(BPOs could use Business intelligence tools (BI) to offer a wide spectrum of services to clients – Sunder Ramachandran & Kapil Murdia investigate)
The BPO industry has primarily developed an expertise in managing the voice segment of the outsourced market. There is a lot of debate about the rise of the KPO segment however there is enough opportunity to capitalize on the conventional voice based projects and turn them around into high impact business critical ventures. Here’s a look at the critical factors that give a bullish perspective on this paradigm shift:
Low end to Mission critical
BPOs in India have highly-rated process-management capabilities and also posses the “threshold” experience in key components of a process, viz. implementing pilots, ramping capacities and most importantly calibrating, tracking and measuring performance metrics. There is a tremendous opportunity for the BPO industry to leverage on these domain strengths. The conventional wisdom of outsourcing a small non-core area of business has the potential to evolve into a full-fledged strategic business extension. This provides the parent company with an offshore base along with access to a wide variety of divergent skill-sets. This jump from Business process outsourcing to “Re-engineering” the entire Business Process can deliver tremendous value in form of greater focus on quality and productivity and not just cost arbitrage that a plain vanilla BPO process brings. BPOs can leverage on an ever more knowledgeable and educated resource base in India and new enabling technologies that allow for the creation of platforms and solutions targeted at specific industries.
The chunk of high end work being done today revolves around “stand alone” processes. BPOs will have to look towards leveraging on close-synergies between their existing voice-base operations and high-end work like data analysis and data mining. By doing that, BPOs can broad base their offering from traditional operations (read mostly voice –based) to entire gamut of customer relationship management activities.
A forward looking approach
The generally accepted purpose of Customer Relationship Management (CRM) is to enable organizations to better serve its customers through the introduction of reliable processes and procedures for interacting with those customers. Towards that end, a typical CRM application would collect all information in a central repository, analyze it, and make it available to all departments. In today's competitive business environment, a successful CRM strategy cannot be implemented by only installing and integrating a software package designed to support CRM processes. A holistic approach to CRM is vital for an effective and efficient CRM policy and more so because Fortune 500 companies spend hundreds of thousands of dollars on Customer relationship management and vendors who place a premium on this approach do merit in the eyes of the Global customers. This approach essentially includes a modification of business processes based on customers' needs and adoption of relevant IT-systems (including soft- and maybe hardware) and/or usage of IT-Services that enable the organization to follow its CRM strategy. That’s where BPOs can step in to provide comprehensive CRM solutions. A single BPO on an average makes thousands of “customer contacts” on a daily basis and this huge database can be effectively channelised into an integrated CRM solution.
Consider a rudimentary example-A call center may have a "screen pop", a small application that is connected to the phone system. This application, which is a CRM tool, produces a screen on the computer as soon as an agent answers a call. This screen could be populated with important information about the caller, such as what they have purchased in the past, what they are likely to buy in the future, and what products the company may have available that would go well with what the customer has already bought. This "screen pop”, which is made up of several bits of information could be integrated into different databases to ensure a two-way communication. It may draw on information from the accounting department to show the agent what their current balance may be; it could also send information to the sales department to show what has been purchased recently, and it may draw on information from the credit department to show the agent what terms can be offered.
This arrangement could not only enhance interaction with the customer but also help in coding and analyzing priceless information about the customer. An “integrator” (software which ties up information from different sources) can be used to combine information from two different processes. With the Fortune 500 market becoming increasingly clustered, BPOs are increasingly turning over to midsize companies. Even midsize companies can embrace CRM by using simple, off-the-shelf software such as contact managers and spreadsheets, and still have a very effective CRM system that can help them to serve customers in the best possible way, and to make relevant use of information that has been collected.
This kind of a collaborative approach creates a synergy between existing call-centre operations and proposed CRM. Most BPOs use specialized software solutions for different purposes from process calibration to tracking and measuring process metrics. Companies can “improvise” by utilizing these already existing “legacy” tools for “dual purpose”- to facilitate existing operations and to capture and analyze customer related information. This eliminates the need to build a new system translating into huge cost saving for the BPOs and their clients.
Few tools that could be worth a detailed examination
- Customizable Reporting Software: Customized reports allow management to easily monitor and effectively identify and correct call center inefficiencies. This call center software also helps maximize those things that are being done effectively. This tool is often used to analyze and measure various performance metrics. This tool could be used to give feedback to the product development team especially when service is suffering because of an apparent limitation in a product. It can keep track of customer preferences, buying habits, and demographics, and also agent performance simultaneously. This software could be used to automate some service requests, complaints, product returns, and information requests which could serve as valuable insight.
- Easy to Use Database Systems: Database systems allow management to better control their campaigns. Contacts can be selected by any available value, so as to maximize efficiency in targeting and delivery. By selecting a database system and call center software that is compatible with advanced.
- Databases such as Microsoft's SQL Server and Oracle, efficiency can be improved even more, and information formatting problems can be avoided. This tool can significantly aid in data-mining and analysis.
- Multimedia Interactive Systems: Multimedia interactive systems software allows for a number of different data values to be displayed while the agent is helping a contact. This allows the agent to receive new script changes, view pertinent info and be effective in helping the customer. This system could also be used to record the customer preferences and dislikes and other sales critical information about customer.
- Predictive Dialer Software: A predictive dialer processes potential contacts and identifies disconnected numbers, busy signals and unanswered calls and detects answering machines. Such calls can be avoided, scheduled for later contact, or pre-recorded messages can be left, allowing live agents to only deal with established connections that are directed to them. This software can also be used to get insights into possible demographic patterns of a particular cluster of Customers.
- Interactive Voice Response (IVR): Interactive Voice Response software can handle many tasks without the use of a live agent. The software can “talk” with the contact and recognize responses. Surveys can be given, appointments can be scheduled, sales and orders can be placed, and so much more with this versatile software.
- Automatic Call Center Distribution Software: Automatic Call Distribution allows established contacts, which may be in a call queue, to be directed most effectively. Calls can be directed to the next available agent, or by the level of their importance, or to agents with the highest performance statistics. This tool can also be used to separate loyal/ business customers from others.
Major areas of CRM focus could be service automated processes, personal information gathering and processing, and self-service. It attempts to integrate and automate the various customer serving processes within a company. Call centers could use CRM software to store all of their customer's details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. Also by serving the customer quickly and efficiently and keeping all customer centric information in one place, a company can save cost, and also encourage repeat purchase.
CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, you might be able to check your bank balance via your WAP phone without ever having to talk to a person, saving money for the company, and saving you time.
An integrated CRM solution can offer several potential benefits:
- Helps to identify potential problems quickly, before they occur.
- Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the company cannot be resolved, and are a major source of customer dissatisfaction)
- Provides a fast mechanism for handling problems and complaints (complaints that are resolved quickly can increase customer satisfaction)
- Provides a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction)
- Helps to identify how each individual customer defines quality, and then design a service strategy for each customer based on these individual requirements and expectations
- Helps to track customer interests and personalize product offerings accordingly
- Helps to engage in collaborative customization or real-time customization
- Provides a fast mechanism for managing and scheduling follow-up sales calls to assess post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and repurchase frequencies.
- Provide a fast mechanism for managing and scheduling maintenance, repair, and on-going support (improve efficiency and effectiveness)
- Provide a mechanism to track all points of contact between a customer and the company, and do it in an integrated way so that all sources.
- and types of contact are included, and all users of the system see the same view of the customer (reduces confusion)
The CRM package can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it.
Improved customer relationships
CRM can significantly improve customer relationships. CRM technology can track customer interests, needs, and buying habits as they progress through their life cycles, and tailor the marketing effort accordingly. The technology can track product use as the product progresses through its life cycle, and tailor the service strategy accordingly. This enables the customers to get what they need as the product ages. In industrial markets, the technology can be used to micro-segment the buying centre and help coordinate the conflicting and changing purchase criteria of its members. When any of the technology driven improvements in customer service contributes to long-term customer satisfaction, they can ensure repeat purchases, improve customer relationships, increase customer loyalty, decrease customer turnover, decrease marketing costs (associated with customer acquisition and customer training), increase sales revenue, and thereby increase profit margins.
From data to information----Business Intelligence
A contact centre makes thousands of contact on a daily basis which generates huge amounts of data. Converting this data into useful information is the next big opportunity for the Indian BPOs. Business Intelligence tools can help a company translate vast amounts of data into intelligent insights to help further the business cause. The company can identify new customers and new market segments, conceptualize a new product for a particular market area or niche, optimize cross-selling practices by creating a consolidated view of the customer across all touch points, and offer the ability to react and plan with knowledge, insight, and confidence. This would also enable companies to proactively service customers, ensure customer loyalty, and retain them.
Using BI tools, organizations can get minute-level details about their customers. On a strategic level, firms will be in a better position to understand customer purchasing patterns for products and services across geographical and time boundaries. The true benefit arises as firms use this information on a customer-to-customer basis, allowing firms to retain profitable customers while screening those that do not directly add value to the company's top line. A contact centre is best positioned to effectively tap and analyze information at source on a customer-to-customer basis.
How BI tools work
BI uses a well-organized source of information from where it can draw out intelligent responses for business users. A range of technologies and products are used to generate BI. The most common tools are simple query and reporting, Online Analytical Processing (OLAP), statistical analysis, Decision Support Systems (DSS), and data mining. These tools are used in a variety of ways.
Architecture of a typical BI tool
Data is stored in an organization in separate OLTP systems like ERP, CRM, SCM, financial packages, HR packages, and even legacy systems. These are the primary sources of data and can be called 'primary systems.’ Extract, Transform, Load (ETL) tools are run on these systems and organized data is stored in a data warehouse. The data warehouse can be called 'secondary systems.' The 'Extract' process reads data from the various sources. The 'Transform' process converts the extracted data into a scripted and defined format, which is fit for the warehouse. The process standardizes the various data structures so they can be accessed and analyzed with high accuracy. This is done with the use of rules, lookup tables, and by combining the data with other data.
The 'Load' process writes the data into the warehouse. The efficiency and performance of a BI solution mostly depends on the effectiveness of the ETL tools. The idea is to provide a rich and aggregated source of data.
Intelligent information is now delivered to the users or 'information consumers' throughout the organization to help in analysis, strategy, and forecasting. If users are located in remote locations, a Web server can be deployed on the warehouse.
Thus with some due diligence and effective use of Business Intelligence, the possibilities for BPOs end where their imagination does. So we could prolong the dream run that the industry has enjoyed so far and create more value for the end customer.
(Sunder works as a Trainer with a global BPO and Kapil is a Researcher with Kornferry – an executive search firm. They can be reached at sunder.ramachandran@gmail.com & kapil.murdia@gmail.com )