How Does Your Call Center Measure Up?

How does your credit union handle member service at its largest branches? What about the call center? For most credit unions, the call center is easily one of the three largest “branches” in terms of members served.

Most credit unions are entering into their planning season. How does your call center measure up?

Take the following quiz and use your score to determine how effective your call center is – or where you need to make improvements. For any of the questions, if you do not measure that metric, use answer D.

Questions
1. What is your call center’s average speed of answer?
a. Less than 20 seconds = 15 pts
b. Less than 35 seconds = 12 pts
c. Less than 60 seconds = 8 pts
d. More than 60 seconds = 5 pts

2. What is your call center’s abandonment rate?
a. Less than three percent = 10 pts
b. Less than five percent = 8 pts
c. Less than eight percent = 5 pts
d. More than eight percent = 3 pts

3. What is your cost per contact?
a. Less than $4.15 = 15 pts
b. Less than $4.75 = 12 pts
c. Less than $5.20 = 10 pts
d. More than $5.20 = 8 pts

4. What is the average call handle time?
a. Less than 3.92 minutes = 10 pts
b. Less than 4.2 minutes = 8 pts
c. Less than 4.5 minutes = 5 pts
d. More than 4.5 minutes = 3 pts

5. What is the first call resolution rate?
a. More than 94.75 percent = 15 pts
b. More than 87 percent = 12 pts
c. More than 80 percent = 10 pts
d. Less than 80 percent = 8 pts

6. What is your call center agent attrition rate?
a. Less than 20 percent yearly = 10 pts
b. Less than 30 percent yearly = 8 pts
c. Less than 40 percent yearly = 5 pts
d. More than 40 percent yearly = 3 pts

7. What is your agent utilization rate?
a. More than 80 percent = 10 pts
b. More than 70 percent = 8 pts
c. More than 60 percent = 5 pts
d. Less than 60 percent = 3 pts

8. Do you have a business continuity plan?
a. Yes, and I can rely on the plan instantly = 5 pts
b. Yes, but it takes time to utilize the plan = 2 pts
c. No, I have no plan in place = 0 pts

9. What is your Net Promoter Score?
a. More than 50 percent = 10 pts
b. More than 45 percent = 5 pts
c. Less than 45 percent = 2 pts
d. I have not measured my Net Promoter Score = 0 pts

Results
Tier 1 – Gold: 100 Points
If your contact center falls into this tier, it is an effective, efficient machine. You’re answering calls in under 20 seconds while keeping costs per contact under $4.15. Agents are being utilized at a rate of more than 80 percent. Members are having their questions resolved during the first call 94.75 percent of the time, and the average call lasts less than 3.92 minutes.

Tier 2 – Silver: 75-99 Points
If your contact center falls into this tier, it falls just short of industry standards and needs a boost to help it succeed. Contact centers falling into this group are satisfying their members but may not be building member loyalty. You may be able to optimize your cost efficiency more by using an external call center to help better utilize your internal agents.

Tier 3 – Bronze: 50-74 Points
If your contact center falls into this tier it is not meeting standards and is costing you money, not making it. Contact centers falling into this category are considerably slower in the average speed of answer, and they are not always satisfying the member, let along building loyalty.

Tier 4 – Fired!: 49 Points or Less
If you contact center falls into this tier, it is failing and needs improvement in many ways. You are not able to provide your members with the service they need, and you could be spending too much in costs as well. It is highly advisable that you re-evaluate your call center or seek out an external one to help with the call volume.

Calls Cost, But How Much is Too Much?

Whether a call is made to your internal call center or your call center partner, there is a cost associated with it. Knowing the cost of each call determines the resources required to run a call center as well as its effectiveness. Two useful metrics to measure cost are Call Handle Time and Cost per Contact.

Call Handle Time is more than just the amount of time an agent spends on the phone. It is calculated by combining total talk time with total wrap-up time, which includes any follow-up e-mails, paper work, or calls. It is important to measure this because for many call centers, the administrative and follow-up can account for more than 50 percent of an agent’s time.

Cost Per Contact is one of the most accurate ways to measure efficiency. The metric is determined by dividing the total cost of the contact center by the number of calls completed. For example, if it costs you $50,000 to run your call center for a month, and you took 10,000 calls in that month, then your cost per contact would be $5.00.

Metrics Explained
Cost per contact and call handle time can vary greatly. Most credit unions aim for a cost per contact between $3.18 and $5.30 per call. However, maintaining a higher cost per contact ratio may be worth it if it means higher service levels. There is a real danger if questions are answered too quickly, and revenue and loyalty-building opportunities are lost.

Call handle time should also be compared to the types of calls an agent is taking. Complex issues, such as a new loan application, are going to take more time than a call to get directions to the nearest branch.

Measuring all these metrics can help credit unions make the changes needed to maximize the efficiency of their call center. I recently worked with a small New England credit union to improve efficiencies throughout the call center, including expanding their hours of service to 24 hours a day.

The credit union experienced a dramatic 71 percent improvement in cost per contact and 9 percent savings ($40,000) in annual contact center expenses even though they experienced a three-fold increase in call volume demonstrating the major scale advantage outsourcing brings. Additionally, the call abandonment rate dropped from 15 percent to three percent.

All of the metrics discussed to date have touched on efficiency. However, credit unions must be careful not to sacrifice quality for efficiency. Next week, we’ll look at more qualitative measures and how credit unions can ensure an efficient call center is also delivering the high quality demanded by its members.

Don’t Think Basic, Think NECESSARY Call Center Metrics

Previously, we introduced seven metrics credit unions must be measuring to ensure their call centers are driving revenue and member retention. Today, we’re looking at two of the most basic measurements for a call center – Average Speed of Answer (ASA) and Call Abandonment Rate.

Do not let the word “basic” discourage or distract you from reading further. These basics are necessary. While they are often measured, they are not always reviewed or analyzed. Blindly sticking to metrics, not digging deeper to understand the numbers means you are missing great opportunities.

ASA measures the time it takes for an agent to answer a member’s call. It gives credit unions an idea of how easily they are meeting service level goal or how much additional labor may be required to achieve a service level goal. The industry standard is 80/30, which means that 80 percent of calls into the call center should be answered within 30 seconds.

Call Abandonment Rate is the rate at which calls go unanswered. For credit unions meeting the 80/30 ASA, the abandonment rate should consistently be around three percent. Remember, the longer a member is on hold, the more frustrated they will be. Eventually, even the most patient caller will hang up, costing your credit union the opportunity to enhance that member’s loyalty.

Metrics Explained
A common misconception after hearing these metrics is credit unions should do whatever it takes to ensure every call is answered immediately, right? No!

I’ve met with two $1 billion credit unions during the past three weeks that employ a policy that all calls will get routed to the first available employee, even if it is the CEO. Sounds good on paper – theoretically, no phone rings more than twice. But what is the point of answering the call quickly if the member has to be transferred? The IT department is not suited to field requests for loan applications. The best use of the loan department is not to reset passwords. Even though the phone has been picked up, the member’s issue may still be unresolved. They’ve been put on hold or been required to repeat information with each new person who answers the phone. They will hang up frustrated and considering trying out the bank around the corner.

An ASA or Call Abandonment Rate that is high is also very expensive. If a credit union call center is staffed to provide a 90/10, they are paying exponentially higher costs due to agents sitting around waiting on calls. Most callers do not differentiate between a wait time of ten seconds and 30 seconds, so the key is to answer phones quickly enough to satisfy the majority of callers without wasting resources.

ASA and Call Abandonment Rate should be reviewed in balance with the rest of the key metrics. It is important that the call center be staffed well enough to answer the vast majority of calls in a short time. This reduces the lost revenue potential of calls being abandoned.
However, speed for the sake of speed will not ensure that your members’ needs are being met. To do that, you have to look at different metrics, which we will explore in depth next week.

Mac Has a Message for Credit Unions

Mac has built a very catchy ad campaign around its “Mac” and “PC” characters. The most recent ad really hits home the idea that Apple and its customers understand, appreciate and value excellent care and support.

http://www.youtube.com/watch?v=yZoGwZ9yiM0

Does your credit union have financial geniuses that are easy to reach? If a member called your credit union, would they get the department they need on the first call? Or would they be stuck, like our friend “PC,” yelling that they don’t want to talk to tech support, they want information about a mortgage?

Make sure you are there for your members. Make it easy for your members to get the information and help they need on the first call, without relying on transfers. Make sure your call center drives loyalty and revenue by exceeding your members’ expectations when they call.

Are You “Hanging Up” on Your Members?

Have you ever arrived at a retail store just before closing? You beg silently – or not so silently – through the already locked glass door for admittance. There is just one thing you need. It isn’t even a “want,” it is a “need,” and it will take less than five minutes of the store’s time. You do a great deal of business at this store and would appreciate them acknowledging that by helping you now. Instead, the last employee in the store turns their back on you and walks away.

Above is a story of customer care gone wrong. Credit unions pride themselves on exemplary member service, but are you guilty of the same thing? Is your credit union turning its back on members that need help? I am sure you let last-minute stragglers pass by the closing doors at 4:59 p.m., but what if that member reaches out at 2:00 a.m. on Saturday or noon on Sunday? Below are three quick stories of credit unions that underestimated the number of members who try to reach them after hours.

1. A Northern California credit union with a worldwide membership expanded its contact center services to accept calls after hours (6PM – 6AM Monday through Friday). During call center testing, the credit union opened the phone lines, but did not advertise the expanded service to members. That month, the credit union received more than 1,500 calls.

2. We worked with a New England community-based credit union ($1.5 billion in assets) to break down the hours members were calling most for service. In one month, 28 percent of member calls came to the credit union outside normal business hours.

3. A small Las Vegas-based credit union realized after expanding its call center to 24/7 that the second highest spike in call volume typically came between 6:00 and 8:00 p.m., an hour after the call center closed prior to expansion.

Member service starts with a phone call. Credit unions that do not have 24/7 capabilities are losing business, because they have chosen to limit the hours they will interact with members. Instead of making sure they meet the members’ needs, they dictate the hours a member must do business with them. And those members will find other sources to meet their financial needs.

Satisfaction vs. Loyalty

The other week, we discussed the need to move members from satisfied to loyal. To best achieve this in your credit union, it helps to have a better understanding of what separated satisfaction from loyalty.

Satisfaction means you met a very low bar of expectation. When I enter a credit union, I expect to have access to my money, make a payment on a loan or get answers to my questions.

Loyalty, however, means that I am an advocate for my credit union. I proudly tell others about the service I receive. I will go out of my way to use their services, even if another financial institution offers comparable terms.

William Bluel, a professor of Decision Sciences at Pepperdine University, explains the difference between satisfaction and loyalty at his blog this way:

Experience tells me, as do the definitions in several dictionaries, that satisfaction relates to the result of a process. The process may be a sales process, product performance process, or a service process. Loyalty relates to a relationship. Customer loyalty does not occur, but customer satisfaction can occur immediately following a successful process. Loyalty can, in fact, survive a negative process. Loyal customers will continue to purchase from a company even though they may have had a bad experience.

Even more surprising is the fact that satisfied customers will leave your credit union. Bluel also shares this:

Frederick Reichheld noted several years ago that between 65 and 85 percent of customers who defect said they were satisfied to very satisfied with their former supplier. As an example, Reichheld used the auto industry to make his point by showing that satisfaction scores are between 85 and 95 percent, while repurchase rates average only 40 percent.

What makes some customers loyal and some merely satisfied? The key is in building a relationship. Every financial institution – bank, credit union or non-bank lender – offers a variation of the same set of services. Some provide a way to store money and access that money with checks, debit cards and ATMs. Others lend money at various rates and repayment terms.

While some people will solely make their decision based on the final cost, the interest rate or the fee structure, most people involve other “intangible” factors. How am I treated when I have a problem? Does the credit union have my interests at heart?

Building loyalty is a three-step process. First, a credit union has to have a product someone needs – a loan package, a passbook account or a savings account. Next, that person must be able to conduct the transaction in a way that meets their needs and expectations. The final step is building loyalty. Loyalty requires building a relationship with the member.

Call centers and member service departments play a crucial role in the development of the final two steps. A member’s primary contact method with a credit union is by phone. Having a well-trained call center prepared to exceed member expectations is one of the easiest ways to build loyalty among your members.

Moving Members from Satisfied to Loyal

Almost every credit union I work with has a variation of the following in their mission statement:

Make sure every member is satisfied during every interaction with the credit union.

But if a customer is merely satisfied, without loyalty, they are going to leave your credit union and obtain financial services elsewhere. We would like to think that people are rational and make all of their financial decisions on facts, price and benefits. But we know better. As CU Grow so eloquently wrote:

Members are not going to remember a savings or loan rate. They’re going to remember someone at your credit union, who connected with them and went above and beyond the status quo.

This goes for all the touch points a member has with your credit union. It is relatively easy to monitor how well staff is working with members who visit the credit union in person. But how well are calls being handled? What is service like after hours? How easy is it for members to use your Web site and get answers to their questions?

These are questions that can only be answered by listening and being ready to do just a little bit extra. For example, if your member service call center is aware of an issue that will prompt a heavy volume of calls, they can preempt those calls with a proactive e-mail message or SMS text message letting members know important details.

For example, last month, much of the Midwest and East Coast were hit with ice storms and extended power outages. Imagine if your credit union’s call center reached out to your members a day in advance to let them know how to reach the credit union in the case of power outages and provided details on how services such as direct deposit or bill pay would continue to operate in inclement weather. I imagine, you would have gained not just a satisfied member but also a loyal one.