Industry Analyst – Customer
Contact
Frost & Sullivan
The North American
contact center industry has reached “maturity,” which is the code word for a
gradual demise. As noted in the analysis “Opportunities in a Mature Market,” Frost & Sullivan forecasts the total
number of contact center seats will shrink from 4.1 million in 2012 to 4
million by 2017.
If anything, the seat
loss is a conservative estimate, as there are several factors causing the call
center sector to become even smaller:
·
Millennials and Gen
Yers are entering the consumer mainstream. They will only contact companies’
staff if they cannot find a satisfactory solution on the Web, in mobile apps,
on text-based automated channels (chat, SMS/text, and virtual agent), or on
social media. And, as indicated in Frost & Sullivan’s research, “From Interactive Voice Response (IVR) to Automated Customer
Interaction,” these new consumers
also appear to prefer automated text over IVR, including speech-based
solutions.
Here’s the rub: Millennials and GenYers may perceive
voice-driven call centers as irrelevant, an attitude they may take with them in
their careers. They may also see customer service as a dead-end career. If
so, chances are these employees will instead go into marketing, which is
usually responsible for the “relevant” mobile, social, and Web channels, and
which has a direct route to the C-suite. Consequently, when these
individuals become corporate decision makers, they will be less inclined to
spend money on call centers.
·
Most companies now
understand that the best way to reduce service costs, and to satisfy and retain
customers, is by making their products and services easier to use and more
reliable. Moreover, the products themselves can now diagnose problems and
alert customers, and, with customers’ permission, automatically fix issues and
install upgrades.
·
The depth of online
advice and information to help customers solve their own problems is increasing.
But that means the questions and problems that customers may have after being
in self-service may be too difficult for live agents to answer.
·
The rise of more
productive channels such as chat, SMS/text, and social media permits agents to
engage in several simultaneous conversations, whereas live agent voice (and
video) is one-to-one. Automated proactive customer contact (PCC) solutions
reduce inbound contact volumes while improving the customer experience by
alerting customers of important issues.
Underlying these
trends is the slow economic rebound and a disappearing middle class that is
creating a consumer market made up of a small affluent upper class and a large,
less affluent lower class. As a result, companies are focusing on catering
to the elite (with live agents), while devoting only enough resources to
profitably retain the other buyers (with automated service). But the net
effect will be even fewer live agents and seats, because of the small size of
the elite market, coupled with elite customers’ extensive use of Web, mobile
self-service, and social media support.
Yet there has never
been a greater need for companies to provide high-touch omnichannel customer
service. Limited growth, combined with customers’ abilities to research
companies before buying and influence others’ buying decisions on social media,
force companies to adopt this strategy. With products and services also
becoming commodities, and with increasing similarity in prices, providing an
excellent omnichannel customer experience is the only way companies can
differentiate themselves. That includes: improved IVR
experiences as customers will make fewer, but more critical, calls to companiesfewer delays and
drop-outs when customers switch between channels,and a the shift from
automated systems to live personnel.
But
what will the future “contact center” look like in this new milieu? Our
research finds the new landscape will feature:
·
The old fashioned telephone
switchboard, reinvented. Multichannel “concierges” will answer simple
questions, screen and triage contacts, and connect customers to subject matter
experts (SMEs) with unified communications (UC) applications. Interactions will
be shorter: 60 to 90 seconds at the most, as compared to the traditional three-minute
inbound calls.
·
“Consumerized” account
representatives, each of whom will be responsible for set groups of customers and
build relationships with them. Long proven in B2B, the account representative
approach provides highly personalized service. Account representatives can be
“virtual only,” in the field, or in brick-and-mortar facilities – all connected
by employee-owned wireless devices though bring your own device (BYOD) programs.
·
Merged customer service with
marketing, and incorporated into the marketing “DNA” – the notion that, in the
omnichannel business environment, an excellent customer experience is key to
marketing and sales. To illustrate, instead of forcing agents to sell, which
has often proven futile, agents should be trained to provide that excellent
customer experience, which is measured on customer retention and brand
advocacy.
·
Brick-and-mortar staff
connected to customers over each others’ mobile devices.
·
No more outbound voice calling
for collections and marketing. Technology has made it so easy for scammers to
get around existing laws, and to misrepresent legitimate businesses that
consumers now treat all calls from numbers they do not recognize as suspect.
Therefore, it is only a matter of time before lawmakers, pressured by consumer
advocacy groups and by their constituents, will say “enough!” and outlaw the
practice. Instead companies will have to use easier to ignore email, SMS/text,
and “white mail.”
With
these changes, there will be fewer contact agents, workstations, and
facilities, and less demand for “traditional” automatic call distribution
(ACD), interactive voice response (IVR), outbound dialing, call recording, and
workforce optimization solutions. But there will be greater demand for mobile,
social, chat, SMS/text, virtual agents, UC, text-based proactive customer
contact (PCC), analytics, remote support, enterprise quality assurance (QA),
and workforce management applications.
At the
same time, companies will have to step up their human resource (HR) processes to
attract and retain top performing staff (we will publish a new Market Insight
this spring on HR trends and issues across verticals, not just in contact
centers – stay tuned).
Companies
should also abandon brick-and-mortar facilities and go to a home agent model to
cut costs, add flexibility, and obtain the best talent regardless of agents’
locations, or agents’ ability to commute, and also provide business
continuity/disaster recovery. There is no longer a valid reason why contact
center employees (or knowledge workers for that matter) must commute to
employers’ places of business. The communications, computing, HR, performance
management/QA, and security methods and technology have reached a point where
it no longer matters where an employee like a contact center agent or
supervisor is in order for them to work productively.
Finally,
companies must improve their contact center technologies (such as
consumer-disliked IVR systems), which, when combined with high quality
customer-serving staff, are the keys to providing an excellent (and profitable)
omnichannel customer experience.
About the Author
Brendan Read is a
Frost & Sullivan Analyst, with extensive experience covering contact center
applications, operations and technology, CRM and social CRM, and site
selection, outsourcing, teleworking, staffing/training and business continuity.
He has held editorial positions with Call Center Magazine and DM News and has
written for other publications including 1to1, Call Center Management Review,
Customer Interaction Solutions, Direct Marketing News and TMCnet. He is author
of Designing the Best Call Center for Your Business, Home Workplace and, with
Joseph Fleischer, The Complete Guide to Customer Support. He also contributed
to Computer Telephony Encyclopedia. His first article on the industry,
“TeleSell”, appeared in Electrical Wholesaling in 1992.