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Filed under - Customer Service Strategy, ACD, Service Level
Dave Appleby takes us through the basic requirements of setting up a call
centre, from process blueprints to scheduling and forecasting.
Ok, so the time has come and business is good. Your existing team is doing
OK but a few customers are getting missed. Callers are abandoning,
customers are beginning to mutter. Staff are getting flustered. Dave Appeby
asks – is it time to set up a call centre?
What’s actually changed? The product is still good. Sales are still high, but
people are beginning to ask if your customer service is all it could be (or has
been).
At the risk of getting into a grandmother and eggs situation, now is the time
to look at how the existing operation works. It’s a what, why, where and
when issue.
Calls come in, people rush to answer, more calls come in, everyone’s
exhausted, and by the end of the day, no one can remember why the rush
happened.
Customers were queuing, angry at the wait. Staff are shattered and know
that tomorrow’s going to be the same. Staff absence and attrition rise. Things
start to slide and before long it’s become the norm not the exception.
Start with the calls coming in and track their progress through your system.
ii) How does the existing process work? By empowering the advisors with the
ability to do ONE thing is there a way to reduce call length or reduce the
number of repeat calls/callbacks required?
iii) Does the process ‘bog down’ at any point? Is something acting as a speed
ramp?
iv) What are the main causes of abandonment? Long wait, complicated call
type, or is there some other reason?
I don’t intend to go into the full process here as there are plenty of resources
on the market and internet that provide guidelines for how to do it. I will,
however, make one proviso.
Let your existing staff know what’s happening and that it’s being done for
their benefit.
I know from experience that the first thing that goes through an advisor’s
head is “What am I doing wrong?” They know that there are problems from
the nature of the work discussed above, and the presence of what can look
like a witch-hunting team can drop morale even more.
The second thing to go through an advisor’s mind will be “My job’s on the
line.” Closely followed by “They’re going to make us work harder.”
Let advisors know that it’s for their benefit, solicit their feedback and, above
all else, be as minimally intrusive as possible.
Just to keep you on your toes. Looking at the points above and taking them in
a totally different order from the way they are presented.
The graph below indicates call abandonment based on an advisor being able
to handle four calls in a half-hour period.
It takes lunch breaks into account but not any other breaks, and assumes
calls arrive at a constant rate. Whilst we know this is not true, for the
purposes of illustration, it’s a good enough model.
The graph below indicates what happens when you move the staffing levels
by 1 in peaks and troughs.
By making a minor adjustment to scheduling or calling an extra person onto
the phones, the abandoned call rate has dropped from 26 to 4. This is at the
cost of moving one and a half man hours from the back of the day to the
front and 2 extra fill-in periods equalling 2 man hours.
As I’ve said, it’s a generalisation with even distribution so not quite ‘real
word’, but good enough for demonstration.
The two graphs were produced using the data table below.
08:0 08:3 09:0 09:3 10:0 10:3 11:0 11:3 12:0 12:3 13:0 13:3 14:0 14:3 15:0 15:3 16:0 16:3
Time
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Call 1 2 15 20 18 18 15 8 4 2 12 13 22 19 15 13 12 9
Arrival
Staff 2 2 4 4 4 4 4 4 2 2 2 2 4 4 4 4 4 4
Exampl
e1
Staff 2 2 4 5 5 5 4 4 2 2 3 3 5 5 4 3 3 3
Exampl
e2
Staff 0 0 0 1 1 1 0 0 0 0 1 1 1 1 0 -1 -1 -1
Differen
ce
Abando 0 0 0 20 11 11 0 0 0 0 33 38 27 16 0 0 0 0
n Rate
Exampl
e 1 (%)
Abando 0 0 0 0 0 0 0 0 0 0 0 8 9 0 0 8 0 0
n Rate
Exampl
e 2 (%)
08:0 08:3 09:0 09:3 10:0 10:3 11:0 11:3 12:0 12:3 13:0 13:3 14:0 14:3 15:0 15:3 16:0 16:3
Time
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Abando 0 0 0 4 2 2 0 0 0 0 4 5 6 3 0 0 0 0
n Calls
Exampl
e1
Abando 0 0 0 0 0 0 0 0 0 0 0 1 2 0 0 1 0 0
n Calls
Exampl
e2
Agent 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Call per
Hour 2
One of the biggest developments in technology in the last 30 years was the
widespread introduction of the ACD telephone switch.
From the first ‘call centres’ in the early 70s, mainly amongst the American
airline industry (which is why we still have ‘advisors’ on the phone today), the
idea of a central contact point has expanded until it has become the normal
method for a large company to service its customer base.
In fact, it’s worth noting that some large companies have gone back to the
local contact point method (eg: banks) and are using it as a selling point.
From the first simple routing to the new hi-tech IP switches, technology in the
contact centre has expanded and advanced at an almost exponential rate in
the last 10 years. VOIP, CTI, Natural Voice Recognition and Universal Queues
have all become buzzwords of the industry.
ii) Do we get any reports from the switch or is it just shoving calls through?
iv) Do we manage our phone activity? Are there set times for people to be on
the phone?
At this point the audit is nearly finished. All that remains is to go back to the
phone team and get each of them in turn to tell you where they think the
problem is and suggest one solution.
You now have the basis to re-engineer the whole customer contact strategy.
Starting from the outside in. How does a customer contact you?
Customer calls – This is purely the design of the existing telephone call. It
does not reflect any background process issues affecting the customer.
Advisor handles call – With a simple process such as this, the call routing is
easiest, and the customer has no idea of where they stand in relation to the
rest of the calls arriving. Will they be answered in the next 10 seconds or is
the wait going to be half an hour?
You all know as well as I do in this case the call is ALWAYS answered just as
you decide to hang up and you hear the “Hello, thank you for calling…” just as
you’ve gone past the point of no return in hanging up.
Although the system is simple, the scope for customer dissatisfaction is high.
As with the staff rota example above, a few simple changes can lead to
massive results in goodwill, customer and staff satisfaction.
In this case at least the customer knows they are calling the correct company.
Once in the ACD, the customer’s call is then routed to the next available
advisor, NOT the next person prepared to take a call.
By the addition of a single voice menu, calls are now routed by team. The
customer has one choice to make and can almost immediately speak to the
next available advisor in the section they require.
Example 3. (Hold system)
Note the area in the dashed line is a loop until an advisor is available. The
timings are between messages and the advisor availability check is
continuous. Music can be added between the hold messages.
Below is a further refinement of the system giving the option for the
customer to leave a message on an IVR (interactive voice response) system.
This is the logical next step.
That being said, you need to refine the general business process to
accommodate the call-backs generated by such a system.
The diagram below is the last of the general call-flow ones. These models use
the assumption that all teams are separate. Other call-flow manipulation
could include:
Both these options, however, mean that the teams have to be cross-trained
on the other’s policies, procedures and scripting where required.
This is about as complex as most start-up call centres need to get, and the
above facilities should be available either as part of the main package or as a
bolt-on to any switch made after about 1985.
However, care needs to be taken in menu design. Nested menus, menus with
four or more options, and overtly technical phrasing in the menu commands
will ultimately drive abandon rates up.
Now the required set-up has been decided, it’s time to move onto the final
section. This is where buy-in from the staff is at its most valuable.
As soon as you get to this point you can also capture messages out of hours.
Service Levels
The first two are fairly obvious but the third is defined as: from the number
of calls we answered how many fell within our target answer time?
As a starting place for defining your levels, benchmark indicators would be:
Implementing the technology changes and setting service levels will do much
to alleviate the problems caused by chaotic call-flow. Staff-level planning to
meet call-flow will (if implemented correctly) solve the rest.
From the base measures described, the next step is to capture the average
handle time of each call.
This is not only the talk time (ACD time) but also the after-call tasks (wrap
time) required to complete the work before the advisor is ready to take
another call.
Forecast Models
Once you have the Average Handling Time (AHT) and your average call arrival
you can start forecasting arrival.
Take the four weeks figures as below and a little manipulation will give you a
basic forecast model.
This will be within 5-10% of what you can expect to happen, and will be
adequate for a small enterprise.
Take, for example, the call-flow below, across a four-week period (fig. 1).
Although the calls vary week on week, we can take an average and calculate
the mean call arrival (fig. 2). We then round this UP to the nearest whole
number (fig. 3).
Week 1 Mon Tue Wed Thu Fri Week 2 Mon Tue Wed Thu Fri
08:00 5 6 5 6 7 08:00 1 6 7 6 6
08:30 6 7 5 3 6 08:30 2 3 4 4 5
09:00 7 7 7 9 10 09:00 6 5 5 4 4
09:30 10 9 8 10 12 09:30 12 14 14 16 11
10:00 15 8 14 20 21 10:00 13 15 15 16 20
Week 3 Mon Tue Wed Thu Fri Week 4 Mon Tue Wed Thu Fri
08:00 1 6 8 2 2 08:00 4 5 4 5 6
08:30 1 6 5 3 5 08:30 2 7 6 4 6
09:00 2 8 8 6 8 09:00 6 6 6 8 9
09:30 3 9 12 12 18 09:30 4 10 13 13 19
10:00 8 9 10 10 14 10:00 9 10 11 11 15
08:00 3 6 6 5 6
08:30 3 6 5 4 6
09:00 6 7 7 7 8
09:30 8 11 12 13 15
10:00 12 11 13 15 18
Now, taking the AHT, we can calculate the number of advisors required.
CALLS AGENTS
Average Mon Tue Wed Thu Fri Average Mon Tue Wed Thu Fri
08:00 3 6 6 5 6 08:00 1 1 1 1 1
08:30 3 6 5 4 6 08:30 1 1 1 1 1
09:00 6 7 7 7 8 09:00 1 2 2 2 2
09:30 8 11 12 13 15 09:30 2 2 2 3 3
10:00 12 11 13 15 18 10:00 2 2 3 3 3
Without working your staff to death, you can apply an arbitrary figure for
expected productivity (anywhere between 60 and 75%) and then apply this.
Using a figure of 65% for productivity, this would give a staffing level of:
CALLS AGENTS
Average Mon Tue Wed Thu Fri Average Mon Tue Wed Thu Fri
08:00 3 6 6 5 6 08:00 2 2 2 2 2
08:30 3 6 5 4 6 08:30 2 2 2 2 2
09:00 6 7 7 7 8 09:00 2 4 4 4 4
09:30 8 11 12 13 15 09:30 4 4 4 5 5
10:00 12 11 13 15 18 10:00 4 4 5 5 5
It is now reasonable to staff to these levels and expect to hit your service
targets.
For more on this subject, read our article: How to Work Out How Many Staff
You Need in a Contact Centre
Whilst much has changed, the formulas he discovered are still relevant today
and are still (with a few minor changes) widely used.
Erlang calculations can increase the accuracy, but do you really want (in the
first instance) to be using the formula below?
Didn’t think so!
[While this may look scary, you can always use an Erlang Calculator to help
you with this].
Breaks
When assigning breaks, one basic factor of human nature comes into play.
People call in the first or third quarter of an hour and will normally call in the
first 10 minutes. So when assigning breaks it is both sensible and prudent to
go for either the second or fourth quarter.
Summing up
I hope this has given you a bit of an insight into how it is possible both
practically and financially to improve your customer service side.
In fact, most of the points above require very little in the way of capital
outlay.
As I’ve stressed above, though, the most important people in this equation
are your customers and staff. All in all, can you afford not to make ‘one small
change’?
Requirements Checklist
You will probably need to create a project plan and a checklist to set
everything up. We have complied two very useful checklists to help you with
this.
We also have an article on how to turn all of this into a business plan. You
can check the article out below:
How to Write a Call Centre Business Plan
Dave Appleby has been working as a planner, forecaster and analyst in the
contact centre industry for the last 16 years, having been a chef in a previous
life. Starting off working on the phones for the launch of a Grocery Home
Shopping service, he has worked for a variety of in-house and outsource
operations, including Disneyland Paris, Seeboard, GIftaid, GM Finance and
the Daily Telegraph. A keen diver (both instructor and cave diver), Dave is
currently a senior analyst for a large UK insurance company.
Published On: 27th Sep 2017 - Last modified: 19th Feb 2021
Read more about - Customer Service Strategy, ACD, Service Level
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Regards
Thanks
Scott
I am doing research on call forecasting. Can you give some elaboration on this
“People call in the first or third quarter of an hour”
Scott / Ross,
Regards
DaveA
Vivek Dixit
Can anyone assist me, I im setting up activity codes (not ready codes) so that i
can monitor what my staff do when not taking calls. Does anyone know if and
where i can get regulations or guidance regarding this.
Thanks
Craig
Hi there,
I’m part of a team of a few people looking to set up a helpline for disabled
students at away from home at university. Finding information, volunteers and
even funding is not so much the task for us, but knowing about the technology,
providing companies etc. is a nightmare! Are there any tips you could give us, or
any pointers to guides, or anyone who we could get in touch with to tell is where
to start?
Thanks,
Megan
hi
Im looking for a cost plan to set up a call centre upto 50seats.project report
kinds.
Hi,
I don’t understand the sentence : “…routed to the next available agent, NOT the
next person prepared to take a call”
I use erlang C for half hourly modelling not an issue – how can i forecast weekly
volumes without going down to half hour level? regards
Paul
i intend on starting up a call center in nigeria and was wondering if there are any
pointers that you could recommend.
I can understand the concept on the resource planning formula; but how it
relates to the SLT and ABN you mentioned? Kindly elaborate a bit more and
thanks.
Hi there. I thing about starting a call centre for language minorities (people that
live in UK but dont speak english) Is there any chance of success ? what are your
views ? regards Rafal
i wnt to start my own call center but do not know from where to start from .
please guide as soon as possible. for two person atleast as our company is
currently outsourcing our call center however we find it very expensive & not
productive.. Please help
Well done and clean inforfmation. I would like to know more about call centre
business and how to get clients/organisations. I would like to start this business
in India. Thanks.
I want to setup call centre for my travel industry. Do you have any knowledge on
this business. What i want to do is to setup a call centre let assume in India and
ask them to answer call if any and do a cold calling to generate some business.
If some one can handle that, he/she have there own call center business (in/out).
I have full material of call center setup and also i have call center process and
anybody require these these thing contact us. 09953160038
Atul pathak 17 Jul at 2:04 pm
Dave,
I’m very interested in what you have posted. Do you have some sort of an eBook
developed, and possibly take the time to chat about how one goes about setting
up a good call center, primarily from a technological standpoint? Let me know!
Thanks!
actually i want to open up a call centre at small scale so please give me the right
direction what i have to do and how should i start i am very new in this field.
actually i want to open up a call centre at small scale so please give me the right
direction what i have to do and how should i start i am very new in this field.
Hi,
Please advice me that how I can start a call centre business in india.waiting for
your advice.
With regards,
Ajay Chettri
Hi,
I want to open small size call centre. Kindly please suggest how to proceed
same.
Regards
Robin
Hi Dave ,
The matter that you have posted on this site is quite useful and comprehensive .
I request you provide me some ebooks regarding equipments and their set up
for inbound and outbound process. i have worked in call centre ..interested to
open a call centre in India …
Please help !
Regards ,
Dave
I am looking at moving an outsourced call centre to and inhouse call centre. I
have never run a call call centre let alone set one up and could really do with
some guidance thanks
How do I get this done and what average cost I nust anticipate anbd what
equipment/facilities do I need?
Please advice on how can I start a call centre business in India. Need to know the
complete process involved in getting the business. Expecting a reply at the
earliest. Regards
i am interested to start call centre i have ten computers pls guid me the process
in detail .
1-Agents can be too slow due to lack of product and computer applications (ours
are CRM,CTI,IN,PRETUPS etc,) knowledge, that means not being properly traind
or training being 2 fast for slow learners.
2-lack of COMMUNICATION by other departments..we shouldnt knw the latest
promotion by our customer.that means call centre is part of marketing and
marketing department should work hand in hand with call centre before visiting
media houses.or else time is goin to be wasted in one…
I need to draw up plans and costs for a complete working call centre including all
equipment, technologies and staff etc. can anyone assist me please.
hello,
Can you pls guide me with a project plan and complete costing/feasibility of the
project including of infrastructure,operations,staff.
Regaards
We hope you can give us more information about setting up an FAO. What are
the requirements and procedures as well as and cost and pricing.
Thank you very much and we hope to hear a favorable response from you.
Can you pls guide me with a project plan and complete costing/feasibility of the
project including of infrastructure,operations,staff.
Hello Dave,
I am planning to start a call center by the end of the next year. I do have
enquired about all the resources that I need to start with. But, the project is
lacking the most vital ingredient, “A Process” on which we will work.
Can you please help me get some or may be you can show me the way how to
approach further. Your help will be appreciated.
Thanks.
Can you pls guide me with a project plan and complete costing/feasibility of the
project including of infrastructure,operations,staff..?
Cheers;)
I have planning to set up my own call centre ,can you please help me out for
this .
I’m trying to setup a very very basic call center to handle about 15 to 20 calls a
day with two to three techs. Each call takes about 15 to 30 minutes to solve. We
are just starting out so we Need help on how to start and what to get. Can you
let me know if this is something at you’d be interesting in helping with.
We currently use one box but were quickly outgrowing it’s capacity as they limit
us with minutes and no queuing
Jason Owen
CEO
Hi Dave,
I am looking to set up a call center for a TV commercial and am totally new to the
call center network and how to figure out how many people I would need to
staff it. Can you guide me to someone knowledgeable in all aspects from start to
finish?
Thanks, Steve
i want to set up my own call centre ,but i dont know the process .please help
me……
Hi Dave,
Your article is very insightful and I have learnt alot.
Thanks
How much does it cost at least to start a small call center with 5 agents?
hello everyone,i want to start my own call center ,i am new in this field ,please
explain me,what would be the cost,capital,
infrastructure etc.please call me someone to explain me.
hi,
i want to start directory service center like just dial, can you please tell what infra
and software are required and which infra and software will be best.
we want people to cal us for any business enquiry and we want the agent to give
them info on phone as well as through sms.
thanking you
Hi! i see you are very knowledgeable in this field I would like to set up a small call
center, would it be possible to provide me with a insight of cost, infrastructure
and how to achieve and source customers.
Thank you
Awesome information my friend…Thanks for this lovely article. Will help me a lot
in many ways..Cheers!
I have no problem with location and capital to start a call center. I just need to
know more about the technical details and the infrastructure. Dialing will be to
and from UK and USA. What will be the best set-up to earn better profit.
Thanks!
I would like to setup a basic call center. Please give me the basic technology
hardware to purchase.
Thanks,
Morris
i want to set up my own call centre ,but i dont know the process .please help
me……
Please advise what is procedure and any help line who can support.
What wanna say a big “Thank You” to the creater and updater of this website.
THANK YOU !!!
hi
i want to open a call center and i dont have any idea about this and this is my
first time i a playing to open a call center . pl advise me
Hi!
I want to setup call centre with voice recording. Will you please explain me how
technically it should be equipped in terms of server, client (Will thin client work?),
Telephony, Internet connection, firewall or any other equipments.
Mahen
Hi im thinking of setting a call centre for a letting agent. I would be grateful if you
can give me further advice. I am looking to start by recruiting 10 to 15 people. I
am looking to expand to up to 100 to 150 staff in the future
Thanks
Hey Dave. great to see that someone actually knows what he is talking about.
We are tech company and thinking about openning a call center with
prescreened and qualified technicians. Any recomendations how to promote
and setup (with minimal financial damages) this business…you are the best
person to ask in my opinion. Any help would be helpful. Thank you in advance
Cheers
Hi there,
I have read your article on how to set up a call centre with great excitement, it
could not have come up at a better time than now.
Briefly l want to set up a call centre in Harare, Zimbabwe. The reasons for setting
up this call centre primarily in Harare are two-fold. There is a high level of
literacy in Zimbabwe which is coupled with very fluent proper English speaking
where the caller does not assume what the agent is trying to say. More often
than not, people get very frustrated when the agent”s pronunciation of words
are not very clear.
Could l kindly ask for your guidance, project plan and complete
costing/feasibility and the technology requirements for such a venture.
Kind regards
Alex
Hi Alex
I’m afraid that we get some many requests that we are unable to offer individual
guidance on setting up a contact centre.
Of most interest to me were the lack of certain insights (basically it was written
from a managerial point of view, not therefore including some of the niceties of
the torture involved for the average employee in the average call center–and I
have almost never seen any exception to this in organization or active
management) and the non (fill in the blank) of some of the commenters or
questioners, term them what you will.
Hi Dave,
I wanted to know regarding the infrastructure required to setup call center for a
small business enterprise comprising of both inbound and outbound calling.
How long does it take to set up 800 seat call center project ?
HELLO DAVE I JUST WANT TO KNOW WHAT IS REQUIRED FOR A SMALL INBOUND
CALL CENTER WITH ABOUT 3-9 SALES AGENTS RECEIVEING THE CALLS.WHAT
TYPE OF SYSTEM WOULD YOU RECOMMEND?
Hi Dave,
Hi Dave, thank you for creating and sharing this helpful tips and all are eye
opener.
keen to know how to get clients for a home based company with at least 10
seats.