Wednesday, October 15, 2008

Metrics Troubleshooting part 3- FCR

There is not enough words in this blog, that can capture the significance of FCR to the operations of a contact center. And it would be euphemism to say, that I am someone who can speak his mind.FCR is the only metric that balances and measures customer service effectiveness and operating cost efficiency.
Here are 5 reasons why FCR should be the key iniatitive for a center's success.
1.It reduces operating cost- Customer's calling for the second time about the same issue constitute additional cost. For example, if we have a 70% FCR rating this means, that 30% of our call volume comes from the same customers. And then, what if half those issues are still unresolved? Then what we have here is a snowballing effect, creating a heavy toll on the operating cost.
2. It improves Customer Satisfaction- It is a known fact that FCR is highly correlated to customer satsfaction. Some might say, that it is it's highest correlated measure. Some might argue, that FCR, or its lack of, is the biggest driver of customer dissatisfaction.For instance, a study conducted by research consulting firm Customer Relationship Metrics found that “caller satisfaction ratings for the company in general and for the CSR will be 35 to 45 percent lower when a second call is made for the same issue.” Another study, conducted by Service Quality Measurement Group (SQM), revealed that for every 1 percent improvement in FCR, you get a 1 percent improvement in customer satisfaction.
3.It increases Employee Satisfaction- an organization with low FCR often has low employee satisfaction and high turnover. The stress is very high on the employee who handles the second and third call from that customer whose issue wasn't resolved the first time.
4. It increases opportunities to sell-when a customer call is resolved youincrease the customer cross selling acceptance rate by 20%. SQM’s research shows that customers’ needs must be resolved before the CSR has earnedthe right to move on to any sort of sales activity. If the CSR cross sells beforethe inquiry or problem is resolved, the customer is irritated and feels that theorganization is pushing its needs, rather than serving the customer. As aresult, the fundamental customer relationship is undermined.
5.Reduce customers at risk – SQM research shows that if the customer’sinquiry or problem is resolved in the first call only 3% of those customers areat risk to go to your competitors. Conversely, 34% of customers who did notget their inquiry or problem resolved are likely to go to your competitors. Customers that are at risk of going to competitors are a result of unresolved customer inquiries or problems and have the biggest impact onthe call center’s financial performance. Most call centers are not aware howmuch revenue they are losing as a result of the customer’s inquiry or problemgoing unresolved.
There are several key tactics and tools you can implement to achieve — or at least approach — your center’s true FCR potential.
1. Two plus calls- We must track calls that are usually not resolved on the first contact. There should be a pattern.We must identify the call types and probable causes and the practice its' most efficient resolution. Then align it with the training materials, QA Scorecards, and coaching workflows.
2. Align FCR/AHT targets.-Even with the right training and tools in place, FCR will suffer if agents are confused with performance objectives. Asking agents shoot for a high FCR rate while at the same time rigidly requiring them to have low talk times will likely result in rushed calls, a high incidence of errors and rework, and increased agent burnout and turnover.
3. Train, empower and retain- Training and QA should be focused on issue resolution and confidence building activities. Then, through coaching, data must be gathered to identify knowledge gaps so that action plans will be implemented to narrow it down. Employee turnover must be reduced. This means that the agents on floors are agents armed with knowledge, confidence and experience, the qualities that contribute to issue resolution.
4. Awareness and Accountability- FCR must be viewed as the most important metric and everyone (from agents to Account Managers) should be held accountable. And it most be known, that the only judge of FCR, are the customers.
5. Process Improvements- Rework, wastes and delays should be minimized so that the agents can focus their energy on resolving the customer's issues. Process Flow Charts, Process Diagrams,Scripts, must capture the most efficient ways of resolving a particular issue and have it implemented. The most important catalyst for such process change, would be the agents. Top organizations recognize that agents are the true customer contact experts in the call center. These organizations actively solicit suggestions and feedback from agents on what they need to do to improve the process. Furthermore, through this, agents know their role, and their importance to the process. This is because THEY are the process.
6. Specialization- Skill Routing is a common practice by organizations that aim for FCR. Through this, customer and/or call type are matched with the CSR’s knowledge and skills.We can have roaming tier twos ready to assist CSRs on the floor or through phone. If issues are so complex and diverse that most of the time spent is on research, we can have a research specialist per subject, product, or per call type.
7. Technology- Tools and resources must be available and accessible at all times to the agents. They must have access to all customer information and history to assist in resolving customer’s issue. There must be an Online Knowledge Base that is constantly improved to pursue FCR. Pop up screens that instructs. Voice Message Box where callers can leave messages when agents are not around, or even when they are on hold-(just kidding about the hold thing).
8. Customer Empowerment- there are times when issues may be resolved, but the customers don't know it. The agent must verify this with the customer by asking, " have I resolved your issue?", or "would there be anything else?" or by narrowing down parameters, "so the reason for your call, would be.."
By establishing support FAQs, we are empowering the customer closer to FCR. What better way to resolve an issue with help from the customers who can vividly describe their issue, know what caused it, and would just like a few info on what to do next?
9. Rewards and Recognition- Agents who contribute to a center's FCR must be recognized.

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