Companies look for ways to enhance the returns from each and every customer engagement, given the fact that it is five times more expensive to acquire a new customer than to retain an existing customer As a result, managing customers through contact centers has evolved into a science. Cost savings aside, there is a significant value in outsourcing contact center operations because, if the engagement is properly structured, the change in business model can enhance the customer experience, driving benefits directly to the bottom line.

But friendly, helpful operators are not enough. Companies seeking to outsource customer care should evaluate the outsourcer's ability to leverage analytics to draw actionable insights from customer interactions in order to deliver high quality service that is customized for individual customer segments.

Smart outsourcers look at three opportunities to implement analytics in order to derive additional insights customer benefit.

1. Identify the drivers for customer defection: The first step is to analyze attrition history in detail, identifying key observed behaviors prior to attrition. This analysis can be delivered by simply applying statistical models to vast historical quantities of data and distilling behavioral patterns from an analysis of the data. Clearly articulating cause and effect can greatly help in predicting attrition patterns and retaining customers

2. Review IVR path: One of the biggest ways to upset the caller is by poor and inappropriate use of IVR systems. Poor menu structure and not being able to connect to an agent are noted at the customer’s most frustrating problems. Savvy outsourcers analyze the IVR menu structure and make it simple and easy to use - not more than four options and no more than two levels are best recommended.

3. Route calls based on lifetime value: Routing high value clients to a "relationship manager" and the simple queries can be routed through self-service technologies. In fact, there could be further segmentation where high value customers are routed to the best agents who are proven on the job. This will result in higher satisfaction among customers.

Outsourcers should look at transforming their operations by building a Relationship Center for their customers. Relationship Centers are founded on a combination of new technical architecture, customer segmentation, new call handling processes and agent empowerment. The benefits of such investments will be dramatic and go a long way in increasing customer satisfaction, customer retention, profitability, and the value to shareholders and the organization.

By Hemant Todi