In looking at the activity on the blog, I noticed one of the most popular searches was the phrase “average speed of answer“. So, in the spirit of XCS, I thought I should say a few things about the topic.

First, I should mention that anything I know about managing call center KPIs, I learned from Don Szczepaniak and Lorraine Robbins who managed the Panasonic Consumer Call Center during my tenure there. They are amazing people that know much about the dynamics of call center statistics.

Average Speed of Answer (ASA) is one of the key metrics related to “accessability”, the measure of how easily a customer reaches an agent. Other related measures of accessibility are service level, and abandon rate.

Average speed of answer is defined as the average speed in which a customer is reached by an available agent after being placed in Queue. ASA does not include IVR time (the time it takes for a customer to go through the maze of options).

ASA has a high correlation to customer satisfaction. It is, in fact, an inversely leading indicator of Customer Satisfaction. That is, by managing ASA you are directly and inversely influencing Customer Satisfaction (as ASA goes up, customer satisfaction goes down).

Another interesting aspect of ASA is that it is laterally skewed. That is, if ASA is very high, your customer satisfaction is guaranteed to plummet. However, a very good ASA does not guarantee improved Customer Satisfaction.

ASA has a precarious threshold upon which it begins to exponentially impact customer satisfaction, your call center’s efficiency and costs. Past this threshold, which differs by industry but is rarely higher than 5 to 7 minutes, customers grow impatient of waiting and begin to abandon (hangup). This is the antithesis of a call center’s mission and should be fought at all costs. Priority number one is always . . . “answer the phone”.

What is an acceptable ASA?: The acceptable ASA for your customers will depend on your industry and the main reason for the call. The acceptable ASA can be estimated by correlating the ASA to average talk time (the time it takes an agent speak with the customer which excludes wrap time), and the abandon rate. You will see in your stats that both, average talk time as well as abandon will suddenly increase at a certain level of ASA, usually in that order. You may want to set the upper limit of your service level standard slightly below this number.

ASA is similar but different than Service Level. Service level measures the percentage of the customers reached by an agent in a certain period of time. For example, 80/30 is the service level where 80% of the customers reach an agent within 30 seconds during a prescribed period.

Service level, as a measurement is not affected by highs and lows, it simply measures the percentage of total calls answered by a certain time. This measure is usually taken every half hour in order to provide statistically meaningful and controllable sampling.

These are some of the ways that ASA affects the call center and your customer (not an exhaustive list).

High ASA is inversely proportional to Customer as well as Agent Satisfaction: After a certain level of ASA, perhaps around 5 minutes for an order taking call center or perhaps 7 minutes of support call center, customers will begin to abandon.

High ASAs affect your efficiency: If the customer stayed on the line even as they grew impatient of waiting, the receiving agent can expect to spend anywhere between 30 to 60 seconds listening to a now difficult customer, who may find it necessary to vent their frustrations. This imposed dynamic on the call usually results in difficult communications and a reduction in First Call Resolution rates.

One should not underestimate a customer’s need to prove their point about waiting too long, as source of dissatisfaction. Once a customer is upset about having a long wait they can (consciously or unconsciously) make it very difficult for the agent to help.

ASA will increase your costs: As ASA increases, you will pay that much more in telecommunication charges as well as the associated costs of the inefficiencies and the lack of Customer Satisfaction mentioned above.

Causes of increased ASA:

Here are some causes (not exhaustive)

Staffing – Lack of appropriate agent staffing will increase ASA as customers wait for a shortage of agents to become available. Where there is insufficient agent staffing levels, any other solution will rarely have large scale affect.

Training - Lack of appropriate training or agent ability will increase Handle Time, and will therefore increase the ASA.

Inefficient processes or system response time- Again, anything that increases Handle Time will increase ASA. Make sure your agents are not distracted away from the call by inefficient processes.

Poor or no skills based routing – The main goal of any call center is to match the customer’s need with the appropriate/knowleable agent. Lack of ability to match a customer’s needs with the right agent skill will increase ASA.

Some technologies that can help manage high ASA:

Workforce Management: Scheduling the appropriate number and skills on half hour intervals through a scientific and consistent methodology is key to staffing appropriately. Depending on the size of the call center and the number of queues, manually calculated schedules and staffing can cause great staffing difficulties and thereby ASA problems.

Skills based Routing: The ability to better match an agents skills with customer needs will improve ASA by reducing handle time and increasing First Call Resolution. (Customers whose problems were solved on the first call don’t need to call back another time!)

Auto Call back features: Although this feature should not be used as a permanent solution to ASA, it can be helpful in managing an ASA emergency. The auto call back feature prompts the customer for a phone number and allows the customer to hang up while keeping the customer’s place in line. When the customer’s turn in Queue arrives, the customer is called and immediately placed with an agent.

Agent Station-based Electronic Training: Increasing an Agent’s skills will help reduce handle time and thereby decrease ASA. Station based electronic training will push training content, as prescribed by a supervisor, during valleys in call volume. This is a cost effective and proven method of focused training.

This post is much longer than I’d like (Sorry), so I will stop here although there is so much more to say.

If there is interest, we can cover management of ASA in a subsequent post.

In fact, I can ask our resident call center operations guru, Dru Phelps, to get deeper on the topic than I could ever hope to do myself.

Let me know.

Hope this was of assistance.

Committed to XCS !

Last week I had the pleasure of speaking at Panasonic Computer Systems Company’s National Team Meeting in Tampa. As with most sales meeting, the purpose was to educate, promote and motivate the sales force towards increased efficiency and effectiveness.

Unlike most sales meetings, nearly all of the speakers (The Chairman of Panasonic North America – Yoshi Yamada, High level dignitaries from Japan’s Parent Company Matsushita Electric, and local senior management) spent considerable stage time speaking about Customer Satisfaction, or as the corporate culture addresses it, Customer Comes First.

Matsushita’s founder, Konosuke Matsushita (KM) was a visionary who saw the customer as the necessary focal point for a successful business before the concept was an accepted piece of common business sense.

I worked at Panasonic Corp. of America for a long time. In fact, I would say I grew up there and cut my corporate teeth under the influence of KM’s philosophies. It is clear to me that who I am and what I believe about customer satisfaction is, in large part, the result of this experience.

I often tell the story of reading an article in a business magazine as I was starting my working career. The story was about KM and his philosophies on business and social responsibility. Immediately I knew I would do all I could to work in his organization.

We all would like to think we are original in our thinking, but in reality we are greatly influenced by our environment and by key personages in our lives.

I have a passion for customer service and for the concept of turning the power of corporations towards social good. My idea? I think not.

I’m just thankful to have had the opportunity for such exposure.

We would all be better served to address a bit of KM at all of our Sales Meetings.

Committed to XCS !

Could the XCS approach be seen as manipulative? A marketing ploy?

I thought long and hard about it and conferred with a few friends.

Manipulation could be cited anytime we try to influence others to act a certain way. However, our motivation and alignment to the person’s wishes makes all the difference.

In XCS, our motivation is to gain loyalty by exceeding the customer’s expectations. By definition, our methodology is aligned with the customer’s expectations and wishes.

The XCS methodology is different from manipulation in that we look to exceed or perhaps, “over align” ourselves with the customer’s expectations. A successful effort results in an emotional reaction, also of the customer’s choosing, which in turn results in loyalty and repeat purchase, once again, of the customer’s choosing and delight.

One could say it simply: Through XCS we are working to create a positive emotional state in the customer that results in a response, chosen and enjoyed, by the customer.

My conclusion is that XCS is a welcomed influence, not a manipulation.

What a relief !

Sometimes you have to ask the questions you’re most afraid of.

Still committed to XCS !

Friends,

Today a colleague sent me this video which I think is not only inspiring but revolutionary in its simplicity and effectiveness to present the essence of XCS.

Please view it, it will make a difference.

Johnny’s video

Thank you.

Rudy Vidal
Committed to XCS !

Not usually a big Taco Bell fan, but this is an excellent example of XCS at work!

My daughter (24) and I (29) were moving on Saturday. It was very hot in So Cal (99 degrees in Brea, CA.). We decided fast food was for us; but where?

We agreed on Taco Bell, drove up and Stacey orders a #1. My turn – I’d like a Tostada – hold the sauce; a Burrito, hold the onion – and a Small Pepsi -hold the … Pep? He laughs, and says, “This isn’t Burger King, but you can still have it your way!” then suggests we add Hot Sauce to the Pepsi to make it “A Bloody Mary” – Ha, funny. Coincidentally, the store is about 100 yards from The Brea Improv, so, just before he gives us our total, I ask him if he escaped from the Improv. “What Improv?”

We turn the corner approaching the Window, and there, waiting for us, is a hand stretched out holding a Soft Drink and a Straw. When we pull up, he says, “What took you so long?” then, as I pick up my empty water bottle from the cupholder, he gestures to take it from me (for the trash). My usual experience is that the attendant looks at me funny and points to the trash receptacle at the end of the drive – as if to say, “There’s the trash…. ” – Mr. Taco Bell, however, says, “Yes, I’ll take that from you! That is how I Trash the Competition!“.

He’s right – He made every effort to make our fast food lunch enjoyable. I told him we’d be coming back for dinner. Then, embarrassed, he said, “Not so fast, I need some cash”; In all the fun, I had forgotten to pay him – oops. My daughter laughed, and said she thought he was asking for a tip, well deserved.

As we drove away with smiles on our faces, Stacey summed it up perfectly, “Mom, you’d think he was the Owner …”

Moral of the story:

• Extreme Customer Satisfaction and thus, Loyalty is FREE.
• Choose employees that are capable of having the “mind of an owner”.

Yesterday I had the pleasure of speaking at a regional gathering of the Contact Center Networking Group (www.ccng.com) in Phoenix, AZ..

I love CCNG meetings because I am always inspired by the common force and unity that Contact Center Professional feel for their craft. They are inherently united and willing to help each other.

I ran out of time at the presentation (not unusual), and could not touch on these basics, so I thought I would cover a couple of them here.

1. Contact Centers Are About People
Although technology, statistics, quality sheets and accuracy are important, contact centers are about people.
- People buy your products
- People call you for assistance
- People deliver the service.

The proper management of contact center is the creation of a conduit that facilitates the efficient servicing of people (customers and employees). Our goal is to exceed both of their expectations in a manner that the human-touch can be noticed. Ultimately, we are transforming transactions into positively emotional events that create the possibility for loyalty.

2. Listen to Customers – Understand Their Expectations.
It is very difficult to exceed expectations we don’t understand.
I often find contact center managers making assumptions about what customers want. Many times we are wrong. The result can be an unnecessary over-extension of resources, or the blatant mis-aiming of our efforts. “If you don’t know where you’re going, you’ll end up somewhere else”

Ask your customer what they expect? Build policies and procedures to exceed those expectations.

3. The Customer Wants Only Two Things:
a. Answer the phone Now!
b. Solve my problem Today!

This may sound too basic, but it isn’t.
As we concentrate in areas we know to be deficient, we risk loosing focus. Although ASA, training, calibration, AHT, processes, attrition or any of the hundreds of variables that call our attention play a key role in achieving success, we must make sure we consider and prioritize our activities in the context of how they help us achieve the customer’s expectations.
When deciding on any aspect of our business, we would do well to ask ourselves: “How does this help me answer the phone more efficiently and/or increase First Call Resolution for my customers?”

Which brings me to,

4. Choose the Right Key Performance Indicators

There are two types of KPIs – Leading and Lagging.
A Lagging KPIs point to the past. For example, Customer Satisfaction Results is a lagging KPI. It tells you the level of Customer Satisfaction you’ve achieved. But it doesn’t provide insight on how to improve it.

A leading KPI measures activity that impacts the achievement of the desired result. For example, abandon rate is a leading indicator of Customer Satisfaction. In this case, I would say, make sure you put more weight on Abandon Rate in your balanced KPI set.

Although, abandon rate is leading, and that’s good, it is also passive and that’s not so good. It does not measure actual actions that create the desired goal, and therefore, is a weak leading indicator.

The best leading indicators are active in that they measure actions that lead to the desired results. Here is the perfect example:

McDonald’s needed to increase their average purchase per visit. Naturally, they chose average ticket sales as their KPI. After a year, they saw only marginal improvement. The reason was that their attention was placed on the lagging KPI. So they changed their focus from the lagging indicator to a new and active leading indicator – The percentage of times the host or hostess asked the question: “would you like that super-sized?”. By measuring the percentage of times the host or hostess offers super-sized meals, they are managing action that creates results.

Although Leading vs. Lagging is simple to understand, finding great active leading KPIs is not so easy. One can spend weeks looking for the right leading KPIs, but, they will be weeks well spent.

Keep it simple, keep it basic.

RudyV
Committed to XCS!

All,

First let me say thanks once again for your support and interest in the blog. Since December the traffic and interest has gone through the roof, and your comments continue to inspire better and better discussions(which is the reason for the blog).

I have been thinking about including surveys on XCS topics in order to create even more interesting topics and a testing ground for some of the theories discussed.

I’m not sure if this a good idea, but I thought I would let you decide.

The surveys will be found on the “Surveys” tab on the masthead of the blog.

My Commitment:

• Surveys will be short and to the point. (the title will include # of questions and the estimated time to complete)
• Surveys will always be driven by the topics and the issues being/to be discussed on the blog.
• Surveys and their content will never be sold to, or commissioned by a third party.
• Survey ideas from readers will be considered and accepted according to their merit.
• Survey results will be discussed on the blog.

Please keep in mind, that l will not explain or discuss the purpose of the surveys while the surveys are planned or in progress, so as not to skew the results.

The first survey can be found here.

Thanks again for your support.

Look forward to your involvement in the survey and to the discussion of results.

Thanks

Rudy Vidal

Committed to XCS !

While discussing XCS and the importance of timing with Mr. Paul Jarman/CEO of UCN, a simple thought arose which encompasses 3 important tenets of the XCS philosophy:

• Speed
• Power of Recovery
• Empowerment

I thought I would share.

A customer looking for recovery from a challenging situation offers a limited window of opportunity in which our action will be considered honest and forthcoming. It is during this window that the customer will associate your actions to XCS and deposit the resulting emotion in their Loyalty account.

If we wait too long, making the customer jump through hoops while we deliberate on our decision, the customer will not see our efforts and accomodations as the result of our XCS culture, but as the result of their persistence and tenacity. In this case, our considerations and accommodations will yield nothing, except costs in time and money.

As management, we must learn to assess a situation and quickly see if we are likely to end up accommodating the customer. If the answer is yes, then we must act quickly ensuring we receive the credit and benefit of our consideration.

Waiting too long will cause a degradation of the XCS effect over time; ultimately leaving us with nothing except an unrecovered customer on whom we have spent much time and money.

By the way, teach your staff to do this as well and push it as close to the customer as possible. Empowerment, brings with it two large benefits. Speed and Customer Perspective.

Committed to XCS !

One of the reasons I have concentrated on business as a way to increase quality of life through XCS is because businesses have the power to reach and influence so many people. (it’s also my sphere if greater influence – small point)

Some of you may know that I have recently moved to Salt Lake City and that my experience here has, thus far, been very good. One of the key points in my transplantation from the greater New York area is that I have been making some unexpected changes in the process.

There are things I no longer do, and more surprisingly, there are things I have never done before which I now do (for example, for some reason, I have stopped watching TV, and I have started being more friendly with my neighbors). I attribute this change to the influence of people and the local culture.

So, it occured to me that although there are many businesses that can reach many people, there are many more PEOPLE that can reach Businesses. That perhaps, the responsiblity to improve customer satisfaction is not only on the shoulders of the corporations but also on each one of us.

Maybe we, the customers, should give companies “slightly more than they expect” in the form of our patience and understanding as well as our intolerance for the deliberate disregard of customer centricity.

Maybe we need to be more understanding, explain and make them understand without loosing our heads, but also be willing to take action when companies refuse to consider the customer as a vital part of their structure. We can help too.

Our role on this stage should not be limited to complaining about their lack of consideration. We should also do what we can to influence them, in the spirit of building relationships not in a threatening spirit to leave their patronage.

Is this too mushy? May be. But I’m tired of complaining and closing bank accounts. Maybe I just need to sit down with Wells Fargo and ask them to understand me as I try to understand them a little better.

I’m not ready to go hug my local banker, but I feel a little softer.

Committed to XCS !

Today a colleague brought me a recent article in Time Magazine called “The End of Customer Service“- thanks Josh.

The topic of the article is the prevailing movement to replace customer service personnel of one sort or another, with automated processes powered by, the consumer. A common example is the self-check out at the supermarket. The question, “Is this a good thing”? .

Because we often tend to look at the glass as half empty, many would say that this is not a good trend, that corporations are abusive in trying to increase their profitability by having the comsumer do the work and not paying for it.

Although this is probably true, there may be another way to look at it.

I believe there are times when reduced costs may also improve customer service and satisfaction. It all depends on the situation and the customer. I use ATMs and online banking almost exclusively. I like it. I don’t have to deal with lines and I can do it when it suits me. However, I remember when the ATMs first came out, we all thought the banks were trying the cover up their greedy need to reduce costs in the clothing of “customer convenience”. Actually, the banking industry was not driven by the consumer’s best interest (sorry to say they rarely are- I have bank issues). However, it turned out to be a pretty good thing. Why? Basically, automated systems are more reliable than people, and once we get the process working right, they don’t get tired, go on break or develop an attitude when under paid.

Change doesn’t usually feel good, especially when the intended benefit is for someone else. However, we should give ourselves more credit as consumers. We are powerful and if we don’t think something is good for us, we’ll usually reject the change.

To the extent the change brings about improvements in consistency and efficiency, we may want to say hello to the kiosk instead of a person. As long as when we need a person, or are unable to deal with a machine (my Mom hates machines), we have a choice.

This is an important distinction: People must be closely behind the automated process providing a human alternative as necessary. Ultimately, people must take care of people !

Think about some of the shifts we have come to depend on.

• self check-in kiosk at the airport ( I prefer the kiosk, I know what it does, I get in and out in 2 seconds, it makes my travel easier)
• online shopping – I remember when we thought this would never work – some think it still doesn’t – I haven’t been to the mall in at least a year.
• Pour your own soda/coffee at the convenience store – I prefer to pour my own, just the way I like it -not too much ice, please.
• Online and ATM Banking – no line, no problem.
• Pumping your own gas -Ok, there is nothing good about pumping your own gas. This was a bad idea !

I’m not saying that getting rid of people is a good thing, but making process better is. If we can reduce a few variables and improve the quality of our lives through science, I say thank you. I can get my human interaction somehow, I don’t need to do it at the bank.

To the extent that technologies are not ready for primetime, or they don’t add value to my experience, then keep it. This is about my experience not your cost reductions !

Committed to XCS !