Categories
Call Center

Outsourcing Options

By Peter Lyle DeHaan, PhD

Most readers of Connections Magazine are outsourcing service providers, offering an array of telephone-related and contact services to their clients. Just as organizations, businesses, and individuals can outsource call processing to telemessaging and teleservice companies, these call centers can in turn outsource certain aspects of their business to other companies.

Author Peter Lyle DeHaan

Though this can take many forms, the main area of call center outsourcing is call processing. This includes call overflow, time-of-day/day-of-week routing, account sharing, and complete 24×7 outsourcing. Some companies, such as Personalized Communications, will also handle customer service and billing functions in addition to providing 24×7 outsourcing services. A favorable exchange rate makes Canada a prime area for cost-effective outsourcing from the United States. Other outsourcers, such as Asian Call Centers International, are offshore and able to offer substantial savings because of lower labor rates. The sidebar “Outsource Call Centers” lists companies that provide various call processing services to other call centers.

There are as many reasons to outsource as there are call centers that do so. Sometimes companies outsource to save labor expense or counter a tight local job market. Companies may also outsource to expand the scope of their services or to pool resources to handle larger accounts. Another practical reason is to allow for expansion without investing in additional equipment or software. Ansaring, in St. Louis, does just that. It found sharing accounts to be an excellent way to grow its business without additional investment. Ansaring is a six-seat telemessaging business owned by Vicki Tarpley. Tarpley said the company has been very successful at sharing accounts: “It takes a six-seat operation and expands it as far as you want to go, with no investment in additional equipment.” She added, “It allows us to handle large campaigns without adding seats. It’s so easy and it makes money for all the partner call centers.”

Tarpley said that thanks to outsourcing, when her company gets a call for a large campaign, it does not have to turn the prospect away. The only stipulation is that calls must come in on a toll-free number. She finds other companies with the same call-processing platform that agree to share the account. Then account set-up information is sent to each partnering call center. Next Ansaring staffers call the toll-free provider and arrange to have the calls routed to each call center. The toll-free provider will funnel the agreed upon number of calls to each partner. The whole process is seamless to the client. “I can’t imagine doing this without my Telescan system,” Tarpley added. “It is so easy. It’s a matter of a few steps and we can expand to 10 times our size, with no additional investment. We can even handle catalog orders with our order entry system.”

Tarpley also shares accounts provided by other telemessaging businesses. She said one bonus of sharing accounts is shared knowledge. When she is sharing an account, she also shares ideas with other businesses. In addition to these benefits – and the additional revenue – she doesn’t need to add staff or equipment.

In account sharing scenarios, it is fairly straightforward to distribute a client’s calls to multiple call centers, but pulling the collected information back from disparate locations or platforms can be more problematic. In these situations, Web-based packages can solve the problem by centralizing all collected information in a single database. One such example is Amtelco’s eCreator. It is a Web-based scripting application, perfectly suited to provide call centers with the ability to outsource call handling on large or complex accounts. eCreator’s Web-based environment gives the originating call center the ability to publish a script on the Internet. This means that there is no set-up required by the partner call centers. They do not even need to have eCreator, just Internet access. In addition, client changes can be made easily, in one place, without the hassle of having to roll out the script to all the outsourced locations every time a change is made. All of the call information is then immediately saved in a single database, making it unnecessary to merge data.

In other situations, specialized software may be required to handle a specific client’s needs. When the client’s usage rates are high or the special software is inexpensive, it is not a problem to purchase ancillary software. However, if the anticipated monthly revenue is low or the software is expensive, the necessary program can be cost-prohibitive. In these cases, the software can be rented instead of purchased. This can be accomplished by paying a monthly fee for the rights to use a hosted software package, which is accessible via the Internet. Several vendors offer hosted versions of their software. This allows many options for the call center, such as avoiding a one-time capital investment, trying it before buying, or building up a base of clients using that software in order to generate enough revenue to eventually buy it. Application service provider (ASP) companies do nothing but provide hosted software to other companies. Sometimes the ASP writes the software, most of the time it buys the software and shares it among several customers. Hosted services will be covered in detail in the July/August issue of Connections Magazine; those who can’t wait should see the Buyers Guide on the Connections website.

Support services can also be outsourced. One example is bill printing and mailing, which is a service provided by Broadfield Imaging. Another is technical and programming assistance, which is often provided by outside firms, as it is difficult for small call centers to develop and afford a full-time technical guru. Most vendors provide phone support for the maintenance and operation of their equipment as part of an annual service contact. Some, such as Amtelco, also provide programming and special application assistance, including custom scripting, reporting, and development. They can create custom scripts with eCreator, as well as custom reports for the scripting application or based on MDR or billing link data. Custom feature development or interface development with another application is also an option. Not only can their services be used in areas where a call center lacks the expertise, but also when there is not sufficient staff to meet a deadline.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

A Little Help From My Friends

By Peter Lyle DeHaan, PhD

“You need a hobby,” my wife exclaimed in exasperation. I don’t recall the circumstances, but it is safe to assume that I was doing something she deemed a nuisance. Regardless of the cause of her frustration, her impromptu advice gave me pause. Yes, a pastime, a relaxing diversion, would be good, but what should I do?

Author Peter Lyle DeHaan

I briefly considered stamp and coin collecting, both of which I sporadically dabbled in during my youth. But I realized that my interest lay solely in the hope of stumbling onto a valuable find or realizing greatly appreciated value over time. These were not hobbies but investments, investments which demanded time, organization, and planning. They would be more like work – far removed from a relaxing hobby.

I asked myself what I was interested in. What about my proclivity for watching classic movies? But to be a true hobby, I reasoned, it must consist of more than watching timeless films.  It seemed that to reach hobby status, I would need to collect them, or catalog them, or perhaps read about them. This additional effort, however, would serve to diminish my infatuation with ageless cinema.

Next, I considered a passing, yet ongoing attraction to crossword puzzles. Even though I had only rarely picked up a crossword puzzle and was never able to complete one, it did seem like a worthy pursuit, a good complement to my interest in words and my longstanding effort to use them to help, educate, and inspire. Yes, I concluded, crossword puzzles would be my new hobby. I began looking for these word challenges, setting aside time to contemplate and complete them, reasoning that with a consistent effort I would improve. I was wrong. By my own initiative, I had not been able to develop my skills.

The turning point came by chance, on a plane. As I puzzled over the seemingly impossible offering in the airline magazine, I sensed that my seatmate was reading over my shoulder. Finally, no longer able to contain herself, she gently whispered, “You should know 12 down.” I looked at the clue anew and an answer formed in my mind. I shared my suspicion with her and with a pleased smile, she confirmed it to be correct. Immediately, she apologized for intruding, but I assured her that her help was appreciated. Though she attempted to distract herself, a few minutes later she was again captivated by my perplexing puzzle, so I slid the magazine in her direction, allowing us both to see it. She quickly directed my attention to another clue, encouraged me think in a different direction, and then confirmed my uncertain solution. Again, she apologized and again I said it was okay. This pattern repeated itself throughout the flight and soon we had most of the puzzle complete. I learned that she was a retired schoolteacher and that one of her many interests was crossword puzzles. She shared with me tips for discerning a puzzle’s theme and how to tap in to it. She gave advice on deciphering seemingly arcane clues and cutting through the deceit of intentionally misleading references. In the span of an hour, she gave me the direction and education that I needed to improve my skills and increase my enjoyment in my nascent hobby.

Another interest of mine is horticulture, one instilled in me by my parents, but I only gave it passing attention for many years. My home’s landscape once consisted only of green grass and strategically placed trees. Inside the house were one miniature orange tree and a lone aloe plant.  (Aloe is a reoccurring word in many a crossword puzzle.)  To increase the greenery inside and add color outside, I endeavored to tap into this slumbering fascination with plants. Again, guidance was in order and easily found in my parents. They have more insight and experience in this area than anyone else I know. Plus, any additional information can be quickly uncovered in their treasure trove of resource books, which would rival or surpass many a library. Now my yard has an abundance of carefully selected plants and shrubs, designed to add color and beauty throughout the growing season. My indoor collection has also greatly expanded, at times prompting complaints of overflowing its designated areas.

All of us, myself included, need guidance in many endeavors, not just hobbies. When I embarking on my consulting career, many people gave me sage advice. Three people in particular stand out. One was an industry friend who helped me sort through and clarify a transition strategy and first year game plan. Another was an industry consultant who shared years of experiences and warned of common pitfalls. The third was a consultant in a parallel industry who gave expert recommendations for a pricing strategy. Together, these folks shortened my learning curve and paved the way to success.

In similar fashion, when I bought this magazine, the sellers provided a wealth of advice, guidance, and recommendations. Even now, with his formal consulting commitment long past, Steve Michaels continues to generously share his ideas and observations. I also needed assistance from a publishing insider and contracted with an industry guru who quickly got me up to speed on standard practices and procedures for the magazine business. In a previous column, “Going Virtual,” I mentioned that I have outsourced key aspects of Connections Magazine. Though I could lay out and design each issue, it is better left in the capable hands of Dave Margolis, whose design cleverness and creativity far surpasses anything I could offer. Similarly, I could handle advertising sales, but that important task is better suited to the focus, tenacity, and precision of Valerie Port. Additionally, I tap others to proofread articles and catch errors that I overlook.

As with most businesses, I have an attorney to assist with legal matters and a CPA to navigate the maze of accounting and tax issues imposed by the IRS. Like many of you, I even have a computer and technology expert available to guide me through the latest developments with Microsoft, the Internet, and computer hardware.

The point is that I get help from many people. With some, it is a formal, contractual arrangement; with others, it is informal and freewheeling. In all cases, it helps me find a quicker and better path to an end goal or desired result.

All of this is outsourcing in one form or another. In a previous column, I advanced the premise that any aspect of a call center (save the ownership aspect) could be and has been outsourced. I added that for every call center, there was at least one key area that should be outsourced. Indeed, no one can master everything, and no company can excel in all areas. If someone else can do something you can’t, tap into his or her expertise; it is foolish to proceed under your own resolve. Likewise, if someone else can do something better than your company can, form a partnership or outsourcing arrangement. Today, when excellence is expected and demanded, are you better off to do an acceptable job in the house or to do a superb job with the help of others? We can all use a little help from our friends.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

How Can I Get More Sales?

By Peter Lyle DeHaan, PhD

Almost every day, someone asks me, “How can I get more sales?” In fact, for my clients and prospects, increasing sales is usually a primary concern. Rarely does anyone tell me that their company is making all the sales they want. I wish they would ask me easier questions, like “How can I improve quality,” “How can I increase revenue,” or “How can I reduce turnover?” All of these I have successfully dealt with, but the sales issue is a bit trickier. It seems that people are looking for a quick fix, a simple strategy. It’s as if they are expecting me to say, “Invest X dollars in Y process to produce Z sales.”

Author Peter Lyle DeHaan

But alas, there is no magic secret. If there were – and I knew it – I would start a sales and marketing business. My clients would merely tell me their sales goals for the month and I would fill their order. But it is not that simple. Consider the following list:

  • Direct mail
  • Outbound telemarketing
  • Direct mail followed by a phone call
  • Cold calls
  • Trade shows
  • Networking
  • Referrals
  • Yellow page ads
  • Print media
  • Websites
  • Internet advertising

These tactics have a proven record of producing sales in the teleservices industry. Unfortunately, these same methods have been repeatedly demonstrated to be total failures. Campaigns that have consistently generated high sales numbers for one organization have proven to be colossal flops in others. Therefore, it is not the strategy that is important, but what surrounds that strategy. Here then, is the ultimate – yet elusive – formula for sales success:

Personnel + attitude + execution + management = sales success

Personnel: This is the critical element in the formula. Without the right people in place, nothing else matters. This starts with finding the right person for the job. Over the years, I have hired many sales people. Some worked out, but many didn’t.  (My main problem was that I was reluctant to pay enough to attract the best people.)

What is true for all candidates is even more valid for sales applicants: you see them at their very best during the interview. In fact, even mediocre salespeople know that they must give their best sales performance during the interview. If they can’t convincingly sell themselves to you, how can they possibly sell your service to someone else? To cut through all of this, I have a few key questions I like to ask sales candidates:

How much did you make at your last job?  If they made six figures, but can only expect half that at your firm, they are unlikely to work out. They will be unhappy, develop a negative attitude, and leave as soon as a better paying job comes along. Conversely, if they barely cracked the poverty level at their last job, they may be out of their league to produce at the level you expect. Ideally, their prior compensation should be 5 to 25% less then what you expect them to make with you.

How much would you like to make at this job? The response to this is most telling. Why? Because if it is unreasonably high, they won’t be satisfied working for you. On the other hand, if it is lower then what you are prepared to pay, then they will start coasting once they hit their target compensation. Again, you are looking for a salary expectation that is consistent with what you can deliver, but is still motivating to them.

Would you like to work straight commission? I don’t advocate that anyone be paid straight commission, however this question is designed to throw them off track and see how they respond. To make this work, you can’t ask the question directly, but need to back into it. If they are at all good with sales, they will have already regaled you with their accomplishments, assured you that they will be your best sales person ever, and promised they will produce at a level beyond your wildest expectations. And, if they have moxie, they may even say you’d be foolish not to hire them or suggest your company will fail without them. (Yes, I have been told this – many times.)  Given all of this, they assert that you must pay them top dollar.

At this point, you are in a position to say, “I don’t normally offer this, but based on your track record and past performance, I think you’re worthy of special consideration. I suggest that we consider a compensation plan where you will be highly rewarded for your results and given an open-ended opportunity to exceed your compensation goals.” Then pause, lean forward, and confidentially whisper, “How would you like to work for straight commission?”

First, watch if they can quickly and smoothly react to an unexpected turn of events. Next, you want to see how they retreat from their prior boasting. Often a more realistic picture emerges. Lastly, you will quickly get a true idea of what they expect for base pay and how much they are willing to put on the line in the form of commissions, incentives, or bonuses.

In the event that they are shocked or hurt by this question, simply apologize and indicate that, based on what they were saying, you thought this idea might appeal to them.

Attitude: Having the right sales staff, however, is just the beginning. They also need to have the right attitude. How many times have you seen salespeople talk themselves into a bad month? The thinking goes like this, “Last August was bad. I wonder if August is always bad? I better brace myself for a bad month.” It becomes a self-fulfilling prophecy and they have a bad month.

Or, how many times has a sales person said something like, “I don’t set any appointments for Monday because everyone is always too busy.” Then they add Fridays to the list because prospects are focused on wrapping up their week. The first thing in the morning doesn’t work, nor the end of the day. Before and after lunch is bad, too. I once had a salesman use this logic and he actually concluded that he could only successfully sell on Tuesday and Thursday in the mid-afternoon. It should surprise no one that he sold nothing and his time with the company was a record in brevity.

Another self-defeating attitude is negativity. Consider, for example, the salesperson who says, “Direct mail? That won’t work!” And of course, with that attitude, it won’t. Or how about, “That didn’t work last time and it’s not going to work now!” Lastly, are they willing to try new things? If they are open to new ideas and plans, then they have a much greater chance of success than if they are closed-minded. Strangely, all too many salespeople would rather continue to do what has failed in the past than to try something new.

Execution: Closely linked to attitude is the proper execution. In fact, without the right attitude, successful execution is impossible. I have seen ideal marketing plans flop because of poor or haphazard execution. Conversely, I have seen the most ill-conceived and contrived strategies succeed famously because they were diligently, steadfastly, and consistently implemented. Quite simply, there needs to be a plan. The plan needs to be meticulously followed. And those involved need to be held accountable for their work. This brings up the fourth element:

Management: The glue that holds all this together is management. Good management starts with hiring the right salespeople, giving them excellent training, providing them with appropriate compensation, and motivating them effectively. This must be followed by a sound marketing plan and a supportive environment in which to implement it. Lastly, sales management means investing time, on an ongoing basis, to encourage, observe, teach, and adjust what they do. Put more succinctly, the right management keeps them on task and holds them accountable.

There is nary a salesperson who can be truly successful without attention and oversight. They need to be lifted up when they are down and celebrated when they make a sale, held responsible for their schedule and made liable for their results. This takes considerable time and effort. As such, proper sales management is not just one more hat to wear, but a full-time job. Successfully managing salespeople is hard work. It takes time, perseverance, determination, and dedication. But then don’t all things that are worthwhile?

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

Language Interpretation

By Peter Lyle DeHaan, PhD

As the economy becomes more global and society becomes more ethnically diverse, differences in language become more pronounced. In some areas, where there is a heavy concentration of a particular ethnic group, it is not uncommon for call centers to effectively be bilingual.

Author Peter Lyle DeHaan

In some areas of the United States this is often manifested in a bilingual English/Spanish staff. In Canada, English and French is a typical language combination, but many others also exist.

In some cases this bilingual status comes about unintentionally, because many of those hired speak a second language. In other cases, building a bilingual staff is an intentional strategy.

If a single-language call center has a client needing English and Spanish or English and French, there are many centers to which the second language can be outsourced. But what if a less common language is requested?

What if the client will be receiving calls from peoples of many different tongues? This is when language interpretation services enter the picture.

First, some background: the terms “language interpretation” and “language translation” are often considered synonymous. But by definition, language interpretation applies to the spoken word, while language translation refers to the written word.

When interpreting over the phone, interpreters generally don’t perform a literal word-for-word conversion, but seek to achieve meaning-for-meaning clarity.

As a result, some English concepts requiring only one or two words may need several phrases to be accurately communicated in another language. The opposite is also true. As a result, non-English conversations often take longer.

Although the details are varied, language interpretation services for call centers follow the same general path. When the call center receives call in a language it doesn’t support, its agent calls a toll-free number provided by the language interpretation service.

There may also be a PIN or language code to enter. The call is then routed to an available interpreter for the language requested.  

In many cases, and for common languages, this agent may be working in the call center. In other instances, or for less common languages, the agent will be located elsewhere or available on demand, somewhat lengthening the call set-up time.

Once the interpreter is on the line, the calling agent conferences the calling party into the conversation. With the three parties connected, the interpreter then facilitates communication between the agent and caller.

The agent documents the appropriate information into a message, call, or order form.

The major language interpretation services can handle requests for more than 100 languages. This pales in comparison to the approximately 6,700 spoken languages in the world today.

Fortunately, there’s little chance of receiving a call from someone who speaks one of these more obscure languages.

Interestingly, the vast majority of interpretation requests are for a dozen or so common languages, including Spanish, French, Mandarin, Vietnamese, Russian, Portuguese, Korean, Japanese, Arabic, Albanian, Polish, Cantonese, and Haitian.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

Reputation, Referrals, and Credentials

By Peter Lyle DeHaan, PhD

About three years ago, I started to sense that it was time for a career change. Work wasn’t fun any more. Many of the things I relished weren’t being pursued at my company or had been delegated to others. My days were filled with tasks that I didn’t enjoy, responsibilities that bored me and a routine that was, well, too routine.

In retrospect, I had tried to develop a call center that excelled at everything, an operation that gave superior service, was supported by the best technology, was growing and expanding, and was generating profits. Although we were not perfect, we were quite good. I had accomplished the major parts of what I set out to do and didn’t have that next challenge beckoning me from the future. Was the rest of my career destined to merely maintain the status quo?

Author Peter Lyle DeHaan

I had always thought it would be exciting and invigorating to be a consultant. There would be great variety as I moved from one project to another, from one client to the next, and I would never be called upon to the keep things the same — change would be my constant companion. Yet I had misgivings. I would forego a stable, steady salary for an inconsistent and unpredictable income. I would be putting my family’s future at risk.

These thoughts continued to play in my mind during a series of doctor’s visits. Unable to find a cause for my complaints, the word “stress” reoccurred in my caretaker’s musings about my situation. Could the cause be my lack of a future vision and the repetitiveness of my routine? Intentionally, I didn’t ask the question that was on my mind, yet I knew that, either literally or figuratively, my job was killing me. It was time for a change.

I shared these concerns with my boss, who was also my partner and mentor. He, too, wanted something different and our individual intentions dovetailed nicely. We set about making a transition. I exited the company, migrating into consulting, and he became more active in the day-to-day operation.

Being your own boss has many advantages. I do most of my work at home (my morning commute is measured in seconds, plus it is a joy for me to see our kids off to school in the morning and to be there when they get home in the afternoon) and I have great flexibility (work can be molded around my family’s schedule). There are also downsides to being a consultant. You have an unpredictable income, you need to travel, and you must continually find new business. These were major concerns for me. I put myself on a conservative quarterly budget to better manage my income and resolved to accept the travel, but the need to sell remained an issue.

How would I go about getting clients? I realized that, just as with a teleservices company, there would be three ways to enhance my standing with prospects and mitigate the arduous task of continual self-promotion. These are reputation, referrals, and personal selling.

Reputation: Having been in the industry for more than 20 years, I was not unknown. I had served on various boards and committees, made presentations at many conventions and meetings (albeit with great trepidation), and written scores of articles. Motivated only by a desire to share with others and be a positive influence on the industry, I had unwittingly made myself known. Providentially, this would be greatly beneficial when I hung out my consulting shingle. To my delight, I found that I didn’t need to sell most prospects on myself or on my abilities. There was only the issue of helping them decide whether to hire a consultant in the first place. More than half of my clients have known me for several years and likely relied on my reputation in making their purchase decision.

For the outsourcing call center and teleservice company, reputation also plays a critical role in obtaining new business. Longevity as an industry provider shortens the sales cycle. When a reputation for quality service, fair dealings, and ethical practices accompany this history, a teleservice organization automatically moves to the top of the list. The converse is true when negative connotations exist. Then your company’s name migrates towards the bottom of the list, frustrating marketing efforts and requiring more time and energy to make the sale. While it takes time and focus to earn a positive reputation, the road to a bad reputation is much shorter and quicker. And once a bad reputation has been established it is incredibly difficult to overcome. Reputation – either good or bad — is a great influencer in closing sales.

Referrals: The second, and perhaps easiest, way to gain new business is when others do the work for you. In some cases you can ask clients if they know of others who could use your services. These leads are generally pre-qualified and often pre-sold. Though this is not an approach I used, some teleservice companies have added many new clients by asking existing clients for referrals. While some elect to reward clients for referrals with monetary or material gifts, others find that a sincere “thank you” garners greater results.

The ultimate level of referrals occurs when clients tell their friends and associates about you, suggesting they use your services. This is a sure sign of a delighted client. Sales via referrals occur when your actions match or surpass your words – you don’t just say what you will do, but you do what you say. These referrals are earned through the provision of quality service and reinforced by honorable business practices.

Credentials: In the last issue of Connections, I shared the story of my lengthy college quest and how it culminated with earning my Ph.D. This degree was intended to be a personal achievement to conclude my education. At first I didn’t talk much about having gotten the degree, but as I thought about the uncomfortable necessity of promoting my consulting business, I realized that I would need to publicize my educational accomplishments. Quite simply, it was a credential that needed to be promoted. As I thought about my other credentials, I compiled a short list:

  • Ph.D. in business administration
  • Certified call center auditor by Purdue University
  • Certified first-class technician from the National Association of Radio and Telecommunications Engineers
  • Second-class FCC license

There were a few others that I considered adding to the list. I thought about my association memberships, but these, along with chamber memberships and social organizations – as important as they may be – are more a label that you buy rather than an acknowledgement that you earn. I also briefly did some name-dropping since I was part of the consultant liaison programs for Blue Pumpkin and Interactive Intelligence. But when I realized that these programs didn’t confirm some level of expertise, I stopped mentioning them.

Credentials are also important for outsource call centers or teleservice companies. Virtually everyone says – and believes – that they provide superior service. So how can you distinguish your organization from the often-inflated claims of your competitors? Quite simply, you need someone else to verify it. A credential is a verifiable recognition from an independent third party that you have achieved a standard level of performance. In the teleservices industry we are fortunate to have three opportunities to earn credentials that can verify the veracity of our claims.

Having just one of these credentials puts your organization in a unique category that few competitors can match. Having two or three moves you to the top of any list.

When I was in the operations side of the industry, I enrolled our company in the ATSI Award of Excellence program the first year it was offered. Initially, I viewed it as a quality report card. It is that, but it is also more. The resulting scores from the Award of Excellence program provide 400 data points that can be analyzed to reveal areas of strength and weakness, as well as areas of consistency and inconsistency. (Here is something to consider: you may be better off being consistently weak in an area than to be inconsistent. At least when you are consistently weak, your clients know what to expect and you deliver it every time!)

It wasn’t until after we earned the Award of Excellence that I realized, even more importantly, that it was a powerful marketing tool and a mark of distinction that needed to be promoted. It is my vision for the industry that when a prospect calls, the first thing they ask will not be “What are your rates?” but rather, “What are your certifications and awards?” When this happens, I hope you will have some credentials to share.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

The Truth About College

By Peter Lyle DeHaan, PhD

It amuses me to tell people that I went to college for 26 years. Their reactions vary from shock to admiration, from pity to surprise.

Author Peter Lyle DeHaan

As a high school sophomore, I learned that the local community college would admit select high school seniors. Acting partly out of youthful arrogance and partly from moxie, I met with an admissions counselor, hoping to be admitted the following year. The advisor never asked my age or my grade as he mechanically pulled my high school transcript. Apparently mathematically challenged, he struggled to convert my quarterly grades into the semester credits to which he was accustomed. “Well,” he eventually concluded, “it sure looks like you have enough credits.”

I completed my first college class before I started my junior year in high school. I took at least one class a semester for the next two years. College offered a challenge that high school lacked. And though I earned high marks in high school, I excelled in my college courses.

As my senior year in high school wound down, classmates began announcing their college plans. My best friend was headed to a private school to study a new field called computer science. It seemed an interesting and promising choice and I decided to follow her there.

However, despite my parents having sacrificed to make weekly deposits into my college fund since the day I was born, the amount they had accumulated was woefully inadequate. This reality, coupled with the frequent media reports of college graduates being under-employed in entry-level positions, led me to a more practical decision. I enrolled in an electronic technical school, where I could quickly learn practical job skills and enter the work force, for a fraction of the cost. Upon graduation, I grabbed the first job that came along: repairing copy machines.

It quickly became apparent that this was not the job for me. My electronic school credential read, “electronic engineering technician,” and though I fancied myself an engineer, prospective employers more correctly viewed me as a technician. To make the career change I wanted, I needed more education. I reapplied to community college and earned a pre-engineering degree.

I transferred to a local university and enrolled in its electrical engineering program. Well before graduation, a job change took me out of state. I established residency there and resumed my education. During this time, I responded to a help wanted ad. The stated salary was three times what I was currently making. I met every qualification and dashed off my resume, fully expecting to be hired. But I was never even interviewed. I later learned that the company was deluged with applications and it summarily rejected every applicant without a four-year college degree. I resolved to never let that happen again.

Now, cynically convinced that a college degree was little more than an attendance certificate, I sought the shortest path to a four-year degree. I found the perfect solution. It was geared for full-time employees who had at least two years of college. By attending evening classes, in an intense one-year program, I could parlay my various college credits with documented experiential learning into a bachelor’s degree. I didn’t care what the degree was in; I just wanted that piece of paper. As the school year wound down, however, I met with a surprise at work. In my annual review, I was told that my management skills had greatly improved and I was rewarded with a substantial raise. Although I had been striving for an arbitrary credential, I inadvertently ended up improving my job skills. I shared this news with my professor, thanking him profusely. In what I thought was unwarranted humility he dismissed my gratitude. “I don’t deserve any credit,” he said matter-of-factly. “All we did was offer you an opportunity; it was up to you to make something of it. It’s what you have inside that made the difference.” It was years before I would fully comprehend what he said.

Now seeing a direct connection between education and earning power, I returned for a second major. What I had previously learned were “soft” skills (interpersonal communication, group dynamics, human nature, and so forth). Now I needed to complement this with course work in accounting, business law, and strategic planning. This major, business administration, would enhance my job skills, making me a better employee.

After a few years, missing the elixir of education and feeling inadequate as a manager, I began considering a master’s degree. Again, I found a program geared for the non-traditional student. Their offer was compelling, but even more intriguing was that for an additional fee, in advance, I could enroll in a joint masters/doctorate program. And I did. I anticipated that the master’s degree would make me complete as a manager, but I viewed the doctorate more as a personal milestone. My master’s degree was completed as planned and I immediately began working on the doctorate, which I had two years to complete. Already worn down by the intensity of the master’s, I soon regretted committing to the doctoral program. But stubbornness prevailed and I plodded on, meeting the requirements only a few months before the deadline. I was 42; it was 26 years since I had gotten a jumpstart on college at age 16. There were some diversions along the way, job changes, relocations and even a few breaks, but for the majority of that time, I was attending classes – somewhere.

So for me, college has meant many things: a challenge, a means to a job, help with a career change, an attendance certificate, an avenue to a better salary, enhancer of job skills, and management training. College can be many things depending on what you need and what you want to accomplish, but it is not a cure-all.

As a consultant, I do weeklong call center audits. I begin the week with an overview of the client’s company and then drill down to uncover weaknesses and opportunities. In doing so, a distressing pattern has emerged. On about the third day, I often find myself in a follow-up meeting with the person who manages the call center. That person’s common concern is presented in different ways and with various levels of emotion, but it always boils down to the same sentiment: “I feel inadequate as a manager. I think I need a college degree.”

It breaks my heart when I hear this. These are successful, dynamic women, who have started at entry-level positions and through hard work, dedication, and a talent for doing what’s nearly impossible, have risen to significant positions. These are individuals who oversee the majority of their organization’s work force, control about half of the expenses (primarily labor costs), and maintain virtually all of the incoming cash flow, yet they still feel inadequate. They believe that a degree will make everything right. This always catches me by surprise because they conduct their work with such great aplomb, confidence, and success. I am never sure what to say, but next time I will be ready.

I will say, “Yes, college can help you. If you have the opportunity to go and are willing to make the sacrifices of time and money, while putting much of your life on hold, then do it. It will make you a better manager. But it is not a panacea. There will still be times when you will feel overwhelmed or inadequate or unprepared. Most managers have these feelings. But a formal education isn’t everything.

While my educational choices have, in part, enabled me to get to where I am today, I know that had I gone down a different path, the result would be no less meaningful, because as my college professor said, “It’s what you have inside that makes the difference.”

What if you don’t already have a career? These comments about college are strictly for those who have an established career. For the recent high school graduate and those just starting out or without a career path, I always recommend college, provided they can handle the workload. Being a traditional student and going to school full-time allows you to get your degree in the shortest time, but it is not financially possible for everyone. In this case, as for me, you can intersperse education with vocation. Although this approach takes longer, it enhances the experience as your education is magnified by your work and your work is complemented by your education.

What if you have no idea what to study? If this is the case, be sure and pursue marketable job skills (don’t focus on skills that will maximize earning potential, but rather on what will maximize your enjoyment of life – which is not money.)  For those who are analytical thinkers, business and computers are good pursuits; for creative minds, consider marketing or graphic arts. And remember, many college graduates don’t end up working in the field they studied, but rather they use their education as an entry-point to the work force. Once you have successfully proven yourself in full-time employment, work history generally becomes more important than your degree — as long as you have it.

So, go to college, study hard, make the most of the opportunity that you are given, and remember, it’s what’s inside that makes the difference.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

Customer Since 1978

By Peter Lyle DeHaan, PhD

It was an emotional moment for me. After proudly carrying and using a Shell gasoline credit card for more than 20 years, I had just canceled it and was in the process of cutting it up. Not that I was angry or upset with Shell, but it no longer made sense to carry their card. You see, Shell, in conjunction with Chase Manhattan, had launched the Shell Master Card.

If I used it for my Shell gasoline purchases, I would receive five percent off my fuel expenditures on my next statement. For all non-gas purchases, I would earn a one percent rebate on future gasoline. Therefore, I could use the card for more than just gas and get discounts, too. In comparison, my old trusty Shell gas card was an absolute antique. The only practical thing to do was to cancel it.

Author Peter Lyle DeHaan

How did this long-term relationship with Shell start? It was 1978. I was attending electronics school and found myself changing jobs often and moving just about as frequently. During one such transition of both employment and abode, I found myself on the other side of town, far away from the gas stations whose credit card I carried. However, there was a Shell station around the corner from my ramshackle apartment, one down the street from the TV station where I worked, and another next door to the school I was attending. Add to this a gas shortage, skyrocketing prices, and Shell’s tendency to not only have gas, but to be one of the less expensive options. This led to an easy decision to get a Shell credit card. It all began due to practicality, convenience, and frugality.

Of course, it wasn’t long before I finished school, got a “real” job, and moved again. To my delight, there were Shell gas stations both near the office and close to my new home. Soon thereafter, I married and it was a simple matter to order a second card for my wife. In the years that followed, through job changes and relocations, there always seemed to be a Shell gas station nearby. A habit was formed. By then, even at times when Shell didn’t have the lowest prices, little thought was given to going somewhere else. (This is a lesson for anyone selling a commodity product or service: availability, convenience, and consistency produce long-term customers.)

Fast-forward to a couple of years ago when the Shell Master Card was introduced. At first, I viewed their offer with skepticism, but there didn’t seem to be a downside. I could continue my Shell gasoline habit, reduce my overall gas costs, and have a more versatile card. We applied for the card and begin using it immediately. Even so, I anxiously awaited the first statement, worried about a hidden snag or unanticipated caveat. None appeared, just my rebate to be applied to next month’s gas charges. Still the cynic, I cautiously anticipated my second statement. Was there some fine print to let them wiggle away from the result I expected? No. The rebate occurred exactly as indicated and for the amount promised.

Even so, my old Shell card remained in my wallet – just in case. Finally, after a year of non-use, I realized the time had come to throw aside any emotional connection to my long-term companion. It was time to cancel the card. I glanced one last time at the words I had grown to delight in – “customer since 1978” – and cut the card into pieces.

Soon the Shell Master Card was used for all our household purchases and the ensuing rebates grew. Things went well for quite some time. Then a surprise came on our statement, a $29 late fee. My wife, Candy, called Chase Manhattan to inquire. Since our payment history was stellar and Candy can be most persuasive, it was a trivial matter to get the charge removed. We were admonished to mail the payment earlier in order to avoid future late fees.

The next month, Candy mailed our payment five days before the due date. Again, another $29 late fee appeared. This time she called to complain. “We don’t care when you mailed your payment nor do we consider the postmark,” came the arrogant reply. “We only look at the date we post your payment.” Apparently, this was a change in their policy. Plus it seemed a bit despotic, especially considering that our payment was applied eight days after it was mailed. “But we have no control over when you process our check,” Candy countered. The agent’s response was quick and terse, “We always post payments on the day they are received.” No amount of pleading or cajoling could get the late fee removed a second time. The complaint was escalated and soon the only remaining recourse was to submit our concern in writing.

Our letter of complaint was submitted as instructed and a series of automated written responses from Chase Manhattan followed. The last one promised the company would “notify (us) of our findings as soon as they become available.” That was nine months ago. There have been no further communications from them about this matter.

Since the late fees were exceeding our rebates, we stopped using the Shell Master Card and begin buying our gasoline using an existing Visa card. This afforded us a new level of flexibility since there was no longer any need to continue our routine of looking for a Shell sign. We could also shop for the lowest-priced gas. (When we used the Shell Master Card, the rebate would more than offset any higher price we paid for their gas.)  It soon got to the point that we were seldom going to Shell.

Over the past 24 years, I estimate that we have spent about $20,000 on Shell gas. Assuming that our future gas consumption will remain constant and projecting that prices will increase, we could likely spend another $30,000 on gasoline in our lifetimes. In line with this projection, a $50,000 lifetime customer and $30,000 in future business was lost due to a $29 late fee and the policies supporting it.

What are the conclusions we can draw from this experience?

The first is to be careful in pursuing strategic alliances. Yes, this is a business trend and, when properly done, it is a great way to retain clients and obtain new ones. I am sure that Shell saw these benefits, which is why they formed a relationship with Chase. The failure in their strategy is that they relinquished interaction with their patrons to Chase. Chase did not view me as a $20,000 customer or foresee a $50,000 lifetime value; they likely saw me only as an unprofitable credit card holder (since we always pay the entire balance each month and, until the end of our relationship, continually paid on time). Hence, when forming any kind of marketing, cross-promotion, or reciprocal business relationship, make sure you retain control over your clients; don’t leave such a critical element to someone else.

The second lesson is about policies. Certainly Chase’s policy to track late fees and interest charges by the date posted is practical and easy to follow (as well as being self-serving), but is it fair? Care must always be given to ensure that policies and procedures balance the needs of the company with the best interests of the client.

Lastly, consider your staff. The agents Candy talked to did not have the latitude to credit a late fee more than one time. Apparently, their supervisors didn’t either, nor did the managers. Yes, there is a place for rules and policies, but to make them absolute and intractable, unfairly handicaps agents and can ruin client relationships. The last words that a frustrated client or caller wants to hear are, “It’s our policy,” or “I can’t do that.”

Because of these problems, caused by a partner company, Shell, through no direct fault of its own, has lost me as an exclusive customer and has encouraged me to spend money with its competitors.

[Postscript: We have just received a notice from Chase stating in part, “Shell will no longer be participating with Chase in a credit card program.” Do you think that perhaps Shell has realized what I’ve just pointed out?]

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

Shoot the Puck

By Peter Lyle DeHaan, PhD

It’s only been a few years that I have been following the sport of hockey. Before that, a myriad of other athletic diversions captured my attention. As a youngster, I did what many of my peers did and played Little League baseball. Not that I was good at it or particularly enjoyed it. In fact, after four years of mostly sitting on the bench or chasing an occasional stray ball in right field, I realized that I wasn’t having much fun. I was merely playing the game because I assumed that was what a kid was supposed to do. My attempts to play baseball did, however, lead to watching the big leagues on TV. In fifth grade, my teacher, a fanatic fan of the Detroit Tigers, planned our school day around the playoff schedule so that she – I mean “we” – could listen to the games during study time. The Tigers won the series and I was won over, becoming a devotee. I faithfully followed the Tigers until their next World Series in 1984.

Author Peter Lyle DeHaan

Shortly thereafter, I moved to Wisconsin. It was hard to be a Tiger fan in Wisconsin; in fact, in was hard to be a baseball fan in the shadow of the state’s beloved Green Bay Packers. In a place where being a “cheese head” is a compliment (note to the uninformed: “cheese head” is the proudly self-proclaimed moniker of the die-hard Packer fanatic) I soon adopted the Packers as “my” team. Although my tenure in the dairy state was short-lived, I continued to be a loyal Packer backer after returning to Michigan.

But it was hard for me to get back into baseball. The player strikes, lockouts, excessive hype, and salary escalations distanced me from the game and left me increasingly ambivalent. Disenfranchised with baseball, I segued to basketball. Although I closely followed the college tournament during March Madness, it was not the defensive prowess of college hoops to which I was endeared, but the faster-paced, higher-scoring professional games. But, then, as the showmanship became excessive, I began to seek alternatives.

Throughout these meanderings as an athletic couch potato, hockey was a sport that I viewed as anomalous. I treated it with disdain. It seemed to me that the only activity was skating back and forth, with few scoring opportunities and even fewer goals.  I just didn’t get it.

When my son, Dan, began following hockey, I didn’t immediately share in his interest and enthusiasm. To my dismay, he one day asked me to watch the game with him. Inwardly I groaned, but outwardly I agreed, because that’s what parents do for their kids. He made popcorn (okay, so maybe it wasn’t going to be so bad after all) and we plopped down in front of the tube. I watched the play move back and forth, right to left and then left to right. Soon the popcorn was gone, but the players kept up their incomprehensible dance with the puck. My eyes grew weary as one more journey up the ice began. Suddenly, Dan became excited. He jumped to his feet and exclaimed, “Watch this!” as the puck was guided past the blue line. To me it looked like the same play I had already seen a hundred times during that game. “They’re going to score!” he gleefully and confidently predicted. The announcers, too, amplified the tone of their play-by-play as they sensed that something important was about to happen. Play proceeded across the red line, then a pass and a slap shot, followed by total bedlam and an energetic high-five from my son. On the second replay, I, too, saw the puck go in the net.

I stared at my son in disbelief. “How did you know?” I stammered in amazement. “Come on, Dad, you could tell it was going to happen as soon as he got the puck,” Dan replied with incredulity. Obviously, there was more to this game than I could see. I began asking questions and for the first time in our relationship, the roles reversed and my son became the teacher. I was astonished with how much he knew and the subtleties he comprehended. Under his tutelage, my understanding of the sport grew and with it, my interest and appreciation followed. Over time, I learned about a one-timer, the five hole, power plays, a two-pad slide, and the poke check.

Soon, watching the Red Wings become one of our favorite father-son activities. Last year it was our delight to cheer the Wings throughout the session, into the playoffs, and to the Stanley Cup. During one game in that phenomenal year, we watched an uncharacteristically unproductive power play wind down. “Shoot the puck,” I earnestly implored the Detroit offense. “They didn’t have any good scoring opportunities,” Dan responded with matter-of-fact calmness.

“But they can’t score if they don’t shoot the puck,” I retorted. Dan paused and gave me a quick glance, followed by a brief look of comprehension before his attention was recaptured by the game. Perhaps I had blurted something profound. After all, it did make sense that if you don’t take a shot, you can’t score.

Regardless whether the sport is hockey, baseball, football, or basketball, playing it safe isn’t going to win too many games and is certainly not what championship teams are made of. How many times have you watched a team build a commanding lead, only to lose the game as a result of becoming tentative and mechanical as they tried to protect their lead rather than build upon it?

This example extends to business. While extreme, make-or-break risk taking is generally not advisable, tentatively protecting what you have built up will not position you to take advantage of new opportunities that present themselves. You could even squander what you have. Yes, many of your shots may miss the mark, but some will be on target. And those that are will keep you moving forward and propel you to the next level.

The same is true in life. If you expect to coast through your time on this earth, hoping that everything will work out, you will end up sad and disappointed. Intentional and deliberate action is what is needed to reach your potential and become the person you are capable of being. I once saw a poster of a large turtle. The caption read, “Behold the turtle; he only makes progress when he sticks out his neck.”

Whether it’s hockey, business, or life, you can’t score if you don’t shoot the puck.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

A Milestone

By Peter Lyle DeHaan, PhD

At the risk of appearing self-congratulatory, this issue marks my first anniversary at the helm of Connections Magazine. Normally, I would let such an event go by without fanfare, however, since so many readers have taken the time to ask, “How are things going?”

Author Peter Lyle DeHaan

I think it is appropriate to update you on the status of the magazine. Some of these inquirers seemed to be concerned about me personally, as if to say, “Are you happy you bought Connections?” or “Is this working out for you?”

Others, realizing the unique position and role of Connections in the industry, appeared to be seeking assurances of its continued survival.

First, let me say that Connections is healthy and on track to meet our business goals and objectives for the year. This is due to the support of our loyal advertisers, faithful readers, generous authors, and the strength of a professional publishing team that pulls it all together. To all of you, a hearty “thank you!”

When I bought Connections Magazine last year, I did not know print media advertising was in the middle of a severe slump nor that many magazines had ceased publication. In fact, in 2001, more than 100 magazines printed their last issue due to falling advertising revenues.

Also, when I signed the purchase paperwork last year, on September 10, I had no way of knowing that our world would soon be forever changed. The next day, terrorists commandeered passenger planes, as missiles, to attack the United States.

I spent the rest of that week not giving much attention to my new business, but rather drawn, in shell-shocked numbness, to the unfolding events on my television screen. The following week, I was convinced that my best and most patriotic response would be to attempt to return to normal life.

Therefore, I tried to refocus my attention on business in general and on Connections specifically. I soon learned that our advertisers, already skittish about the economy and worrying about their own sales numbers, now had the added concern of how this act of terrorism would affect them.

At the same time, they wondered whether the new guy at Connections could maintain the publication or would end up ruining it. As a result, advertising revenue for our first issue was off nearly 20 percent. It was not an affirming initiation for me.

Fortunately, with one successful issue under our belt, advertising rebounded for the following issue. Within two issues, we were back on track – our advertising revenue had returned to pre-Sept. 11-levels.

The feedback from readers was overwhelmingly positive and encouraging. I am still deeply touched by all of the notes and words of encouragement and support I received, especially during those first few nerve-racking months. It was and continues to be both affirming and inspiring.

As a business manager, one of my strengths is ongoing optimization, incrementally tweaking something to make it better with each iteration. That is exactly what my goal has been with every issue of Connections Magazine.

Based on your feedback, it seems that we have been successful in that effort. My pledge is to continue to focus on that objective in order to make Connections the best possible tool and resource for the teleservices industry.

I am also effective at innovation, thinking outside the proverbial box. This, however, does not come as easily for me and requires a bit more focus.

Nevertheless, new initiatives have occurred. More content has been added to the magazine, the website expanded, and fresh new services offered (such as the client newsletter, the outbound list serve, and the telemessaging locator site – see the sidebar for more information).

One area that is not a personal strength is original creativity and pure entrepreneurialism. I never would have tried to start a magazine from scratch. It is only because of the strong platform and sound legacy provided by Steve Michaels, the magazine’s founder, and the team at TAS Marketing, that we have been able to do what we have done. Steve, Chris, and Wilma from TAS Marketing served as consultants and more importantly as mentors during the initial issues.

Even now, Steve continues to provide much-appreciated advice and feedback. (To answer another frequently asked question: Steve has not retried; he and TAS Marketing continue to be active in the industry as business brokers and facilitating the sale of used equipment.)  I have been privileged to receive many compliments on the changes to Connections over the past year.

As I respond with heartfelt thanks and gratitude, I am quick to realize and point out that I am merely building upon the foundation already established. As the saying goes, one man plants, and another waters. I am simply tending to the crop that Steve Michaels planted. As a result, we have seen our advertising base stabilize and the print publication and our website grow.

Since its inception, Connections has been a bimonthly publication. I have received numerous suggestions and requests that it be published monthly. This is a huge undertaking as doing so causes production cycles to overlap. This means that you must begin working on the next issue before the current one is done.

Even so, in April, we took our first step towards that by publishing a special ATSI Convention issue. In December, we will present you with our first annual Buyer’s Guide. So, in addition to our normal six issues, this will make a total of eight for 2002. Next year, we plan to do 10 issues (monthly, except for combined issues in January/February and July/August). Will we ever go to 12? I do not know; 10 seems like a good number for now.

Although I have been writing for various publications for more than 20 years, I did not know too much about the publishing industry as a whole (and I still have much to learn). Interestingly, my lack of knowledge has been beneficial. I was not influenced by “standard operating procedure” nor discouraged by believing that “it can’t be done.”  

Without the shackles of conventional publishing wisdom and historical tradition, I have been free to be pragmatic and contemplative about how Connections is managed and produced. Indeed this has allowed us to be a lean organization with low overhead. We can keep costs down, while improving quality.

That is not to imply that we publish a perfect magazine. We still make typos, do not always cover things as well as we could, and definitely feel the pressure of “crunch time” as the deadline for each issue draws near.

However, with a great team leading the way, our loyal advertisers behind us, and you, our readers, faithfully cheering us on, we will continue to strive to make Connections better and better.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

Strategic Call Distribution

By Peter Lyle DeHaan, PhD

I will admit it – I have a propensity towards idealism. I think that life should be fair and that everyone, regardless of position or past, ought to be granted equality of opportunity. This perspective causes me to advocate impartiality when distributing calls in the call center, with each call handled in the order in which it was received, without distinction of origin or pre-determined importance. However, it seems that few teleservices companies concur with this conclusion; in fact, pragmatism and reality dictate a different course of action.

Author Peter Lyle DeHaan

The first deviation is often to give primacy to sales calls, client check-in lines, or the main company number. After all, the speed and efficiency at which these calls are handled will form the callers’ perception of the level of service provided. It is this perception that attracts new business and retain existing clients, thereby influencing the bottom line.

The second departure from call equality is also self-imposed, whereby certain account groups are deemed more important than others. Although the determining factors vary – client profession, caller urgency, dollar value of the call, or type of service provided – the results are a definite segregation of callers into a tiered call-distribution scheme. Though this is a natural development, there is little merit for doing so and it should be abandoned.

A third divergence is more insidious. This results from a natural reaction to the “squeaky wheel” syndrome. It is when the chronic complainers and those who are excessively demanding are given a higher call priority in order to appease their sense of self-worth or to mitigate their criticisms about the service level. This is the most ominous departure from ideal call-distribution – and most self-defeating. Examine the clients in this category. We have already defined them to be overly critical and implied them to be frequent users – and abusers – of customer service resources. Now dig a bit further. How do these clients treat your staff? Are they pleasant and a joy to talk to or do they challenge, threaten, and denigrate your agents with each interaction and at every opportunity? Are these the clients who take the joy out of your employee’s work and have the ability to reduce staff to tears? I suspect that this might be the case. If this is not enough, now look at their profitability level. If they badger both the customer service staff and the agent, they are likely treating accounting the same way, extracting credits, discounts, and other monetary concessions under the pretext of “poor service.” The conclusion is inescapable: these clients are given the highest level of service, treat your staff the worst, and are unprofitable! This is masochistic behavior; stop the madness!

I propose – in partial jest but with thought-provoking seriousness – that a different model be considered. If one must deviate from the idealism of universal call-distribution, do so with thoughtful analysis and self-serving diligence. First, implement call-distribution based on profitability. Perform a profitability analysis, dividing clients into five groups relative to your average revenue per minute. The top group is those clients whose revenue per minute is twice the average. This makes sense; you make a nice profit with every call you answer, so respond quickly and give it your best. Keep this group happy and retain them as clients. The second group will be those clients whose revenue per minute is 1.25 to two times your average. This, too, is an important group, which deserves prompt attention and above average service. The middle group will be those at the average revenue per minute and up to 1.25 times. This is the average group and they deserve – and pay for – average service. Although these three groups should include the majority of your client base, they will likely not comprise the majority of your traffic. Divide the remaining clients into two groups according to profitability. The exact cut-off point will be a result of how diligent you have been in attempting to make every client profitable. For the sake of example, assume that the fourth group will comprise those who are between seventy-five percent of the average and the average. Then the lowest call priority will be given to those with revenues per minute of under seventy-five percent of the average. Why not give these accounts the lowest priority? After all, it could be argued – on a micro level – that you lose money every time you answer their line! (On a macro level, it can conversely be argued that these accounts necessarily contribute to the overhead and the economies-of-scale of your organization.)

What I have advocated is likely a reversal of your current call-distribution configuration, thinking logically and tactically instead of being reactionary. Imagine if you will, handling yet another customer service call from a frequent complainer. “You took too long to answer my line,” the client asserts. “You are on our ‘economy’ rate plan,” you respond politely, “so your call is given a lower priority. You are getting exactly what you are paying for…now for an extra twenty-five cents a minute…”

If that sounds like fun, as well as being a good business strategy, take the concept to the next level. In the preceding discourse, I proposed five levels of service. Now expand that to eleven levels by inserting a grade between each of the original ones and by adding one at the very top and one beneath the lowest. The clients are still in the original five levels, but there is now a graduated step in between for fine-tuning. First, survey your staff. Which clients do they like and which cause undo consternation? For the nice clients – those who are kind and pleasant, who drop off a gift at Christmas, who treat your staff with dignity and respect – move them up one level in the call-distribution hierarchy. After all, these clients make your staff happy and a happy staff is an effective staff. Conversely, those clients cited for their undesirable characteristics – the ones your staff are afraid to talk to – move them down a notch. The clients will still be essentially ranked by profitability, but fine-tuned based on staff interactions.

Next, make a return visit to accounting. Look at payment history. Some clients will consistently remit payment soon after getting your invoice. Many will pay by the due date. Some will habitually stretch your terms out to 45 or 60 days and a small minority require an ongoing collection effort. Again, modify your call handling priorities based on payment history. Those who pay immediately are moved up one level; those who pay late, move down a notch. But those who present a constant challenge to collect, move down two steps. After all, it is likely that eventually they will leave you with an uncollectable debt, so why not give others a higher priority?

If this discussion has you excited – wonderful! If your mind is churning with revolutionary ideas to change client call handling priorities – great! However, do not attempt to implement these radical changes all at once, or even too quickly. The shock to your client base would be more than they – or your business – can tolerate. Rather, begin to think strategically about call-distribution, making small, incremental steps to prioritizing calls in the best interest of your organization; the change will be extraordinary.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.