With sustained increases in inbound call center operations, the call center pie keeps
getting bigger. But is your slice of the pie growing as quickly? Or are you being squeezed
out? To get your fair share, make sure you know what today's opportunities are, and what
you can do to make the most of them. Today, the key opportunities are in Internet-related
sales, outsourcing and loyalty marketing.
The Internet: Look Past The Hype To See How It Augments Traditional Telemarketing
It wasn't long ago when everyone (including yours truly) was uncertain about the role the
Internet would play in our industry. We were all distracted by the cyber-hype that was
bombarding the business community. Wall Street seemed particularly susceptible to the
extravagant claims made on behalf of the Internet.
We saw a few Internet stocks rise in price at incredible speed and far outperform the
stocks of some truly great (if less glamorous) companies such as IBM, Microsoft, Intel,
Coca Cola, Disney and General Motors. How did this happen? How did the glitzy newcomers,
who posted negligible profits, start selling at nearly twice the value of the established
performers, who showed profits in the billions every quarter?
The answer, in my opinion, is that the common investor was led astray by media-inspired
euphoria. The way I see it, unwary investors went through a four-stage conversion, where
(1) hype triggered (2) rosy perceptions, which produced (3) expectations of quick riches,
which ultimately caused people to act out of (4) plain old greed. (You will notice that
logic and reason are entirely absent from this four-step process.)
Although the impact of the Internet has been exaggerated, it still promises to become a
powerful business tool. As the euphoria over the Internet fades, we can see that the new
technology is evolving into a kind of electronic catalog. While the Internet offers
customers a novel way to browse through information on products and services, the customer
interface at the point of purchase is completely familiar. That is, Internet-based sales
ultimately depend on 800-number calling. Thus, the Internet contributes to the growth of
inbound telemarketing.
You may well ask, however, what will happen when the technology's security problems are
finally resolved, and customers feel comfortable releasing credit card information over
the Internet? Will transactions be entirely self-service? In a word, no. Customers will
still demand the option of contacting a live agent, particularly when making purchasing
decisions about relatively complex items. No matter how much text you can put on a screen,
customers will always have questions, and they will prefer to address these questions to a
human being.
Outsourcing
The general preference for variable as opposed to fixed costs continues to reinforce the
trend toward corporate downsizing. In this atmosphere, any corporate activity that can
benefit from a specialist's attention, such as inbound telemarketing, is a natural for
outsourcing. Indeed, service agencies are now reaping the rewards of having built their
reputation for outstanding quality and superior performance.
Will this trend continue? I believe it will. Today, more and more call centers are
realizing the benefits of integrating inbound and outbound operations. This trend, of
course, only increases the sophistication required of anyone who wishes to compete in the
call center arena. Hence, corporations are more likely than ever to perceive that relying
on service agencies - the exemplars of call center expertise - is amply justified.
Loyalty Marketing
As explained in my November 1995 "Publisher's Outlook," companies live or die by
repeat business. The question, then, is how to secure repeat business. The answer is to
cultivate customer loyalty.
Since customer care eroded in the '70s and '80s, and continues to be neglected by many
today, companies can outperform their competition by committing themselves to upgrading
customer care and thereby earning customer loyalty. In fact, embracing the customer care
ethic isn't even an option - it is becoming a prerequisite to business survival.
Today, forward-looking companies are upgrading customer service operations and
instituting help desks. Another welcome development is the greater technological
sophistication being demonstrated by help desks. These trends help explain today's
unprecedented growth in inbound operations and call center profitability. I would like to
add that this trend will not only continue in the years ahead, but will intensify as
businesses learn to make the most of every call through database building. Put another
way, call centers will become information gold mines to businesses that know how to mine
them.
Imagine what you could do with a database full of information on customers with whom
you've cultivated a loyalty relationship. By taking customer information (such as product
preferences and purchasing patterns) gleaned from previous inbound activities, you will be
well positioned to make the most of your attempts at cross-selling and upselling.
By being aware of the factors contributing to inbound call center growth, you can
position yourself to compete effectively and earn your share of this growth. With the
Internet taking its place as an adjunct to inbound telemarketing, corporate America's
commitment to outsourcing and the rise of loyalty marketing, the future for inbound call
centers has never been brighter. In short, better days are ahead!
Sincerely,
Nadji Tehrani
Publisher & Editor-in-Chief
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