Challenge

The client’s residential telemarketing unit was not meeting its outbound hourly conversion rates and its inbound unit was not maximizing its conversion potential. The client was also aware that other inbound telemarketing service bureau operations and those of its competitors had higher inbound conversion rates and lower cost per contact than their centers.  They were also using several service bureaus for outbound telemarketing campaigns, which also had a higher hourly conversion rate than did the client and were working at less cost per contact. The client asked TMNG Global for help in addressing these problems.

TMNG Global Solution

TMNG Global conducted a detailed assessment of the primary outbound and inbound telemarketing call centers. This included interviews with call center front-line telemarketing staff; supervisors, management, and support departments, including IT, training, recruiting, and marketing.

We also observed call center processes and procedures and conducted time and motion studies on specific sub-segments of the call center. For example, we assessed the economies of scale that were obtained from a team of customer service representatives used specifically to verify telephone sales. The time and motion study showed that, in its current structure, the verification team was not creating a positive return-on-investment, when weighed against the reduction in regulatory risk management. In fact, we found that in its current un-supervised structure, the verification team was actually increasing the risk of regulatory sanctions in 20 percent of the sales.

Using standard gap analysis against best-in-class call center criteria, we made a number of recommendations, which were designed to increase sales conversion rates and reduce call center costs. Our recommendations covered the short term (30 to 90 days), mid-term (90 days to 6 months), and long-term (6 to 18 months) and included:

• Better training and use of supervisors
• Enhanced supervision of supervisors
• Elimination of one sales verification unit.
• Restructure of the current staffing model.

Benefits to the Client

With the implementation of TMNG Global’s recommendations, the client was able to reduce its call center costs by close to $250,000, increase both outbound and inbound sales conversion rates, and reduce employee churn.