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Posted: 09/2000

Web Rings Up Changes in Call Centers
By Chris Garifo

Call centers are caught by the ripple effect of the web's impact on telecommunications billing and sales. As more telecom service providers seek the efficiencies gained from self-servicing advancements, such as electronic bill payment and presentment (EBPP) and online order provisioning, the requirements for telco call centers are changing, calling for new technology and staffing.

"It's already begun," says Esther Pigg, vice president of product marketing for CheckFree Corp. (http://www.checkfree.com/), an Atlanta-based provider of e-billing services that include call center operations. "I definitely wouldn't call it a mature change, but it's definitely well on its way to invading most if not all call centers associated with electronic billing and payment."

New Behavior

As more and more customers take advantage of benefits that e-billing affords them to manage their own accounts online, experts agree the call center's role will change. How much and how soon are the crucial questions, they say.

By presenting billing statements online, carriers create an opportunity to offload routine inquiries by posting answers to frequently asked questions (FAQs), automating responses to e-mail queries and enabling customers to upgrade their service features through web-based provisioning.

Dan Baker, research director of the Technology Research Institute (http://www.technology-research.com/), agrees the volume of routine questions likely will drop, but he notes they will never disappear.

"People are unfamiliar with the e-billing interface, and you're going to get a lot of newbies who are going to call in and say, 'I can't get it to work.'"

Pam Schaard, director of information services at BTI Telecom Corp. (http://www.btitele.com/), a facilities-based ICP headquartered in Raleigh, N.C., estimates that less than 10 percent of BTI customers take advantage of the EBPP portal it deployed in May, even though 60 percent of its customers have the capability.

"Customers are just now starting to adapt to the uses of technology," Schaard says.

Mike Burns, founder and CEO of Houston-based Tele-Systems Mar-keting (www.telesystemsmarketing. com), a call center with customers including Qwest Communications International Inc. (http://www.qwest.com/), South-western Bell (http://www.swbell.com/) and Network Plus (http://www.np1.com/), agrees.

It could be five to eight years before customers become familiar enough with EBPP and other technologies to see significant reductions in calls, he says.

Even then, consumers will continue to call about their bills and expect human contact. "It's tough dealing with a computer on that basis," Burns says.

Daryl Blair, vice president of billing and OSS solutions developer United Support Systems Inc. (http://www.ustwo.com/), adds, "There's always going to be a need [for the customer service representative (CSR)] because there's a lot of people that basically don't want to be educated. They want somebody else to handle it for them; they want somebody else to manage their account. If they have a problem, they just want to pick up a phone and talk to somebody."

New Technology

EBPP gently is moving customer contacts made principally via circuit-switched telephones toward a variety of web-based media, such as e-mail, online chat and IP telephony.

While real-time Internet-based calling is slowly making its way into carriers' customer service portfolios, e-mail already has an enormous impact, experts say. A possible reason: E-mail eliminates some of the aggravations of phone contact, such as being on hold or being passed from CSR to CSR until the customer reaches someone with the appropriate knowledge or authority to make an adjustment to an account.

"E-mail is just exploding," Burns says, adding that customers can expect to receive an increasing number of automated replies. "We think that 70 percent of these questions can be answered with an automated response. [But] in the 30 percent that are not ... you've got to respond to these e-mails quicker."

Burns adds that these e-mail messages need to be replied to in no more than 24 hours, explaining that studies show that "almost 50 percent are responded to in five days or over, or never responded to."

Baker agrees that e-mail will attain growing importance in customer relationship management (CRM). The key will be synchronizing the e-mail and telephone support so that the CSR is able to get the entire picture of what has transpired between the customer and the call center, Baker says.

At BTI, for example, a customer calls and gets a CSR who can access the customer's account and view any e-mail the customer may have transmitted. That capability can be crucial when the customer is a business with several employees who have e-mailed the carrier.

"That's the sort of thing that challenges technology," says Schaard. "Those multiple e-mails that come in from the company and then bringing those back to the main customer account level; having one place where all the information about that customer is stored."

Staff Changes

The evolution toward the multimedia call center as well as increasing complexity of telecom services sold requires a new breed of CSR. The historical model of the typical call center CSR has been an employee who is underskilled, undereducated, works part time and earns little more than minimum wage. In today's world, those kinds of employees have gone the way of the rotary phone. Today, CSR positions need to be filled by people who are more computer and Internet savvy, have better communication skills and are far more knowledgeable of a telecom provider's product line.

While on-the-job training has to improve, call centers also will have to recruit employees who are more capable and better educated.

"What you'll actually need is a higher skill level of the people helping out because you need people who are comfortable with e-mail and comfortable with the web," says Debbie Newell, a product manager for YourAccounts.Com (http://www.youraccounts.com/), which develops EBPP software.

"[Call center CSRs] are not entry-level folks," Blair adds. CheckFree's Pigg says regular surveys of her company's call center workers show an increasing number have college degrees.

To attract and keep better-educated, more technologically proficient staffs, call centers also will have to pay better, provide more and better benefits, and offer better training. While that undoubtedly will result in higher payroll costs, one benefit could be reduced staff turnover at call centers, which historically have been plagued by that problem.

However, Bob Jurik, vice president of marketing for CosmoCom Inc. (http://www.cosmocom.com/), which develops communications solutions for call centers, says carriers and other telecommunications companies have had difficulty finding qualified CSRs in any one specific geographic area. As a result, systems are being developed and put into place that are "breaking down the brick walls" of the traditional call center and moving to an "e-care contact center" approach.

Jurik says CSRs are working out of their homes, using an Internet-connected PC to connect to their company's network. Network software will determine the needs of any one caller, then find the proper CSR who has the knowledge or level of authority to adequately help that customer.

"The call center of the future ... still will have buildings with people in it, but a lot of [the CSRs] are not going to be working with the brick and mortar walls of corporations," Jurik predicts. "Once the network is in position, it's just a matter of getting hooked up, finding out what [the CSRs'] skills are and when they want to be on- or offline. ... And that change is inevitable."

Jurik says such a system offers telcos a deeper pool of potential employees while drastically reducing the overhead associated with traditional call centers.

In-house vs. Outsourcing

As the capabilities and responsibilities of call centers and their staffs expand, one question that telcos will face is whether to outsource their call center or keep the operation in-house.

According to a 1999 Technology Research Institute report, in-house call center agents outnumber outsourced reps 10-to-1. That ratio "is expected to hold for the future."

David Rutberg, senior vice president of product development at Teltrust Inc. (http://www.teltrust.com/), a Salt Lake City-based company that operates a number of call centers, predicts that telcos will move increasingly toward outsourcing their call center operations.

Teleservices Firms Serving the Telecom Industry

APAC Customer Services Inc.

Deerfield, Ill.

http://www.apacteleservices.com/

Business Response Inc.

St. Louis, Mo.

http://www.businessresponse.com/

Convergys Corp.

Cincinnati

http://www.convergys.com/

Echo Communications

Santa Barbara, Calif.

http://www.echocomm.com/

Etinuum

Denver

http://www.intekinfo.com/

FutureCall Telemarketing West Inc.

Colorado Springs, Colo.

http://www.futurecallinc.com/

ICT Group Inc.

Langhorne, Pa

http://www.ictgroup.com/

Interactive Teleservices

Lincoln, Neb.

http://www.intertel.org/

King Teleservices

New York City

http://www.king-teleservices.com/

LiveBridge Inc.

Portland, Ore.

http://www.telemark-inc.com/

RMH Teleservices Inc.

Bryn Mawr, Pa.

http://www.rmhteleservices.com/

Sprint TELECENTERS Inc.

Maitland, Fla.

http://www.sprint-telecenters.com/

Technion Communications Corp.

Hollywood, Fla.

http://www.technion.com/

Teleperformance USA

Salt Lake City

http://www.tpusa.net/

TeleQuest Teleservices

Arlington, Texas

http://www.telequest.com/

TeleSpectrum Worldwide Inc.

King of Prussia, Pa.

http://www.telespectrum.com/

TeleSystems Marketing Inc.

Houston

http://www.telesystemsmarketing.com/

TELUS Marketing Services

Calgary, AB, Canada

http://www.telus.com/

The Faneuil Group

Boston

http://www.faneuil.com/

Transcom USA Inc.

Carmel, Ind.

http://www.transcomusa.com/

West TeleServices Corp.

Omaha

http://www.west.com/

Source: Technology Research Institute (http://www.technology-research.com/)

"We're seeing that already, first with your independent, smaller phone companies," Rutberg says. "Even the largest will be using outsourced services for directory assistance, operator services and customer support."

Among the advantages to outsourcing is that it's more cost-effective, easier to manage and has fewer upward or downward spikes in volume, Rutberg says.

However, CheckFree's Pigg notes that telcos traditionally have preferred keeping CRM operations in-house and will continue to do so with e-billing.

"What we're hearing from all of the telcos that we've talked to is that they want to keep it in-house because they now have an even greater opportunity to solidify the relationship that they have with their customers."

Those telcos that choose to outsource their call center services can expect a change in the fee structure as a result of the shift from phone-based to multimedia customer contacts.

"What we're doing is we're charging for every transaction, in addition to a fee for that person being there," Burns says. "So, every e-mail has a charge, every chat has a charge, every fax, every voice call has a charge. They [the clients] have to pay for that service, so it is going to go up."

Pigg agrees that various service tiers likely will develop--for instance "800" calls being the premium type of service, e-mail being less expensive and web chat falling somewhere in between. She also says the time spent resolving a customer call--by phone, e-mail or VoIP--will be the principal cost factor.

"If it's a complex issue, you may be able to get a quicker resolution with a phone call than you could with e-mail because e-mail may take a number of back-and-forth ping-pongs before you can get a resolution and, therefore, the elapsed time would be longer," Pigg explains. "I think it will be a factor of both--the channel of communications as well as complexity of calls and how long it takes to reach a resolution."

Adding a new wrinkle to the in-house vs. outsourcing debate are new solutions and services that allow for a sort of "hybrid" call center that provides in-house and outsourced.

Such a service, OneVoice Solutions' Certainty!, was launched in July by OneVoice Solutions, an operating unit of Teltrust. By leveraging Certainty!, carriers using an outsourced call center can seamlessly escalate an inquiry from one of its CSRs to the carrier's own internal support staff. Likewise, inhouse call center operations can be augmented by outsourced agents during high-volume or low-staffing periods (such as weekends).

Rutberg, one of the system's developers, says it offers flexibility across several dimensions in that it can handle a cross-section of a carrier's customer-service traffic (overflow, weekend, night, etc.) while utilizing a variety of media, such as phone, Internet chat, e-mail and VoIP.

Rutberg adds that the seamlessness by which the customer can be shifted from one tier of service to another is critical because being shuttled around an organization and being asked the same questions or providing the same information repeatedly is so frustrating.

Chris Garifo is operations systems editor for PHONE+ magazine.

Copyright © 2000 by Virgo Publishing, Inc
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