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September 2000 Volume 2.02



Answering the Phone

by Rodger Gallagher

How quickly do customers want their phone calls to be answered?

It seems intuitive, doesn't it, that people want to wait for their phone calls to be answered in the minimum possible time. The New Zealand Herald newspaper published a series of articles on this topic. The newspaper made a number of phone calls to a few service industry businesses then published the results. The average answering times for the businesses ranged from a few seconds to over 40 minutes. Why should there be such a difference? In the article the Herald had assumed that customers want their calls to be answered quickly. Is this assumption correct and are there some businesses who do not care how long they take to answer the phone? Or perhaps these businesses think that customers do not care how long they wait on the phone to be answered.

Answering time for phone calls often seems simple to measure and with many businesses now answering phone calls in call centres, they often measure the time customers wait in the call centre queue. They do this as the queue waiting time is easy to obtain from most telephone queuing systems. Companies sometimes then set standards for answering phone calls in a certain number of 'rings' or in a number of seconds. One company had a 'five rings' target which the Directors had decided on at a planning meeting without any consideration for what customers wanted. They had decided on this target for the company based on what was typical in other countries. The Call Centre manager was then told to manage answering time to meet this target. This might be far from what customers want, though.

Determining what customers want

A better way is to develop a set of service metrics and targets that measure the key service factors customers really want when they phone for service. Then overall service can be managed to the targets. When clients ask us to investigate Call Centre service for them we usually find that answering time is one of the key service factors, but it is never the most important factor. The most important one is often handling the query, and resolving it to the satisfaction of the caller. If this is done well, customers are often prepared to wait a while for their call to be answered. But how long are they prepared to wait? To answer this question we need to look at the excellence ratings customers give for answering times in customer surveys and the actual answering time we are measuring in the Call Centre. The following chart compares these two types of data for an imaginary technical service centre handling fairly complex enquiries from customers.

In the previous graph we can see a fairly strong link between answering times and how the customers rated the speed of answering in terms of Excellence in the customer survey for the corresponding period. Each dot on the graph represents a time period. As the answering time improves the customer rating out of 10 also goes up. But even when 100% of calls are answered within the target of twenty seconds, the highest that customers rate us is only 7.2 out of 10. And even when they only answer 20% of the calls within twenty seconds they still rate us 6.0 out of 10. Perhaps this is a case where customers are prepared to wait a little while for their calls to be answered.

But there may be other factors at work. Today many phone numbers for service numbers do not go to directly to a customer service representative. First a caller is presented with a voice response menu and a number of options. The quality of these voice response menus varies greatly. Some voice response menus give a confusing range of options, while others make it difficult to get through to a customer service representative. And at times the menu systems break down completely when the computers go down. So perhaps the reason why the excellence rating never gets above 7.2 out of 10 lies with the voice menu system. So for the customer the time to answer starts as soon as ringing is heard for the first time rather when they leave the voice menu system and enter the 'priority queue' for a customer service representative. So this particular business needs to measure the total time customers wait for a customer service representative from the time the call is answered automatically by the phone system, rather than just the time they are waiting in the phone system queue.

But what about the low end of the graph where customers still gave us a 6 out of 10 even when we only answered 20% of calls in twenty seconds? With a service centre handling fairly complex enquiries that take quite a time on the phone to resolve, this usually means that callers are prepared to wait a while to be answered. When the actual interaction with the customer service representative takes ten minutes, experience indicates that callers are prepared to wait a little longer to get answered.

Investigating both customer and internal service metrics in this way allows us to set measures and targets that matter for the customer.

(To be continued in the next issue)

New Tools For Measurement

 A few years ago I read Dava Sobel's book "Longitude" on the discovery of the first accurate method for measuring longitude and was struck by the similarity of that story and the situation faced by many companies today. The 18th Century mariners had known for sometime how to measure latitude - where they were between the North and South poles. In the same way companies today have a highly developed accounting system and know their financial position precisely. But the 18th Century mariners only had a very rough idea of longitude - where they were around the world. They used to sail back and forth on a given parallel until they found a sign as to where they were. This was such a major problem to the safety of shipping that the British Government, realising measurement of longitude was critical to the development of trade, offered a king's ransom of 20,000 pounds for the development of a chronometer that could measure it accurately.

One man, John Harrison took up the challenge. He went through the development of four models of chronometer before he made one good enough to win the prize.

Measuring customer satisfaction is a bit like John Harrison's four steps towards the goal of measuring longitude - the CVA (Customer Value Added) approach takes us one step closer to having a system as precise as an accounting system. When you look at an Income & Expenditure report, what are those 3 main numbers you look for?

Income
Expenditure
Profit

Accounting systems provide very concentrated reports such as the one showing income and expenditure with a series of line items focussed into these three main performance measures. Wouldn't it be good if companies had a customer value report that was as precise and as easy to understand as a financial report?

Well, the CVA approach provides three similar main performance measures that businesses can focus on: Value Added, Products & Services, and Costs & Price.

Regards,


Rodger Gallagher

 

 

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