Blog: The Brad Cleveland Files

Social Media: Channel or Strategy?

Terms related to social media are quickly evolving, and must be used and interpreted in context. For example, I’m often asked for advice on shaping a “social strategy.” It’s an important question — but without further definition, can be overly vague. Social media is a vast and ever-expanding array of platforms, tools and capabilities. It would be like referring to “Internet strategy” when the Web was gaining traction in the 1990s. There are implications for marketing, collaboration, production, HR, design, publicity, and much more.

Similarly, many in the profession, myself included, use the term “channel” for social media in the context of services and support. That’s accurate when we consider the fact that social media is a means for the customer to contact or interact with the organization (and vice versa) and the related work must be forecasted and appropriate staffing made. On the other hand, it’s arguably more than “just” a channel. Consider the one-to-many nature of service delivery; networking properties; the ability for a community of others with common interests to collaborate and share; and, the believability of friends’ advice and recommendations over advertising. Whereas an email or a phone call is self-contained, most social conversations inherently reach others — and in that sense, go beyond the confines of a traditional communications channel.

This area of management is evolving quickly, and terms will be added and clarified. It’s no problem to use any of them as they are, as long as they are expanded and explained as needed.

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What’s Driving Change in Customer Services?

The most significant developments to date have been on the organization’s end. Examples in contact centers: The invention of 800 number (toll free) service and ACD routing systems in the late 1960s and early 1970s; the introduction of workforce management capabilities and computer telephony integration in the 1980s; web browsers and Internet-based services in the 1990s; and more recently, the amazing developments in multimedia, cloud-based capabilities, analytics and so much more.

However… we are now seeing a major and fundamental shift. For the first time, developments on the customers’ end – the meteoric rise of smart phones, social media, broadband and mobility – are the most significant factors driving customer expectations and services. Given what is happening, I’m convinced we’ll see more change in the next five years than we’ve seen in the past two decades. We can harness and leverage the trends to our benefit, or we can get tumbled by them. We’re entering the new era of customer relationships.

(From the introduction to the new edition of Call Center Management on Fast Forward: Succeeding in the New Era of Customer Relationships, due out May 7, 2012.)

 

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The Contact Center’s Opportunity to Deliver Strategic Value

By harnessing what’s learned from interacting with customers, contact centers (call centers) have enormous potential to provide valuable intelligence and support to other parts of the company. Consider the value when the contact center:

  • Helps operational areas or manufacturing units pinpoint and fix quality problems, which boosts customer satisfaction and repeat purchases, reduces costs associated with warranties and repairs and prevents unnecessary contacts to the organization.
  • Helps marketing develop more effective campaigns. Having a better understanding of what customers need and want, and ensuring that marketing efforts target best prospects can improve response rates, reduce relative marketing costs, and help the organization boost market share.
  • Serves as an early warning system of potential legal troubles. Product defects, vulnerabilities discovered in the firm’s web site, inaccuracies in warranty statements or customer invoices—the call center is often first to hear of these issues.
  • Helps research and development (R&D) identify customer needs and the firm’s competitive advantages and disadvantages. Though they remain useful, focus groups, market research and traditional broad-based surveys simply can’t capture the depth and quality of intelligence that comes from interacting with customers on a day-by-day basis.
  • Enables the organization to improve self-service systems, based on the specific assistance provided to customers who opt out of or need help with these systems. This not only lowers the costs of providing customer service — it can also boost customer satisfaction and ensure that the contact center has capacity to focus on issues that really require or benefit from agent involvement.

In sum, when the contact center has an eye on the larger implications of quality and innovation, it will positively impact the entire organization’s workload, productivity and quality.

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Thriving Customer Relationships

What’s the formula for success in the new era of customer relationships? Boiled (waaayyy) down:

1. Connect. Listen to your customers, wherever they are, in whatever channel they choose. Join the conversation.

2. Engage. Interact with them, appropriately, proactively; put a face on your brand and build relationships that have staying power.

3. Thrive. Learn from interactions, and build a stronger and more profitable organization through better products, services and processes.

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The Measures Every Contact Center (Call Center) Should Have

The Measures Every Contact Center Should Have
By Brad Cleveland
These key categories of measures and objective are as important for Facebook and Twitter interactions as they are for traditional contact channels.
Establishing the right measures and objectives is one of the most important responsibilities in leading and managing a call center successfully. But there’s a significant inherent challenge, which has only become more difficult with the introduction of new channels and social contacts – we produce mounds of data! And even so, many organizations are operating without information that is essential to creating the best results.
Ultimately, you will need to establish measures and objectives that are right for your organization. But there are seven key categories of measures that should be in place in every customer contact center. They build on each other, and it helps to order them from the most elemental and tactical, to strategic. They include:
Forecast Accuracy. If you don’t have an accurate prediction of the workload coming your way, it’s almost impossible to deliver efficient, consistent service and achieve high levels of customer satisfaction. And that’s just as true for new social interactions as it has been for telephone, chat or email.
Schedule Fit and Adherence. If you have a good handle on the call center’s workload, you can build accurate schedules that ensure the right people are in the right places at the right times. This is best managed from the bottom up, with ample buy in, and is an important enabler to everything else you’re trying to accomplish.
Service Level and Response Time.  If customer conversations don’t get to the right places at the right times, then little else can happen. Establishing service level and response time objectives is a prerequisite to ensuring that the organization is accessible and part of the conversation, wherever customers choose to interact.
Quality and First-Contact Resolution.  Quality is the link between call-by-call activities and the organization’s most important high-level objectives. First-contact resolution is essentially an extension of quality — a tangible result of getting quality right. Quality measures should be applied to every type of customer interaction.
Employee Satisfaction.  Employee satisfaction clearly influences — even drives — customer satisfaction and is an essential measure in any environment. Further, retention, productivity and quality often have a definable, positive correlation to agent satisfaction.
Customer Satisfaction and Loyalty.  Customer satisfaction is essential in all environments and has greatest value as a relative measure and in conjunction with other objectives (e.g., how do changes in policies, services and processes impact customer satisfaction?). Customer loyalty is usually viewed through breadth and longevity of the customer’s relationship with the business.
Strategic Value.  What contributions can the call center make to favorably impact revenues, marketing initiatives, product innovations and other primary business objectives? Measures are often focused on contributions to improved quality and innovation, more leveraged marketing initiatives, more effective self-service systems, minimizing potential legal issues, and contributions to revenue – all ultimately based on the call center’s role in listening to, engaging in, and learning from customer interactions.
These are the essential categories, and other measures and objectives should be driven by your mission and objectives. For example, many customer service environments focus on customer satisfaction, efficiency issues and cost measures. Sales environments often base key objectives on revenue, cross-sell, upsell and customer retention activities. And encouraging the use of self-service systems and preventing contacts before they happen (e.g., by working with other business units to simplify features, fix glitches or improve manuals) are important objectives in many technical support environments.
As you home in on the right objectives, keep your eyes on creating maximum strategic value, and push hard to include all types of customer interactions in your plans and measures of success. You’ll also need to ensure that measures don’t become an end to themselves.  It’s often said that “what gets measured gets done,” but I believe that’s an over-simplification. I’ve seen organizations measure lots of things, yet not make sustained improvements in those areas, nor embrace the new ways that customers want to communicate. It’s a matter of, not only measuring the right things, but also focusing on them, working on them, building a culture that understands and contributes to them, and ultimately, building processes and ensuring that day-to-day activities and decisions support them.
As you establish measures in each of these categories, many good things begin to fall into place!
This article was originally published in the Global Report on Call Center Practices, by ICMI, www.icmi.com

These key categories of measures and objective are as important for Facebook and Twitter interactions as they are for traditional contact channels.

Establishing the right measures and objectives is one of the most important responsibilities in leading and managing a call center successfully. But there’s a significant inherent challenge, which has only become more difficult with the introduction of new channels and social contacts – we produce mounds of data! And even so, many organizations are operating without information that is essential to creating the best results.

Ultimately, you will need to establish measures and objectives that are right for your organization. But there are seven key categories of measures that should be in place in every customer contact center. They build on each other, and it helps to order them from the most elemental and tactical, to strategic. They include:

  • Forecast Accuracy. If you don’t have an accurate prediction of the workload coming your way, it’s almost impossible to deliver efficient, consistent service and achieve high levels of customer satisfaction. And that’s just as true for new social interactions as it has been for telephone, chat or email.
  • Schedule Fit and Adherence. If you have a good handle on the call center’s workload, you can build accurate schedules that ensure the right people are in the right places at the right times. This is best managed from the bottom up, with ample buy in, and is an important enabler to everything else you’re trying to accomplish.
  • Service Level and Response Time.  If customer conversations don’t get to the right places at the right times, then little else can happen. Establishing service level and response time objectives is a prerequisite to ensuring that the organization is accessible and part of the conversation, wherever customers choose to interact.
  • Quality and First-Contact Resolution.  Quality is the link between call-by-call activities and the organization’s most important high-level objectives. First-contact resolution is essentially an extension of quality — a tangible result of getting quality right. Quality measures should be applied to every type of customer interaction.
  • Employee Satisfaction.  Employee satisfaction clearly influences — even drives — customer satisfaction and is an essential measure in any environment. Further, retention, productivity and quality often have a definable, positive correlation to agent satisfaction.
  • Customer Satisfaction and Loyalty.  Customer satisfaction is essential in all environments and has greatest value as a relative measure and in conjunction with other objectives (e.g., how do changes in policies, services and processes impact customer satisfaction?). Customer loyalty is usually viewed through breadth and longevity of the customer’s relationship with the business.
  • Strategic Value.  What contributions can the call center make to favorably impact revenues, marketing initiatives, product innovations and other primary business objectives? Measures are often focused on contributions to improved quality and innovation, more leveraged marketing initiatives, more effective self-service systems, minimizing potential legal issues, and contributions to revenue – all ultimately based on the call center’s role in listening to, engaging in, and learning from customer interactions.

As you home in on the right objectives, keep your eyes on creating maximum strategic value, and push hard to include all types of customer interactions in your plans and measures of success. As you establish measures in each of these categories, many good things begin to fall into place!

This post is excerpted from the Global Report on Call Center Practices, published by ICMI.

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Trends We are Watching: Call Centers are in a Growth Mode

Call centers (contact centers) are growing. Here are a few samples of recent news stories:

WLBZ2, Maine: http://tinyurl.com/3lcf93c

Times and Transcript, New Brunswick:  http://tinyurl.com/3dnfm4r

ABC News: http://abcnews.go.com/WNT/video/jobs-call-centers-back-us-14243481

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The New Era of Customer Relationships: Are You Ready?

We are seeing the emergence of the greatest customer movement in history.  Is your organization ready?  Are you ready?

Studies reveal that the vast majority of consumers now use search engines, social communities and feedback sites to better understand a company’s commitment to service before making brand or product decisions.  Bad experiences (even if they are one in many thousands of interactions from an internal perspective) end up on blogs, tweets, video posts and rating sites – all readily found through search.  Good experiences also spread quickly, and organizations that consistently deliver great service can build phenomenal and resilient brand loyalty.

In short, customer service – and its central component, customer communication – has never been more important.  So, what will the next era of customer communication look like?  How will your organization need to evolve to remain competitive?

From the customer’s perspective, accessibility to information and service will continue to evolve dramatically.  Today’s smart phones, location-based services, video capabilities, social media, and similar developments, point to a future where resources are only a click (or voice prompt) away.  Mono-media (i.e., traditional telephone) interactions will fade, as emerging multi-media capabilities enable face-to-face dialog, seamless sharing of files and content, and new kinds of communities and interactions.

How will customers use these capabilities?  Who will they reach out to? A big part of the answer will be in communities of people who have similar interests: other customers of specific companies, products or services; those interested in similar issues (i.e., travel, political concerns, health matters, local interests); others who are facing similar opportunities or challenges.  In many cases, these communities will be formed dynamically and quickly through readily available search and collaboration capabilities.

These trends are requiring organizations to rethink services and to better understand customers. The meaning and focus of customer service is changing. For example, the call center’s role is changing significantly. The next generation call center will be the internal engine organizations depend on not only to handle interactions with customers, but also to listen to and engage in external communities.  It will take on more of a “level 2” role, handling interactions not resolved through self-service and communities.  And it will be integrated with other business functions at a much deeper level, e.g., to help operations pinpoint quality problems, marketing develop more focused campaigns, IT design better systems, and to be an early indicator of marketplace developments and changing customer needs.

The nature of customer-facing job roles will also change – they will require more complex analysis, know-how, and empowerment.  Interactions will increasingly involve multiple channels and serve customers that are well connected, informed about their options and diverse in their needs and expectations.

What does your organization need to do now to prepare for the changes ahead?  Important steps include:

  • Provide a full range of access choices to customers – enabling them to reach the information and service they need through the channels they want to use. This includes cultivating, supporting and helping to build communities that matter to your customers.  And it means updating your customer access strategy, so that you are “operationalizing” the good intentions you have to build strong customer relationships.
  • Tend to the essentials – manage workloads effectively so that as customer needs evolve, your organization is accessible and provides consistent high levels of service and quality.  This includes accurate forecasting and staffing, as well as establishing the right objectives and metrics at every level.
  • Take every opportunity during service delivery to build customer relationships and capture insight that can be used for innovation and product improvement.  You can’t leave it to chance – you have to bake this into tools, expectations and measures.
  • Build a strong organization (hire right, train well) with a cross-functional commitment to serving customers and building relationships.  This is a prerequisite to all of the above.

Organizations that rely on past practices will pay a heavy price.  But the returns for those who understand the trends and cultivate the right services will likely be significant and include benefits such as:

  • Extraordinary loyalty
  • Cost efficiencies (right channel for the right purpose)
  • Customer-driven innovation
  • Improved market share
  • Additional sales and revenue
  • Positive brand recognition and word of mouth

This is a time of great change.  There is enormous opportunity for any organization that takes the right steps to build strong customer relationships and differentiate through service.  There will be peril for those that do not.

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Shaping Your Customer Access Strategy for Social Media

(Note, a full version of this post recently appeared in ICMI’s Global Report on Call Center Practices.  To subscribe, see link at bottom.)

While social media projects often begin as marketing initiatives or as the responsibility of newly established cross-functional teams, the contact center invariably assumes a more central role as resource requirements for listening and interacting become evident.

To put effective services in place, you need an updated plan – a customer access strategy that encompasses social media. Here’s a snapshot of how each of the nine components of a customer access strategy are evolving, in the context of social media:

CUSTOMERS: Beyond customers who interact through traditional channels (phone, email, chat, etc.), you’ll need listening tools for tuning in to the broader conversation – who is having discussions about your company through blogs, twitter, ratings sites, etc.? How to you best reach and reach out to them?

CONTACT TYPES: This step anticipates and identifies the major types of discussions that will occur – e.g., orders, inquiries, policies, customer support, complaints and compliments, company direction, etc.

ACCESS ALTERNATIVES: This step – where strategy really begins to hit home for call centers – identifies the sources through which service and dialog take place. Traditional communication channels – telephone, email, chat, self-service, postal mail, et al. – are being joined by peer-to-peer networks, Facebook, Twitter, blogs, user-feedback communities, and a plethora of other sources.

HOURS OF OPERATION: The conversation takes place 24 x 7, but whether that impacts the resource approach you take in listening and interacting depends on the nature and importance of the issues being discussed, and service and brand implications of providing timely input.

SERVICE LEVEL AND RESPONSE TIME OBJECTIVES: As with hours of operation, your service level objectives should be driven by the gravity of the issues at hand and the responsiveness appropriate to your brand and to your customers’ expectations.

ROUTING METHODOLOGY: This step defines the tools and processes necessary to listen to and filter conversations, and deliver issues that would benefit from interaction to agents who can then respond appropriately. Think of automatic call distribution (ACD) capability for social media interactions.

PERSON/TECHNOLOGY RESOURCES REQUIRED: This component addresses key questions: Who will handle interactions with the conversation, and what tools and systems will they need?

INFORMATION REQUIRED: What information on customers, products and services will need to be accessible to agents and customers? What information should be captured? How will the organization comply with applicable privacy or reporting requirements?

ANALYSIS AND BUSINESS UNIT COLLABORATION: This step defines how the information captured and produced during listening and interactions will be used to better understand those involved in the conversation, as well as to improve the organization’s products, services and processes. You may also want to summarize major performance objectives and how the contact center’s value and contributions will be measured.

GUIDELINES FOR DEPLOYING NEW SERVICES: The customer access strategy should outline a framework for deploying new services, including technology architecture (corporate standards and technology migration plans) and investment guidelines (priorities and plans for operational and capital expenditures). Social media will be an increasingly important consideration in these decisions.

Developing a sound strategy that encompasses the fast-evolving demands of social media takes leadership, participation from across the organization, and a lot of collaboration. But the payoff is compelling – you’ll be in a position to leverage and benefit from the conversation, and not be a victim of its whims.

(Note, a full version of this posting recently appeared in ICMI’s Global Report on Call Center Practices.  To subscribe, go to http://www.icmi.com/subscriptions/)

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Perspective on First Call Resolution

First-call resolution (FCR) is an increasingly popular performance measure in customer contact environments. And that’s a good thing: Unresolved contacts are a common source of customer dissatisfaction, and the organization tends to incur many additional expenses (e.g., repeat calls, rework, etc.) when issues are not fully resolved.

However, despite clear benefits, FCR must be implemented carefully. Several important lessons have emerged, including:

  • Keep in mind that accurate comparisons with other organizations are difficult since definitions of “resolved contact” vary widely. Focus on developing an appropriate definition for your environment, and stick to it so that you’ll have a stable, relative measure.
  • Learn to think critically when interpreting FCR. An exceptionally high FCR rate may point to many simple contacts that can be prevented before they happen.
  • Treat FCR as an organizationwide initiative. When an issue is not resolved on the first contact, the problem often may be found outside the call center (e.g., with product or service documentation, functionality, processes, etc.).
  • Track FCR at least two ways—as an internal measure, and based on whether or not customers feel that their issues were resolved on the first contact (via survey feedback). If these measures don’t closely correlate, find out why.

Above all, keep your eyes on the prize – true business results, such as customer loyalty, profitability and market share. Remember that FCR is just a supporting indicator, not the end game.

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Leading organizations are restructuring for better service

Many organizations are restructuring so that all channels of contact with customers are under the same management umbrella.  This is causing enormous internal structural change that involves IT, HR, marketing, operational areas – and virtually every other department.  Whatever the final structure, all contact channels must be planned and operated cohesively – each impacts the others.

To Whom Does the Call Center Report?

Chief Operating Officer                     24.8%

CEO/President                                    15.9%

Chief Customer Officer                      6.7%

Chief Marketing Officer                     5.7%

Chief Financial Officer                       4.8%

Chief Information Officer                  3.2%

Other                                                   38.9%

Source: ICMI Report, Executives and the Contact Center

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