For every business to prosper, maintaining happy customers and productive employees is essential. The main component of that growth strategy is earning an ROI that is beneficial to both categories. All operations must be streamlined for contact centers to be the best in the contemporary business environment. This can be accomplished by implementing various smart methods.
Through this blog, we'll explain how to improve the return on investment (ROI) of your contact center.
1. What is ROI and how is it calculated?
2. Factors that Impact Achieving Gains
3. How to measure the Return on Investment in contact centers?
In this case, return on investment (ROI) measures how much a cloud contact center makes in relation to its expenses.
A formula is used to determine it:
ROI = ((money gained - money spent) / money spent) x 100.
Contact center agents necessarily have service in mind. But they have a better understanding of customer issues. A sales mindset will also drive upsell or cross-sell opportunities. For example, an insurance agent while helping the customer with her travel insurance can also recommend for health insurance and thus creating a cross-sell
Customer retention measures how well a business is able to keep its paying clients leading to repeat business and more revenue. It is run on gaining the clients' respect and loyalty by giving them the greatest possible customer experience.
For businesses to increase profitability, customer retention is therefore prioritized. Thus, retention becomes another main point that plays a major role in gaining an effective return on investments.
A good service always gets good word of mouth. This invariably does the much-needed promotion which is otherwise limited to the marketing department. So, the customer service team can also add to the business promotion in a very subtle way.
To acquire a clearer picture, it's advisable to frequently monitor various indicators rather than calculate them using a single empirical approach.
These are divided into three categories.
Employee development requires effective training, cutting-edge resources, tools, and rewards. Answering the questions of your customers is only one aspect of customer service. Everything needs proper training, including active listening, conflict resolution, collaboration, and troubleshooting. It entails helping clients move through the sales funnel or customer success effectively. Knowledge of the products or services should also be a priority for the agents. From the awareness through the loyalty phases, you must offer them pertinent support at each stage. It's the result of all this that raises ROI in general.
Upselling is promoting a good or service over the one the customer has already selected. An upselling approach not only enhances your customer experience but also has a beneficial impact on your sales performance indicators.
Cross-selling is the practice of offering a customer other goods or services as complimentary, based on their interest or purchase history. It also proves to be a great way to promote engagement and client loyalty, which has the potential to increase customer lifetime value. Your sales will soar if you encourage upselling or cross-selling among your service team.
But how to encourage upselling or cross-sell among your contact center agents?
Offering incentives to your contact center agents is one way to encourage upselling or cross-selling. Choose a goal-based incentive compensation plan that best aligns with your business strategy. In all circumstances, incentive pay is a genuine motivator and an effective strategy. The agents will receive better compensation as they continue to do more sales or hit more targets. Therefore, keeping your agents motivated gets sorted.
An SOP (Standard Operating Procedure) is a set of detailed instructions created by a contact center to assist agents in performing common tasks. SOPs are designed to improve efficiency, output quality, and performance uniformity while minimizing misunderstandings and noncompliance with industry rules. The improvement of a contact center's ROI is also facilitated by adherence to SOP.
Customer onboarding serves as a conduit between your company's efforts to satisfy customers and the degree to which those efforts are valued by your customers. The more seamless and adaptable options your onboarding program gives, the lower will be the likelihood of customer turnover. In the eyes of your customers, your onboarding program must resemble a takeaway learning experience. A well-structured and defined process of onboarding ensures avoidance of any slippage while the customer is new and understanding the product.
Typically, chat, phone, and email communications serve as the first lines of support. A Level 1 software engineer will respond to your support calls, emails and chats.
The tickets that L1 routes to L2 support are handled by L2. For any issue, this support staff can also create tickets. L2 support specialists can assist L1 support personnel with troubleshooting issues as they have more knowledge and experience in solving complex problems that pertain to them.
The development staff that handles technological issues makes up the last line of defense or L3. They are authorities in their field and deal with the trickiest issues, mainly supporting level 1 and level 2 professionals. They also make coding adjustments, do studies, and create remedies for difficult brand-new, or unidentified problems. Maintaining a satisfied client base, developing brand loyalty, creating brand advocates, and growing income all depend on offering top-notch technical assistance.
What is RCA, or Root Cause Analysis?
Finding the actual root cause of each recovery alert is the goal of root cause analysis (RCA). First call resolution (FCR) refers to giving clients a good response on the first call, hence avoiding the need for follow-up. It lowers customer churn while controlling support expenses. An important indicator that can aid contact centers in streamlining their processes and raising customer satisfaction is average handle time (AHT). It provides a general idea of how long customer calls last on average for agents. 89% of companies with “significantly above average” customer experiences perform better financially than their competitors.
Now that takes us to the point of Customer Feedback.
Customer feedback is used to calculate the customer satisfaction score or CSAT. Typically, businesses solicit customer feedback using a range of surveys. The score itself is based on the conventional zero to 100 scale. CSAT ratings are frequently used by businesses as a key performance indicator (KPI). The majority of firms use the net promoter score (NPS) as a way to gauge consumer advocacy.
It tells how likely the customer is willing to recommend the product or service. So, having more promoters directly correlates to higher revenue. However, despite being an important component of customer experience, customer advocacy is not the same as customer experience. Asking customers directly for their opinions on a company, a product, a customer care experience, or other touchpoints in the customer journey results in direct feedback. Customers are often surveyed to provide direct input, which may be combined with operational data and other data to help firms better understand the customer experience.
Finding opportunities to increase the value that your customer service agents can provide to the business is the whole objective of evaluating the ROI of customer service. The following tools can be used to raise the contact center’s Return on Investment:
Self-service customer support resources offer proactive, economical on-demand support. When properly used, these solutions can free up agents to use their time more effectively and provide a 24/7 brand experience that is ideal for customers. It's crucial to separate the characteristics of such instruments in the current digital age. Self-service customer support options are also categorized as:
CSAT, or customer satisfaction, aids in the comprehension of the degree of contentment your customers have with your product or service. Your consumer loyalty is supposed to go hand in hand with this. This will allow you to compare the rise in spending to the rise in CSAT Score. After call feedback, Chat feedback & Post Ticket Feedback everything can be calculated under this.
You may notice the difference in revenue with an increase in the CSAT score based on your average spend per customer.
Contact centers will have more opportunities to swiftly discover and address consumer concerns if sentiment analysis is done. Contact centers can figure out where your service needs improvement by analyzing various factors like customer attrition intent or sales/cross-sales opportunity.
It is important to look at customer feedback from Live Call Analytics, Post Call Analytics, Chat Analytics, and Email Analytics. Contact centers must consider each communication channel or piece of feedback in the context of the others in order to conduct the most thorough analysis and to have the clearest grasp of client attitude toward your brand. Thus, it provides more opportunities to work on flaws and collectively improve the ROI.
According to a survey by Aberdeen Group Inc., businesses with strong omnichannel strategies were able to keep 89% of their clients, while those with weaker strategies only managed to keep 33%. When executed properly, omnichannel marketing can increase your income.
Omnichannel provides a customer with the same experience on all platforms and devices. It offers experience and convenience, which are the two things that customers look for most in a brand. Relating all the data that is available about consumer preferences and browsing habits can be a very difficult challenge for brands. With the help of omnichannel solutions, agents can decipher the patterns in the data and link everything together to give customers a valuable and personalized experience.
With an omnichannel solution, you can interact with your customers by providing them with pertinent messages through their preferred channel. It also helps in client retention and:
How are the competitors in your sector faring? What do businesses currently anticipate from contact centers?
Occasionally answering these queries and keeping an eye on market changes can also help you maintain industry standards.
Tracking, evaluating, identifying, and implementing is however the key. Every contact center can improve its ROI by monitoring and analyzing the aforementioned parameters. All it takes is a proper workflow and determination to work together towards a goal. If you are thinking of entrusting an expert in the field, C-Zentrix is always a dial away.
Author Bio: Abhirami is a passionate writer whose forte is communication, possesses strong leadership qualities, and is often kind.