how to define the roi of your quality assurance program


Agenda

• Current Reality• Customer Experience and Quality Assurance Program

Maturation• The Financial Impact of Quality Customer Care

– Qualitative vs. Quantitative• Customer Experience

– Drivers– Defining the Experience

• New QA Metrics to Consider


Most QA Programs Drive the Wrong Agent Behaviors

Voice

Proper Opening / Closing Verify Customer Profile Use Customer’s Name Twice Documented CRM

E-mail

Traditional Requirements Rationale Properly represents the company Ensures customer privacy Customer perceives the agent is

engaged and listening Compliance requirement

Proper Opening / Closing Use proper grammar Adherence to policies /

procedures Correct spelling used Correct punctuation used

Properly represents the company Agent pays attention to detail Compliance requirement Agent pays attention to detail Agent pays attention to detail

For QA Programs to be Truly Effective, QA Metrics Must Align with Customer Experience Drivers


Agenda







How Certain Verticals are Addressing Customer Expectations in Service Delivery and Quality

Industries are making strides in basic customer service transactions but can learn lessons from other industries

CX Dimensions Retail Banking Airlines Hotels Healthcare

Multi-channel Information Access

Mature Mature Mature Developing Developing

Expanded Hours Mature Mature Mature Mature Developing

Price Comparison Mature Developing Unknown Unknown Developing

Seamless Integration Unknown Mature Mature Mature Developing

Loyalty Programs Mature Mature Mature Mature Developing


There is a Bit of Tension Involved with Transforming QA Programs to Deliver a ROI

Customer Experience (CX) requires the

following changes…

…however upstream issues causes downstream

problems

Your QA Program should be a response to changing

customer expectations

• Governance• Cultural• Process• Discipline

• Adoption issues with agents; outsourcers

• Coordination and syndication with HR

• Investment in enabling technology required i.e. VOC programs, mystery shops

• Legal / compliance; Audit; Regulators

• Personal contact• Flexibility• Customer needs• Follow-up• Trust / Authenticity• Knowledge• Responsiveness


Agenda







Apples to Oranges

Examples of Contact Center Metrics

Examples of Customer-Centric Metrics

Average Handle Time

Incremental quarterly revenues driven by word of mouth recommendations

Cost per call

Changes in Net Promoter Score tied to Customer Service

First call resolutionChanges in Lifetime Value tied to Customer Service

Hold timeMonth-to-month change in Lifetime Value tied to queue time

Traditional contact center performance and customer-centric metrics are completely different ways of examining business performance


The Financial Impact of First Contact Resolution (or Lack Thereof)

# Calls to Resolve % Overall Calls # Problems # Calls Offered

1 60% 60,000 60,0002 20% 20,000 40,000

3 15% 15,000 45,000

4 5% 5,000 20,000

40% 100,000 105,000

Company Assets 200,000 customers x $1,000 annual revenue per customer $200M

Cost per Call 5,000 extra calls x $5.00 cost per call $25,000 extra cost per quarter

Failure to resolve 15% of calls Results in a CSAT drop from 50% to 40% $80M protected assets or a

loss of $20M per quarterQuality & Customer Care Profitability Impact (per

quarter/per annum)….and the survey says $20,525,000/quarter or

$82.1M/annum


Agenda







Steps to QA Program ROI

Mapping Your Customer Journey…

…Will Inform New QA Standards…

…And Allow You to Start Capturing QA ROI

Assumes QA is no longer viewed as a contact center function only

Customer expectation and behaviors are the new standards

Marry up QA and VOC results at an agent level to start capturing ROI

Step One Step Two Step Three


Omni-Channel Customer Journey Map

Develop tactics to close the expected-vs.-actual gap (incorporate VOC and benchmarking)

1a. Review SLAs with hosting vendor1b. Minimize size of graphics to speed page loads

Determine actual customer experience

Determine critical customer touch points (aka, “Moments of Truth”) from customer’s viewpoint

“Interest Me” “Meet My Initial Need” “Keep Meeting My Needs”

Develop reward & recognitionfor achieving or exceeding expected customer experience

Develop appropriate set of rewards and recognition5

4

3

2

1

1a. Website available = x%1b. Website satisfaction = y2. Recognition factor = z

1a. Website available > 99.99%

1b. Website satisfaction > 4.5

2. Recognition factor > x

1. Marketing web site2. Advertisements

Document Expected Customer experience (incorporate VOC and benchmarking)

Sales Fulfillment ServiceProcess

1. Apply by phone2. Apply by website3. Get notification of decision4. Close financial transaction

1. Account issue raise by phone or email

2. Complain by web mail3. Receive solution to complaint4. Hear about other products5. Take part in surveys

1a. Average hold time < 2 min1b. Application time < 10 min2a. Website available > 99.99%2b. Application time < 15 min

1a. Average hold time < 2 min1b. 1st time resolution > 95%


Identify Your Customers Moments of Truth

Sales• “Interest Me” or “The Hook”• Product / Value / Solution Proposition

Fulfillment• “Meet my initial need”• Do what you said you would do

Service• Know what I have done across your

channels

• Surveys (conducted by sales, marketing, and / or service

• Mystery Shops• Benchmarking• Internal customer

improvement efforts

1

Incorporate voice of the customer and benchmarking…

…To inform what the expected customer experience should be at each moment of truth


Document the Expected Customer Experience

Contact Center• Average hold time is less than two

minutes• When I speak with an agent, they

understand why I am calling before they ask me

• Web• Contact Center Agent• IVR• Field Service• Technicians• SoLoMo (Social, Local, Mobile)

2

Customers use a mix of different channels to find a solution…

…And bring their perceptions or dissatisfactions with them once they reach an agent


Determine the Actual Customer Experience

Online• Online satisfaction = x%Contact Center • Average wait time = x%• Answered question on first attempt = y%• Agent was knowledgeable = z%

Data Warehouse / Data Stores• CRM• ERP• E-mail Opt-ins• Catalogue• Billing• Order System• Voice of the Customer

3

Having good data and historical context is necessary…

…To determine the actual customer experience against the benchmarks your company sets


Tactics to Close Gaps in Performance

Online• Review SLA with hosting vendorContact Center • WFM should incorporate special one-

time events marketing events in long-term forecasting models

• Front-Office• Middle Office• Back-Office

4

QA syndicates performance cross-functionally…

…to develop tactics to close gaps to improve and measure customer performance


Reward Agents for Customer-Centric Behaviors

Online• Review SLA with hosting vendorContact Center • WFM should incorporate special one-

time events marketing events in long-term forecasting models

• Front-Office• Middle Office• Back-Office

5Additional incentives should be considered to reward agents for customer centric behaviors…

…to develop tactics to close gaps to improve and measure customer performance


QA Monitoring Guideline Design Tips

Make the form easily updateable• Customer needs change; product & services change; YOUR business changes

Make the form specific down to the skill & knowledge level of the agents• Take an a subject area like “Listening” and break it down into smaller components• Consider trending specific areas of your QA form to be used for future coaching and

training opportunities

Develop the quality monitoring form based on the competency of the job

Consider “graded” and “non-graded” measures• There may be specific areas you want to grade to drive behavior change, but there

may be other areas that you want to note but the score is not relevant to driving the right agent behavior

• Example: Will the customer choose to take their business elsewhere because the agent didn’t use the proper greeting?


QA Voice Monitoring Guideline - Example


QA Email Monitoring Guidelines - Example


Agenda







New QA Metrics to Consider

What? Enablers

Measures the value creation/destruction of customer interactions at an organization level

• Contact Center income statement or P&L

• Agreed upon calculation for ROI

• Number of customers served during the period

• Way to capture VOC• Revenue/customer• Fully loaded costs (G&A)

Measures the value creation/destruction of customer interaction at an agent level

• Fully loaded agent costs• QA Score by agent• VOC tied by agent

Contact Center ROI

Agent Peak Performance

Index


Contact Center ROI

Need the number of customers served by the contact center and their monthly value (marketing metric)

Figures obtained by determining the percent of customers who were delighted by their experience

Figure shows the quantitative value of the contact center to the organization


Agent Peak Performance Index

Calculation• Agent ROI x Accuracy (QA Score) / % Delight Treating Customers as Valued

What it Measures• Each agent that a survey is conducted is scored by the actual voice of the

customer• If the index is falling, it raises a red flag to supervisors/trainers for

additional coaching/training• If the index is rising, it demonstrates which associates are providing

customer-centric support


Benefits vs. Limitations

Benefits Limitations

Contact Center ROI

• Measure begins to syndicate the value of the contact center across the organization and places a value on successful customer interactions

• Must have a way to capture delighted and dissatisfied customer interactions (may require investment)

• May not agree with formula or approach

• Contact center costs are not included

Agent Peak Performance Index

• Quantifies the value and impact an agent may have on customer interactions

• Fully loaded agent costs are not included

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• The purpose of QA is not improve “quality scores” but to improve quality holistically

• This means QA has to be positioned to understand and measure customer perceptions cross-functionally and not just within the confines of the contact center organization

• Executive support and syndication is required to get peers to buy-in to this philosophy

In Conclusion…


Keep in Touch

Art HallAlvarez & Marsal Business Consulting

3426 Peachtree Road, Suite 1500Atlanta, Georgia 30326

[email protected]: 404-260-4152Mobile: 404-759-9158

mailto:[email protected]

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