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Article
 Capturing
the Hidden Value in Today’s Fragmented Call Center Functions
By
Steve Discher
Senior
Vice President
Many insurers who operate multiple call centers have yet
to recognize the benefits that would come with having fewer.
Take, for instance, the multi-line P&C carrier with different
phone numbers and departments for personal lines, commercial
lines, claims, life and annuities, and so on. This disjointed
approach to processing inquiries is increasing costs while creating
confusion for agents and the insured. Our experience with clients
has shown a 20–40% loss in productivity when call centers are
managed unevenly as compared to a more streamlined approach.
The decisions to establish separate call handling functions
were probably the right ones at the time they were made. Clients
have attempted to Band-Aid the evolving problem by installing
call center technologies in an attempt to consolidate the overall
call-in function. The problem is that it’s often difficult to
improve the situation when servicing functions cut across product
lines and functions that might include underwriting, claims,
billing, and so on. We are seeing swollen cost structures and
large inefficiencies from this approach.
Many clients are stepping back and saying, “There has to
be a better way to manage our total call center needs while
maintaining or improving our service.” How can your company
determine if there’s a hidden opportunity? Ask yourselves these
questions:
 | How many phone numbers are there for outside parties to
call? Given your size, does the total number make sense? |
| How
many different departments answer the phones? If these departments
are typically fewer than 20 employees in size, you’re probably
sacrificing economies of scale. |
| What are the service and productivity
metrics for the departments that answer calls? How are these
being improved from year to year? Most fragmented call functions
don’t have formal service and productivity measures because
top management views the departments as too small to be bothered
with. |
| What initiatives are in place to reduce the number and
duration of calls? Taking an inquiry over the phone is often
10 times more expensive than servicing the call through IVR
(interactive voice response) or the Internet. |
| Do you continually
monitor and improve the cost per inquiry? As one client likes
to remind me, “I keep score and guess what? Scores improve.” |
| When call function consolidation comes up in management discussions,
has the reply often been “We looked at that before and it didn’t
make sense”? This could have been driven by a perception that
the skills needed are too specialized, that there are too many
systems to learn, or that a more centralized function would
result in service deterioration. Technology and skills improve.
Retesting old assumptions with a fresh set of facts, analysis,
and solutions is often warranted. |
| What happens with the available
production time when the phones are not ringing? This is a gaping
opportunity for many of our clients who have consolidated call
functions and are now looking to move productivity to the next
level. We’ve found anywhere between 10% and 30% excess capacity
that can be reallocated for simple transaction processing and
other productive activities.
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No single solution will fit all situations. Full call center
consolidation across all functions is certainly not the answer.
Knowing where you are starting and your ultimate service and
productivity goals is a good first step.
The Nolan Company has the pleasure of helping dozens of clients
answer these questions. These clients range from small to large
in size; carry P&C, life, and health products; and operate on
scales both regional and national. Please feel free to email
or call if you would like to hear more about how we’ve assisted
clients in capturing the hidden value within their total company
call center.
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