Call Center Shrinkage Hints, Tips & Best Practices

Another Year, Another “Product of the Year” Award

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We don’t mean to sound jaded. 

It’s always an honor when one of our products is singled out for recognition in the contact center industry, and that has indeed happened once again: Monet’s WFO Live – Workforce Optimization in the Cloud has been named a Product of the Year by TMC’s CUSTOMER magazine, a leading source for contact center news, product information and communications strategies. 

This is also the third year in a row that a Monet solution has earned Product of the Year honors, to go along with a Customer Experience Innovation Award bestowed by TMC in 2014. 

“What this award means to us, more than just another honor to hang on our wall, is the acknowledgment that WFM Live is making a real difference at contact centers of all sizes across the country,” said our CEO Chuck Ciarlo. “The improved efficiency and customer service experienced by our customers every day is the best award we can imagine.”  

What should such consistent recognition mean to you? If you are a Monet customer it means the WFO solution you selected is among the very best available. If you are still considering a migration to an automated WFO tool, we hope it means you’ll take a closer look at what Monet has to offer. 

Investing in WFO is a decision you only want to make once. So why not select a complete end-to-end cloud-based workforce optimization solution packaged and priced to deliver the lowest total cost of ownership? 

Monet WFO Live offers comprehensive capabilities including workforce management, call recording, quality management, screen capture, performance management, agent analytics and archiving and reporting capabilities. It’s easy to set up, easy to use, and provides software fixes and upgrades as part of its software subscription fee at no additional cost. 

Perhaps that is why the awards keep coming. 

Find out more about WFO Live, and how it can boost efficiency at your contact center – at a price you can afford


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Forecasting: What’s Happening Now

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Forecasting determines many of the daily decisions made by contact center management, and plays a key role in a center’s ability to operate efficiently and deliver quality customer service.

How are contact centers today handling this ongoing challenge? One UK publication invited industry personnel to share their methods and assess their performances. The results, and the ideas generated, may provide you with more insight into how your contact center measures up, and where improvement may be possible. 

Using the Past to Predict the Present

Forecasting relies on historical data to anticipate call volume and other key factors in planning a schedule. Most forecast planners use at least two years’ worth of data, though some prefer five years. At contact centers where products and promotions are constantly changing, managers rely on just 12-18 months for forecast creation. 

Forecast Accuracy/Intervals

The average accuracy of forecast variance to actual calls falls into the 5-20% range. While some manage to stay in single digits (5-6%), others are still struggling with numbers as high as 80%. One contact center reported that service queues are typically more accurate than sales. 

Nearly 75% of contact centers surveyed forecast at 15-minute intervals; the rest do so every 30 minutes. 

The goal of increasing forecast accuracy has inspired a wide range of strategies, from assessing holidays and other unique days separately to improving coordination between departments (such as marketing and finance) to boosting the precision of the numbers being used. 

And while relating ideas that went right, some managers also shared some memorable mistakes in the hope of helping others to avoid them. These ranged from a simple accounting error (missing a zero from the monthly total) to putting too much trust in a client’s forecast, to relying on insufficient data. 

However accurate a generated forecast may be, however, contact centers still sometimes experience a disconnect from company management on the number generated. This can lead to issues with appropriate staffing decisions, and challenges in meeting customer service needs while also having time for meetings, agent training and other activities. Such conflicts have been resolved by producing results that are consistently accurate, and presenting data to management in clear graphical models that are easy to understand. 

Manual or WFM?

All forecasts also rely on agents being in the right place at the right time – as this doesn’t always happen, contact centers have learned to build more flexibility into their forecasts. This is much easier to do with an automated workforce management solution. Survey responses were roughly split between those that use a WFM tool and those that still rely on spreadsheets. 

Multichannel Forecasting

Finally, the survey asked respondents if they are also forecasting for email, webchat and social media. Historical data may be more limited in these communication channels, but most are still making the attempt, using whatever numbers are available. 


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Is Your Contact Center Ready for 2016?

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What is new for 2016? Predictions abound, but several trends are already underway that will certainly help to define priorities within the contact center. If you are still making New Year’s Resolutions, don’t forget to add these to the list. 

Engaging Millennials

Depending on how old you are now, it may be hard to believe that the generation born between 1980 and 2000 is in charge, and their expectations of customer service are different from that of their parents. They grew up with technology and are accustomed to instant communication, answers being available on their schedule, and getting what they need from a company without having to pick up a phone (unless it’s a smartphone with a retail app). Do you have a multichannel software platform in place to meet their demands? Are you using text messages to reach them with new offers and promotions? 


Social Media

Facebook and Twitter are no longer new, but their impact in customer service continues to grow. Once the exclusive domain of those under 30, these channels are now commonly used by everyone, including seniors, and not just for sharing memes and happy birthday wishes. The Harvard Business Review reports that people using Twitter for customer service grew 70% from 2013 to 2014, and 30% of social media users prefer to conduct business this way instead of over the phone.


Anyone Not in the Cloud Yet?

The move toward cloud contact center solutions continues unabated, for all the reasons we have covered in previous blogs – lower upfront cost, instant updates and upgrades of software, faster implementation, security, reliability, user-friendliness. According to Call Center IQ, 76% of surveyed organizations will have made the switch to the cloud by the end of 2016. If you haven’t done so yet, the time is now. 

Turning Agents into Salespeople

Agents who try to upsell customers? Not as annoying as we might have thought, as it turns out. The CFI Group’s Contact Center Satisfaction Index reports that more than 40% of consumers are open to an agent recommending additional products or services. Have you trained your agents in doing so? Is this part of your current script? 

De-Stressing Average Handle Time

Sure, it’s still important for agents to handle each call efficiently. But if the problem isn’t resolved, it doesn’t matter if the call lasted two minutes or ten minutes. The first priority is to bring each customer engagement to a successful conclusion. With multichannel customer service available, the new, hot KPI is “negative response rate,” a reference to those unresolved engagements. It’s worth taking more time to keep that number to a minimum. 



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Test Drive Your Holiday Preparation Plan

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It’s December, so chances are you’ve already outlined and implemented your strategy for handling the increased call volume caused by the holidays. 

Is it working? Great! But if it’s not, it may be time to take a closer look at the plan and see if something was missed. 

Here’s an idea for the next time you anticipate a call spike: take the contact center for a test drive. There is no substitute for practice, not only to confirm that you have the right resources in place, but to allow your agents (particularly the newer hires) to acclimate to the pressures of a more hectic work environment. 

The objective is to recreate real-world conditions, which means you’ll need personnel to take on the role of callers, and agents and managers reviewing results as they happen. 

Perform multiple drills. The idea is to reveal unforeseen hurdles that can impact customer service. It may also be a good idea to add an unexpected challenge to observe how your team responds. Let’s face it: you can’t plan for everything, so this is a chance to find out if you have agents and managers in place who can adapt under fire. 

What Could Possibly Go Wrong?

That is the question. A test drive will deliver the kind of insight that can detect and prevent problems before they occur at the worst possible moment. 

Try a few practice runs before your next busy weekend or special event – it will improve your odds of keeping the contact center running smoothly. 



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Workforce Management Trends in 2016

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It’s never too early to start looking ahead to next year (as you may have noticed from all the news coverage about the 2016 presidential election). 

When the topic is workforce management, there are already signs of trends that will likely continue into next year and beyond. As 2015 winds down, here is what is happening at contact centers throughout the U.S. – how are you approaching these issues?

Higher Investments in Personnel

When employees are viewed as an asset instead of a cost center, it impacts how they are recruited, hired, trained and maintained. This takes into account management and contact center procedures as well, but workforce management can contribute to agent satisfaction by making flexible scheduling possible, and making it easier for agents to work the hours and shifts they prefer.

Hiring Millennials

This is a natural generational occurrence happening at all types of businesses, including contact centers. Millennials have grown up with technology and will know the difference on day one between WFM that makes them more efficient, and systems that fall short. 

The Infusion of Analytics

WFM is bolstered by speech and desktop analytics tools that deliver more insight into customers and their needs. 

Changing Platforms

More mobile devices, more social media prominence, and gamification are just some of the overarching technology trends that may impact the evolution of WFM software suites. Consumer devices now set the pace, so contact centers may anticipate the adoption of their features and functionality in the workplace. 



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Workforce Management and Labor Costs

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We’ve discussed the convenience, efficiency and customer service benefits of workforce management software in previous blogs. We’ve also covered the cost benefits, but there is one aspect to this topic that perhaps isn’t as prominent as it should be – the positive impact WFM can have on labor costs

In the contact center, labor costs can amount to more than hourly wages. Overtime is becoming a common occurrence as businesses struggle to cope with more flexible shifts and schedules. Managers may not like it but they accept it as an unavoidable cost of doing business. 

With WFM, these same managers can achieve detailed insight into labor issues and agent schedules. That visibility results in more optimized schedules that proactively minimize overtime and can trigger alerts on when overtime thresholds are approaching, so action can be taken to prevent it. 

Ironically, one of the main reasons smaller and midsized contact centers hesitate to invest in a workforce management solution is how much it costs. But WFM in the cloud alleviates most of those concerns, and will be a wise investment for everything it delivers in return: 

Reduced administrative costs from manually scheduling employees

Lower overstaffing costs through more accurate schedules

Less productivity loss due to unplanned absences

Better agent adherence with real-time monitoring

Administrators who believe workforce management technology is beyond their budget would do well to examine the costs of doing nothing. The benefits of greater productivity, lower costs and better labor decisions provide ample evidence suggesting that this is one investment that contact centers can’t afford not to make.




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Keeping Up with Contact Center Tech

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Good customer experiences often start at the contact center. To achieve those positive results, contact centers are active in the data acquisition business, using KPIs and analytics to take a closer look at every customer interaction.  

Sometimes, however, a company’s reach can exceed its grasp. Innovation often comes slow to the contact center, so while there are now a multitude of effective tools available to transform a wealth of data into real-time solutions, managers may not have the means to maximize this potential. 

Downtime is one area where this gap is especially noticeable. When agents experience downtime, it should be leveraged to enhance productivity by making good use of that time. 

Speech analytics provides another example. Here is a system telling you important information about a customer while he or she is still on the phone – can you react to that information in time? If not, all this technology is buying is a lost opportunity. 

Does your contact center have intraday automation that triggers real-time workforce adjustments during a shift? Can you change staffing levels when there’s a decrease in demand, freeing agents to begin a training session? 

The goal of all of this is providing excellent customer service. When customers are happy, the business thrives. One study by the Harvard Business Review found a whopping 240% annual revenue difference between customers who rate their experience as “great” and those who said it was “poor.” 

Data can deliver more “greats.” But it must be used in real time, and that may be the most essential aspect of contact center technology. 



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Run Your Contact Center like a Football Team

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Another football season is underway, and as always there will be teams that excel on their way to the playoffs, and teams that stumble and fumble their way to a high draft choice. 

Can we say the same about contact centers? Certainly there are a few similarities worth exploring. 

If you don’t have a good team on the field, you are not going to achieve your goals. The best football coach can make a good team great, but he can’t make a bad team into a Super Bowl champion. In the contact center, the right coaches and managers can inspire their agents to always improve their game, but they probably won’t be able to transform an unmotivated employee into “Agent of the Year” material. 

This also means that having 47 out of 50 well-performing agents is not sufficient. Just as one bad player can fumble away a game, one bad agent can turn customers away and lower the center’s performance standard. When you are drafting new agents, be careful to avoid a bust. 

In football, sometimes top players walk away because they don’t like their contract. You can lose agents in the same way as well. A competitive salary with incentives and a positive working atmosphere can help you keep your star players. 

And while we’re saying coaches can’t be miracle workers on the gridiron or at the contact center, they do bear some responsibility for team performance. In the NFL, winning coaches take time to get to know each of their players, to ask about their families and what is important to them. They provide ongoing support and encouragement. They know which plays to call that work to a player’s skills. 

Hopefully, if you are a contact center manager, you are doing the same things. 

Finally, NFL teams invest in training facilities and equipment to give their players the tools they need to excel. Do your agents have the technology tools they need to deliver service to customers, and match call types with the agents best equipped to handle them? Can you provide service via web chat and email and social media with the same professionalism?

In a sense, every call that comes into your contact center is a game in itself that can result in victory or defeat. Make sure you have the team and the technology in place for a winning season – this year and every year. 



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Five Signs Your Agents Don’t Care – and What to Do Next

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Agents have good days and bad days just like the rest of us. But when the bad days become prevalent, action should be taken. An agent that has lost interest is one that may be costing you customers with every call. 

Recognize the warning signs of impending agent apathy – then decide if this is an employee that can be re-inspired, or should be let go. 

1. Showing up Late

With a workforce management solution it’s easy to identify agents who start their shifts late, and add a few extra minutes to their lunch and other breaks. The more difficult assessment is identifying those agents who don’t maintain focus even when they are at their desks. Call recording will be useful here. Once the problem is known, it may call for more than just coaching – usually these agents know what to do, they just don’t care enough to do it. Is there an underlying issue, such as trouble at home? Having someone to talk to might be the first step to reinvigorating performance. 


2. Excessive Sick Leave

This can be tricky, but when the days missed become excessive the situation must be confronted. A meeting here can be used to remind the agent of how valuable he or she is to the company, as well as how absenteeism has a negative impact on the business and on other agents. 


3. Finding Reasons Not to Take Calls

There are more ways to avoid picking up the phone than you might imagine – and some agents know them all. “Oh, it’s the last call of the day and I’ve already put my stuff away”; “I’ve had an IT issue accessing our service department all day – might as well wait until that’s fixed in case this customer needs that information,” etc. Gently call out such behavior as you find it, or hold a team meeting expressing concern about this issue without naming names. The guilty parties will know who they are. 


4. Transferring Too Many Calls

Patience is a virtue in call center work, but some customers exhaust that patience more quickly than others. Agents who lack the initiative to tackle these issues will pass such calls on to a supervisor. When this happens too often, the supervisor should have a chat with that agent to find out why. Once again, just identifying the problem may be enough to resolve it. 


5. Lowering Team Morale

That old saying about one bad apple spoiling a whole bunch is, unfortunately, true. If one agent becomes lax in his or her efforts, other team members will pick up on this behavior. And if they don’t see that agent disciplined, they’ll stay at it. No resting on this one – private direct confrontation is required, followed by a general “It has come to our attention…” announcement. After that, it’s time to employ another old saying – shape up or ship out. 


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Workforce Management: Guiding Principles and Best Practices

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Every week, new contact center managers and agents discover this blog for the first time. We think that’s a good reason to occasionally go back to the basics, and explore the ways in which a quality workforce management solution (like Monet WFM Live) should be utilized. This is technology that can really make a difference in how you serve your customers. 


Follow these guidelines to make the most of a WFM solution:


Given the attrition rates at contact centers, require ongoing WFM training to avoid knowledge erosion

Refine your data gathering processes regularly to make sure the numbers are accurate

Monitor shrinkage and balance it correctly into forecasts

Set realistic adherence targets, and apply real-time calculations to achieving them

Make sure intra-day forecasting is consistent

Let the system manage holiday and shift swaps, so managers can focus on other tasks

Daily forecasts will usually be top priority, but do not ignore midrange and long-term calculations that can be important to future planning. 

Invite agents to input schedule and vacation requests directly into the system


While Workforce Management can make a difference simply through the data it delivers and processes it expedites, it’s a tool that will ultimately be successful depending on the environment in which it is used. 


Thus, managers are also urged to always treat agents fairly. For example, do not give preferential treatment on first choice of shifts, unless this perk is offered as a bonus for outstanding performance. Make sure contact center policies on this and other rules are clearly communicated so agents know what to expect. 


When you know what to look for, when you have the information you need, when you need it, and when you can act upon it quickly, that’s workforce management made easy. 


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Cyber Attacks and Contact Centers: Are you Prepared?

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You may have seen the news earlier this month: AT&T Inc. has agreed to pay a $25 million settlement following the discovery of a data breach at their call centers in Mexico, Colombia and the Philippines. It happened because employees at these call centers accepted illegal payments to share the private information of the company’s customers. About 280,000 people were affected. 

This case raises awareness that contact centers play a central part in dealing with customers in case of a cyberattack. They are the first point of human contact. Everyone can remember the large scale attacks that hit Target stores in 2015 or the Sony PlayStation Network in 2011. Millions users were affected, millions of credit card numbers leaked. This is a stressful situation for the customers and it can affect the company’s reputation dramatically. 

Just like any other businesses, call centers have to be prepared and proactive to deal with the aftermath of a cyberattack targeting the company. 

It becomes essential that shrinkage is taken into account, in order to handle an unexpected spike of calls, agents are trained, available, and scripts with an emergency procedure are ready. 

How should you prepare your contact center?

Most companies devote just 2-4% of their IT budget to security and disaster recovery planning. And yet, the actions taken before a cyber attack are as significant, if not more so, than actions taken after the worst has become reality. 

Some companies specialize in disaster preparation. They can help implement a strategy to fit a contact center’s needs, likely threats and budget. Many of these companies may begin with a business impact analysis, to assess the potential loss (whether financial, technical or in human resources) from a cyber attack. 

It’s also a good idea to put together an issue response team ahead of time, so you will have the right people in place if an attack should occur.

What to Do After?

A cyber attack is not the same as other unforeseen activities that could not be anticipated with forecasting and scheduling. This is a situation where customers are directly and negatively affected by what has occurred, and may even incur financial loss as a result. Some will be angry. Some will be frightened. And most of them will be calling you as soon as the news of the attack is made public.

Because data breaches are now, unfortunately, an ongoing threat in 21st century business, most customers will understand that these incidents are not always avoidable. That means it’s no longer an automatic deal-breaker for that business relationship – but a lot will depend on how the company responds. For the contact center, that means focusing on 4 words: Communicate, Respond, Explain, and Apologize.

Communicate

Let customers know as soon as possible that an attack has occurred. Don’t wait for them to call you. This will be the first step in rebuilding any trust that has been lost. The faster they are aware of what has happened, the faster they can contact their bank or credit card company and take steps to protect themselves. The companies that lose the most customers from a cyber attack are those that wait weeks (or even months) before going public.

Respond

Customers will have questions. Have your best agents in place – those that have shown via quality reviews and coaching that they know how to remain calm when speaking with someone who is upset. Make sure these agents have the answers ready to the questions that are always asked following an attack (“What happened?” “How will this affect me?” “Do I need to call my bank?”). 

Explain

Cyber attacks are highly technical in execution, but customers will not be interested in explanations that they cannot understand. Agents should be able to explain in plain English what has happened, why it happened, and what steps the company is taking to control the damage, and make sure the customer is inconvenienced as little as possible. Also, tell them what steps are now being taken to make sure their information will be safer in the future. 

Apologize

This is where agent training should begin when preparing for the aftermath of an attack. The apology should happen near the beginning of the call, and again at the end. It will go a long way toward maintaining a customer’s confidence. 

Bonus Step: Stay in Touch

Customers will expect a company to be reluctant to talk about a cyber attack, so they will appreciate if the company takes the initiative in keeping customers apprised of what is happening. Whether it’s a phone call from the contact center updating them on the situation, or an apology email from the company CEO, or some other means of following up, it demonstrates ongoing concern for the customer’s welfare and interest in keeping their business. 

Conclusion

With cyber attacks in the news almost every week, companies can no longer assume they will be the exception and never have to worry about the fallout from such a damaging incident. However, few companies have devoted sufficient time to advance preparation, and a recent Ponemon study found that companies were also not prepared to communicate with customers following a data breach; in fact, of more than 470 surveyed, just 21% had a trained communications team in place. 

For contact centers, where communication is the first and most important skill considered for agent hires, that percentage will not do. This is the moment when agents should be called upon to use their skills to address customer concerns and restore confidence and loyalty. 

Ponemon study referenced in article: http://www.corpcounsel.com/id=1202598001685?slreturn=20150320141052



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Scheduling Spreadsheets Become Obsolete in the Cloud

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“Is it in the budget?”

Some variation of that question is always asked when any changes to contact center procedures are proposed. And it’s a valid question. Economic realities have forced businesses of all kinds to do more with less, and contact centers are no exception. 

But there comes a point when inaction can be more costly than a beneficial investment. And when it comes to the use of spreadsheets vs. workforce management software, that time has come. 

Yet many small and midsized contact centers still rely on spreadsheets for daily forecasting and scheduling. Even larger contact centers, those with 100 agents or more, are still making due with an inefficient system that lowers customer service, and can actually increase costs. 

When an increase as low as 1% in productivity can significantly impact the contact center budget, it is imperative to identify areas where efficiency can be improved. Ditching spreadsheets should be at the top of that list. 


Spending Money to Save Money

The limitations of a spreadsheet result in fixed schedules that can produce higher shrinkage and overstaffing, or understaffing and a low service level. But with WFM it is easier to manage start times, end times and breaks with an ease of flexibility that dramatically improves service levels. 

Managers can also consult more detailed and accurate call histories with WFM, resulting in better forecasts. Scheduling is also faster – some managers can save as much as 25% of the time once devoted to filling in spreadsheets – time that can now be used for additional agent training or to attend to other matters. 

Is increased efficiency worth the investment? One of our clients, the Texas credit union GECU, found out first-hand. Their call center, staffed by 85 agents, selected Monet’s cloud-based WFM Live as a way to improve customer service. Affordability was a key component in the decision, as WFM Live provides such benefits as reduced IT investment, low implementation service fees and a more cost-effective per-user license model. 

Just a few months after implementation, GECU was able to save money by reducing its number of agents by 14, while delivering better customer service. With the more accurate scheduling made possible by WFM Live, there was a 30% reduction in unscheduled breaks. Costly overtime scheduling was reduced, while call volume spikes were managed more easily.


“In terms of ROI, Monet has already paid for itself after a few months. The cost of the 3 year subscription I've already saved in salaries, overtime and administrative costs.”

--Joshua Gomez, GECU Assistant Vice-President, Call Center


Today, the quality and service levels at GECU are solidly placed in the top 97% tier. 


The Better Solution for Managers, Agents and Your Customers

A spreadsheet can be used to calculate workforce percentages, but precise forecasting requires more in-depth analysis. And when forecasts are wrong, stressed agents cannot deliver the service level you and your customers expect – or, they’re sitting in their cubicles with nothing to do, and earning money for it. 

One of the reasons we hear most often from companies reluctant to change is, “But this is the way we’ve been doing it for 10 years.” Change can indeed be intimidating. What we tell them is they are not really changing the things they do – they are just going to be able to do them more easily and efficiently. 

Forecasts rely heavily on historical data – daily, weekly, monthly, seasonal – to determine call volume. Contact center managers may start with monthly and weekly stats, and then delve deeper into daily and hourly numbers, perhaps even examining work periods as short as 15 minutes. 

This can be done with spreadsheets, theoretically, but with WFM it is significantly easier to analyze call types, call volume and call patterns, and then to note past variations, determine their cause, and forecast accordingly. With WFM it is also much easier to forecast special days or other events that impact call volume. “Special day” provisions can be created for any factor, from marketing campaigns or events to weather patterns.

Scheduling is yet another area where WFM offers enhanced capabilities. Spreadsheets can handle fixed schedules, but in 2015 how often do contact center schedules stay fixed? 

With a WFM system managers have the flexibility to automatically manage start times, end times and break times. Now, agents can work the hours that work best for them, and happier agents are far more likely to excel at customer service. They are also more likely to stay with the company longer, a consideration that should not be minimized considering the average employee turnover rate in this industry. 

Intra-day adherence tracking is another significant component of a best practices approach that is practically impossible with just a spreadsheet. WFM also provides insight, through dashboards and real-time alerts, into which agents are meeting their schedule obligations, and which may require additional guidance or training. 


Conclusion

The annual budgeting process presents a familiar challenge – cut costs where necessary while maintaining (or improving) the customer experience. Since labor forces rank among the highest cost items, it is essential that they be managed properly. With WFM, a manager can always be confident that he or she is scheduling the right agents with the right skills at the right time. 

Those still using spreadsheets for these functions are missing out on the convenience, efficiency, flexibility and functionality of workforce management. 

The calculations necessary for optimal forecasts and schedules are very difficult to do with Excel. WFM has sophisticated simulation processes that tell a call center how many people it will need and when it will need them.

“But we can’t afford it.” That might have true ten years ago, but today with cloud-based WFM, even smaller and medium-sized contact centers can reap the benefits of automated workforce management at an affordable cost. A lower investment also means a more rapid return on that investment. 

When call volume changes, spreadsheets are insufficient. With WFM, managers can get back to managing people, instead of spending hours on Excel planning forecasts and schedules. To learn more about this, download our whitepaper "The Real Cost of Spreadsheet-based Scheduling".




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What is call center shrinkage and how to minimize it

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What is call center shrinkage?
One of the most important concepts in schedule adherence is shrinkage. Shrinkage can be defined as the time for which people are paid during which they are not available to handle calls.

There are many reasons that can cause shrinkage - and it has to be taken into account when scheduling the required number of agents to meet call volumes. But the truth is that most companies badly under-estimate the sheer volume of shrinkage that besets their call centers. This comes about due to a host of potentially hidden areas of shrinkage. Many managers keep their eye on several of these, but few are able to stay on top of all of them: lateness, talking to associates, personal calls and emergencies, leaving early and taking longer breaks. The bottom line on shrinkage is the amount of minutes per day that agents are being paid to be on the phone when they are not actually working or available to receive calls or work on customer related issues.

How to track and manage shrinkage?
Shrinkage can be a major factor in failing to meet service level targets. Call centers that take shrinkage parameters into account in their forecasting and scheduling typically achieve higher service levels at lower operating costs. They often do that by including all call related activities into the forecast and schedule planning process. Here is an example of how to track and manage shrinkage as part of the workforce scheduling process:

what is call center shrinkage

For more information about shrinkage, please also read the following two blog posts:
In addition, you can download our whitepaper about tracking and improving schedule adherence - it should provide some valuable insights into the relationship between shrinkage and agent adherence.

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Important call center metrics: Shrinkage

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What's shrinkage?
Shrinkage is the time (or percentage of time) agents are not productive due to breaks, meetings, training, vacation, illness, absenteeism, etc. Most of these events can be build into the schedule, however there is one aspect of shrinkage that cannot be really planned for and it is related to adherence. Adherence is a measurement of the time agents are scheduled to work compared to the time they actually work. If agents leave early, start later or take longer breaks than specified in their schedule, it causes shrinkage that has an immediate impact on service levels and other call center metrics due to under-staffing.

How to reduce shrinkage?
Well, it's not realistic to totally eliminate "unplanned" shrinkage, however, in most cases in can be reduced to an acceptable level. One major reason for "unplanned" shrinkage is out-of-adherence. Often, call centers don’t have the necessary visibility into what happens at any moment in time and what is supposed to happen based on the published schedule. If you are still struggling with adherence issues, please read this educational whitepaper “Strategies for improving call center schedule adherence", and you will learn about proven practices on schedule adherence that have resulted in increased availability and reduced shrinkage.

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Call center shrinkage - why does it get more difficult to manage?

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The increasing complexity of call center configurations with multiple locations, many time zones, more demanding customer interactions, and new communication channels make it more difficult to manage shrinkage. You cannot any longer manage the shrinkage in today’s complex centers just by standing up and looking out across your center or using a manual/spreadsheet based approach. Here are some of the challenges centers need to overcome:

  • Distributed call centers and home agents make it more difficult to manage and track breaks, attendance, exceptions, etc.
  • Multiple communication channels (phone, email, chat, social media, etc.) make it more difficult to manage shrinkage without appropriate tools to forecast, schedule and track adherence for each channel.
  • Some call centers have no effective way to forecast and schedule non-call activities such as breaks, meetings, unplanned discussions – resulting in shrinkage.

Therefore, shrinkage becomes more of an issue for call centers that don’t leverage WFM solutions. Usually, they don’t have the necessary visibility into what happens at any moment in time and what is supposed to happen based on the published schedule. Learn more about how to reduce shrinkage by watching the on demand webinar "Strategies for improved call center schedule adherence". In this educational webinar, industry expert Penny Reynolds from the The Call Center School, shares proven practices on schedule adherence that have resulted in increased availability and reduced shrinkage.


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Call Center Scheduling Tips: #2 Keep track of your shrinkage

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Many companies underestimate the sheer volume of shrinkage. Here are two suggestions on how to reduce shrinkage:

1. Increase forecast and schedule accuracy by including all activities into your schedule:

  • Call time and after work related to calls
  • Outbound if triggered by inbound calls
  • Chat (if important to your business)
  • Breaks, lunch
  • Training
  • Absenteeism
  • Meetings
  • Admin or research work
  • Correspondence
  • Emails
  • Outbound calls
  • Other unproductive time

2. Monitor schedule adherence and work with your agents to improve over time

  • Monitor in real-time
  • Run reports and share with the call center team

Read More About Call Center Scheduling Tips: #2 Keep track of your shrinkage

Call center scheduling - keep track of your shrinkage

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Many companies underestimate the sheer volume of shrinkage (paid time but not taking calls). For example, in a 30 agent contact center 20 minutes of out of adherence status per agent equates to 10 hours per day in shrinkage. If those agents are being paid $12 per hour plus benefits, equaling $15 per hour, you would be losing $150 per day, $750 a week or $39,000 per year.

While it is not possible to recover all lost time, imagine you can reduce shrinkage from 20 to 10 minutes resulting in a $20,000 savings alone, plus improved service levels. That is only the tip of the iceberg if you also consider lost sales due to shrinkage, which again, can easily add up to hundreds of thousands of dollars per year.

How can you reduce shrinkage? There are three key elements involved:

  • Create a better match to call volume with agents’ availability;
  • Increase forecast and schedule accuracy by including additional parameters;
  • Monitor and improve schedule adherence, if possible in real-time.

Read More About Call center scheduling - keep track of your shrinkage

Call center scheduling: Keep track of your shrinkage

Posted: by:

Many centers underestimate the sheer volume of shrinkage (paid time but not taking calls). For example, in a 30 agent contact center 20 minutes of out of adherence status per agent equates to 10 hours per day in shrinkage. If those agents are being paid $12 per hour plus benefits, equaling $15 per hour, you would be losing $150 per day, $750 a week or $39,000 per year. While it is not possible to recover all lost time, imagine you can reduce shrinkage from 20 to 10 minutes resulting in a $20,000 savings alone, plus improved service levels. That is only the tip of the iceberg if you also consider lost sales due to shrinkage, which again, can easily add up to hundreds of thousands of dollars per year. How can you reduce shrinkage? There are three key elements involved:

  • Create a better match of actual call volume with agents’ availability
  • Optimize schedule by including all relevant parameters such as breaks, training, etc.
  • Improve schedule adherence by educating your agents, monitoring performance and providing incentives.

Read More About Call center scheduling: Keep track of your shrinkage