Wednesday, 8 September 2010

Onshore vs. Offshore Contact Centres – The Real Benefits

In the past major companies made the most of utilising offshore outsourced contact centres in order to maximise profits and reduce the costs of providing customer services. The low cost solution offered by contact centres in the developing world meant that the price per minute was much lower than what had been available in the UK or “onshore”. However, whilst the offshore model is still certainly popular, there is a growing trend for bringing back contact centre services to the UK.

There are a number of reasons behind the re-emerging popularity of home based services. The largest contributing factor has to be the overwhelming customer demand for customer services and contact centres to be operated within their own country. Customer frustration is one of the major causes of this demand for change with communication problems, a lack of specific technical knowledge and an inability to effectively resolve issues topping the list of customer complaints.

Companies have now realised that the costs of customer services are not purely the management fee of a contact centre or a cost per minute for each enquiry. It has now been realised that the combined costs of offshore contact centre management, the loss of customers due to poor customer service and the increased call length due to misunderstandings makes the entire offshore customer service option less financially palatable.

Essentially, if pursuing high customer satisfaction rates then the onshore contact centre is a far better option. When combined with highly trained customer service professionals the benefits are astounding. Major UK companies have followed this route, for instance, insurance company Norwich Union announced that 150 call centre jobs would be brought back from India to be carried out in the UK whilst energy supplier Powergen has completely shut down its Indian contact centre operations in favour of UK based services.

So, whilst companies initially saw massive financial and operational benefits to outsourcing their customer services, in recent years, the popularity of offshore contact centres seems to have been stymied. With a greater understanding that customer service is less about minimising costs in the short term, and instead about forging and maintaining good customer relations as a long term goal, confidence in the UK contact centre industry has increased.

Wednesday, 14 July 2010

Does your CRM system give you everything you need?

EWA recently had a stand at the Data Marketing Show, part of Marketing Week Live and over the course of the two day exhibition, I had numerous conversations with people about all things data and CRM related.

One topic that kept cropping up was the failing of “off the shelf” CRM systems and the frustrations experienced by marketing personnel in particular.

“It doesn’t integrate with our email marketing software”, “I struggle to export the data in a usable format”, “We’ve had to change our processes to suit the way the system works” and “All I need is a system which I can use for mailings and allows me to keep my data up to date” were all common themes I heard. Now of course I’m sure some of the frustrations vented can be put down to what I like to call “user error” but not everyone I spoke to can be guilty of under-using or mis-using their CRM system. Which leads me to the question, are proprietary CRM systems right for everyone or have we all been a little sucked in by the hype?

A little bit of Googling returned some interesting stats to help answer the point raised.

1. In 2003, a Gartner report estimated that more than $1 billion had been spent on software that wasn’t being used.
2. In a 2007 survey, four-fifths of senior executives reported that their biggest challenge is getting their staff to use the systems they’d installed
3. 43 percent of respondents said they use less than half the functionality of their existing system
4. 72 percent indicated they’d trade functionality for ease of use
5. 51 percent cited data synchronization as a major issue

Given the facts above and the anecdotal evidence gathered during the exhibition, the answer to my earlier question has to be no, proprietary CRM systems aren’t (necessarily) right for every business and on some level, we have believed the industry hype.

This leads me on to my second point and one which addresses the other main thing I heard during the show, “if only I could have a system which just does… (Insert wish list here)”

And of course the answer is yes, you can have a bespoke CRM system which exactly matches your requirements, without all of the unnecessary functionality that you’ll never need and will have to work around.

“Hmmm, not sure about bespoke” I hear you say. “Doesn’t that mean it’ll be expensive and developed in some weird programming language?” In a word - No. In the past, bespoke, has been something of a dirty word when used in conjunction with software development. However; in just about every other circumstance, bespoke conveys a message of made to measure, quality and a precise fit which is exactly what a bespoke CRM system provides.

With the web technology available today, bespoke CRM systems can be quickly developed and deployed to multiple concurrent users giving them precisely the functionality they need, often far more cost effectively than a proprietary CRM system.

So if you’re considering a new CRM system it’s a good idea to take a look at the bespoke route, you may find it fits a little better than the off the peg version.

Tuesday, 22 June 2010

Should an agency be judged on more than just their results?

New business at a marketing agency can be a funny business sometimes. Part of my pitch always focuses on results as that’s primarily what any business that employs an agency like ours is looking for. But in order to get results, a good working partnership needs to be established. A great client/agency relationship leads to better insight, understanding and most importantly trust.

A call from the senior salesperson at the online marketing agency we use (and that’s quite a unique relationship, an agency using an agency) prompted this particular blog. The salesperson in question asked me to act as a reference site for a new prospect. “It’s all about conversions” he told me. “If you can focus in on that, it should clinch the deal for us”. Now I had no problem at all acting as a reference site or indeed talking to his prospective client about the excellent results they have delivered for us but personally, I rank the relationship I have with our agency as highly as I do the results.

Which led me to the question, if I didn’t get on as well with the staff who work on our account and if they didn’t have a really good understanding of our business, would we still see the results we do?

Well of course the answer is no (I’d be contradicting myself a little if it was yes!) But that led to another question… If we were getting results but they were a pain to work with, would I be looking elsewhere for another agency? And the answer to that question is probably yes. No one wants to work with an agency or indeed an individual with whom they don’t have a good relationship.

If though, the results are good and you feel you get value for money then small misdemeanours can be over-looked sometimes. Everyone makes mistakes from time to time but in my experience, it’s how you go about fixing those mistakes that really counts. If done well there is no need for a relationship to suffer and often it can become stronger as a result.

So next time you’re on the hunt for a new agency or a new business manager (like me!) is pitching to you, take a second to look beyond all the ROI metrics and ask yourself the question – “do I like this person and can I work with them?” Hopefully, if it is me in front of you, the answer will be yes!

As always, what do you think? Is it all about getting bangs for your bucks or should a good working relationship be as, if not more, important?

Tuesday, 15 June 2010

Are Your Messages Getting Through?

Successful relationships are surely the key to life – whether they are family; friends; business or social they are, essentially, what can separate us from the animal kingdom… Our ability to communicate across multi channel media with any of ‘our circle’ enables us to engage appropriately at any time.

We recognise and differentiate the channels depending on the message and the recipient – whether we are texting our kids; phoning our parents; writing to the bank; or emailing a friend; we often subconsciously select the right channel for the best and most certain response… But, do we do the same in business or does cost and ‘efficiency’ override our inherent knowledge that what’s right and appropriate for one recipient is inappropriate for another?

Surely we cannot dispense with years of learning to jump onto the next comm’s bandwagon? As I write today – social networking is the fad. I am old enough to remember direct mail, and then the telephone, before email became all the rage. At each stage of communication evolution we leapt fully into the new world and dispensed with the old. What happened? In the main – very little! Lots of money was invested in making calls and sending emails to attract new business – sometimes with calculable evidence of a required ROI; however, rarely was the leaky bucket of customer attrition addressed and so real growth was not achieved.

Understanding customers, developing relationships and building loyalty will; surely remain the key to successful business and growth. Partnering with the right specialists can help reduce investment, and - will most certainly add value - as you benefit from a range of experience and not just your own.

So before embarking on Twitter and Facebook; before you purchase another batch of data to fire off some more emails; why not stop and take stock…?

• What can your current customer data tell you?
• How can it help inform your future strategy?
• Where does your profit come from rather than just your revenue?
• Which customers are more likely to lapse and which should you endeavour to keep?
• How and why do they like to be communicated with?

In summary - the right partner can help with these questions and make your business grow healthily and less expensively because they use the knowledge locked within your data to expose the communication opportunities of the future. Sometimes the answers are right under your nose!

Thursday, 3 June 2010

What are the factors behind a good client/agency relationship?

What are the main elements that go to making a good, long term client/agency relationship? Tough question isn’t it? Cultural match, ROI, outstanding creativity, awards even perhaps… all have their place but sometimes it can be a little more intangible than that.

I was presenting to a prospective new client recently and was asked how long on average our clients had been with us. In our case it’s around 5 or 6 years which I think is pretty darn good for a CRM agency such as ourselves (we currently have clients that have been with us for as long as 15 years). But the question got me thinking, why do our clients remain so loyal to us and why have we been successful in developing their accounts? Well I’m not about to reveal our secrets or bore you to death with a diatribe on our approach to Account Management. What I will do though, is tell you what factors I believe make a good client/agency relationship and some of the things to look for if you are searching for a new partner.

Trust – The foundation upon which any good relationship is built and by far the most important factor in forming a long-term, mutually beneficial partnership. If there is no trust between a client and their marketing agency every project, idea, suggestion or piece of work will be second guessed or viewed with suspicion. A client has to believe and trust that their agency has their best interests (and those of their brand) at heart in order to produce the best results.

Cultural Match – Without exception, every business has a distinct identity, a culture and a work ethic. If the relationship is to be successful it’s important that the business finds an agency whose culture mirrors or complements their own. That’s not to say that there shouldn’t be differences as often the best work or campaign can be produced when ideas and the established status quo are challenged by both parties.

Personalities – Never underestimate the importance of matching account management staff with the client, if the two get on both on a professional and personal level then the relationship will undoubtedly flourish. Get it wrong and the exact opposite will happen, trust won’t be established and creativity will be stifled.

Honesty – We all get things wrong from time to time but if your agency is honest enough to own up to mistakes and they go the extra mile to put them right, then that can only be a good thing. Honesty is also important when it comes to communication and feedback which leads me to my next point…

Communication – Open and honest communication, particularly feedback is essential in the client/agency relationship. As a CRM agency, feedback whether positive or constructive (no one likes negative!) is invaluable if we are to continue to innovate and drive the client’s communication strategy forward. We do our upmost to ensure that the key stakeholders on any project are talking all the time and that any little ripples are ironed out along the way.

Value for Money – A topic that can be highly subjective to say the least! An agency and their client may well disagree on what constitutes value for money but what can’t be disputed is the more accurate measurement of Return on Investment (ROI). As an agency, ROI is all important and if we’re to retain our clients then we must be able to accurately measure and demonstrate ROI. That is why each programme we implement has metrics built in whether it’s establishing control groups to measure the impact of an eCRM campaign or KPIs for contact centre performance.

And finally…

Shared Objectives – We’re all in business to make money (well most of us are anyway). If we’re honest about this and don’t try to screw every little last piece of discount or margin from each and every deal then the trust and relationship that we worked so hard to establish won’t be affected. By all means challenge your agency to justify their charges (and hopefully they’ll be honest about them) but don’t be surprised if the quality of work begins to slide if you’ve beaten them down to a rock-bottom price. Likewise from an agency perspective, if a client gets even the slightest whiff that they’re being taken for a ride, they won’t be a client for much longer.

In Summary

So there we have it, what I believe to be seven important elements that go together in making the foundation of a solid client agency relationship. Clearly the list is not exhaustive and there are many other less fundamental factors which cumulatively can have a dramatic effect. But what do you think - are there any other major factors I have missed, would you like to challenge any of the statements I have made? All feedback (well most!) will be gratefully received.

Friday, 26 March 2010

Contact Centre vs Communication Centre vs Call Centre – But Which One is Right?

Think of these 3 phrases:

• Contact Centre
• Communication Centre
• Call Centre

What images do they conjure up? Rooms full of people in small cubicles chattering away on headsets? 2,000 seat off-shore facilities filled with people reading from call scripts? Or small teams of dedicated individuals dealing with enquiries received across a variety of channels?

Well to be fair you’d be right in all of these cases as fundamentally they mean the same thing - or rather they are variances on a theme. The main differences would be in the type of work and projects they undertake.

The contact management industry includes a vast array of operations of all shapes and sizes serving just about every sector and marketplace you can think of. Some businesses operate in-house contact centre departments whilst others prefer to outsource to experienced professionals.

When outsourcing any contact management operation the question is how do you find the right partner – do you need a call centre, a contact centre or a communication centre?

Well this comes down to a number of factors some of which may include:

•Through which channels do your customers want to talk with you?
It’s important to think of it in these terms rather than through which channels do I want to allow my customers to talk to me. If you’re not engaging with them on their terms you risk alienating a significant portion.

•How many calls/contacts/enquiries do you receive and how long does it take to deal with each of them?

•What experience do you want your customers to have?
For example, a high volume, quick and easy, churn through calls may not be what you want to expose your customers to…

•What level of knowledge and expertise do the enquiry handlers need – about product; service; sales; etc.

All customer contact operations can be successfully outsourced, but your selection of the right partner is crucial. Get it wrong and you may not have too many customers to worry about anyway!

Wednesday, 3 March 2010

More channels than ever, but have we forgotten how to talk to our customers?

I’ve got a sneaking suspicion that technology is taking over my life.

Until recently I was just another happy go lucky guy, ignorant to the likes of Twitter, iPhones, Kindle’s, streaming media, HD TV and all the other multitude of “must have” gadgets (a phrase which I despise by the way… the “must have” part somehow insinuates that our lives are not complete without these things!).

Then I turned the corner and life hasn’t been the same since.

I’ve had a Facebook account for sometime but I decided to see what all the fuss was about with Twitter. All of a sudden I’m immersed in a world of tweets, access to a whole new universe of exciting information, a new way of communicating with like minded people – people I’ve never met with interesting ideas and comments on the industry I work in as well as life in general.

Next came the iPhone. And oh my God the apps… the wonderful, life enhancing, “must have” apps (they really are in this case). This opened up a new way to stay up to date with my email, my Twitter account, Facebook, text messages, world news, sporting events, to measure my exercise, to find my way, etc. etc. etc…

This then led to streaming media and content to my TV. Normal TV is boring. Sky+ has allowed me to watch the programmes I like when I want to watch them but that’s not enough; I want online content as well. A spot of online shopping and a few pounds later (don’t tell the girlfriend) and now I can get my favourite extreme sports’ videos streamed to my TV, not just on my PC.

There are of course a number of consequences to all of this media buzzing around my life. I suddenly have accounts all over the place, things I need to check just in case I’ve been sent a message or someone has posted a life changing piece of information, a tweet that I need to share with the rest of my followers, an event being organised on Facebook by an old acquaintance. And this takes time, but time well spent I reassure myself. After all, the direct message sent to me on Twitter could be from a prospect I’ve been following with a question about our services.

And that’s what I mean by technology taking over my life. Back in the good old days, if you wanted to talk to someone or share an idea, you called them or sent an email. Now we have a plethora of channels through which to share our ideas, suggestions, offers and to promote our services. An ever-growing cornucopia of ways in which to connect to the world and absorb information.

This presents a challenge for marketeers like me and businesses in general. Through which medium and what channel do you communicate with your customers and prospects? An integrated campaign now needs to be truly integrated and that goes for the response channels as well.

There are ways to identify the channel preference of your customers – simply asking them is always a good place to start. But your data will tell a story too, different customer profiles will interact with your business in different ways, they’ll respond to different campaigns and calls to action and if you can analyse this, you’ll begin to build a picture of what your customers’ preferences are.

We use one word to describe this concept: Relevance. Put simply, every campaign should take into consideration relevance of channel, relevance of timing and relevance of content to the recipient. You know so much about your customers from the data you hold; when they buy, what they buy (and have bought previously) how they pay for it, and to what communications they respond - so why not use it?

Bringing this information and the three ‘relevancies’ into a communication programme, whether it’s an outbound campaign or an inbound response channel will have a dramatic effect and improve relationships with your customers.

So what are you waiting for… stop Tweeting, step away from the iPhone and discover how your customers really want to talk to you.