1. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 Call Centers & Change Mitchell A. Lieber President, Lieber & Associates M_Lieber@LieberAndAssociates.comM_Lieber@LieberAndAssociates.com 773-325-9400 Your Free Library of Call Center Tips is the Knowledge Base at www.LieberAndAssociates.comwww.LieberAndAssociates.com CADMEF Academic Update May 14, 2004

2. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 2 What We’ll Cover How the Telephone Fits In Call Center Change – How It Got Here, Where It’s Going –Regulation and Privacy –Off-Shore and Internationalization –New Contact Media due to New Technologies

3. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 3 2-Way Interactive 1:1 Media Via Telephone One-Way Mass Media & Segmented Media Message Flow How The Telephone Fits In

4. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 4 Think Integrated One-Way Media Interactive Telephone Their Strengths Are Complimentary Applications… 2-Way Interactive 1:1 Media Via Telephone One-Way Mass Media & Segmented Media Message Flow

5. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 5 Call Center Change How We Got Here,Where Its Going New FTC/FCC Rules –More Calling and Dialing Automation –Increased Sales Resistance –Consumer Privacy Fiber Optics and Internationalization –Off-Shore Call Centers The Internet New Contact Technologies –Web, E-Mail, Voice-Recognition

6. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 6 Indicators of Interest

7. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 7 Privacy Articles Increase Source: 1998 Study of Periodical Index

8. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 8 Privacy Books Multiply Source: 1998 Study of Library of Congress Data

9. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 9 OverCalling Success because... Novel Personal Medium Interactive Medium In Excess... Over-fishing Radio-clutter Call Pollution Repercussions Sales Rates Legislation

10. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 10 State Legislation Patchwork quilt of regulations Do-Not-Call Lists (many preceded the national list) Caller ID (many preceded the national law) Calling hours and days - a few ban Sunday calling No rebuttal & permission to continue laws Monitoring/Eavesdropping – one party and all-party states Registration –Fees, Bonds, Lists of reps, Copies of scripts, Some exemptions Jobs and off-shore legislation pending Charitable solicitation acts for fund-raising calls State Legislation Proliferates – New State Laws Every Year

11. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 11 Federal Legislation

12. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 12 Recent FTC (& FCC) Rules Do Not Call List – August 2003 Predictive Dialers and Abandoned Calls Transmitting Caller ID (FCC Fax Rule) Automatic Billing of Consumers No Trial Periods, Followed By A Charge Demand Drafts Disclosures, E-mails, Faxes, Inbound Calls Exemptions FTC Rules = All except Fax; FCC = first 3 only

13. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 13 Results of New FTC Rules Impact of DNC List Phases In Smaller Allowable Lists –More Interest or Sales Resistance? Retention Programs OK Cross-Sell Programs Shifts to Other Channels Generate 800 Number Calls, Web Responses

14. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 14 Solutions to Privacy & Sales Resistance Profiling Customers Targeting Lists & Overlays Predictive Modeling Of Sales Opt-in Approaches Generate Toll-Free Responses Generate WWW Responses Call House Lists - People You Know

15. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 15 Solutions to Privacy & Sales Resistance (More) Have a Great Offer Something consumers want, need, must have Compelling Segmented & individualized offers Converse & Consult Listen Dialogue Consumer-focused responses

16. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 16 Sell Value Segment to Tailor Value Mass Customization Make It Feel 1:1 Example- Improving an Offer

17. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 17 Staffing and Internationalization Call Centers Boomed in the 1990’s Most Had Trouble Staffing (until 2000 bust) Fiber Optic Cables Under Oceans –Solved international technical issues Off-Shore Call Centers Began India, Caribbean, Mexico/Central America As low as 50 - 60% of U.S. Costs Grew Quickly in Recent Years Pros & Cons - Limitations, Legislative activity

18. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 18 Technology Internet As Contact Medium DSL/Cable Modems Changed the Net The Web & E-mail & Chat Newest Media Newest Reply Devices Web Chat and IM Impact of Changes in Instant Messaging The Web & Call Centers Click for a Call Back Click for Live Chat

19. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 19 The Emerging Contact Center Live Agents E-mail Response Web Call-back Web-chat Very minimal –Web-calling - VoIP –Web-assist/Guidance/Page Pushing (minimal) Voice-recognition IVR Fax, Fax-on-demand (fading fast)

20. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 20 Technology Voice Recognition Early Voice Recognition Systems Vocabularies Now IVR & Auto-Attendant Order Status Current Applications German Trains, United Airlines American Express, Home Shopping, UPS Voice Portals to the Web

21. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 21 Conclusions Integration is Key With Mail, Broadcast, Print, Web Cold Calls Are Fading Profiling For Targeting, Use Predictive Modeling Some Prospecting Efforts Shifting Media “Opt-in” to a Call Opt-in Via the Web, E-mail or Toll-Free Call Relationships are Key to Revenue - LTV Retention Friendly Cross-Sell and Up-Sell

22. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 22 Conclusions - More Off-Shore Will be used for cost-sensitive calls, such as service Will be used for basic non-sales calls (e.g., audit & circ calls) Outbound relationship calls are very rough sledding Complex inbound calls are rough sledding Continued backlash – service quality and jobs legislation Routine Inbound Calls via Self-Service The Web Voice Recognition Contact Centers Replace Call Centers –E-mails –Web chats

23. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 23 Call Center Quality Practices Audit - 2004 The Big Questions 5. Focusing on Building Relationships? 4. Integrating with Other Media? 3. Using New Technology for Profit? 2. How Adapting to Labor Availability? 1. Biblical to Prospects & Customers?

24. © 2004, 2003, 2002, 2001, 2000, 1999, 1998 by All rights reserved. 773-325-9400 24 THE “SECRET” RULE FOR CALL CENTER SUCCESS