Web based call centers where human agent costs are minimized through use of computer system responses will become the norm.

IMPACTS

Web based call centers that automate agent functionality and harness self-service techniques will greatly reduce the number of agents needed to maintain those centers.

Currently the biggest cost reduction comes from simple self-help systems like FAQs, auto bots, and searchable knowledge bases. Self-help also has the advantage of being available 24 hours a day, 7 days a week (Convergys, 2001, p8). Online text chat and assisted browsing (where the agent takes control of Web forms, and browser redirection) can reduce call times, and also lead to semi-automation if systems have the ability to learn.

Web based call centers also tend to be better candidates for integrated contact methods (email, chat, Web site, Voice Over IP, etc.) – these methods can all be converged into one queue for the client application (Convergys, 2001, p7) and then filtered through unified knowledge bases that attempt to automatically answer the questions before passing them on to an agent.

This means that the job of the systems integrator is quickly becoming as important of that as the agent, this arises from a need for data from various legacy systems to provide a direct data feed to the call center software (Hayes, 2001, p1).

Consolidating a number of smaller call centers into a larger “virtual” call center can also reduce agent costs. Virtual call centers work by implementing a distributed model where remote agents are connected via a network and a common interface (in this case a browser). With the right software virtual call centers can deal with a much higher demand, as agents tend to have various areas of expertise, if calls are routed correctly then the use of each agent’s time becomes more efficient. This is a model that lends itself to outsourcing, ASPs are competitive and are far more likely to implement cost saving automation measures (Hayes, 2001, p1). Distributed call centers, which use a Web-based model, have reduced labour costs and a higher availability of resources.

Regardless of whether the agent costs are reduced – call center providers are in danger of losing money if they don’t implement the above Web call center features, it’s just that the customer now wants and expects this kind of service (Wilde, 2000, p1).

JUSTIFICATION

The banking industry is now leading the way in call center Web-enablement because it is cost effective – it is expected that other industries will follow suit over the next few years (CRMXchange, 2000, p1). The banks and others are concentrating on Web self-service with packages like Egain’s E3 real time Web channels (eGain, 2001, p3) that involve some agent interaction to teach customers to use Web-based self-service. A recent study (CRMXchange, 2000, p1) shows that agent assist is ranked third below potentially automated call center functions like Web page sharing, email, and just above Web self-service. To put dollar figures just on self-service savings, (Messmer, 2000, p1) comments that “Web self-service overall averages $1 per customer contact, while an 800-number telephone conversation can range from $10 to $33, and e-mail from $3 to $10”.

Here are a few success stories:

· Citizens Bank has used ServiceSoft Corp’s automatic email and customer knowledge base system, with dramatic results – they say that customers can now answer up to 80% of their questions online (Hayes, 2001, p1).

· Polaroid is using RightNow Web software by RightNow, Polaroid have said that Rightnow’s FAQ system has dramatically reduced the number of emails received. RightNow Web allows users to prioritise inquiries leading to fewer agents responding to more questions (Hayes, 2001, p1).

· Remington also has the Rightnow system in place. (Hayes, 2001, p1) says, “More than 120,000 people have visited the FAQ section of the Remington site since Remington implemented RightNow Web”. She goes on to say that under 1% of these customers have had to seek assistance from agents.

· Dell Financial Services has pushed 16% (70,000 per month) of its call centre transactions to a Web-based, self-service system (BitGroup, 2002, p4)

Staffing costs at traditional call centers are prohibitively high (salary, benefits, advertising, cost of recruiting, and training) - (Ruby, 2001, p1). Also, the estimated attrition rate is one of the highest in the industry (25% – 35% annually) - (Ruby, 2001, p2). However, the technology is still relatively new and some companies are unwilling to buy off the shelf packages. Symantec looked at products like Siebel and decided that “pre-packaged” products did not meet their requirements, so they wrote their own (Messmer, 2000, p1). Also, some of these packages offer features that have not proved popular like Voice Over IP (CRMXchange, 2000, p1). It is also unclear as to how much of the saving made by reducing agent costs have to be channelled into systems integration and configuring and maintaining the automation systems.

FUTURE DIRECTION

There is a general push toward Web-based applications; call center technology (both client and agent interfaces) is heading towards this client-server model. (eGain, 2001, p2) goes as far as saying, “Net-based customer contacts are expected to dwarf phone-based interactions by 2005”.

Large call center providers (ASPs) that leverage skill sharing in a Web-based, distributed environment may eventually become more cost effective than smaller, more specific vendors. There is also a definite trend toward convergence, future call center and CRM packages will attempt to more efficiently integrate different client contact channels (email, phone, Web, etc.) and automated workflow systems as well as knowledge bases. Systems integrators may replace agents to some extent as these systems become more integrated and systems are intelligently coupled with legacy systems (Hayes, 2001, p6).

Oracle, PeopleSoft and Clarify are currently the big players, but a proliferation of Web based call center and CRM packages is sure to come (Messmer, 2000, p1). This new software is gaining in popularity throughout most industries, although the retail industry may be the last to catch on to new technology, relying on more traditional methods for the next 4 years (CRMXchange, 2000, p1).

REFERENCES

· Help Desks, Call Centers Move to the Web, 2001 Heather Hayes http://www.washingtontechnology.com/news/16_4/features/16564-1.html

· Understanding the value proposition in using call center software on rent, Sumit Malik

· Converged Networks – What it means for contact centers, 2001 Convergys http://www.convergys.com

· Banks lead for speed in Call Centre web-enablement, 2000 CRMXchange http://www.crmxchange.com/whitepapers/call-center-web-enablement.html

· eGain's New eService Software Extends Call Centers with Web-based Interaction Management, 2001 eGain http://www.eGain.com

· Web Call Centers Benefit Customers And Businesses, 2000 Candee Wilde http://www.informationweek.com/shared/printArticle?article=infoweek/809/calls.htm&pub=iwk

· Call centers feeling Web's impact, 2000 Ellen Messmer http://www.crmxchange.com/whitepapers/call-center-web-enablement.html

· Web Self-Service Lowers Call Center Costs and Improves Customer Service, 2002 BitGroup http://www.BitGroup.com