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Archive for the ‘Call centers’ Category

When was the last time you called a business number, got put on hold and heard dead silence? In all likelihood it was some time ago. So why play music when customers are forced to wait? It’s not like anyone really enjoys hearing pabulum played at the highest fidelity permitted your phone’s speaker so there is a real question here for why firms should go through the effort. Slate has an article that tries to get at this question (Your Call Is Important to Us, Sep 8). If you prefer to listen instead of read, here is an NPR interview with the article’s author.

The first thing to recognize is that playing something for callers placed on hold aimed to solve a practical problem: If all you here is nothing, how do you know that the call is still connected?

But in the spring of 1962, an application appeared in the U.S. Patent Office, humbly titled “Telephone Hold Program System.” “In the course of receiving telephone calls,” it began, a bit grandly, before settling into the problem at hand: What to do about that dead silence the caller endured while calls were transferred, their respective parties chased down? Operators were supposed to check in again on callers who had been waiting; but what if they got busy? “In any event,” the application went on, “listening to a completely unresponsive instrument is tedious and calls often are abandoned altogether or remade which leads to annoyance and a waste of time and money.”

So the thought was that using music could improve customer service and operation efficiency. People would be more willing to hang on the line and thus would not need to call back later. Does that actually work? (more…)

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Check out this video of Steve Jobs talking about the origins of the iPad.

The text that appears as Jobs talks is how a computer program developed by a firm called Beyond Verbal is interpreting Jobs’ emotion. That is, the program is judging whether Jobs is feeling fatigue or nostalgia based not on what is saying but how he is saying it.

Kinda nifty, but does it have commercial applications? The claim is yes and it is in call centers.

(more…)

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We have already written in the past about the use of data analytics to best route customers to agents based on demographics and other characteristics.  The NY Times has an interesting article on the use of data analytics to improve retention and employee-employer relationships (“Big Data, Trying to Build Better Workers“)

The article discusses the broader appeal of these ideas, but focuses on applications to call centers. Why call centers? In contact centers, customer service agents, that are hourly workers handle a steady stream of calls under challenging conditions, yet their communication skills and learning capabilities play a crucial role in determining both the employee’s tenure and performance. The article discusses a new startup, Evolv, which helps firms find better-matched employees by using predictive analytics.

Transcom, a global operator of customer-service call centers, conducted a pilot project in the second half of 2012, using Evolv’s data analysis technology. To look for a trait like honesty, candidates might be asked how comfortable they are working on a personal computer and whether they know simple keyboard shortcuts for a cut-and-paste task. If they answer yes, the applicants will later be asked to perform that task.

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We would be remiss if we did not note that this weeks Economist has a special series of articles on outsourcing and offshoring. The general theme is that after rush to send a variety work to cheaper locations, many firms are reconsidering and bringing some work back home. The rationales range from underestimating the impact of long lead times and the difficulty of coordination across continents to a belief that doing work in-house allows for greater flexibility. On the whole, the report is well worth reading. One article, however, stood out for me. It looks at the increasing use of automation in service centers (Rise of the software machines, Jan 19).

IPsoft is a young company started by Chetan Dube, a former mathematics professor at New York University. He reckons that artificial intelligence can take over most of the routine information-technology and business-process tasks currently performed by workers in offshore locations. “The last decade was about replacing labour with cheaper labour,” says Mr Dube. “The coming decade will be about replacing cheaper labour with autonomics.”

IPsoft’s Eliza, a “virtual service-desk employee” that learns on the job and can reply to e-mail, answer phone calls and hold conversations, is being tested by several multinationals. At one American media giant she is answering 62,000 calls a month from the firm’s information-technology staff. She is able to solve two out of three of the problems without human help. At IPsoft’s media-industry customer Eliza has replaced India’s Tata Consulting Services. …

A small British start-up, Blue Prism, has developed a software-development toolkit that allows people within a company to create their own software “robots” to automate business processes. …  An onshore information-technology worker may cost $80,000 a year and an offshore one perhaps $30,000, wrote James Slaby, HfS’s research director, in a recent report. But Blue Prism’s robots cost at most $15,000 a year. They can perform only routine, rules-driven tasks, but there are plenty of those about.

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American Express runs its call centers differently. No scripts. No high pressure on handle times. Instead, they put a focus on relating to customers and evaluate agents on how the customers they interact with answer the question “Would you recommend this company to a friend?” Fortune has an interview with Jim Bush, American Express’ EVP of world service, who has overseen this change (How can American Express help you?, Apr 19). (Dedicated readers of this blog with long memories might recall that we posted on this about a year and a half ago.)

He makes some interesting points on their philosophy in running customer service — starting with the fact that they view call centers as serving customers, not processing transactions.

The perception of service is that it’s all about problems. Problems are actually a very small percentage of why customers interact with American Express. What we’ve learned is that the power of that interaction gives us an opportunity to expand the perception of the brand in a very positive way.

There’s a tendency to see service as a sunk cost — the customer is reaching out to you. So people say, “It’s a cost. Let’s look to eliminate it.” And over time we can eliminate friction points, which eliminates the need for some customers to interact with us. But the reality is, it’s a very powerful opportunity to build a relationship.

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One of the goals of the Operations Room is to equip its readers with the ability to converse knowledgeably on all-things operations. In our board meetings, we tend to imagine situations in which such knowledge will be of at-most importance. Thus, we were very happy to see that the NY Times (“A New Capital of Call Center“) covered a story we already covered before (“Call centers in Manila“,) so when a reader would be invited to an operations- oriented cocktail party, and confronted with the question “what’s the world capital of call centers”,  said informed reader would not be left speechless.

Over the last several years, a quiet revolution has been reshaping the call center business: the rise of the Philippines, a former United States colony that has a large population of young people who speak lightly accented English and, unlike many Indians, are steeped in American culture. More Filipinos — about 400,000 — than Indians now spend their nights talking to mostly American consumers, industry officials said, as companies like AT&T, JPMorgan Chase and Expedia have hired call centers here, or built their own. The jobs have come from the United States, Europe and, to some extent, India as outsourcers followed their clients to the Philippines.

As several observers point out, this change reflects the maturations of the outsourcing business that now focuses on more than just pure cost and a somewhat superficial view of language. In the early days of this industry, as in many other industries that attempt to outsource, firms focused on finding call centers in English speaking countries with low wages. India was a good solution, and developed a whole industry around Business Process Outsourcing in general, and call center outsourcing in particular. Wages in India are still significantly lower than in the Philippines ($250 a month in India, rather than $300, at the entry level in the Philippines).

…but executives say they are worth the extra cost because American customers find them easier to understand than they do Indian agents, who speak British-style English and use unfamiliar idioms.  “It helps that Filipinos learn American English in the first grade, eat hamburgers, follow the N.B.A. and watch the TV show “Friends” long before they enter a call center. In India, by contrast, public schools introduce British English in the third grade, only the urban elite eat American fast food, cricket is the national pastime and “Friends” is a teaching aid for Indian call center trainers. English is an official language in both countries.

(more…)

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So which country is a bigger market for off-shored technology services, India of the Philippines? According to Market Watch, the latter is the answer (Philippines lifted by outsourcing boom, Jun 15).

The Philippines’ fast-growing business-process outsourcing industry has turned the Asian nation into a major center for off-shored information tech services. The country recently passed India as the world’s top outsourcing destination, according to a report by the services arm of International Business Machines IBM +1.09% — which has a major presence in the country. …

“Ten years ago, we had maybe about 25,000 people in the industry,” said Jose Mari Mercado, business development director at Convergys in the Philippines, who said that number reached about half a million last year.

“The interest in the Philippines has really grown tremendously in the last five years,” he added.

While business outsourcing is typically associated with call centers, the industry actually covers a range of IT services, including customer relations, human resources, accounting and even more specific functions, such as mortgage processing.

In 2010, the Philippines’ IT and business process outsourcing grew 26% to $8.9 billion, according to the Business Processing Association of the Philippines. Workers and professionals employed by the industry grew by 24%, the industry association said.

(more…)

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