Training and ROI (Return On Investment)

Statistics consistently reinforce that the biggest challenge in today's contact center environment is agent training. Turnover continues to be high; new hire costs are on the rise--$6500 per agent! At the same time, losing customers because of bad call experiences negatively impacts your bottom line. What can you do? How do you justify the training expenditure?

Research has been making a case for how spending in human performance areas such as training, translates into bottom line growth. Accenture's study on the impact of training on ROI has some interesting results. (Smith, David. Y. and Waddington, Ted. Running Training Like a Business: Determining the Return on Investment of Your Learning Programs, Outlook Point of View, March 2003.)

First, in the area of recruitment, training opportunities were among the top three criteria people considered when deciding where they want to work (the others are the opportunity for advancement and a good benefits package). In the area of productivity, as a result of training, employees were:

17% more productive

20% higher performance levels relative to their peer group

Stayed with the company 14% longer

In the area of retention, employees who had access to the training were:

More than 2 times more likely to expect to be with the company in 2 years

More than 6 times more likely to think the company is a 'great place to work'

More likely to think they are fairly compensated

Dollar figures associated with their statistics for a fiscal year report the annual per person net benefit or $25,324. They multiplied this number by their 50,000 employees yielding a companywide benefit of training of $1.26 million. By dividing the benefit by the cost of one year of training ($358 million), researchers concluded that the ROI (at Accenture) is 353%.

Negative Customer Service Experiences?

How many of you know (and track) what percentage of your calls are bad experiences? Hopefully, you do know the number, and they're in the low single digits.

In a recent study, in answer to (1) did the agent satisfy your needs in the call, and (2) based on any negative experience, would you stop using this company and go to the competition? the results were:

Ages Would Stop Using the Company in the Future

18 - 25 100%

26 - 35 97

36 - 45 53

46-55 50

56-65 33

Over 65 63

Source: 2003 Purdue University/BenchmarkPortal.com

As you can see, there is a strong correlation between participant's age and his/her tendency to stop using the company after a bad experience. Notice that younger participants were less tolerant, more likely to go to the competition, and those over 65 are more demanding that those in middle age.

Therefore, it's very important to take great care of your younger callers so as to maintain their loyalty. Callers above 36 have more of an 'emotional bank account' with the company they're dealing with-probably had some good experiences and are more willing to 'forgive' a bad one.

If you know your percentage of bad experiences, put a dollar amount on that call and then total it out for the year. I think you'll be very surprised at the amount of lost revenue. Now if you have a 1% improvement, as a result of a training initiative for example, the amount of recovered revenue (and customers) is very encouraging.

This is just another means to tie soft skills to ROI, and to include your front lines as part and parcel of the revenue-producing operation of your company.

Customer Satisfaction Driver #1

We all know first call resolution (one and done) is the #1 driver for customer satisfaction with best practices reported at 86%. However, if your center is at 86%, this means that 14% of your customers are contacting you more than once to resolve their issues! This not only frustrates your CSRs and yourselves, but your customers as well. Repeat calls are costly not only to operations and the bottom line, but they negatively impact customer satisfaction, and ultimately, customer loyalty.

How do you define first call resolution? And how do you-if you do-calculate it? Research shows that there is no common measuring method. However, what gets measured gets managed, and what gets managed gets better.

In a recent study (Ascent Group) more than 90% of companies measuring first call resolution reported improvement in their performance. Another study (callcentres.com) reported a dramatic fall in call volume-identifying that a minimum of 20% of all calls were repeat calls from customers needing an answer or help they didn't get. Further, that the absence of first call resolution was found to account for a minimum of 30% of a call center's operational costs!

The bottom line: Invest in your people-give them the training, the tools, and the authority to get their job done right the first time. After all, CSRs are the interface who handle customer issues. One of the foremost methods to boost customer satisfaction-and improve first call resolution-is to consistently and ongoingly train, train, train your CSRs in world class customer service skills.

ROSANNE D'AUSILIO, Ph.D., industrial psychologist, President of Human Technologies Global, Inc., specializes in human performance management for contact centers, providing needs analyses, instructional design, and customized, live, world class customer service skills trainings. Also offered: agent/facilitator certification through Purdue University's Center for Customer Driven Quality.

Known as 'the practical champion of the human, she authors the best-sellers, Wake Up Your Call Center: Humanize Your Interaction Hub, 4th edition (hot off the press), and Customer Service and The Human Experience. Reach her at Rosanne@human-technologies.com, sign up for her complimentary monthly e-newsletter in its 7th year, and check out her new virtual store.

---

Group Meeting Disrupters

MEETING DISRUPTERS: If two participants are carrying on a personal... Read More

People Skills: Eight Essential People Skills

Being able to communicate effectively with others requires people skills,... Read More

Top 10 Things Every Business Should Provide for Every Worker - Including the Boss!

Doing business and meeting the needs of workers is increasingly... Read More

Entitlement Programs Kill Productivity

In articles I've written over the years, I have used... Read More

How To Get 10% More Work Out Of Your Employees

It is getting harder to run a business for a... Read More

The Higher You Go

The higher you go, the cooler it becomes. Really? Let... Read More

Successful Managing Through Delegation

Managers should avoid the tendency to constantly delegate to the... Read More

Is Busyness Affecting Your Business?

I'm too busy; I'd love to but I'm very busy;... Read More

How to Save Money on Training

1) Use a live instructor. Adults learn best by doing,... Read More

Burger on a Bun Decision Making

When approaching any decision, it's important for individuals to maintain... Read More

Sharing the Reins: 10 Reasons To Sell Your Company To Your Employees

In 1987 I sold my business, South Mountain Company, to... Read More

Take The Guesswork Out Of Problem Solving

In today's chaotic world and uncertain economic times too many... Read More

Knowing versus Doing - Execution In The Workplace

Have you ever worked with someone who always seemed to... Read More

Multiple Channels, Multiple Times

I've just been reading about the frustrations of a Human... Read More

Creative Writing - business principles produce more quality work, faster

Maximization methodologies have long been used in business to produce... Read More

The Devil We Know

"I'm in an abusive relationship," sighed Andrew. "My bookkeeper annoys... Read More

Tales from the Corporate Frontlines: Providing Career Opportunity

This article relates to the Career Opportunity competency, commonly evaluated... Read More

Online Business Peace of Mind

Is your online business disaster-proof? Online businesses face a unique... Read More

Medical Malpractice: Three Myths That Cost Your Hospital Millions

What's the use?Nothing you do will hold down the cost... Read More

Mantra for Managers

What do organizations look for in a prospective employee with... Read More

Time Management Tips for Managers

Late last year I was presenting a workshop for the... Read More

Look Good on Voice Mail

Your use of voice mail tells others a lot about... Read More

Gift Giving for Business a Major Headache

Corporate gifting is a big headache for most business owners;... Read More

Gossip And Rumors And Hearsay, Oh Why?

In the Wizard of Oz, it was "Lions and tigers... Read More

What to Do When Trust is Low

Trust is essential. You can't run a business without it.... Read More

The 6 Steps to Six Sigma

Step 1Get the proper level of Six Sigma expertise at... Read More

Tales from the Corporate Frontlines:Choosing an Effective Employee Recognition Program

This article relates to the Recognition competency, commonly evaluated in... Read More

How to Delegate More Effectively

Do this simple excercise, and transform your life.First, Make a... Read More

Outsourcing Problem Analysis

As an HR professional, you have responsibilities in several broad... Read More

10 Fundamentals for Effective Meeting

Here are ten fundamental concepts that characterize an effective meeting.Definition:... Read More

Integrity... Should It Matter?

In our fast paced work culture, manned by technology savvy... Read More

Take This Into Consideration Before You Write Your Mission Statement

What principles should a company keep in mind when developing... Read More

The Importance of Business Goals

For you to get where you want to go, there... Read More