Company’s background
Vinamilk, officially known as the Vietnam Dairy Product Joint Stock Company, began its journey in 1976 as the Southern Coffee Dairy Company Renowned for brands such as Dielac, Ridielac, V-fresh, Goldsoy, and Lincha, Vinamilk employs over 1,500 people and is a dominant force in the dairy industry, boasting 183 distributors and 94,000 selling points across 64 provinces in Vietnam The company holds an impressive 75% share of the Vietnamese milk market and has been recognized with ISO 9001-2008 certification for high-quality products Vinamilk has earned accolades including ranking among the top 15 Vietnamese brands by UNDP in 2015, being named one of the top 5 largest private companies in Vietnam by VNR500 in 2017, and being listed in Forbes Asia's top 200 Best Enterprises in 2017 Additionally, Vinamilk's products are exported to various countries, including the U.S., France, Canada, Poland, Germany, the Middle East, and Southeast Asia.
Vision
Vinamilk aims to maintain its leadership in the domestic milk market while expanding its international presence The CEO envisions that within the next decade, the company will rank among the top 50 dairy producers globally.
Competitive Positioning
Vinamilk faces significant competition from both domestic and international brands such as Nestle, Dutch Lady, and Nutifood To maintain its market leadership in Vietnam's dairy industry, Vinamilk focuses on delivering high-quality nutritional products that meet customer demands The company's factories adhere to stringent packaging guidelines to ensure product quality Additionally, Vinamilk's CEO emphasizes the importance of fostering a positive ethical image, which is reflected in the company's active participation in social and community initiatives across Vietnam Through initiatives like the Milk Fund, Vinamilk supports education for youth, empowers women, and provides essential social and healthcare services to rural communities, significantly enhancing the lives of many Vietnamese people.
Product’s profile
Vinamilk prioritizes customer satisfaction by focusing on profitability through its primary offerings of fresh milk and powdered milk, while also providing value-added products such as condensed milk, yogurt, cream, and cheese The company offers a wide variety of flavors and packaging sizes for each product, ensuring diverse choices for consumers Their extensive catalog features eight main brands: Vinamilk, Dielac, Ridielac, V-Fresh, Icy, Lincha, Condensed Milk, and Soy Milk.
Vinamilk Call Center
Vinamilk Contact Center currently is at basic level – traditional call center with voice recording
POOR CALL CENTER OPERATION PERFORMANCE
Average On hold time ratio
A poor call center experience can easily drive customers away, with WeGov reporting that 76% of consumers are likely to switch companies after just one unpleasant interaction Additionally, a Zendesk survey found that 35% of customers ceased their business with a company following a negative customer experience, while another study indicates that 60% of customers have left a company due to inadequate telephone support With consumer expectations at an all-time high and competition just a click away, businesses must prioritize exceptional customer service to retain their clientele.
Long hold times are a major frustration for consumers, consistently ranking as a leading complaint in call center experiences A survey by Consumer Reports highlights this issue, revealing that the inability to reach a human representative and excessive hold times are the top grievances in phone-based customer service.
Definition - What does Average Hold Time (AHT) mean?
Quality customer service is crucial for any business, and one significant factor affecting it is the average hold time This term refers to the duration customers spend on hold when reaching out to our company, which can greatly influence their overall experience.
The average hold time is determined by summing all the hold durations from inbound customer calls and dividing that total by the number of calls answered by either an agent or an interactive voice response (IVR) system.
Benchmarking data from a survey of 30 comparable companies reveals that the median on-hold time is 30 seconds, with a variation of ± 15 seconds In contrast, an analysis of Vinamilk's current Key Performance Indicators (KPIs) shows that during peak times, on-hold durations often exceed three minutes (180 seconds), significantly impacting customer satisfaction levels.
There are 4 ways to decrease average hold time in the call center, and by doing so, increase customer satisfaction levels
To enhance customer experience, we implement a queue callback system that allows us to return calls to customers in the order they were received, eliminating the need for long hold times.
Queue callback significantly reduces average hold times by allowing customers to avoid waiting on the line for an available agent This feature enhances customer experience, as callers can continue with their day until they receive a callback from our system Fonolo, a cloud-based service, enables us to seamlessly replace hold times with callbacks across all channels: inbound calls, the web, and mobile apps By implementing callbacks, we experience lower handle times, reduced abandonment rates, decreased telecom costs, and improved efficiency among customer service representatives, ultimately leading to increased sales and greater customer satisfaction.
Figure 3 Fonolo - cloud-based service
Use an Automatic Call Distributor
We utilize an automatic call distributor This feature distributes all incoming calls based on criteria that we set
This feature ensures that customers are promptly connected to the right agent by distributing calls based on the time of day, geographical location, or specific assistance needed.
We need to implement and utilize key performance indicators (KPIs) One of the most important call center KPIs is schedule adherence
Schedule adherence involves assessing the workload of our Customer Service Representatives (CSRs) by monitoring their scheduled work hours against actual call handling time This analysis helps us evaluate their efficiency and prioritize reducing average hold times in our call center, ultimately enhancing customer satisfaction.
Work on our Call Scripts
High average hold times can often be attributed to the interactions between customer service representatives (CSRs) and callers When CSRs deviate from their scripts or struggle to assist customers effectively, call durations increase, leading to longer wait times for callers on hold.
Reviewing call recording logs, particularly for lengthy calls, can identify areas for updating call center agent scripts or enhancing training This approach reduces average hold times, allowing customers to connect with available agents more swiftly By implementing these strategies in our call center, we can improve assistance for callers and enhance overall operational efficiency.
Escalation ratio (Average call handoff frequency)
Definition: A measure of source and destination related to handoffs between contact center teams and other functional related team
The handoff percentage is calculated as the ratio of calls transferred by a support team to the total call volume they handle For example, if the first-tier technical support team receives 2,500 calls daily and hands off 400 of those calls, their handoff percentage is 16% This metric is essential for understanding the efficiency of the support process and the team's performance in managing customer inquiries.
Transferring a call to a supervisor or manager is an effective solution when a call center agent is unsure how to address a customer's complaint Instead of providing no answer or, worse, an incorrect one, implementing a process for transferring calls ensures that customers receive assistance from someone more qualified to resolve their issues.
During peak hours, managing excessive caller volume can be challenging, and instead of letting callers hang up, it is advisable to redistribute some of the load to supervisors However, the Vinamilk Call Center has been overly reliant on its escalation process, which should only be used in emergencies The current escalation rate of 65% highlights inefficiencies within the center and serves as a critical alert for leadership to address these issues.
Our call center agents do not have the requisite knowledge and understanding to handle complaints, so they transfer most of the calls to the seniors
Our call center agents are not empowered to give solutions to customers, so they transfer most of the calls to someone in a higher position of authority
Inefficient call center agents struggle to resolve customer complaints swiftly and clearly, resulting in a higher call volume that ultimately escalates issues to senior staff.
When customers are required to repeat their issues to a supervisor after initially explaining them to a call center agent, it can lead to frustration and impatience, especially if they have already endured a long wait time for assistance.
If supervisors and managers are preoccupied with addressing customer complaints, they may be distracted from their primary responsibilities, potentially impacting the long-term performance of our call center.
To ensure an efficient call center, it is essential to prioritize a high First Call Resolution rate This can be accomplished by empowering call center agents through comprehensive training on policies, products, and services Additionally, training in effective communication and handling difficult customers is crucial With the right knowledge and skills, our agents will be equipped to address the majority of customer inquiries independently.
Figure 4 Escalation percentage at Vinamilk Call Center
Bar 1: First Tier to Second Tier
Thirty-four percent of customer complaints and queries at Vinamilk are escalated from the first tier to the second tier support team The first tier collects essential information and resolves issues when possible; otherwise, they pass the case to the second tier, which benefits from the initial data already captured This streamlined process enables the second tier to focus exclusively on addressing technical challenges, emphasizing that individuals with higher technical skills should spend less time on data entry tasks.
A 34 percent handoff rate signals a significant issue, stemming from various root causes Firstly, first-tier personnel may lack proper training, which hinders their ability to assist customers effectively Additionally, the IVR system complicates navigation to the second tier, further frustrating customers The first-tier team often faces an overwhelming volume of contacts, leading to an overflow of cases that require second-tier support Furthermore, the knowledge base lacks sufficient depth and is difficult to navigate, exacerbating the problem Each of these potential root causes warrants further examination.
The customer is reaching out to the appropriate team for issue resolution, but the first-tier representatives often lack the necessary training and expertise, leading to frequent escalations to the second tier This challenge is exacerbated by a high turnover rate, indicating that while training programs are effective, customer service representatives (CSRs) do not gain enough experience before transitioning to other roles within the organization As a result, the application of their training remains insufficient, impacting overall service quality.
To effectively address customer service challenges, it is crucial to identify and address the root causes, which may include enhancing training, reducing churn rates, and implementing disincentives for customer service representatives (CSRs) who escalate issues too quickly A well-designed Interactive Voice Response (IVR) system is essential, as it must be easily navigable, allowing customers to reach their desired destination with minimal keystrokes If root cause analysis reveals that customers seeking second-tier services are mistakenly directed to the first-tier queue, it is necessary to revise the IVR mapping to prevent misrouting Common IVR mapping issues are outlined in the accompanying table.
Infinite loops Test thoroughly (and after every change to the system) Does NOT bring the Customer to a warm body
Use standards, such as V always connects to the receptionist
Too many levels Simplify A target of no more than three levels reduces the labyrinth vibe
Overflow or overload in customer support can be strategically managed, much like the triage model During periods of high contact volume, it is sensible to redirect overflow from the first tier to the second tier if resources permit However, a 34 percent escalation rate is concerning To address this issue, it is essential to reassess resource allocation at the first tier during these peak times.
A comprehensive knowledge base is essential for effective customer support, as it often lacks the necessary data for first-tier resolution To enhance its effectiveness, second-tier support should actively contribute by documenting each unique escalation, thereby enriching the knowledge base with valuable insights This collaborative approach not only facilitates team learning but also ensures the knowledge base remains user-friendly, intuitive, and quick to navigate, providing the right information in the appropriate context for optimal customer service.
Root cause analysis reveals that the 34 percent run rate is influenced by multiple contributing factors, making it challenging to pinpoint a single cause To effectively address this issue, it is essential to prioritize the highest-impact elements, guided by customer satisfaction, and systematically tackle lower-level causes thereafter.
Bar 2: Second Tier to Third Tier
Twenty-one percent of contacts handled by the second tier team are escalated to the third tier team, reflecting similar trends observed in first to second tier escalations.
Poor 1st call resolution rate
First Contact Resolution (FCR) is a crucial metric that evaluates both customer experience and operational efficiency Despite its importance, measuring FCR accurately poses significant challenges, particularly in understanding customers' satisfaction with the resolution of their inquiries.
First Contact Resolution (FCR) is defined by the International Customer Management Institute (ICMI) as the percentage of initial calls that successfully resolve a customer's issue without the need for additional follow-ups Customers expect immediate solutions to their problems and are often impatient when seeking service This urgency highlights the strong correlation between customer satisfaction and effective first contact resolution in customer service interactions.
First Contact Resolution (FCR) is a key metric for call centers, representing the percentage of customer issues resolved during the initial interaction with an agent, whether through live calls, web chats, or emails For live interactions, FCR is achieved when the customer's issue is resolved before they end the session, while for emails, resolution within one business hour is considered FCR Measurement of FCR can be conducted through agents marking tickets as resolved or via customer satisfaction surveys that inquire about the resolution status Although both methods require periodic audits to ensure accuracy, tracking FCR remains crucial for evaluating service desk performance and enhancing customer satisfaction.
Based on Metric Net's benchmarking database, the global average net First Contact Resolution (FCR) rate for service desks is approximately 74 percent, although this figure can significantly fluctuate, ranging from a low of around 41 percent to a high of 94 percent.
Current FCR rate at Vinamilk 2016 is 57%, which is much lower compared with benchmarking rate
(FCR = Number of contacts resolved initially ÷ All incoming contacts)
Measuring and analyzing first call resolution (FCR) outcomes is essential for effective call center evaluation Companies that prioritize FCR tracking are experiencing significant performance enhancements Research by The Ascent Group reveals that 60% of organizations that have measured FCR for over a year reported performance improvements of up to 30%.
Customer satisfaction assessment is crucial, as it primarily hinges on the customer's perception of whether their issue was resolved on the first attempt Our company cannot definitively determine if a customer's issue was addressed unless we actively seek their feedback To effectively evaluate customer satisfaction, various methods, including surveys, can be employed.
After each call, we encourage customers to participate in a brief survey to assess their satisfaction with the resolution of their issue and their likelihood of recommending our company to others This survey utilizes a Likert Scale from 1 to 10, where 1 represents the worst experience and 10 signifies the best Conducting the survey immediately after the call minimizes customer recall and interviewer bias, thereby enhancing the chances of obtaining an accurate and timely response.
Sending an email survey after a call can provide valuable feedback, but many callers may not respond, and recall bias can affect their ability to remember the interaction accurately due to the time elapsed Despite these challenges, this method can yield less biased results compared to direct inquiries from call center agents To enhance understanding of whether customer issues were resolved, it is beneficial to send follow-up surveys shortly after the interaction.
Sending an email survey after a call can help gather customer feedback, but many callers may not respond, and recall bias may affect their ability to remember the interaction accurately Despite these challenges, email surveys can provide less biased data compared to direct questions from call center agents To enhance the effectiveness of this method, it is beneficial to send the follow-up survey shortly after the interaction, allowing for a clearer understanding of whether the customer's issue was fully resolved.
Call monitoring and recording is essential for understanding customer interactions and ensuring accurate call center operations By reviewing recorded calls, managers can verify that customer service representatives (CSRs) are assigning the correct disposition codes, which helps in accurately capturing the customer’s experience Additionally, live call monitoring allows managers to provide real-time oversight, ensuring that CSRs are categorizing interactions appropriately This practice significantly enhances data accuracy and improves overall customer service quality.
Call recording analysis systems play a crucial role in understanding customer inquiries and dissatisfaction by automatically identifying key words and emotional reactions from call recordings Managers can utilize these flagged conversations to verify caller sentiments, although it's important to note that these systems may have inaccuracies Despite their benefits, the implementation of such systems can be costly and time-consuming for management.
Analyzing workplace and agent productivity accurately can be a complex endeavor
By identifying the key metrics to analyze and understanding their interpretations, we can gain valuable insights into the productivity levels of each Customer Service Representative (CSR), team, and the overall call center performance at any time.
Our Contact Center primarily relies on quantitative measures, often overlooking the critical qualitative metrics that accurately reflect productivity By prioritizing the most relevant metrics, the company can enhance its management strategies and deliver more effective feedback, ultimately leading to improved productivity.
High-quality training significantly reduces average handle time and errors while boosting first call resolution and overall productivity in call centers Furthermore, improving agent training leads to increased customer satisfaction and loyalty.
CSR training focus on features below:
Orient new CSRs to the company culture
Introduce CSRs to the key team members and departments
Provide CSRs with information about company policy, procedures and work ethic guidelines
Provide CSRs with a comprehensive overview of their job requirements
Provide in-depth training on call center software and business tools – let CSRs get their hands dirty and provide in-the-moment feedback until they nail it
Teach CSRs basic troubleshooting tips(i.e., what to do when our headset isn’t working, software goes down or internet connection is weak)
Inform CSRs of best practices
To enhance the effectiveness of Customer Service Representatives (CSRs), it is essential to equip them with comprehensive training resources, including detailed manuals, instructional videos, and recorded calls that illustrate key scenarios such as managing difficult customers and responding to inquiries when answers are unclear Additionally, incorporating use cases and frequently asked questions (FAQs) into the training materials will further support CSRs in delivering exceptional service.
Role play common scenarios and provide CSRs with in-the-moment feedback
Teach CSRs how to use the knowledge base
Educate CSRs about our customer base and target
Market Train CSRs on proper call center etiquette
Monitor CSRs throughout the training process and provide feedback (both quantitative and qualitative) along the way
Buddy new CSRs up with a more experienced agentwho is trained in managing new CSRs – make this their go-toperson for the first six months
Have frequent 1:1 check ins with CSRs during their first six months
Constantly refresh and revisit training throughout the agent’s tenure – training should never stop
1.3.2.4 Monitor and assess idle time
DATA SILOS IN VINAMILK CONTACT CENTER
Issue Analysis
As the primary point of contact for sales and service, businesses are facing challenges due to the emergence of data silos, which have developed from new communication channels, distributed locations, and diverse sources of customer information.
While voice remains the communication method of choice for the large majority of consumers, email, chat and social media like FB and Twister are gaining acceptance
At Vinamilk, customer service representatives utilize a unified system for handling calls, a separate platform for email communications, and another tool for chat interactions, all while employing a CRM to effectively capture and manage information related to each customer engagement.
Recent advancements in Vinamilk's contact center have enhanced efficiency and reduced costs; however, they have also led to the emergence of data silos among agents, customers, and interactions This complexity arises because each system, including ACD, IVR, and CRM, operates with its own distinct database and reporting mechanisms.
Management must extract data and reports from various systems and manually correlate this information to gain a comprehensive understanding of the contact center's operations This process complicates the identification of factors influencing business performance and the agent and customer behaviors that lead to optimal business outcomes.
Solution
The 7 steps break down data silos:
Contact centers generate vast amounts of valuable data daily, which can be leveraged by unifying information from various contact management and CRM applications Analyzing this data collectively allows organizations to break down data silos and take informed actions based on the insights gained.
Figure 6 The 7 steps break down data silos
Step 1 Understand What Data is Where
The first step towards performance optimization is for us to understand the data our contact center system collects and its value to us
Step 2 Investigate Data Sharing Options and Needs
Understanding what our real needs and whether our systems support the usage scenarios we need to break down our data silos
CIT (Computer technology integration, computer telephone integration)
Interactions on a telephone and a computer to be integrated or coordinated
Use data from a phone call to query database (CRM), and use the query results to drive call routing or to display the customer information, we call ‘screen pop”
Batch The periodic creation of a data file for export and the subsequent import of the data by another system
Share multiple data records at a time on a scheduled or periodic basis to create historical reports or change the behavior of system for the following period (daily, monthly, quarterly)
Real time The immediate or constant sharing of data as events occur and data is created
Real-time dashboards are essential for monitoring system behavior and facilitating immediate updates, allowing one system to seamlessly update the database of another in real time.
Table 2 Usage scenario to break down data silos
Step 3 Determine Data Integration Strategy
Designing the database of contact center system to collect and store data from another system in to integrated set of records
Salesforce sales and service clouds
Repository pre- built for CC
Big data repositories designed to integrated and correlate data from multiple systems including call management, order entry new media, CRM
Understand the data fields, formats and records coming from the systems and combines those representing the same customer interaction into single records for analysis
Step 4 Discover Cross-System Key Performance Indicators
New Key Performance Indicators (KPIs) are set up to map operational data to business performance and positive interaction outcomes During this step, we determine the cross- system
KPIs that are important to our business and that we want to monitor regularly as bellows:
Features Data to determine KPIs
Purchase history, current status, age, marital status, family size; location, income, etc
CSR Demographics Their training, skills level, personal characteristics, geographies; personalities; drivers, etc., Customer Call
Time of day, day of the week, length of the call, wait time; IVR paths, transfers, etc
Business Outcomes Sales; upsells, customer satisfaction, first call resolution, etc.,
Step 5 Create KPI Monitoring Strategy
We have already known what we are tracking, then we determine how we want to monitor the KPIs
Reliability Streamlined and Robust Reporting:
Improved reporting mechanics, like a single reporting engine is critical to monitoring, measuring and optimizing the contact center to boost efficiencies, curtail costs and improve customer responsiveness
The migration process for contact centers should be seamless, minimizing disruptions and ensuring ease of installation IT departments often face lengthy installations that can strain limited resources, extend timelines, and test the patience of business units.
Midmarket needs all the aforementioned… at an affordable price Suite offers and/or pre-integrated bundling is important to any midmarket sales strategy
Historic and Period-over-period Reporting
Step 6 Define Routing Optimization Strategies
All of this visibility and insight into the correlation between the quantitative data in wer ACD and
IVR call management systems, combined with qualitative data from CRM, enhance contact center management and influence system behavior to optimize business performance.
Leveraging analytics for IVR and ACD call routing presents a significant opportunity to enhance performance By implementing data integration strategies, automation becomes possible, allowing ACD and IVR systems to access real-time customer, account, case, sales, and agent performance data from the CRM This capability enables optimal routing decisions to be made instantly, ensuring that customers are matched with the most suitable agents through BroadSoft CC-One’s advanced call-routing technology, all without manual intervention.
After investigate options with vendor and IT team, we find below tools/ app practical for us
Integrating call management and CRM systems eliminates data silos, enabling a comprehensive understanding of the qualitative and quantitative factors that influence agent performance, contact center efficiency, and customer satisfaction This integration allows for the optimization of operations, systems, and training, ultimately driving significant business benefits By leveraging effective data integration, businesses can enhance sales, increase upsells, improve customer retention, and boost overall customer satisfaction, positioning the contact center as a vital strategic asset.
HIGH TURNOVER OF AGENT
Issue Analysis
Call centers are often associated with high employee turnover, a reputation that is justified due to the challenging nature of customer service representative (CSR) roles CSRs frequently handle emotional customers and manage high call volumes, which can lead to stressful work environments Additionally, the demanding pace often leaves little room for breaks, further exacerbating stress levels Many CSRs are entry-level employees, contributing to lower salary expectations, which can affect job satisfaction and retention.
Inbound customer service representative (CSR) positions consistently exhibit high turnover rates, ranging from 30% to 40%, making them some of the most turnover-prone jobs globally In contrast, the average employee turnover rate across all industries in 2017 was significantly lower at 15.1% Specifically, the Vinamilk Call Center reported a turnover rate of 37% in the same year.
Call center turnover incurs significant financial costs associated with recruiting, hiring, and training new employees, diverting funds from more productive areas of the business Additionally, high turnover can negatively impact customer satisfaction, as inexperienced representatives may struggle to effectively resolve issues This turnover can also lead to a toxic workplace culture, perpetuating the cycle of attrition and further exacerbating the problem.
Solution
Effective management and motivation of teleservices staff are crucial for maximizing the benefits of call center technologies, as neglecting human resources can lead to diminished results, regardless of technological investment Companies with advanced technology but poor procedures and communication will struggle to meet customer needs Therefore, customer relationship management (CRM) systems must be user-friendly for customer service representatives, ensuring they can navigate these tools effectively The key to leveraging advanced call center technologies lies in enhancing the skills of the staff who use them, which requires ongoing training, recruitment of specialized talent, and a commitment to staying updated on the latest advancements in call center technology.
Implementing advanced call center technologies can exacerbate existing problems if the center is already struggling with personnel issues and inefficient manual processes To achieve success, it is essential to first address these personnel challenges and improve the efficiency of less automated functions before introducing advanced technologies.
Before implementing or expanding automation, it's essential to optimize existing manual processes to their fullest potential This approach prevents inefficient procedures from being perpetuated or intensified when new technology is introduced.
Reviewing highly optimized manual operations is crucial for eliminating redundancy and unnecessary steps that could hinder the effectiveness of advanced call center technologies Prioritizing online faxing and automated fulfillment can be more beneficial than simply investing in faster facsimile machines or hiring additional staff for printing and packaging Streamlining these manual processes not only enhances efficiency but also leads to improved service quality, timeliness, and better accessibility of information.
When reviewing call center staffing issues and operations before a technology implementation, consider the following six factors:
Effective communication, both verbal and written, is crucial for the smooth operation of a company, especially in teleservices Establishing clear standards for handling customer data, pricing distribution, employee performance measurement, and recognition of achievements is essential New teleservices operations often lack well-documented policies compared to traditional ones Therefore, companies should promptly disclose key policies to employees and customers, including employment conditions, monitoring procedures, customer data distribution, shipment expediting capabilities, and customer service representatives' authority to issue rebates and credits.
The effectiveness of teleservices operations heavily relies on the strategic selection of employees, influenced by advanced call center technologies Teleservices managers frequently face challenges in sourcing talent from different departments, often leading to limitations in compensation and a mismatch between candidates' skills, backgrounds, and job requirements Despite these challenges, it remains crucial for call centers to ensure that they have the right personnel aligned with the specific needs of teleservices roles.
Take care when assessing the appropriate benefits for different positions
When recruiting customer service representatives (CSRs), it's essential to assess their skills in conceptual thinking, deductive reasoning, and effective communication, rather than solely their ability to handle straightforward order entry calls from TV response ads Successful CSRs should possess strong listening skills, the ability to sort through complex information, and the capability to ask insightful questions to extract key details This skill set enables them to leverage advanced computerized systems and technological tools effectively, ultimately benefiting both the caller and the organization Employees who can apply logic and discern customer requests are typically more adept at navigating high-tech solutions, enhancing overall service quality.
Finally, consider training programs that will help match employee attributes to the work requirements
Advanced teleservices roles, including IT help desk, market research, data collection, order entry, and customer service, often receive inadequate compensation packages that overlook essential employee benefits like insurance and retirement plans It is crucial for companies to carefully evaluate and tailor benefits for various positions, ensuring that appropriate perks are included By offering incentives such as promotions, commissions, and bonuses for exceptional customer service, sales performance, and desired behaviors, businesses can enhance employee satisfaction and motivation.
Careful consideration in establishing compensation plans is crucial for encouraging desired employee behavior, as neglecting this aspect may lead to unintended incentives that allow customer service representatives (CSRs) to exploit system resources and manipulate data for personal benefit To ensure the legitimacy of compensation programs, it's essential to implement validation methods Additionally, gathering feedback from employee groups and individuals is vital for understanding their expectations regarding earnings.
Many organizations claim they can train teleservices representatives in just two to three days, but this often results in inadequate training that neglects essential skills like telephone etiquette, product knowledge, and organizational information To truly benefit both employees and the teleservices organization, it is crucial to implement structured initial, ongoing, and advanced training programs.
Many companies often set up call center operations without clear documentation outlining individual duties and reporting structures, leading to employees having misconceptions about their roles and responsibilities To mitigate this issue, creating detailed position descriptions that specify tasks, responsibilities, and reporting relationships is a simple yet effective way to establish clear performance expectations and enhance overall organizational clarity.
Many companies mistakenly prioritize financial incentives as the main motivator for employees, neglecting their fundamental needs for engaging work, recognition, and appreciation, along with opportunities for career development Addressing these essential requirements is crucial for enhancing employee morale, performance, and ultimately, company profits.
Employees are increasingly interested in understanding new business opportunities, their company's community standing, and their personal contributions to profitability To effectively motivate employees, it's crucial to align incentives with desired behaviors Recognition can take various forms, including personal letters, visits from upper management, and wall displays that honor achievements Both individual and group recognition play vital roles, with a stronger focus on group performance to reduce negative competition among employees.
Don't overlook employees' desire for interesting work, recognition, and a career path
To effectively recognize staff, it is essential to establish clear measurement procedures and implement a monthly appraisal process that includes daily monitoring This approach not only addresses and corrects unacceptable behaviors and performance but also highlights and reinforces employees' positive contributions.
IMPLEMENTATION PROGRESS
Master Plan
Effective planning is crucial for the successful implementation and operation of a call center Prior to selecting the necessary infrastructure, technology, and staff, it is important to establish clear business objectives for call center improvement.
1 Improve Call Center Operation Performance through
Reduce Average On hold time ratio
Reduce Escalation ratio (Average call handoff frequency)
Improve 1st call resolution rat
2 Break down Data SILOS IN VINAMILK CONTACT CENTER
3 Reduce % of turnover of Agents (CSRs)
Below is master plan includes all key activities aligned with the call center objectives The due date and status of each activity also included
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
REDUCE AVERAGE ON-HOLD TIME RATIO c
Building automatic call allocation system including:
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Building Automatic Call Distributor including:
Schedule Adherence: setting time schedule for each part of resolution process
- Question and Request about packaging, product and service (59 scripts)
- Complaints about packaging, product and service
IMPROVE 1ST CALL RESOLUTION RATE VNM c
Call Monitoring and Recording/Call Recording Analysis c
Monitor and assess idle time o o o o o o o o o
DATA SILOS IN VINAMILK CONTACT CENTER FSOFT i i i i i i i i
Investigate Data Sharing Options and Needs c
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Discover Cross-System Key Performance Indicators o o o O o o o o
REDUCE HIGH TURNOVER OF AGENT o o o O o o o o
Standards and requirement for CSRs recruitment; JD review CSD c
Promotions, Recognition, and Motivation CSD/HR o o o o o o
BA verify Testing Environment FSOFT c
User Guide and Manual FSOFT c
Sign off User Acceptance Test Confirmation VNM c
Set up Production testing FSOFT c
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Sign off Pilot Completion VNM c
National implementation of new call center system c
Table 5 Call Center Implementation Progress
We will focus on re-assessing the KPI measurements for fully implemented solutions, while ongoing efforts will address the high turnover issue and data silos within the Vinamilk Contact Center Our goal is to evaluate the effectiveness of these solutions and track improvements in performance metrics.
Improvement Actions
2.1 Reduce Average On Hold Time
We build queue call back rule and apply as below
Besides, customer’s concerns are classified basing on service categories as below:
Figure 9 Customer classification based on Service categories
Call routing also take customer priority into account: : VIP, Gold , STD to determine agents to take care of
Below is Schedule Adherence table, which enable to categorize services and define lead time accordingly
Schedule adherence is the process of analyzing the workload of each of our CSRs
We track the time they’re scheduled to work and compare it to their call time to see how efficiently they’re working
By focusing on this KPI, we can make average hold time a priority in our call center
2.2 Reduce First Call Resolution Rate
Knowledge Management Porter is set up in Call Center The design and screen display is friendly to users It enables users to search quickly with flexible key word
Figure 13 Information Classification and Storage
We build Information Classifying process to help information flow to appropriate destination:
We build complaints handling process that divide customer complaints into 2 different section: complaints about the service and complaints about the product
Figure 15 Service complaints handling process
Figure 16 Product complaint handling process
We build the Reporting system which include over 200 reporting template that enable management level to quickly measure the team performance
Breaking down data silos necessitates the design of effective data integration that allows for seamless consolidation of all data into a centralized data warehouse This integration enables customer service representatives (CSRs) to access and track data with just a single click, enhancing efficiency and decision-making.
Evaluation – KPI re-assessing
3 months after piloting and implementing solutions of technology, training; process and communication enhancement, we conduct the KPI re-assessment to measure the improvement
Recent improvements in customer service metrics include a significant reduction in hold time from 3 minutes to just 1 minute, nearing the industry standard Additionally, first call resolution rates have increased from 57% to 66% However, while we observe an improved escalation ratio from the first tier to the second tier, constraints in the observation period limit our ability to assess improvements across other tiers.
The recent CSAT customer satisfaction survey indicates a significant 10% increase, signaling a positive outcome that allows us to implement the recommended solutions in Vinamilk's branch offices nationwide.
By implementing a contact center that prioritizes business performance optimization and adapts to market demands, we enhance customer satisfaction by delivering timely and efficient service Our call center systems enable a comprehensive understanding of the factors influencing agent performance and overall business success This insight allows for the optimization of operations, systems, and training to achieve targeted business outcomes Additionally, effective data integration fosters opportunities for increased sales, upselling, customer retention, and overall satisfaction, positioning our contact center as a strategic asset for the business.
The ongoing project to implement proposed solutions means that the full results cannot be reflected in this thesis Future efforts will focus on addressing the high turnover issue, breaking down data silos within the Vinamilk Contact Center, and reassessing KPIs to evaluate improvements.
ICT Strategic Plan for the Malaysian Public Sector: Standards, Policies and Guidelines for
Establishing a Call Center Version 1: March 2004
Strauss, B & Seidel, W.2004 Complaint management: the heart of CRM Mason, OH: Thomson Publishing
Zairi, M 2000 Managing Customer Dissastisfaction through effective complaints management systems The TQM Magazine, 12 (5), pp 331-335
Six steps of Call Center
1 IMPROVE AVERAGE ON-HOLD TIME RATIO
Process 1: Six Steps of Call Center
Appendix 1 Six steps of Call Center
CS Team Balanced Scorecard: CS Team objectives and how they align with strategies
Ordering to reduce logistics cost
% orders achieve Minimum truckload quantity
- Review volume of individual order and order frequency
- Agree with customers the minimum order quantity (MOQ- which is full pallets and truck load required)
- Apply MOQ in ordering system so that system can help block orders if not meet the criteria
% orders achieve full pallet quantity 70%
% calls logged in the call center during the month
+ Basic Routing/Reporting/ Recording + Callback Management
Set up knowledge base management and ensure all front office staff are well trained
Conduct monthly training on soft skills and product/ service knowledge + Empower front door/ service staff (schedule of authorization) so that they can flexible solve problems as quick as possible
+ Random check (guest role/ or tracking recording)
Total number of solution offer per clients
% Delivery On time, In Full, right SKU (CCFOT- Case fill On Time)
To enhance the order-to-delivery process, implement the Customer Case Fill On Time (CCFOT) measurement alongside the loss tree method This approach involves assessing all losses from the moment the customer places the original order until they receive the product, ensuring a comprehensive analysis of the delivery timeline.
% Returns (master data; order management)
+ Build & daily updated master data of product: active SKU/ price/ promotion/ slide-in; master data of customer (ship to)
+ Monthly health- check master data + Maintain delivery time window of customers
+ Standardize reason code of recall, main loss and define owners/ responsibility so that root causes can be analyzed and prompt actions
+ Understand customer’s expectation through survey -> conduct survey on Jan 2018 Base on the results, define actions to raise the bar of satisfaction level
Joint Business Plan (number of meeting with Key Customer to share Business Plan;
+ schedule with key customers on monthly/ quarterly meeting + agree on the objectives and purpose of meeting + agree on the KPIs with customers
Committed with KPIs shared with Customers
98% for Gold Customers 95% for silver customers 90% for bronze customers
Define Customer Segmentation and right sets of service for each segmentation Agree with customers on KPIs
Operation Process efficiency to increase customer satisfaction
100% users access master data base
+ Build & daily updated master data of product: active SKU/ price/ promotion/ slide-in; master data of customer (ship to)
+ Transparent master data report to all users of Customer Service
+ Ensure all users can access to report by provide accounts, conduct training
Order auto validation 80% + build application enable auto validate allocation; promotion; price; master data
% Return due to wrong order 2%
% Return due to wrong price/ master data 1% + evaluate order processing time spent per order
I2 Enhance team productivity through technology and lean process
% order completed within cut off time 90%
+ Evaluate team workload; restructure team
+ Build hand-book (for each function) -
> process and principles available to read or review apply above application can help gain this target
+ align with total supply chain on cut- off time of stock updated;
+ Review lead time of recall of sterilized milk
Number of new service introduced
+ web online to enable customers place order anytime, anywhere; this web will integrate with company ERP system
+ build POS for retailers to suggest order (base on history order) and inventory management
+ Apply 2nd CCFOT for CVS customers + FIFO management (system) for Distributors Warehouse Operation + Zero Inventory Planning for top 10 Key Customers in HCM
Employee capabilities & strategic skills/knowledge
Training investment per employee (# of course)
- Identify professional skills and soft skills required based on job descriptions -> skills gaps analyst + Conduct training (external; internal); online course
+ On the job training (involved staff on projects operation) -> individuals can improved advanced skills through project management : time management skills; planning skills; influencing skills
Competences attainment - % of employees gaining 3 new competences
Number of cross- trained employee 5%
Percentage of employee with advanced degrees/certificate