Justification Report

Alternative A – Eliminate outsourcing creating a Loss Prevention Team:8 Outsourcing cost more money in fixing problems. Outsourcing effects our economy as a whole. As a company we need to hire full and part-time employees. This is a way for us to be accountable for quality assurance and first call resolution.8 Alternative B – Change the call screening process to be more effective:8 The benefits of streamlining calls are to provide overall good customer satisfaction. Utilizing recorded calls will allow you to find out the most common issues the customers have. You can use the streamlining of the calls to a specific department to handle particular questions. The company can benefit from streamlining by using it for training purposes, as well as better service the customers.8 Criteria9

Research Methods10

Executive Summary
This report examines the feasibility of two potential choices to improve customer service. Methods of analysis include researching outsourcing pros and cons, and other options to improve streamlining. Also researching what it would take to create a loss prevention team. The company ranks at the bottom of the list for Customer Satisfaction by ACSI. ACSI stands for the American Customer Satisfaction Index. This report will measure what option would be the best to improve the company’s reputation and provide better customer service.

However the report finds that, while both analyzed alternatives provide similar products and services, streamlining meets both the criteria presented in the terms of overall cost effectiveness, time consumption and quickest ROI It is therefore recommended that Alternative B Change the call screening process to be more effective:

Problem Statement

Two possible solutions would be to eliminate outsourcing and streamline the calls. Outsourcing to other countries hurt the quality of service that we provide. Many customers become frustrated over the language barrier. The lack of understanding of the issues or problem that the customer has which generates another call back. Each time a customer calls back it cost the company money and it cost a customer time. The company’s responsibility is to handle a call in a specific amount of time or be fined. Each time a customer is frustrated or do not want to speak to someone they do not understand they hang up and call back. Outsourcing cost more money in fixing problems. Outsourcing effects our economy as a whole. As a company we need to hire full and part-time employees. This is a way for the company to be accountable for quality assurance and first call resolution.

The Second solution would be creating a Loss Prevention team. Although, currently the company has a call screening process, the screening only measure productivity of an employee. The calls screening process is to help retain customers however not to deal with customers issues. Customers complain regularly that something was added to their account, or a mysterious equipment appear at their door step. As a company it is important as a company to investigate. The company has been too relaxed on employees. The company’s focus needs to change. While retaining customers is a priority we must acknowledge the customer’s complaints. Based on the job requirements of persuading customers to renew their subscriptions and keep something they never ordered in the first place. Removing what the customer ordered has consequences that trickles downhill. The financial effects costs the employee commissions, and ultimately costing the company lost revenue, customers and a bad reputation. These calls should go to a special investigative department and be dealt with accordingly.

Terminology
AHT- Average Handle Time. The time it takes for a service rep to complete a transaction. This is a metric measurement that call centers use. Measures hold time, talk time and wrap time.

FCR- First Call Resolution – Measurement used to determine whether a customer calls back in measured period of time.

ROI- Return of Investment- A measurement of performance of profit return. Investment divided by the cost of the investment will give you a percentage.

ACSI – ACSI stands for the American Customer Satisfaction Index.

Report Overview

This report was created to help improve customer service in our company. I investigated two alternatives to determine the best recommendation to improve customer service. The two options were researched. Alternative A (Eliminate outsourcing creating a Loss Prevention Team) and Alternative B (Change the call screening process to be more effective). The criteria by which to judge the alternatives were as follows: cost, efficiency, and construction time and customer satisfaction. Research methods included, Internet research, Library Journals, and Newspaper articles. An evaluation of the two alternatives revealed that Alternative B, Changing the call screening process to be a viable solution to improve customer service. Since it offered several advantages to creating a Loss Prevention Team. Creating a Loss Prevention Team would deal with internal theft however, it did not measure up to improving customer service in other areas. Some examples: Dealing with language barrier, dealing with response time. AHT, and elimination of outsourcing.

Overview of Alternative
Alternative A – Eliminate outsourcing creating a Loss Prevention Team: Outsourcing cost more money in fixing problems. Outsourcing effects our economy as a whole. As a company we need to hire full and part-time employees. This is a way for us to be accountable for quality assurance and first call resolution.

Alternative B – Change the call screening process to be more effective: The benefits of streamlining calls are to provide overall good customer satisfaction. Utilizing recorded calls will allow you to find out the most common issues the customers have. You can use the streamlining of the calls to a specific department to handle particular questions. The company can benefit from streamlining by using it for training purposes, as well as better service the customers.

Two possible solutions would be to eliminate outsourcing completely. Outsourcing to other countries hurt the quality of service that we provide. Many of our customers become frustrated over the language barrier. The lack of understanding of the issues or problem that the customer has which generates another call back. Each time a customer calls back it cost the company money and customers time. As a company we have a responsibility to handle a call in a certain amount of time or be fined. Each time a customer is frustrated or do not want to speak to someone they do not understand they hang up and call back. Outsourcing cost more money in fixing problems. Outsourcing effects our economy as a whole. As a company we need to hire full and part-time employees. This is a way for us to be accountable for quality assurance and first call resolution. The Second, solution would be call screening.

Although, we currently have call screening, we are screening for the wrong reasons. The calls are to retain customers. When customers call frustrated and say that something was added to their account, or a mysterious equipment appear at their door step we should have a lost prevention team. The company has been too relaxed on our employees. The company’s focus needs to change. Retaining customers as a focus we are ignoring the customer’s complaints. based on what we are required convince them to keep something they never ordered in the first place, removing what they ordered, costing the employee commissions, and ultimately costing the company lost customer or just a bad reputation. These calls should go to a special investigative department and be dealt with accordingly.

Criteria
The 5 Criteria that were used for the justification report was:

1. Cost Effectiveness. –How the company can streamline their cost and gain new customers and retain their current customers by overall improving their reputation in the community.

2. Cost – Measure the cost of hiring internally vs outsourcing. Measuring to see if overall the value of how effective outsourcing is to the company.

3. Customer Satisfaction- Improving Overall Customer Satisfaction.

4. Decrease Fraud- Code of Conduct- Criteria will also be based on improving the overall customer satisfaction by changing the company Code of Conduct.

5. Construction Time – Streamlining and minimizing call back to reduce cost of call backs and see a ROI.

Research Methods

I will pull the national stats that are provided online to see where my company ranks against other providers in the cable industry. I will be measuring Customer Service, Quality Assurance and Retention.

I will also do research online on the cause and effect of how outsourcing has effected other companies and the economy.

I will pull some stats from the company and other companies and as well as online research of how much money companies lose year end through employee theft.

Evaluation of Alternatives

Cost Effectiveness of Outsourcing vs. Internal Hiring-Internal Hiring

My findings from the article “Hiring within”. I compared the salaries of what a Customer Service Agent would be paid here in the USA. What I found was the average representative would be compensated approximately $53,226 compared to $3,000 a year to India. The $53,226 makes up benefits such as 401k, disability, healthcare, and social security. The benefits of keeping jobs in America keeps our economy running steady. Outsourcing can be time-consuming initially. Hiring internally can be long if you do not have a large enough human resource department.  

During my research, I also found the correct definition of outsourcing is “Outsourcing is hiring a third party to perform the same duties that your employed employees do. A company will choose to outsource some projects however keeping the essential part of the business functions internally. Hiring within will help you monitor and manage your employees. Internal Hiring helps control security. You have more control over what your employees do. Internal employees understand your mission statement and have an overall investment in loyalty and representing the company’s integrity. Internal employees tend to be more efficient as well because as an employer you create and control your business culture. Outsourcing can damage your reputation because they do not have to be accountable. The second article that was reviewed online news where the President of the USA, supports keeping jobs in the USA. I quoted the statement as stated in the article abcnewstogo.com “What Gov. Romney and Obama continued, “If you’re a worker whose job went overseas, you don’t need somebody trying to explain to you the difference between,” outsourcing and off-shoring. You need someone who’s going to wake up every single day and fight for American jobs and investment here in the United States.”

Streamline Call Backs

Evaluating the cost effectiveness of streamlining calls through my research I found an on-line company who specialized in optimizing calls. Some of the calls center benefits were lowering the (AHT) Average Handling time. A business in a similar communication industry stated that the average handling time takes up about 33% of the employee’s time after call work. After call work is documenting, calling other departments, transferring calls or other miscellaneous job duties. The suggestion in streamlining the calls was to have automated call capturing. Automating the capture of call center notes will help to protect the agent from miscommunication. Eliminates the agent from physically documenting the calls. Also helps the next agent who may speak to the client.

The management perspective can recognize trends and help make sure that the employee is in compliance. This process would reduce or eliminate after call work to improve AHT and productivity. OpenSpan did a case study measuring a similar company and in this case study it showed how the company was able to save over $2 million annually. Also in the case study it showed just lowering the AHT 9 seconds per call saved the company $18 million per year. A return of investment was immediately recognized. Training was minimal and easy to learn the new techniques. The information provided showed that the benefits of using a company similar would help with AHT, increase revenue, improve efficiency and maintain compliance. This combination equals increase in customer satisfaction.

Reviewing the case study the finding showed that the company was able to retain $1500 customers per month which equates to $20 million annually in revenue. Also, they showed within a two month period outsourcing was eliminated. The benefits of streamlining calls are to provide overall good customer satisfaction. Utilizing recorded calls will allow you to find out the most common issues the customers have. You can use the streamlining of the calls to a specific department to handle particular questions. The company can benefit from streamlining by using it for training purposes, as well as better service the customers.

Code of Conduct vs. Creating Internal Fraud Department -Change the Code of Conduct Policy

The findings in my research was that changing the code of conduct requires organization to define the Ethical Code and create specific stipulations. The stipulations have to be defined based on the nature of the business. The policies must be sustainable legally. Once all of that determine the industry must be looked at on a regional and national level to be in synch with other comparative companies. 

The second article indicated all the legalities that are required in creating a code of conduct. Reviewing an article in the Enterprise Employee theft June 30, 2003 it gave some interesting eye-opening reasons of why employees steal. Some of the examples that were given plays a role in the communications industry. Employees are having access to unsecured storage with merchandise that is not properly inventory. This would explain the equipment showing up at the customer’s doorstep unannounced, bootleg cable, and unaccounted material returns. Also access to the computer system to add onto customers account to gain unearned commissions.

Internal Hiring

The second article was from a website that suggested several areas to deter and curb theft. Controlling access to storage rooms. Running regular inventory audits. Doing background checks on employees and having employee incentives to use an anonymous hotline to report unethical behavior.

Findings and Analysis
What I found was that streamlining calls would be the most feasible financial approach for the company. Based on the case studies and the needs of the business to be more productive and keep a lower AHT it is important that as a business to meet those goals. In my research streamlining made more sense. It tackled more of the issues that the company had as a whole. Customer satisfaction would improve because they would not be on hold as long. The (FCR) First Call Resolution would take care of all of the documentation and details would be noted. Streamlining with a new call system would also decrease fraud not only because all calls are recorded but all calls are voice documented.

A customer acceptance to contract agreements are recorded as well as information that the agent reports that handles the fraud issue. Although, outsourcing cost less per agent the overall (ROI) Return of Investment don’t add up. Paying 3,000 per person a year with moderate efficiency and it takes approximately six months for the agent to be efficient to deliver low customer service is not good business. Streamlining calls makes customer service agents more efficient which saves money and ultimately eliminates the necessity to outsource to cover overflow of calls.

Recommendation

My recommendation is to improve the call screening process to be more effective. The company will be able to tackle more of the issues at hand. Improving the AHT, quicker ROI, and lower employee theft.

I have attached a power-point presentation that will show you how a company called Openspan.com can assist you in beginning the construction of overhauling the call streamlining process. Reviewing the case study and recommendations of T-Mobile and Dish Network who are similar to our industry I believe that the company’s reputation and customer experience improvement is right around the corner.

References

abcnews.go.com. (2012, June 25). Obama Hamers Romney on Outsourcing Vs. Offshoring. Retrieved from www.abcnews.go.com: www.abcnews.go.comabcnewsblogspolitics Brodkin, J. (May, 19 2014). Survey says: Comcast, Time Warner Cable customers are still. Retrieved from ArsTechnica: www.arstechnica.com/…/comcast-time-warner-cable Buggey, T. ( Nov2012, ). ‘I love my American job’. International Journal of the Legal Profession, Vol. 19 Issue 2/3, p379-404, 26p, 9 Charts. Dale Traxel. (2012, August). Outsourcing-v-Hiring-In-house-Pros-and-Cons. Retrieved from Outsourcing-v-Hiring-In-house-Pros-and-Cons: http://www.practicalecommerce.com/articles/3705-Outsourcing-v-Hiring-In-house-Pros-and-Cons Millinium. (n.d.). Retrieved from Offshoring-vs-Outsourcing: http://www.mrise.com/content/offshoring-vs-outsourcing Morran, C. (2014, December 30). Comcast, Time Warner Cable Still Bringing Up Rear In … Retrieved from consumerist.com: www.consumerist.com strickland, r. (2014, November 7). wedotechnologies. Retrieved from Worldwideusergroup: http://www.wedotechnologies.com/en/worldwideusergroup. Retrieved 7 November 2014. The 5 Best Cable TV Providers of 2015 – Reviews.com. (January, 2015 4). Retrieved from Reviews.com: www.reviews.com