Site Selection for your Contact Center
The boss has just asked you to head up the search for a new location for your contact center. You are flattered by the confidence that the boss has in you, you are confident that you can accomplish this task, just as soon as you figure out what to do. The business of site selection has changed considerably in the past decade.
Ten or fifteen years ago we worried about moving our call center off the subway line and today we worry about relocated the center internationally. In both scenarios the key to finding the best or ideal location was tied to finding or keeping staff. In a intra-city move you are concerned with where you can locate and retain most of your staff. In a search to find a location outside of the urban location you previously occupied the focus become where can we locate a center and have access to potential staff.
Of course the connection between labour and location is not and cannot be the only consideration, or if salary cost was king we all would have off-shored our call centers long ago. No, labour, labour availability are critical factors but not the only ones. Other factors that require attention. At Watts we developed a center location matrix that considered 134 factors on a weighted score basis that created a range of more than 500 basis points from the worst possible to the best possible scores. It is important that you develop your own matrix for evaluating and assessing potential locations. Some of the factors that you should consider would include not only staff or workforce issues ( what is the population, what is the employment/unemployment levels, workforce participation, college, university or military base presence all speak to potentially available labour which could be potential recruiting targets for the call center. Assessing the number, type, function and staffing levels of existing call & contact center can provide guidance related to the level of saturation that call/contact center represent in the local workforce. It is important that we locate in a market where we can identify potential sources of employees and identify that there are enough potential workers to support the center, but we also nee to look at how many of them are presently employed in call or contact centers. In my opinion the lower the saturation the better, though you can no longer find locations without contact centers you can find locations that have low saturation levels. We recommend to our clients that markets with more than 6% of their workforce presently supporting call/contact centers will represent on-going recruiting and retention issues, while under 3% can tend to be stable and much easier to operate within. Given that labor is the single greatest expenses in a call center and the cost to recruit a single agent exceed $3,000 finding a stable and easily maintained environment is highly desirable. Other factors for general site consideration would include:.
Population local
Population 45 minute draw area
Workforce Local
Workforce 45 minute draw area
Unemployment %
Unemployed
Under-Employment %
Under-Employed
Participation Level
College/University
Military Base
Other Call Centers
# Type of Centers
Total Call Center Seats
Call Center Saturation
Call Center Saturation
Proximity to airport
Available Real Estate
Estimated Operating Rent
Estimated Leasehold Improvements
Build to Suit' Options
Population Growth %
Average Income
Average house price
Level of Education (% of Pop)
Quality of Life
Public Transit
Infrastructure- Public
Infrastructure- Electricity
Infrastructure- Telecom
Severe Weather Occurances
Available Incentives
Incentives
Right to Work State
History of Union activity
Starting Call Center Wage
Median Wage Customer Service
Some of these suggested criteria are straight forward and others require some explanation. Infrastructure is critical to call center operations. We expect the call center to operate regardless of external factors. Of course we can provision for business continuity through back up power, redundant telephony connectivity etc, but the single largest factor influencing operational survivability will be the location and its pre-disposition to: floods, power outages, hurricanes, snow etc. Of course we must remember that some locations such as the Canadian Atlantic region may get a great deal snow each season they are used to this and have built buildings and infrastructure in expectation of these conditions. Businesses in the State of Virginia lose more work-days to snow than does Prince Edward Island.
Real estate in any considered location is alos critical. If you have found a great market with no available real estate that is suitable, then you options become delaying the project in hopes that something suitable becomes available (unlikely in a small market) or to delay the project and build to suit. This is often a longer and more capital intense option, though can proven to be have the lowest total cost of ownership/operation over a 5-10 year operating window.
The prevalent wages in the target market, associated level of education at that wage level, prevalence of union activity are all valid considerations and ones you must assess and incorporate in building a budget.
If you are considering a US location you will find some additional considerations: Right to work states, which ironically really reflects that the opposite of the right to strike. Right to work states tend to be significantly more favourable to business than non-right to work to work states. The second key factor can be one party versus two party states. This refers to the number of parties that need to be informed that a call is being monitored or recorded. Of course a two party consent state will require that the customers consent be secured whereas in a one party state this is not required.
Incentives opposite job creation still exist though the salad days of governments handing out millions without any real basis for accountability or reconciliation. Today the available incentives are closely tied (where present) to long term employment and are generally available as tax credits in the US and training grants within Canada. In both countries this is positioned as ‘recoverable’ meaning that the government can recover these dollars should the company fail to deliver the agreed employment levels.
Finding a new call or contact center (or any back office function can be very challenging) and that is why a number of firma and organizations have come into existence to serve this market. They generally fall into two camps: real estate driven companies, often spun off from commercial real estate firms that see call and contact center as desirable tenants, who seek new tenants for suitable vacant space. The second type are consulting firms who approach this from a form & function perspective. There are a number of excellent firms within each of these groups and your determination of which is better for you often comes down to the level of specialization and uniqueness your center possesses. The more specialized in terms of staff, space requirements and the smaller the size the less interesting it will be to a real estate based firm.
Before you do anything to find a new location, assess what has worked well and what has work less well in your current location and start to compile a wish list for your new location and the either start to contact potential jurisdictions you feel align well with your goals and objects or begin to interview and external firm that has the experience and capabilities to assist you in this endeavour. In my experience building, operating our own centers and assisting client to source more than 40 center locations I have employed all of the above approaches and no one is the best. Your choice will be , as mine have been based upon the specific goals, objectives, timelines and budgets of the project. So long as you do your homework you can succeed in creating a productive, efficient and cost-effective location for your new call center that will remain so for many years.
Saturday, September 22, 2007
Thursday, September 20, 2007
Contact Center Industry Stats
Industry Size
There are presently 60,850 contact centers (with 10 seats or more) in North America, representing 3.3 million agent positions[1]. Those centers with less than 100 seats represent more than 44% of all contact centers and 1.36 million agent positions.
Gartner has valued the Customer Interactions Services Industry (contact centers) at $28 billion dollars per annum within North America, with 30% or $8.4 billion) of this figure representing outsourced activity Outsourcing service agencies (both inbound and outbound) represent 5.1% of the total number of contact centers equating to approximately 2,900 centers. These centers have a disproportionate representation in agent positions (AP’s) with approximately 313,000 AP’s. The average Outsource agency footprint is 108 agents per center (versus the overall average of 54 agents per center across the industry), or 10.2% of all North American agent positions.
In Canada, the outsource vertical represents 8.9% of the approximately 4,000 Canadian contact centers. There are over 41,000 outsource agency AP’s in Canada, representing 14.2% of AP’s. This equates to an average outsource contact center footprint of 118 agent positions.
The shift from US domestic call center locations to offshore and near shore locations will continue for the foreseeable future with US outsource agency seats declining an estimated 8.5% from 2004 to 2008[2]. Contact Babel has forecast that the number of AP’s in the US will shrink by 2% between 2006 and 2010. While the number of Canadian AP’s will grow by 8.6%. The majority of the estimated 40,000 AP’s lost over this time will be a result of move to nearshore and offshore locations. The largest USA AP reductions are forecast to be in the outsource space with a 6.6% reduction. This is followed by Telecom and Finance declining 6.0% and 4.4% respectively. These two verticals alone represent Full Time Equivalent (FTE) employment loss of more than 75,000 jobs over this period. Strong growth in other verticals, Public Services in particular offsets the overall declines to a degree. Retail support, catalogues, shopping and logistics will remain the largest verticals each with more 480,000 AP’s.
The following table presents the McKinsey perspective on the outsourced suitability and risk. While this was published in 2004, it remains accurate today.
[Contact Author for full content]
Figure 1: McKinsey 2004
If we examine specifically the call and contact center industry the following hierarchy exists in relation to suitability of work to be outsourced and/or off-shored. As the chart below illustrates the key considerations revolve around the complexity of the transaction and the value of the underlying business relationship that the transaction is a part of.
[Contact Author for full content]
The lower the transaction complexity, and the lower the underlying relationship value, the greater the likelihood of the task being outsourced or offshored. The likelihood of success, from a clients perspective, of the outsourcing endeavour also increases the lower the complexity and relationship value.
The US contact center industry by region
Region
Agent Positions
Jobs
Contact Centers
Working Population
% Employed in Contact Centers
Average size (AP’s)
West
583,159
991,370
12,246
32,392,000
3.1%
48
North-East
810,399
1,377,678
13,344
26,359,000
5.2%
61
Midwest
791,838
1,346,125
14,230
32,724,000
4.1%
56
South
884,604
1,503,827
17,080
50,235,000
3.0%
52
TOTAL
3,070,000
5,219,000
56,900
141,710,000
3.7%
54
Contact center density, the percentage of the workforce employed in call and contact centers as a percentage of the total workforce, ranges from a high of 6.2% of the population employed in contact centers in New England to a low of 2.3% in East South Central (Kentucky, Tennessee, Mississippi and Alabama). Higher density equates to higher wages or turnover and higher operating costs for the center. This density also results in the majority of new center construction occurring in areas where the center density is under 3% (East South Central, South Atlantic and Pacific). Over time this trend will continue to drive up wages, turnover and operating costs and increase the density in those areas.
[1] North American Contact Centers Report- Contact Babel
[2] Contact Center Outsourcing in the United States - Datamonitor
There are presently 60,850 contact centers (with 10 seats or more) in North America, representing 3.3 million agent positions[1]. Those centers with less than 100 seats represent more than 44% of all contact centers and 1.36 million agent positions.
Gartner has valued the Customer Interactions Services Industry (contact centers) at $28 billion dollars per annum within North America, with 30% or $8.4 billion) of this figure representing outsourced activity Outsourcing service agencies (both inbound and outbound) represent 5.1% of the total number of contact centers equating to approximately 2,900 centers. These centers have a disproportionate representation in agent positions (AP’s) with approximately 313,000 AP’s. The average Outsource agency footprint is 108 agents per center (versus the overall average of 54 agents per center across the industry), or 10.2% of all North American agent positions.
In Canada, the outsource vertical represents 8.9% of the approximately 4,000 Canadian contact centers. There are over 41,000 outsource agency AP’s in Canada, representing 14.2% of AP’s. This equates to an average outsource contact center footprint of 118 agent positions.
The shift from US domestic call center locations to offshore and near shore locations will continue for the foreseeable future with US outsource agency seats declining an estimated 8.5% from 2004 to 2008[2]. Contact Babel has forecast that the number of AP’s in the US will shrink by 2% between 2006 and 2010. While the number of Canadian AP’s will grow by 8.6%. The majority of the estimated 40,000 AP’s lost over this time will be a result of move to nearshore and offshore locations. The largest USA AP reductions are forecast to be in the outsource space with a 6.6% reduction. This is followed by Telecom and Finance declining 6.0% and 4.4% respectively. These two verticals alone represent Full Time Equivalent (FTE) employment loss of more than 75,000 jobs over this period. Strong growth in other verticals, Public Services in particular offsets the overall declines to a degree. Retail support, catalogues, shopping and logistics will remain the largest verticals each with more 480,000 AP’s.
The following table presents the McKinsey perspective on the outsourced suitability and risk. While this was published in 2004, it remains accurate today.
[Contact Author for full content]
Figure 1: McKinsey 2004
If we examine specifically the call and contact center industry the following hierarchy exists in relation to suitability of work to be outsourced and/or off-shored. As the chart below illustrates the key considerations revolve around the complexity of the transaction and the value of the underlying business relationship that the transaction is a part of.
[Contact Author for full content]
The lower the transaction complexity, and the lower the underlying relationship value, the greater the likelihood of the task being outsourced or offshored. The likelihood of success, from a clients perspective, of the outsourcing endeavour also increases the lower the complexity and relationship value.
The US contact center industry by region
Region
Agent Positions
Jobs
Contact Centers
Working Population
% Employed in Contact Centers
Average size (AP’s)
West
583,159
991,370
12,246
32,392,000
3.1%
48
North-East
810,399
1,377,678
13,344
26,359,000
5.2%
61
Midwest
791,838
1,346,125
14,230
32,724,000
4.1%
56
South
884,604
1,503,827
17,080
50,235,000
3.0%
52
TOTAL
3,070,000
5,219,000
56,900
141,710,000
3.7%
54
Contact center density, the percentage of the workforce employed in call and contact centers as a percentage of the total workforce, ranges from a high of 6.2% of the population employed in contact centers in New England to a low of 2.3% in East South Central (Kentucky, Tennessee, Mississippi and Alabama). Higher density equates to higher wages or turnover and higher operating costs for the center. This density also results in the majority of new center construction occurring in areas where the center density is under 3% (East South Central, South Atlantic and Pacific). Over time this trend will continue to drive up wages, turnover and operating costs and increase the density in those areas.
[1] North American Contact Centers Report- Contact Babel
[2] Contact Center Outsourcing in the United States - Datamonitor
Sunday, September 16, 2007
IP Telephony Seminar in Toronto
If you are considering deploying VoIP or IP telephony in your organization, then this seminar will be of interest to you. The seminar on Oct 3rd at the Toronto Board of Trade is being hoosted by Premcom who have just opened up a Toronto office. Premcom is based i n Buffalo NY and hasbeen one of ShoreTel's top resellers for a number of years.
The seminar will include on overview to VoIP and specific details on the ShoreTel approach and architecture. There will also be a full demonstration of ShoreTel IP telephony.
ShoreTel is the only 'pure' IP telphony manufacturer. Other manufacturers have compromised their architecture by dragging extensive legacy requirements or have compromised their architecture through acquisition. The architecture is what sets ShoreTel appart and is one of the reasons it has been rated #1 in user satisfaction four years in a row by independant research company Nemertes.
Pure IP architecture, Ease of use and low TCO are just a few reasons you should attend this seminar. You can register by calling 416-979-2130 or send an email to me at ctaylor@premcom.com and we will send you and invitation.
The seminar will include on overview to VoIP and specific details on the ShoreTel approach and architecture. There will also be a full demonstration of ShoreTel IP telephony.
ShoreTel is the only 'pure' IP telphony manufacturer. Other manufacturers have compromised their architecture by dragging extensive legacy requirements or have compromised their architecture through acquisition. The architecture is what sets ShoreTel appart and is one of the reasons it has been rated #1 in user satisfaction four years in a row by independant research company Nemertes.
Pure IP architecture, Ease of use and low TCO are just a few reasons you should attend this seminar. You can register by calling 416-979-2130 or send an email to me at ctaylor@premcom.com and we will send you and invitation.
Tuesday, September 11, 2007
10 Dumb Things Smart Contact Center Executives Do
Ten dumb things smart Contact Center Executives Do
There are a lot of smart, very smart individuals managing and directing call and contact centers today. Yet, these bright, bright people still manage from time to time to do things that defy understanding. This is my top ten list of really dumb things that smart call and contact center executives do. If you have any dumb things to add to the list let me know by email at ctaylor@thetaylorreachgroup.com .
1- Don’t invest in training or professional development.
We spent enough money to train them when they were hired, why would we want to keep them current on changes in the company our processes our customers or technology. They’ll figure it out. Besides we can always use the dollars allocated to training for other areas like executive retreats.
2- Don’t stay current on new technologies impacting on the call and contact center operations.
After all why would we want home agents, speech recognition, higher quality or better staff morale and management?
3-Don’t read trade press, blogs and newsletters.
We already know everything, and besides who has time to read when I an constantly in meetings.
4-Don’t include remote staff in your operational budget.
There aren’t very many of them out there…is there?
5-Don’t share new technologies and their capabilities with senior management.
They will just say no, so what is the point.
6-Don’t share ideas concepts and results with Marketing.
After all they never share with you.
7-Don’t consider the agents point of view when you examine new technologies.
Its just one extra open window on their desktop…they have done fine with the current 14 so what’s one more window?
8- Don’t give agents authority to make any decisions.
It is important that managers make all decisions…I know it is only a $.49 credit, but it’s the principal of the thing.
9- Don’t take a long term view of your incentive program.
Incentive programs are designed to generate short term results. I just don’t understand that while our incentive to reduce average handle time was so successful our call volume increased substantially.
10- Don’t share with HR the staff and skills/competencies work best in the center.
Turnover is a part of life in a contact center so we shouldn’t try to address it.
Each one of the above list reflects comments (or a paraphrased version) that I have heard from contact center executives. Each of the above points reflects a narrow and/or short term view of the center. Now as I said above these are clever people, so how can such ‘tunnel vision’ exist within a group of specialists? The can be many causes that can create situations of ‘tunnel vision’, these can include:
Lack of time: The old saw that “meetings are a nice alternative to work” rings true in many organizations and contact center are not exempt. Days filled with meetings, limits interaction with direct reports, free time to review news stories, white papers, technology articles etc. it also reduces time to speak with industry peers, to attend conferences or seminars. All of this leads the manager little option but to continue to rely on the status quo in operations as this is the only environment the manager is comfortable and knowledgeable about.
Conflicting objectives: Often contact centers are asked to deliver multiple objectives simultaneously: improve customer satisfaction and reduce costs, or increase first call resolution, but don’t spend anything on additional training. These examples of conflicted objectives are frequent occurrences in contact centers today. Mission Statements focus on “providing world class customer service”, but the contact center receives no budget to deliver this.
Unclear objectives: Centers are often charged with broad mandates to “deliver excellent customer care” but benchmarks and standards are not defined to allow the contact center to know how success will be measured.
Each of the above three examples leads the contact center management to revert to what they are most comfortable and those things that they can quantify without ambiguity. Further they tend to focus on the short term as there is no clear long term vision or plan. In short this is what they have done before and what they are doing now. This approach is not conducive to looking forward or acting proactively. To the contrary this approach ensures that the management focuses on the past. The end result is bright contact center executives then make dumb decisions.
There are a lot of smart, very smart individuals managing and directing call and contact centers today. Yet, these bright, bright people still manage from time to time to do things that defy understanding. This is my top ten list of really dumb things that smart call and contact center executives do. If you have any dumb things to add to the list let me know by email at ctaylor@thetaylorreachgroup.com .
1- Don’t invest in training or professional development.
We spent enough money to train them when they were hired, why would we want to keep them current on changes in the company our processes our customers or technology. They’ll figure it out. Besides we can always use the dollars allocated to training for other areas like executive retreats.
2- Don’t stay current on new technologies impacting on the call and contact center operations.
After all why would we want home agents, speech recognition, higher quality or better staff morale and management?
3-Don’t read trade press, blogs and newsletters.
We already know everything, and besides who has time to read when I an constantly in meetings.
4-Don’t include remote staff in your operational budget.
There aren’t very many of them out there…is there?
5-Don’t share new technologies and their capabilities with senior management.
They will just say no, so what is the point.
6-Don’t share ideas concepts and results with Marketing.
After all they never share with you.
7-Don’t consider the agents point of view when you examine new technologies.
Its just one extra open window on their desktop…they have done fine with the current 14 so what’s one more window?
8- Don’t give agents authority to make any decisions.
It is important that managers make all decisions…I know it is only a $.49 credit, but it’s the principal of the thing.
9- Don’t take a long term view of your incentive program.
Incentive programs are designed to generate short term results. I just don’t understand that while our incentive to reduce average handle time was so successful our call volume increased substantially.
10- Don’t share with HR the staff and skills/competencies work best in the center.
Turnover is a part of life in a contact center so we shouldn’t try to address it.
Each one of the above list reflects comments (or a paraphrased version) that I have heard from contact center executives. Each of the above points reflects a narrow and/or short term view of the center. Now as I said above these are clever people, so how can such ‘tunnel vision’ exist within a group of specialists? The can be many causes that can create situations of ‘tunnel vision’, these can include:
Lack of time: The old saw that “meetings are a nice alternative to work” rings true in many organizations and contact center are not exempt. Days filled with meetings, limits interaction with direct reports, free time to review news stories, white papers, technology articles etc. it also reduces time to speak with industry peers, to attend conferences or seminars. All of this leads the manager little option but to continue to rely on the status quo in operations as this is the only environment the manager is comfortable and knowledgeable about.
Conflicting objectives: Often contact centers are asked to deliver multiple objectives simultaneously: improve customer satisfaction and reduce costs, or increase first call resolution, but don’t spend anything on additional training. These examples of conflicted objectives are frequent occurrences in contact centers today. Mission Statements focus on “providing world class customer service”, but the contact center receives no budget to deliver this.
Unclear objectives: Centers are often charged with broad mandates to “deliver excellent customer care” but benchmarks and standards are not defined to allow the contact center to know how success will be measured.
Each of the above three examples leads the contact center management to revert to what they are most comfortable and those things that they can quantify without ambiguity. Further they tend to focus on the short term as there is no clear long term vision or plan. In short this is what they have done before and what they are doing now. This approach is not conducive to looking forward or acting proactively. To the contrary this approach ensures that the management focuses on the past. The end result is bright contact center executives then make dumb decisions.
Tuesday, September 4, 2007
Busy Summer
We it has sure been a busy summer...
Lots of consulting projects:
- helped a large not-for-profit: integrate 2 call centers, source a new IP Telephony system and designed and help build an enterprise knowledgebase system,
-helped a publisher assess outsourcing, option, costs and ROI,
-Helped a sports equipment manufacturer measure the satisfaction of their channel partners with the organization
-Opened an Atlanta office http://www.thetaylorreachgroup.com/news.php?item=20070814_075955.txt
In addition we grew Teleffective ( www.teleffectiveinc.com ) our B2B telesales organization with new contracts selling high end projectors ($15,000 units), high end large format printers ($12,000), online directory advertising, online recruitment sales, waste removal services.
TRG has also joined forces with one of the most successful IP telephony resellers, network servi ces companies, based in Buffalo NY, Premcom, www.premcom.com . TRG will assist Premcom in establishing a Toronto office. This move will open up Canada to ShoreTel the number 1 rated IP Telephony system for the 4th year in a row according to Nemertes Reasearch http://www.shoretel.com/resources/industry_research/nemertes_report.html
We'll keep pou posted on future developments
Lots of consulting projects:
- helped a large not-for-profit: integrate 2 call centers, source a new IP Telephony system and designed and help build an enterprise knowledgebase system,
-helped a publisher assess outsourcing, option, costs and ROI,
-Helped a sports equipment manufacturer measure the satisfaction of their channel partners with the organization
-Opened an Atlanta office http://www.thetaylorreachgroup.com/news.php?item=20070814_075955.txt
In addition we grew Teleffective ( www.teleffectiveinc.com ) our B2B telesales organization with new contracts selling high end projectors ($15,000 units), high end large format printers ($12,000), online directory advertising, online recruitment sales, waste removal services.
TRG has also joined forces with one of the most successful IP telephony resellers, network servi ces companies, based in Buffalo NY, Premcom, www.premcom.com . TRG will assist Premcom in establishing a Toronto office. This move will open up Canada to ShoreTel the number 1 rated IP Telephony system for the 4th year in a row according to Nemertes Reasearch http://www.shoretel.com/resources/industry_research/nemertes_report.html
We'll keep pou posted on future developments
Monday, August 6, 2007
Don't buy a phone system until you read this
The folowing press release represents a great opportunity for any company in Canada considering a new telephone system. I have worked on numerous telephony RFP's and have been consistently impressed with the ShoreTel syste. Quite frankly it is the only pure IP telephone system designed from the ground up. Superior architecture, lower total cost of ownership and the highest customer satisfaction, make ShoreTel a must to review before you purchase any new telephone system.
For Immediate Release
Press Contacts:
Peter Proulx – CEO – 716-629-3099
IP Telephony, Network Services Company expands to Canada
Peter Proulx, CEO PremCom Corporation, a Buffalo, NY Reseller and Integrator of Enterprise IP Telephony Solutions and Network Services announced today the establishment of a new Toronto office.
“Our new office will allow us to expand our reach and service base beyond New York State”, said Proulx, “and allow us to offer Canadian customers the best IP telephony and network services solutions available.” PremCom sells ShoreTel IP Phone Systems, ShoreTel is the fastest growing IP PBX Company worldwide and the leader in customer satisfaction.
“We are excited about PremCom’s expansion into the Canadian market.”, said Peter Agricola, Northeast Area Sales Manager for ShoreTel, “PremCom has a proven track record for successful deployment of complex and large Enterprise IP phones systems. They have a proven track record with installations worldwide.”
Proulx also announced that PremCom has retained the telephony centric consulting firm: The Taylor Reach Group Inc. (TRG) to assist and support the new office launch. Colin Taylor the CEO of TRG said, “The establishment of a PremCom office in Toronto represents a giant step in terms of IP telephony options to Canadian companies.
PremCom is one of the leading ShoreTel partners and can now offer ShoreTel solutions to Canadian customers.”
The Toronto office is located at 19 Mercer St. Suite 300 in downtown Toronto. You can reach PremCom Canada at 416-979-2130. You can visit PremCom on the web at www.premcom.com. More information regarding ShoreTel can be found at www.shoretel.com . Immediate inquiries regarding PremCom services may be directed to Colin Taylor at the above number or at 416-276-9068.
About PremCom:
PremCom is an award winning provider of ShoreTel Voice over IP Telephone Systems. Established in 1992, PremCom is a single source provider for the design, installation and support of Communication and Data Networks, allowing organizations to optimize their information systems. PremCom has clients and installations across the USA and internationally. PremCom is a complete network services company providing VoIP Phone Systems, Network Servers, Network Communications Equipment and Cabling Infrastructure. PremCom is the Official Telephone Service Provider for the NHL Buffalo Sabres. www.premcom.com – 1-800-886-9267 – 85 Northpointe Pkwy. – Amherst, NY 14228
About The Taylor Reach Group, Inc.:
The Taylor Reach Group Inc. (TRG) was established in 2001 to assist companies and organizations improve their corporate and contact center services by focusing on telephone centric interactions. TRG award winning approach has assisted numerous companies such as Republic Services, Mercedes-Benz and Habitat for Humanity to improve their phone centric sales and service capabilities.
About ShoreTel, Inc.
ShoreTel is the fastest growing IP PBX Company worldwide and the leader in customer satisfaction. The company has shipped its groundbreaking solutions since 1998 and continues to outpace the rapidly expanding VoIP market with technological advances and sales that are doubling year over year. ShoreTel voice systems are designed to make businesses smarter, setting new standards for usability and manageability while reducing telecommunications costs. A uniquely distributed architecture extends enterprise-class voice services to every office and outpost, keeping employees fully connected wherever they go. A select, worldwide group of channel partners provide top-notch service and support. For more information, visit http://www.shoretel.com/ or call 1-877-80SHORE.
For more information about PremCom please contact:
Peter Proulx at (716) 691-0791.
For more information about TRG please contact:
Colin Taylor at (416) 276 9068
For Immediate Release
Press Contacts:
Peter Proulx – CEO – 716-629-3099
IP Telephony, Network Services Company expands to Canada
Peter Proulx, CEO PremCom Corporation, a Buffalo, NY Reseller and Integrator of Enterprise IP Telephony Solutions and Network Services announced today the establishment of a new Toronto office.
“Our new office will allow us to expand our reach and service base beyond New York State”, said Proulx, “and allow us to offer Canadian customers the best IP telephony and network services solutions available.” PremCom sells ShoreTel IP Phone Systems, ShoreTel is the fastest growing IP PBX Company worldwide and the leader in customer satisfaction.
“We are excited about PremCom’s expansion into the Canadian market.”, said Peter Agricola, Northeast Area Sales Manager for ShoreTel, “PremCom has a proven track record for successful deployment of complex and large Enterprise IP phones systems. They have a proven track record with installations worldwide.”
Proulx also announced that PremCom has retained the telephony centric consulting firm: The Taylor Reach Group Inc. (TRG) to assist and support the new office launch. Colin Taylor the CEO of TRG said, “The establishment of a PremCom office in Toronto represents a giant step in terms of IP telephony options to Canadian companies.
PremCom is one of the leading ShoreTel partners and can now offer ShoreTel solutions to Canadian customers.”
The Toronto office is located at 19 Mercer St. Suite 300 in downtown Toronto. You can reach PremCom Canada at 416-979-2130. You can visit PremCom on the web at www.premcom.com. More information regarding ShoreTel can be found at www.shoretel.com . Immediate inquiries regarding PremCom services may be directed to Colin Taylor at the above number or at 416-276-9068.
About PremCom:
About The Taylor Reach Group, Inc.:
The Taylor Reach Group Inc. (TRG) was established in 2001 to assist companies and organizations improve their corporate and contact center services by focusing on telephone centric interactions. TRG award winning approach has assisted numerous companies such as Republic Services, Mercedes-Benz and Habitat for Humanity to improve their phone centric sales and service capabilities.
About ShoreTel, Inc.
ShoreTel is the fastest growing IP PBX Company worldwide and the leader in customer satisfaction. The company has shipped its groundbreaking solutions since 1998 and continues to outpace the rapidly expanding VoIP market with technological advances and sales that are doubling year over year. ShoreTel voice systems are designed to make businesses smarter, setting new standards for usability and manageability while reducing telecommunications costs. A uniquely distributed architecture extends enterprise-class voice services to every office and outpost, keeping employees fully connected wherever they go. A select, worldwide group of channel partners provide top-notch service and support. For more information, visit http://www.shoretel.com/ or call 1-877-80SHORE.
For more information about PremCom please contact:
Peter Proulx at (716) 691-0791.
For more information about TRG please contact:
Colin Taylor at (416) 276 9068
Wednesday, June 20, 2007
Revenue Generation: Profit from Pain
Revenue Model- Profit from Pain
One of the biggest challenges facing contact centers today is supporting Managements’ goal to shift the contact center from a cost center to a profit center. This can often be akin to pushing water uphill for Center managers who are under resourced and lack an understanding of the basics associated with up-sell, cross-sell and ‘save’ campaign effectiveness.
The following article sets out the parameters, drivers, sequence and value associated with the model hierarchy and its development.
There is a progression and hierarchy associated with the implementation of a revenue generation process within any call or contact center. This progression or process must begin by identifying where the center is, what the drivers for change are, the pre-requisites and sequence in which those activities must be accomplished and what the impact is of those activities have on the success and profitability of the revenue generation initiative.
Broadly stated the drivers would include:
Staffing:
Adequacy of current staff,
Availability of current staff,
People;
Skills & Competencies related to sales versus customer service,
Level and type of training received,
Competence or proficiency level,
Process:
The complexity of the processes required,
The speed of process completion,
Replication and error rate of the process,
Technology:
Database access, vision and robustness,
Scripting and sales support tools,
Virtual agent,
Offer:
Relevance to customer
Affinity to customer,
Perceived value & relationship,
These broad areas will each perform at differing levels dependant upon the combinations of the above in relation to Offer percentage (the percentage of callers that receive an offer) and conversion percentage (the percentage of callers that agree to an additional transaction). The Offer percentage in most contact center is controlled by the agent or CSR: they determine if it is appropriate to extend and offer to a customer. The latter point will be influenced by the offer the affinity to the customer and the perceived value by the customer.
The following chart illustrates the sequence of activities related to maximizing revenue generation.
One of the biggest challenges facing contact centers today is supporting Managements’ goal to shift the contact center from a cost center to a profit center. This can often be akin to pushing water uphill for Center managers who are under resourced and lack an understanding of the basics associated with up-sell, cross-sell and ‘save’ campaign effectiveness.
The following article sets out the parameters, drivers, sequence and value associated with the model hierarchy and its development.
There is a progression and hierarchy associated with the implementation of a revenue generation process within any call or contact center. This progression or process must begin by identifying where the center is, what the drivers for change are, the pre-requisites and sequence in which those activities must be accomplished and what the impact is of those activities have on the success and profitability of the revenue generation initiative.
Broadly stated the drivers would include:
Staffing:
Adequacy of current staff,
Availability of current staff,
People;
Skills & Competencies related to sales versus customer service,
Level and type of training received,
Competence or proficiency level,
Process:
The complexity of the processes required,
The speed of process completion,
Replication and error rate of the process,
Technology:
Database access, vision and robustness,
Scripting and sales support tools,
Virtual agent,
Offer:
Relevance to customer
Affinity to customer,
Perceived value & relationship,
These broad areas will each perform at differing levels dependant upon the combinations of the above in relation to Offer percentage (the percentage of callers that receive an offer) and conversion percentage (the percentage of callers that agree to an additional transaction). The Offer percentage in most contact center is controlled by the agent or CSR: they determine if it is appropriate to extend and offer to a customer. The latter point will be influenced by the offer the affinity to the customer and the perceived value by the customer.
The following chart illustrates the sequence of activities related to maximizing revenue generation.
Each of these elements builds upon the previous ones. It is possible to operate without following this hierarchy, but the results will suffer.
Against this hierarchy we can classify operations across four bands, which we have categorized as: Base, Level 1, Level 2 and Level 3. These bands represent and categorize the activities and results achieved in the center related to the progress achieved moving up the hierarchy.
The following table illustrates this progress:
As shown above at the Base level the existing staff is generally customer service staff that has been hired to handle customer inquiries. These staff members in service focused centers often were not selected or assessed based upon their sales focus or sales (potential) competencies. The staff will have often received little if any training opposite up-sell cross-sell activities and as a consequence they rate 1-3 on a scale of 1 to 10.
The organizational processes have in most cases been designed to process orders and sales in a one-off fashion removed from the call/contact center. There may be no processes in place to manage add on orders or shipments within the fulfillment operation. In some cases no policy exists for partial shipment rules (ship partials versus hold for complete). The processes are adequate and effective for the business as it has operated but are not optimized, nor necessarily aligned with supporting an up-sell cross-sell environment. The processes at the Base level are generally in 3 – 5 range on the 1 to 10 scale.
Technology in most organizations has not been designed to support up-sell and cross-sell initiatives. Often it is campaign centric and not customer centric. The systems have been designed to support mass selection of names for mailings or other campaigns and not on an individual basis. The result is the database can often not display much detail regarding the actual customer: their history likes/dislikes or affinities. Similarly most inbound customer service support applications feature access to customer records for billing and account status inquiries, not to offer or support specific scripting for offers etc. As a result technology suitability for up-sell, cross-sell initiatives in the Base band is generally between 2 to 4 on a scale of 1 to 10.
As staff selection improves: skills, competencies and sales ability the base values for staffing and People improve. The addition of specific and detailed sales skills training, role playing and use of the existing technology improves the values for Training. As does refining and aligning the operational processes to support up-sell and cross-sell activities also improves the Process values.
As the elements outlined as Drivers above the overall scores will improve. With the skill/competency improvement the center will see improvements in both the Offer % and the Conversion %.
As outlined on the table the Conversion % in most centers converting from a customer service environment will be in the 3-5% range and suffers from a low Offer % as well. In these centers the decision to offer or not to offer an up-sell/cross-sell is usually left to the discretion of the agent. It is common that their fears, concerns, lack of training, knowledge of the customer and support negatively impacts their perception of up-sell cross-sell programs and leads them to find reasons to rarely offer the up-sell.
A structured, planned and consistent approach can move the center up the effectiveness curve and begin to achieve superior results is required.
The proof is in the results, employing this approach has already helped a number of organizations move from cost focus to revenue success. This is always a challenging journey, but can be the difference between success and failure for the center manager.
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