March 1999

State-Of-The-Art

BY MATTHEW VARTABEDIAN,
TECHNOLOGY EDITOR, C@LL CENTER SOLUTIONS

Increasing revenue and profit opportunities, cutting costs, learning about, evaluating and selecting new technologies, discovering new ways to hire, train and manage your agents - these are all reasons to read each issue of C@LL CENTER Solutions. Often our understanding of these new technologies and techniques can be a bit nebulous - but nothing helps bring form to chaos more than a concrete example. To whit, I've decided to focus this month's article on CompUSA's National Call Center, which is committed to both the implementation of new, cutting-edge technologies as well as to excellent employee management strategies; it represents what we consider to be a state-of-the-art call center.

A Brief Look At Costs
Were you to analyze the costs associated with your call center operations, you'd probably discover that they break down in roughly this manner: 55 percent of your budget is spent on labor/people; 25 percent is spent on telecommunications; 10 percent on facilities/brick-and-mortar costs; and the final 10 percent is spent on technology. Reduced (or increased) costs in one area can usually be attributed to increased/decreased spending or efficiencies in another.

Why should you consider making a significant investment in cutting-edge technology? There are several reasons:

• New technology represents a small portion not only of your call center budget, but also of the overall enterprise budget, and it has the potential of greatly increasing revenue.
• The one-time cost of purchasing an IVR, for example, can be amortized over the "lifetime" of that product - that's where return on investment (ROI) comes in; it's entirely possible that, given the application, new hardware or software will pay for itself within three to six months.
• Deploying an IVR enables customers to serve themselves (routine inquiries probably make up as much as 80 percent of your total call volume, depending on your industry) which means your agents are freed up to handle the remaining 20 percent that might include: more complex issues requiring human intervention, the opportunity to cross-sell and upsell and/or develop deeper customer relationships and so on. Thus, the deployment of new technology significantly increases the effectiveness and efficiency of your labor and decreases (probably) telecommunications costs (less talk time), thereby driving down your total cost of doing business.
• Installing a CTI solution (e.g., screen pop of IVR data and/or customer history to the agent desktop) decreases agent talk time, increases the caller's satisfaction (call was handled quickly and the customer received the information he or she needed) and therefore decreases telecommunications costs. Factor in good management and training, and talk time can be further reduced and/or be used more effectively.
• Technology solutions like workforce management, quality monitoring, computer-based training as well as skills-based routing and CTI screen pop, depending on how they're deployed, can significantly improve the agent's working experience, increasing employee retention and driving down the costs associated with screening, hiring and training.

Without Further Ado
My tour of the CompUSA National Call Center drove home two points: 1) the hardware and software deployed in a call center is crucial to its success, and 2) it's the agents that bring the true value to the technology. Rather prosaic revelations perhaps, but nonetheless important to note.

The CompUSA center handles a diverse array of calls. It is tasked with handling:

• Internal, corporate help desk support,
• Sales and support activities for the CompUSA stores, and
• Outsourcing - the provision of teleservices to CompUSA's vendor partners (those companies that sell products in their stores, as well as any other companies interested in tapping into CompUSA's expertise) represents a major revenue growth opportunity for both the company and the call center itself. These kinds of calls can range from tech support to product inquiries to lead generation to order fulfillment.

Technologies Deployed
Ensuring that each call is properly handled, especially in such a complex environment, is of paramount concern. Harold Vance, the National Call Center's director of information services and business partners, detailed the systems they have in place, and shared some of his plans for the future:

• Automatic number identification (ANI) and dialed number identification service (DNIS) are deployed to identify customers and differentiate between programs (especially those handled on an outsourced basis). They also help provide an increased degree of intelligent call routing which Siebel, their front-office automation solution, can take full advantage of.
• Interactive voice response (IVR) system - The call center does have one in use, but it's insufficient for its needs. A new system has been chosen, but because of some contractual niceties, Mr. Vance couldn't go into too many details.
• Genesys CTI middleware - There are two aspects to the middleware. First, with a screen pop to the agent desktop talk time is reduced (as well as call handling time - no need to key in information), agents can greet customers by name, helping to set the stage for a more personal and friendly interaction. Second, the middleware helps tie together the disparate call center systems, so that reports can be generated which clearly show how the call progressed through the call center - all the different systems it touched, how long it remained in any given area, etc.
• Front-office automation - The Siebel 98 installation is probably the feather in this call center's cap. It's also a fine example of how a call center can benefit from cutting-edge technology. The Siebel solution has an Internet Explorer look and feel, making it intuitive and easy to use. It runs on Windows 95/98 and Windows NT server with a Microsoft SQL server back-end.
  
  The Siebel installation enables cradle-to-grave call tracking, very useful in tech support or help desk environments, lets the agents (sales and service reps alike) view complete customer histories, including information about earlier purchases, service contracts and current hardware and software deployments, all of which serve to decrease talk time, allowing agents to focus on what's important - quickly solving the customer's problem. In the customer/agent conversation I sat in on, the agent even referred to that feature in speaking with the customer, which is, in my opinion, a great way to build customer satisfaction.
  
  With Siebel, agents have immediate access to a comprehensive online knowledge base (called LORE), which can help accelerate problem resolution, further decrease talk time and thus further reduce telecom and agent-related costs, as I alluded to earlier. Mr. Vance noted that the search feature is one the agents are particularly excited about - it enables them to solve customer problems much more quickly, which builds their confidence and helps them exude an even more professional and knowledgeable presence.
• Call routing/skill-set routing is currently handled by a Nortel Meridian Max 81C. Although satisfied with the switch's performance up until now, Mr. Vance feels that its ACD feature set is too limiting for their business needs moving forward. Skills-based routing, at the agent rather than queue level, is the ultimate goal and since the CTI middleware, Siebel and the upgraded ACD can all do it, Mr. Vance will have to decide which routing package provides the most value with the least trade-offs.
• Workforce management/scheduling software - the CompUSA center uses TCS's SeriesFive software to meet the scheduling needs of its 500-agent workforce (they have plans to employ 1,000 and the center itself, in its current configuration, can seat an additional 400 above that number if necessary.) As I'm sure you're aware, trying to manage the diverse scheduling needs of 1,000 (or even 500) agents and applying that schedule to a call center environment so that service level is kept to a reasonable level is no mean task. Since labor is by far the biggest piece of a call center's cost, efficient staffing based on a projected call volume and service level can help ensure that those workforce-related costs are kept to a minimum. The last thing any call center wants is idle agents. Mr. Vance also expressed interest in the new skills-based scheduling release of TCS' SeriesFive product, which enables a tighter correlation between skills-based routing logic and agent skill sets and therefore more finely tuned staffing projections for a given call volume and service level. This increased precision might possess added value for the CompUSA call center given the variety of campaigns run.

If we can hop back two bullet points, it's worth mentioning that the installation of the Siebel solution was managed by Inforte, a systems integrator and consultant headquartered in Chicago, Illinois. Mr. Vance detailed a few reasons why CompUSA chose to use a systems integrator:

• As a strategic partner with Siebel, Inforte possesses expertise in the implementation of the Siebel product.
• Inforte also has a background in implementing solutions that concomitantly increase the internal effectiveness of sales, marketing and service operations while enhancing customer relationships and increasing the value of a company and its products in the eyes of its customers - which is basically what Siebel 98/99 is designed to do. Inforte also possesses expertise in the related fields of enterprise management solutions (i.e., financial management, order management and fulfillment, distribution, supply-chain management and human resources) and knowledge management solutions (i.e., solutions that facilitate the acquisition, sharing, usage and flow of information and knowledge across an enterprise).
• Inforte was responsive to CompUSA's timeframe - because of an outsourcing agreement CompUSA had entered, it was imperative that Siebel be up and running by April 2; Inforte began work the first week in March. Siebel 98 went live on April 1 (no foolin') and CompUSA was able to fulfill its obligation to its outsourcing partner. The Siebel product was subsequently rolled out to the rest of the call center under somewhat less harsh deadlines.
• The best way, in Mr. Vance's opinion, to achieve a speedy installation is not to overtax the internal IS department, bogged down as it may be with managing a thousand other responsibilities - since Inforte worked hard to meet the given deadline, CompUSA was able to meet its business objectives.

Since CompUSA is, and intends to remain, on the forefront of cutting-edge technology implementations (they're currently investigating Web chat, callback/callthrough and Web self-service products), I asked Mr. Vance about the criteria he uses in examining new applications. Perhaps you'll find them as interesting as I did:

• Does the new software add value? Mr. Vance doesn't look to simply eliminate a manual process, he looks for a solution that provides some additional benefit the center didn't have before.
• Does the technology fit the CompUSA corporate standard?
• Will it enable CompUSA to more efficiently and/or effectively serve its customers, and thus create more satisfied end customers both for itself and its outsourcing partners?
• What's the ROI?
• Is the new application worth the initial cost?
• How will the given product affect the quality of the call for the customer calling in? If it doesn't improve the customer's experience, is the technology worthwhile?

Cutting-Edge Management
Since I've discussed the technology in some depth, it's time we examined the real heart of any call center - the agents who bring the technology to life. Suzy Weaver, the director of the CompUSA National Call Center, summed up CompUSA's customer service (and employee-facing management policies) in a single sentence: "We want to own the customer." This philosophy cuts across all call types and informs customer- and employee-facing policies alike.

CompUSA, because of its position as a retailer and outsourcing partner, is in a unique position. They have a vested interest in the satisfaction of each and every end customer. Neither CompUSA nor its retail vendor partners (those original equipment manufacturers that use CompUSA as a distribution channel) want products sold in the stores to be returned. Offering end customers an option for telephone service and support gives CompUSA the chance to confront the customer's problem, helping to ensure they have a positive, satisfied experience both with the OEM and CompUSA. As an outsourcing partner, excellent results with end customers usually leads to increased client satisfaction and more business.

CompUSA doesn't define customer service, or agent performance, solely on the basis of number of calls taken. While that number is an important indicator of agent productivity, it's just as important for agents to:

• Be available to take calls when on duty,
• Adhere to their assigned schedules,
• Show up and perform to the best of their ability, and
• With those three reasonable requirements met, agents can be coached to meet more acceptable handling standards. I believe Ms. Weaver's point is simply this: high call-handling numbers won't be met by agents who aren't trained well enough to make those numbers nor motivated well enough to want to meet those demands.

Agent training and coaching, therefore, is thorough. Provisions are also made to ensure the agents realize he/she is of value to CompUSA, that their individual talents will be recognized and developed, and that if they work hard, a career path exists for them. In short, CompUSA wants to "own" their employees in the same way they desire to "own" their customers. We're all aware of how horrendous turnover can be in call centers; proper management and employee relations policies cost little in comparison to the cost of screening, hiring, training and then losing 200 agents every few months, but add so much value to the organization and its ability to provide topnotch customer service.

Training, Development And Career Pathing
Initial training lasts three weeks; new reps are taught the necessary sales, technical and soft skills before being assigned to a group. Each trainer "owns" his/her trainees, each supervisor (one for every 16 agents) "owns" his/her agents. When the agent goes live, he/she "owns" each call they handle; should an agent need to place a customer on hold to seek additional information or advice, they can conference with a mentor (a senior agent specifically hired and trained for the role) who'll provide the necessary input. The agent will then speak with the customer and resolve the issue.

Mentors maintain a database of these "incidents" for the agents they support. This record helps the mentors and supervisors personalize training to individual agent needs and it helps CompUSA constantly improve the quality of service it delivers.

Agents are monitored and reviewed at least seven times per month: by their supervisor three times, mentor three times and once by the quality assurance (QA) department. The quality monitoring is usually blind, but sometimes the supervisor will sit in on the call with the agent. The call is scored and the supervisor/mentor/QA rep is required to sit and review the call with the agent within 24 hours of the monitoring session. The score is then entered into CompIQ.

CompIQ (Information Quality) is a repository of comprehensive agent performance data stored in a "homegrown" application. CompIQ is used to track an agent's progress through the organization from the time he/she is interviewed, hired, assigned to a training class and then assigned call-handling activities. Information such as how a call is opened, the agent's technical expertise and communication skills, how a call was tracked, as well as non-call-related information like languages spoken, licenses and certifications that the agent may have acquired are all kept within CompIQ.

The agent, from the moment he/she is hired, is assigned a career coach who works with them to determine and outline, in detail, how the agent wants to progress through the organization. They work together on an ongoing basis, and the coach suggests various courses or certifications the agent can take or acquire to progress to the next level. A resource library, complete with all the software available in the CompUSA stores, is available for the agents to use; all the courseware for the training classes that CompUSA delivers is also available. CompUSA will pay for certification courses, and the company is a member of the Ziff-Davis' online educational program, so the agents can take courses, should they so desire.

From cutting-edge technology to management/employee-relations techniques, CompUSA's National Call Center is a great example of how a company can make strategic and intelligent use of its resources to increase revenue and cut costs.

The author may be contacted at mvartabedian@tmcnet.com.