How Unaddressed Tail Spend Inhibits Procurement’s Performance
As technology continues to advance and customer service expectations soar, the traditional call center is transforming into a strategic partner where total cost of ownership (TCO) should be highly considered. Organizations are not solely focused on handle minutes (the amount of time an agent spends speaking with a customer). They are revamping into digital transformation providers, customer experience consultancies, and analytical experts. While the call center and its agents are still the core of business operations, higher margins are driving focus and investment into these service offerings. The goal of is to better understand the customer in an attempt to prevent or deflect the need for a phone call using technology.
For example; Chatbots
Artificial intelligence that can engage in conversation with a human via voice or text.
These bots are used to automate the most popular customer needs.
- return policy information
- scheduling an appointment
- looking up a hotel reservation
As a result, this technology deflects a high percentage of calls with basic questions. In turn, decreasing handle minutes exercised by the call centers, and decreasing the organization’s variable cost. Firms are also working to empower their call center agents with customer analytics. The result is greater sales, decreased call escalations, and more efficient conversations. The positive impacts don’t stop there. The aforementioned can increase revenue or decrease the variable cost resulting in savings of up to 10%.
By leveraging technology and a strategic partnership, the right solution will decrease the magnitude of cost drivers in this space, resulting in both cost savings and a better customer experience.