Case: Runners EdgeCall Center Process Analysis Introduction

Steve Watterson, Vice President of Operations for Runners Edge, is concerned about their call centers performance. Mr. Watterson has just finished reading a report prepared by a consultant who has conducted interviews with 200 customers that had contacted the Runners Edge call center. The study was conducted over four weeks using data generated from call center reports. Runners Edge offers a complete line of athletic shoe products that are distributed throughout Europe. The customer service representatives (CSRs) at the call center are trained in how to assist the customer to select exactly the correct shoe to match his or her needs and to properly fit the shoe to the customer. It is thought that this attention to satisfying the customer is important to the success of the online business.

The results of the survey are summarized in the accompanying table which provides insight into the operation of the call center. From the report, it is clear that there is much room for improvement in the operation of the center. Mr. Watterson gets a sick feeling after reading the report. Runners Edge recently invested heavily in inventory to ensure that shoes would be available in the distribution center, yet customers still are not happy with the call centers service.

He could well understand the major complaint. He, like the customers, hates to wait. The report indicates that customers are having to wait at multiple points in the process. They wait for the phone to be answered, they wait on hold for a CSR to be available, they wait for advice from a running expert on shoe performance, and they wait to check out. Something must be done to ensure that the call centers operate in a manner that cuts down on customer waiting time.

The consultants have done a thorough job. Some data from the interviews are contained in their report. The consultants have offered to continue with a thorough analysis of the problems with suggested solutions. Besides the high fee, the consultants indicate that it would be a month before they could complete the follow-up report. Mr. Watterson does not want to wait that long and is asking for your help in analyzing the data.

The Consultants Report

The report is written totally from a customer point of view. It begins by categorizing the different activities of the customer while connected to the Runners Edge call center. For each of these activities the consultants surveyed the customers to determine how satisfied they are with the manner in which the service is completed. The report includes various statistics on how often the activities are performed as a customer moves through the call center process.

The following table summarizes the main points of the report. For each activity, the report details what percentage of customers actually engage in the activity. Details based on the survey question that relates to each activity are given. The questions use a six-point scale to indicate a range of dissatisfaction (low numbers) to complete satisfaction. (6.0 is the highest).

Mr. Watterson is concerned about the consultants findings regarding flow through the call center. The idea of categorizing the activities and tracking the flow of customers from one activity to the other had not occurred to him before. He could see that by looking at the operation of the call center in this manner, the center operates much like a factory. He knew that there is much variability in how long it takes to perform each of the tasks in his page 332Runners Edge call center and wonders how to account for this uncertainty.

Task

Outcome and Average Task Time

Evaluation of Customer Satisfaction and Major Complaints That Relate to the Task

Phone call is received at the call center: The automated system instructs customer to wait for the next available representative or to request a callback.

53 percent remained on the line to wait for the next available CSR.5 minutes

23 percent listened to the recorded message and hung up before talking to the CSR 5 minutes

20 percent left a phone number for a callback40 seconds

4 percent used the automated system to access a specific department/person outside the call center40 seconds

How helpful was the automated system? (3.4)

Major complaint: The length of time before they could reach a CSR (47 percent)

Process customer request: A customer service representative (CSR) handles the next call in the customer waiting queue or the first person on the callback list and shoe request is discussed.

60 percent proceeded to order entry and billing after checking availability of shoes5 minutes

20 percent transferred to a running expert to discuss shoe performance4 minutes

10 percent sought information on returns or help with billing questions and are transferred to order entry and billing2 minutes

10 percent hung up after talking to the CSR 3 minutes

Did you find the explanation of your different shoe choices helpful? (4.0)

Major complaint: 30 percent indicated that the CSR was not familiar with the shoes they wanted.

Running expert consultation: Discusses the selection of a shoe with the customer, finds a shoe, and transfers to billing.

70 percent found shoes and transferred to order entry and billing for purchase 10 minutes

30 percent could not find shoe and hung up 5 minutes

How helpful was the running expert at identifying the best shoes? (5.0)

Order entry and billing: Processes purchases, returns, and billing questions.

84 percent made a purchase5 minutes

7 percent processed a return5 minutes

4 percent resolved a billing error10 minutes

5 percent hung up before talking to a clerk 0 minutes

Major complaint: 40 percent indicated that their preferred payment method was not available.

The complaint about waiting seems to indicate that there are not enough CSRs available at the call center. Currently there are six CSRs working at the center. Calls arrive at the rate of 100 per hour. There are three running experts employed at the call center and six billing clerks. Mr. Watterson wonders if it is worth adding additional CSRs, running experts, or billing clerks to reduce complaints.

QUESTION Calculate the input rate (events/hour) and the average time per event for each of the three departments.

Case: Runners Edge-Call Center Process Analysis Introduction Steve Watterson, Vice President of Operations for Runners Edge, is concerned about their call center's performance. Mr. Watterson has just finished reading a report prepared by a consultant who has conducted interviews with 200 customers that had contacted the Runners Edge call center. The study was conducted over four weeks using data generated from call center reports. Runners Edge offers a complete line of athletic shoe products that are distributed throughout Europe. The customer service representatives (CSRs) at the call center are trained in how to assist the customer to select exactly the correct shoe to match his or her needs and to properly fit the shoe to the customer. It is thought that this attention to satisfying the customer is important to the success of the online business. The results of the survey are summarized in the accompanying table which provides insight into the operation of the call center. From the report, it is clear that there is much room for improvement in the operation of the center. Mr. Watterson gets a sick feeling after reading the report. Runners Edge recently invested heavily in inventory to ensure that shoes would be available in the distribution center, yet customers still are not happy with the call center's service. He could well understand the major complaint. He, like the customers, hates to wait. The report indicates that customers are having to wait at multiple points in the process. They wait for the phone to be answered, they wait on hold for a CSR to be available, they wait for advice from a running expert on shoe performance, and they wait to check out. Something must be done to ensure that the call centers operate in a manner that cuts down on customer waiting time. The consultants have done a thorough job. Some data from the interviews are contained in their report. The consultants have offered to continue with a thorough analysis of the problems with suggested solutions. Besides the high fee, the consultants indicate that it would be a month before they could complete the follow-up report. Mr. Watterson does not want to wait that long and is asking for your help in analyzing the data. The Consultants' Report The report is written totally from a customer point of view. It begins by categorizing the different activities of the customer while connected to the Runners Edge call center. For each of these activities the consultants surveyed the customers to determine how satisfied they are with the manner in which the service is completed. The report includes various statistics on how often the activities are performed as a customer moves through the call center process. The following table summarizes the main points of the report. For each activity, the report details what percentage of customers actually engage in the activity. Details based on the survey question that relates to each activity are given. The questions use a six-point scale to indicate a range of dissatisfaction (low numbers) to complete satisfaction. (6.0 is the highest). Mr. Watterson is concerned about the consultants' findings regarding flow through the call center. The idea of categorizing the activities and tracking the flow of customers from one activity to the other had not occurred to him before. He could see that by looking at the operation of the call center in this manner, the center operates much like a factory. He knew that there is much variability in how long it takes to perform each of the tasks in his Runners Edge call center page 332 and wonders how to account for this uncertainty. Evaluation of Customer Satisfaction and Major Complaints That Relate to the Task Task Outcome and Average Task Time Phone call is received at the call center: The automated system instructs customer to wait for the next available representative or to request a callback. 53 percent remained on the line to wait for the next available CSR. 5 minutes How helpful was the automated system? (3.4) 23 percent listened to the recorded message and hung up before talking to the CSR-5 minutes Major complaint The length of time before they could reach a CSR (47 percent) 20 percent left a phone number for a callback-10 seconds 4 percent used the automated system to access a specific department/person outside the call center-40 seconds Process customer request: A customer service representative (CSR) handles the next call in the customer waiting queue or the first person on the callback list and shoe request is discussed. 60 percent proceeded to order entry and billing after checking availability of shoes-5 minutes Did you find the explanation of your different shoe choices helpful? (4.0) 20 percent transferred to a running expert to discuss shoe performance-4 minutes Major complaint: 30 percent indicated that the CSR was not familiar with the shoes they wanted. 10 percent sought information on returns or help with billing questions and are transferred to order entry and billing-2 minutes 10 percent hung up after talking to the CSR-3 minutes. Running expert consultation: Discusses the selection of a shoe with the customer, finds a shoe, and transfers to billing. 70 percent found shoes and transferred to order entry and billing for purchase- 10 minutes How helpful was the running expert at identifying the best shoes? (5.0) 30 percent could not find shoe and hung up-5 minutes Order entry and billing: Processes purchases, returns, and billing questions. 84 percent made a purchase-5 minutes Major complaint 40 percent indicated that their preferred payment method was not available. 7 percent processed a return-5 minutes 4 percent resolved a billing error-10 minutes 5 percent hung up before talking to a clerk-0 minutes The complaint about waiting seems to indicate that there are not enough CSRS available at the call center. Currently there are six CSRs working at the center. Calls arrive at the rate of 100 per hour. There are three running experts employed at the call center and six billing clerks. Mr. Watterson wonders if it is worth adding additional CSRS, running experts, or billing clerks to reduce complaints