October 2003

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Superb customer service is key to make loyal advocates out of your customers.

Customer Servings focusses on value-adding customer service articles, a Customer Service e-zine delivered free to your mailbox every month!

In this issue:

1. Article: Customer service and Call Center Outsourcing, what's the buzz?
2. Help desk software test: WebCISS
3. Recipe: Cod in the Oven

Customer Service and Call Center Outsourcing, what's the buzz?

In the 90s, growth was the motto for organizations. Eat, or be eaten. Through the continual increase of stock value this could be easily financed. As a result, businesses were acquiring activities that are, on the surface anyway, only loosely related to the original business goals, and to each other. The demise of world economy and the burst of the Internet bubble changed all that.

In these days of tight budgets and heightened attention on ROI (Return on Investment) and TCO (Total Cost of Ownership), companies are taking a good look at what they are in business for, and what they are best in. This focus on the core business has lead to the selling of complete branches of companies. Now, businesses go even further by taking a look inward, in search of generic processes to outsource. Finance, Human Resource and Customer Service are now the focus of outsourcing, which was more or less the playground for IT support in recent years.

Outsourcing, the utilization of resources outside an organization, is not a new thing. Barter trading, the oldest form of trading, was in fact just that. One person traded a skill (or a product made through that skill) to get access to another person's abilities. In the old days, it made perfect sense to let an activity be done by the person most skilled. And old becomes new, as they say.

Benefits of Call Center Outsourcing

It makes sense that a company who's core business it is to organize and execute a call center, is more likely to do a better job at it (although that's not a given)! It's like hiring someone to put a floorboard in your house. You may be able to do a decent job yourself, but they are a lot quicker at it! So efficiency is a clear benefit.

Being in the call center business, call center service providers are more likely to be able to hire skilled and experienced personnel. And, since a service provider (usually) services more than one company, there is more support personnel to go around. This helps continuity, as your service isn't jeopardized if an employee decides to leave. Also, since the customer service reps are probably working for more than just your company, you can benefit of lessons learned from other contracts.

Ah, didn't I mention the money? The #1 reason for outsourcing is, of course, to lower costs. Outsourcing companies can have lower rates because of the greater efficiency, but also through economies of scale, which actually means that fewer personnel is needed for servicing the combined contracts than when each company would organize it themselves. Plus, they can easier mix more junior and senior staff, which is a near to impossible feat if you have just two customer service reps!

The money question is getting even more interesting if we take the possibility of off shoring into account. Outsourcing to low wage countries like India is bringing extra financial benefits into the equation (but also some pitfalls, as you'll see later!). The different work moral is also often viewed as a benefit. For example, in India, workers are very disciplined, and organizing a 24/7 service is easier than in Western countries.

Outsourcing Pitfalls

Outsourcing projects often fail on unclear expectations at both the customer and service provider. When considering outsourcing make sure you yourself have a clear image of what the level of service is that you are expecting. Be as specific as you possibly can. Pick out the elements that are most important to you and think about how this would best be managed. Measurable performance indicators are better.

Remember that outsourcing is a game of trust as well as money. If, when negotiating service levels, you feel that you have to stamp out every eventuality in a contract, I'd advice against outsourcing. I would, however, put an opt-out into the contract, in case trust is lost between the outsourcing partners. Believe me, no partner would want to get stuck in a contract between two distrusting partners. For the rest, focus on measurable Key Performance Indicators (KPI's) and a clear payment scheme to protect your bottom line.

Anxiety for outsourcing is often fed through the loss of operational control. Remember, you no longer handpick customer service personnel, and you are much more limited in directing the service. Also, you may have to fit in the standard approach of the service provider. But the trade-off for the loss of operational control is more managerial control. But this trade-off only happens if you negotiate your service levels properly, as mentioned earlier.

And then, off shoring... With the advent of off shoring, a lot of vendors are now operating the market. But if you're selecting a partner, don’t rely on the reputation of the vendor alone, but do make sure that you deal with the people who will be managing your service. Take special attention to the level of experience of these people.

The cultural differences can be enormous, especially when outsourcing to India. Don't make assumptions, but be very specific in your business needs. And India, although the buzz is all about it, is not the only low wage country in the world! You could consider outsourcing to low wage countries that are not so far away, for instance Spain or Mexico.

Another element to take into account is this: if your business is adding only minimal value or profit to the service provider, you risk receiving substandard service levels. If this is the case, it's probably safer to steer clear of off shoring.

Conclusion

Looking at both the benefits and pitfalls of outsourcing call centers and customer service, it is clear that there are clear opportunities for reducing the level of costs for organizations. However, do not downplay the risks. If an organization is inexperienced in managing customer service, the risks for failing are very real, as tight management and KPI evaluation is very important. But in the end, it's all a matter of trust. Ask yourself: do I trust a partner, this partner, with a piece of my business?

Help desk software test: WebCISS

AuraTech, which started in Brisbane in 1997, is specialized in developing software for small and midsize businesses, and small offices/home offices (SOHO).

They have created three products that aid help desks and customer service departments with logging, tracking and tracing of customer requests:

• CISS (Client Integrated Support System, pronounced KISS): Windows-based desktop system. Client needs to be installed on every PC. Pricing ranges from $120-$140 (250 AUD) per copy
• WebCISSlite: Add-on for CISS to be able to do most of the activities through a web-based client. Price $420 (750 AUD) in addition to 1 CISS copy. No user limit.
• WebCISS: Complete web-based help desk solution which I tested here... $1,680 (3,000 AUD) per site, no limits.

System Requirements

• Windows NT4, 2000 or XP with IIS 5.0 or greater OR
• Linux, Apache with ASP, CDONTS support
• Internet Explorer 5 or Netscape 6 (or better)
• Microsoft SQL Server or MySQL

MY IMPRESSIONS

WebCISS has a clean cut interface, simple yet effective. I like it! Click here for a screen shot.

Customizing abilities are limited to defining various field values, such as request types, priority, status, feedback levels, actions, and components. Also, you can define some custom fields, but not field type. You do not have the ability to change the setup of the request screens, but it will fit most applications, certainly for small and mid-size businesses. I give it plus points, as it adds to the simplicity of the system.

When you get a new customer request, you first select a requester (or create a new one) and then it can easily be entered. Upon saving you can automatically send an e-mail. A standard text would’ve been nice, but it works fine. Also, searching the issue list and the separate knowledge base is straightforward.

The function I really liked was the possibility to give a requester access to his requests, where he or she can check the status, and possibly add some additional info. On entering a new requester, you give him a user-id a password. Works like a charm!

CONCLUSION

WebCISS is a simple, straightforward help desk application. It’s completely web-based, which adds great possibilities as the requester access. Although I liked the overall look and feel, and especially its simplicity, I can’t help but feel that some additions to help the support personnel, f.i. standard texts in the e-mail function and new issues, would have resulted in a more well-rounded application.

**** I give WebCISS 4 out of 5 stars.

http://www.helpdesk-support.com

Cod In The Oven

What you need for 4 persons: 500 g Cod
10 reasonable size potatoes
10 tomatoes
3-4 spring onions
1 package (5.2 oz.) Boursin Garlic & Fine Herbs Cheese
Salt, pepper, curry powder.

Instructions
Peel and cook the potatoes until nearly done, add salt to water as needed. Let potatoes cool and make slices. Dry the cods with a clean paper towel, and generously season with salt, pepper and curry powder. Remove the skin from the tomatoes (cross the tomatoes, dip into boiling water for a few seconds and then remove the skin under cold running water). Clean and chop the spring onions.

Heat the oven on 200°C. Line the bottom of an oven dish with sliced potatoes. Add a layer of tomato slices. Then add the cods, yet another layer of tomato slices, and a layer of spring onions. Season with salt as needed. Finally, crumble the Boursin over the dish.

Put a sheet of aluminum foil over the dish. Then put the dish in the oven for 40 minutes, but remove the aluminum foil for the last 10 minutes to color the cheese. Tip: if you’re pressed for time, bake the cod before adding it to the dish, in that case you can put it in the oven for 20 minutes!

Bon appetit!

More information

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If you have any suggestions for subjects you would like to see in future issues, or have comments in general on Customer Servings or Customer Service Point, please e-mail me at customer_servings@customerservicepoint.com.

I welcome your remarks!

(C) 2003, Erwin Steneker