? Pick Only One!
In those early days, agents were dedicated to one type of teleservices:
There were designated inbound agents and designated outbound agents. As
this magazine pointed out even in the early days, this didn't make sense
for a number of reasons. Agents dedicated to one type of work became bored
and many agents were underusing their skills. From a time-management
angle, it was a ridiculous prospect. Following a television commercial or
a marketing brochure, inbound calls might spike by hundreds of percentage
points. You had to hire enough agents to answer each of these calls, but
days later when inbound calls dropped off, those formerly swamped agents
would be busy playing solitaire at their workstations, while the outbound
agents were extremely busy dialing out to offer a new special discount to
customers. I can't think of a more inefficient use of a company's
resources. Additionally, it started to become apparent that inbound
calling could and should feed outbound calling. Agents making cold,
unqualified calls were far less likely to make a sale than those using
targeted lists of customers who had made inbound calls inquiring about
purchasing a product, validating a warranty or getting information on the
products they had already bought. For all these reasons, we began to see
the advent of blended call centers, staffed by universal agents. Inbound
and outbound duties were shifted according to need, helping spread the
work among all agents and minimizing downtime. It worked like a charm, and
fed the demand for even more call center automation. To demonstrate this
demand, let me point out that today, workforce management software is a
$120 million business according to research firm Datamonitor. By 2003,
this figure is predicted to grow to $850 million.
Outbound May No Longer Rule
For the last 15 years, this magazine, through the research conducted
for its Annual Top 50 Teleservices Agencies Roundup, has noted that the
growth of outbound always led the growth of inbound. We are fascinated,
but not surprised, to note that this year marks the first time this is not
so. The percentage of growth for outbound has been steadily dropping off
in recent years, and our latest research shows that the amount of outbound
calling actually declined one percentage point this year. Growth in
inbound, however, increased nearly 25 percent. Why is this? It's the Web,
of course! Never before has it been so easy for consumers to ask for, and
receive, the information they want and need. There are so many channels to
choose from: the traditional telephone (although with the advent of
Internet telephony, there may soon be nothing "traditional"
about it!), e-mail, Web chat and collaborative browsing are just a few of
the methods customers can pick. With so many companies striving to
practice good customer relationship management, customers are finding that
their every need can be met and are buying like never before. Do you want
to see these data for yourself? You can view the results of our 15th
Annual Top 50 Teleservices Agencies Roundup on our Web site.
From High-pressure Selling To Consultative Selling To Relationship
Selling To E-Sales
Some of the practices common in the early days of telemarketing gave
our industry a bad name. Stories of companies that practiced
high-pressure, untargeted selling at inconvenient hours ran through the
newspapers. Even worse, stories abounded of unscrupulous criminals who
used telemarketing as a way of stealing from unsuspecting people.
(Although I should point out that the same newspapers that ran these
stories were rather hypocritically using the practice themselves, behind
closed doors, to sell subscriptions and advertising space.) I liken it to
a criminal who picks up a scalpel, a surgeon's instrument, to stab
someone. Afterwards, no one would say that criminal was a surgeon, they'd
say it was a criminal with a scalpel. But when a criminal picks up a
telephone, everyone calls him a telemarketer. Just as with the example of
a felon with a scalpel who is not a surgeon, a con-artist with a telephone
is not a telemarketer.
As the industry became more sophisticated, this type of cold calling
shifted to more targeted communications with prospects, based on better
information gathered about the prospects' preferences. This quickly gave
way to the concept that companies shouldn't focus as heavily on a single
customer interaction, but the customer lifecycle as a whole. With the
expansion of Internet usage in the last few years, the customer lifecycle
view was the seed that blossomed into today's concept of customer
relationship management (CRM).
Cross-selling And Upselling Gave Birth To CRM
When the first enterprising companies discovered they could increase
sales by practicing cross-selling and upselling, they struck a spark that
eventually exploded into the modern concept of CRM. If you could sell x
amount of product by using customers' previous buying habits to provide
you with valuable targeting, what could you do if you had a single,
universal view of your customer's habits, preferences, history,
demographics and needs? In the old days, this information, if it existed
at all, was stored in dozens of different systems: billing, fulfillment,
abstract research, order history and call records. Have you ever called a
company to ask a few questions and discovered that the TSR on the end of
the line could only address one part of your query? You had to call or be
transferred to a different department to get an answer to your next
question. Today, good CRM dictates that all of these disparate systems be
united and able to communicate with one another. As technology progresses
in the next few years, we will hear more and more about companies that are
able to integrate all these systems onto a single platform. This
completely united view of the customer will be the strongest and most
powerful asset your company has ever possessed.
Customer-centric, Not Product-centric
In the days of old, the spotlight shone on the product...how many can
we sell, to whom can we sell and how much money can we make selling it? We
pointed out to the industry that this principle doesn't work. The
questions you should be asking yourself are, "Who are my customers?
What do my customers need and want, and how can I best meet those
needs?" Many companies who embrace this idea have found themselves
surprised by their successes. Customers love to know you have their needs
in mind! But don't commit the same error so many companies do by telling
customers they come first and not mean it. Say it, do it and make sure you
follow through!
Customer Service Is The Only Differentiator
The thought that your product is different from all others and you
have no competitors is a fairy tale...a nice thought, but it's just not
true. Chances are, there are dozens, even hundreds, of companies selling
the same product as you. So how do you rise above the rest? Exceptional
customer service is the only way. In the early days, companies conducted
price wars that never seemed to end. Little by little, they began to offer
value-added products and services to help give them a boost. This was
nice, but they needed to find a way to build customers so loyal, they
never went elsewhere to buy their products. How? By meeting the customers'
needs even before the customers KNOW what they need. This can only be
accomplished by knowing exactly who your customers are and what they want.
They'll thank you (and reward you) for it!
From No Technology To Too Much Technology
In just 19 years, we have seen and wrote about this industry as it
evolved from index cards and rotary-dial phones all the way to
computer-telephony integration, IVR menus with voice recognition
capabilities, and collaborative Web browsing. Are these technologies a
magic bullet for success? No...not until you learn how to use them, when
to use them and when NOT to use them. What do I mean by too much
technology? When you believe that a list of Frequently Asked Questions on
your company's Web site will eliminate the need for knowledgeable
teleservices representatives, you are in trouble. Never forget the
importance of the human factor. Nothing works without it. Getting personal
with your customers not only means providing them with various automated
channels, but making sure you meet their very real need to speak with an
informed human when they require it. E-mail is convenient, but often means
the customer must wait hours (at best) or days (in the worst-case
scenario) for an answer. If the customer needs an immediate response to a
question, you will not convince him or her that a self-service Web site or
IVR menu is just as good as a live agent. Even the most Web-based
companies in existence today, such as America Online or Amazon.com, have
extensive, active call centers staffed by agents who take thousands of
calls per day. Fighting against human nature is a fast-track to a
"Going Out of Business" sign.
Make Sure Your People Are The Best Of The Best
In terms of productivity, the differences between an average TSR and a
motivated, enthusiastic TSR are astounding. A bored, ill-informed and
unhappy agent can do more damage to your company than good. On the other
hand, an agent who is confident, knowledgeable about your company and its
products, challenged to learn new ways to serve customers and able to
recognize that he or she will grow as the company grows is one of your
single best assets. With the advent of blended call centers and e-sales
and e-service, the agent's job has become far more interesting and
challenging. He or she might take inbound calls in the morning, answer
e-mail in the early afternoon and finish the day either making targeted
outbound calls or even initiating chat sessions with customers browsing
your Web site. In some companies, the agent might even do a mix of all
these things throughout the day! But just having the right people is only
the beginning. You need to make sure you train them properly and motivate
them to do the best job possible. These people represent your company's
first impression to your customers and prospects -- make sure they are
trained to keep the customer, not lose him! Many companies are beginning
to recognize the importance of using logging and monitoring software to
identify both the best performers and those in need of extra training.
Datamonitor predicts this segment of the software market will grow from
its current $150 million to $400 million over the next three years.
Last, But Not Least, The Incredible Growth Continues!
From this magazine's current vantage point, we have two bright spots
on which to focus. First is the pride we feel at consistently maintaining
the truly superior editorial integrity of this magazine for 19 great
years. To make sure we provide you with a full spectrum of information, we
are also proud to offer this magazine's sister publications, Communications
Solutions and INTERNET
TELEPHONY, as well as our Web
publication, TMCnet.com. We also sponsor two industry-leading trade
shows, Communications Solutions EXPO and
INTERNET TELEPHONY EXPO,
where we bring you the best of the brightest companies offering the most
exciting and advanced products side-by-side with conferences, roundtables,
hands-on demonstrations and learning opportunities. Second, we look
forward with enthusiasm to the exciting future of this industry and make a
promise that we will continue to provide you with the most relevant and
unbiased information in the industry.
So now that I've told you where this industry has been, you might ask
me where it's going. This is the most exciting part of all. We write a
great deal about the importance of CRM, and although many companies talk
of it, it seems that many are still not following through. Talk is not
action...until you accept that CRM is a business concept that must be
integrated throughout your entire enterprise, not something you can buy in
a box, your company will lag behind. We are looking forward to the days in
the near future when companies of all sizes across all industries realize
that in order to succeed, they must avoid repeating mistakes of the past
and begin making sure that customer-centric thought and action are flowing
from the roots to the branches of their companies. There are many
knowledgeable people available to assist you, beginning with those of us
here at C@LL CENTER CRM Solutions. Start doing your homework!
In terms of hard numbers, let me outline just a few of the highlights.
- According to the research firm Datamonitor, the call center software
market will be worth $8.5 billion in 2003. The market, estimated at
$2.9 billion in 1999, is predicted to make a 293 percent jump in
growth.
- Customer care software makes up the largest segment of the call
center software market, with sales in excess of $690 million in 1999.
(Datamonitor)
- Ninety percent of all mergers and acquisitions aimed at call center
software vendors has been carried out by companies with no previous
history in the call center marketplace. (Datamonitor)
- IDC predicts that the worldwide Internet economy will pass the $1
trillion mark next year; by 2003, it will be on its way to an
astounding $3 trillion.
- The customer relationship management (CRM) market will be worth $8.7
billion worldwide by 2003. (IDC)
- In 2004, marketers will send more than 200 billion e-mail messages.
To maintain visibility, companies will outsource the elements of their
e-mail marketing initiatives, creating a $4.8 billion e-mail marketing
industry. (Forrester Research)
Why do most CRM statistics revolve around the call center? Because
every company is a call center...or it should be. Companies hoping to
survive in the Web-enabled world of business today must recognize this
fact for survival in the new millennium. We are proud of our industry's
growth and know it will continue in leaps and bounds. (If Alan Greenspan
knew the way our industry was growing, we might be in for another hike in
interest rates!) The rise of the Internet guarantees this growth...who is
answering your company's e-mail, initiating chat sessions, manning your
help desks and fostering your customers' loyalty? Where does CRM begin?
The call center, of course!
My view of the future of our industry can be summed up in one sentence:
"The sky's the limit!"
As always, I would love to hear your thoughts and experiences.
Sincerely,
Nadji Tehrani
Executive Group Publisher
Editor-in-Chief
ntehrani@tmcnet.com
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