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LEADMASTER
White Paper




                   Contact Centres in the Cloud

                                - A New Model Emerges




   LeadMaster – L6, 80 Mount Street, North Sydney NSW 2060 – Tel: 1 300 852 599 – CRMTeam@leadmaster.com.au
Introduction and
                   Background Information
With cloud         Customers are an intrinsic part of every enterprise. Most of the major
models, the        businesses operate contact centres to interact with their customers. The
companies can      internal business operations such as help desk and sales support can be
clearly mention    serviced through the contact centres. Agents (customer service
the cost of        representatives) operate the contact centre through an extensive open
service in their   workspace. The workstation of a traditional contact centre includes a
monthly budget     computer for each agent, a headset connected to a telecom switch and one
reports.           or more supervising stations. A contact centre can be networked with one
                   or more additional centres, often linked to mainframes, LANs and
                   microcomputers. The agents access various databases and spreadsheets to
                   retrieve the information needed to answer the queries of the customers.
                   Outgoing calls for product services and telemarketing calls are also handled
                   through contact centres. This is generally a part of customer relationship
                   management (CRM).

Cloud Solutions    But this sort of customer service is generally inefficient. It consumes more
help the           time and more resources. Long waiting time, inefficient call routing,
enterprises in     improper information and various other issues make the customer service a
avoiding the       laborious task for customers and agents. The changing economic conditions
surprises for      and volatile hardware vendors pose significant challenges for contact
maintenance and    centres. To address these issues, businesses are shifting to cloud
other services.    computing models to enhance the capability of their contact centres. Cloud
                   model provides application programming interfaces (APIs) that allow the
                   contact centre functionality to be integrated with cloud based CRM
                   solutions. This white paper provides the compelling reasons for adopting
                   the cloud model in contact centres. Here we discuss various technical
                   advantages and business benefits of cloud based contact centers. These
                   advantages and benefits can be categorised as follows:




                   Advantages and Benefits
                   Good return on investment (ROI)

                   Huge capital investments are not required for cloud based contact centres.
                   The cloud solutions (hosted solutions) provide network based contact
                   centre functionality and are offered on a subscription model. The hosted
                   solutions can be delivered in less than one day. They are more cost
                   effective as they involve minimal set up costs.




                                                        1
At least 75% of     Contact centres all over the world are moving to hosted platforms at a
contact centres     rapid pace. Gartner predicts that by 2013 at least 75% of contact centres
will be using       will be using a form of cloud services. The cloud service is accessible from
cloud based         any computer connected to the web and it doesn’t require client side
services by 2013.   software. Apart from monthly fee per agent or per seat, there are no
                    hidden costs. The integration and implementation fee is low. The total cost
                    of ownership (TCO) is significantly less than the premised based services.
                    The companies can clearly mention the cost of service in their monthly
                    budget reports. This helps the companies in avoiding the surprises for
                    maintenance and other services. By using cloud models, the contact
                    centres can lower their costs by up to 43% over a five year period,
                    according to the new Frost & Sullivan research report. Some studies have
                    predicted that a hosted contact centre with 400 or more seats can save up
                    to 45% on TCO over five years.


                    Scalability

By adopting cloud   The Asia-Pacific continues to be a high growth region for the contact centre
models, contact     industry. The domestic demand for customer service continues to increase
centres can lower   in developing markets such as India, China, Indonesia and Vietnam.
their cost by up    Despite attrition, the growing contact centre market employed around 3.16
to 43% over a       million agents in 2010. One of the biggest challenges faced by these
period of 5 years   contact centres is agent scheduling. Scheduling the appropriate number of
                    agents based on call volumes is almost a constant juggling act. The
                    volumes may generally fluctuate as per the seasonal cycles.

                    The cloud platforms offer extreme scalability that is beneficial to businesses
                    with variable call volumes. They provide generic solutions that unite various
                    contact centres and work-from-home agents. With a hosted platform,
                    businesses can scale up or scale down the number of seats on a need basis.
                    The managers can login from any browser and can view the agent’s activity
                    in real time and monitor the calls irrespective of their location. There is no
                    need to invest in additional hardware in running the seasonal campaigns
                    that require more agents. With the capability of analytics, the hosted
                    solutions can forecast the accurate requirement of the agents for a given
                    shift. This boosts the productivity of the agent and customer satisfaction.
                    According to Frost & Sullivan analysis, the APAC region has recorded 8.5%
                    growth in the agent seats of contact centres in 2010. By 2017, the seats
                    are expected to grow at a compound annual growth rate (CAGR) of 9.5%.


                    Disaster Recovery

                    Disaster recovery solutions are critical for a busy contact centre that can
                    not afford to have downtime. Severe conditions such as hurricanes, floods
                    and earthquakes constitute natural disasters. Technical disasters include
                    local or regional power outage and failure of local infrastructure.




                                                          2
Most of the contact centres are not fully equipped in handling these
                   disasters. In case of emergencies and server failures, the cloud contact
                   centre can utilise a cloud based service provider as a backup. The contact
                   centre has to pay the cloud based provider a minimal monthly license fee
                   per employee backup. If something goes wrong, the calls are immediately
                   re-routed to these backup agents without a single point of failure. The
                   backup agents usually reside in a different location. This is generally less
                   expensive than leasing a shared space. With hosted solutions, the contact
                   centres can utilise the same incoming phone numbers of their customers
                   and provide an efficient transition. This helps the contact centres in
                   retaining the customers and their trust.


                   Efficient Dialing and Routing


The Asia-Pacific   Cloud solutions offer various core technologies and capabilities such as
region had 2.2     automatic call distributor (ACD) with skills based routing, computer
million agent      telephony integration (CTI) to facilitate integration with CRM systems and
seats in 2010.     databases, Predictive Dialing and interactive voice response (IVR) with
The region         speech recognition.
recorded 8.5%
growth in the      With universal queuing capability, cloud ACD routes phone calls and chats
agent seats in     made to the service number to the next available agent via a single queue,
2010.              regardless of their location. It shortens the queue and the caller spends
                   less time in reaching an agent. Cloud ACD can route the contacts to the
                   appropriate agent based on contact type and agent’s skill sets. Priority
                   routing helps in prioritising the calls and chats from specific customers over
                   others. The calls of premium customers are immediately routed to the
                   available agent. This speeds the service by reducing the hold time.

                   The hosted predictive dialing is the best tool for outbound calling
                   campaigns. It connects agents to the calls answered by humans and not
                   voicemail or busy signal. This improves accuracy by predicting agent
                   availability and average length of the call. With predictive dialing solutions,
                   you can minimise the cost per lead and place up to three times more calls
                   in less time. They help in generating more profits by supporting profitable
                   telemarketing campaigns. They can also fill sales pipelines through a
                   campaign targeted to thousands of customers in one manageable task. The
                   agents can gain more leads and maximise sales quotas.
                   The implicit call scripting allows the campaign administrators to easily
                   define a set of agent questions and responses to meet sales expectations.
                   Agents can monitor their leads throughout the sales process from the lead
                   generation to the end of their life cycle.

                   With the integration of CRM system and other databases, the customers
                   can be identified the instant they call, by their profile menu. CTI helps in
                   providing the details such as past purchases and other activities of the
                   customer, enabling the agents to serve customers efficiently and quickly.




                                                         3
APAC - Cloud        The hosted IVR solutions address many of the concerns and challenges
contact centre      associated with speech enabled IVR implementations. Users of various sizes
applications        can find the solutions for all their needs. The solutions offer flexible pricing
market posted a     models. Some are based on the cost per minute, others are based on
3.4% growth in      success rates and some others on completed transactions. They handle
H1 2010.            45% to 75% of all the calls received by an inbound contact centre. This
                    reduces the work load of the agents and makes manager’s job easier and
                    customers happier.


                    Upgrade Benefits

Cloud contact       The provider (hosting company) of cloud solutions takes the responsibility
centre market of    of future upgrades. Technology management is done centrally and it is
the Asia-Pacific    provided as part of the service. When the hosting company improves or
region set to       upgrades the platform, the customers can get all those benefits without any
grow at a CAGR of   additional charge. Providers are regularly improving their platforms by
15.4% till 2016.    adding new functionality based on the feedback of customers. Rising
                    interest in cloud model has favoured the hosted contact centre market in
                    the APAC region. The cloud contact centre applications market posted a
                    3.4% growth in H1 2010. Research reports expect the cloud contact centre
                    market to grow at a CAGR of 15.4% till 2016.




                    Conclusion
                    Hence, cloud platform is poised to be a vital player in contact centres now
                    and in the predictable future. In its best form, it provides the means for
                    information technology to be dispensed to customers as a service. The
                    service offerings and products in the cloud model continue to grow every
                    year. While choosing a vendor that hosts contact centre technology in
                    cloud, we need to ensure the vendor’s ability to integrate with other
                    systems such as CRM systems and databases.


                    Having gone through this white paper, would you consider moving your
                    contact center to the Cloud?

                    The answer is obviously yes.




                                                           4

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Contact Centre in the Cloud, a new model emerges

  • 1. LEADMASTER White Paper Contact Centres in the Cloud - A New Model Emerges LeadMaster – L6, 80 Mount Street, North Sydney NSW 2060 – Tel: 1 300 852 599 – CRMTeam@leadmaster.com.au
  • 2. Introduction and Background Information With cloud Customers are an intrinsic part of every enterprise. Most of the major models, the businesses operate contact centres to interact with their customers. The companies can internal business operations such as help desk and sales support can be clearly mention serviced through the contact centres. Agents (customer service the cost of representatives) operate the contact centre through an extensive open service in their workspace. The workstation of a traditional contact centre includes a monthly budget computer for each agent, a headset connected to a telecom switch and one reports. or more supervising stations. A contact centre can be networked with one or more additional centres, often linked to mainframes, LANs and microcomputers. The agents access various databases and spreadsheets to retrieve the information needed to answer the queries of the customers. Outgoing calls for product services and telemarketing calls are also handled through contact centres. This is generally a part of customer relationship management (CRM). Cloud Solutions But this sort of customer service is generally inefficient. It consumes more help the time and more resources. Long waiting time, inefficient call routing, enterprises in improper information and various other issues make the customer service a avoiding the laborious task for customers and agents. The changing economic conditions surprises for and volatile hardware vendors pose significant challenges for contact maintenance and centres. To address these issues, businesses are shifting to cloud other services. computing models to enhance the capability of their contact centres. Cloud model provides application programming interfaces (APIs) that allow the contact centre functionality to be integrated with cloud based CRM solutions. This white paper provides the compelling reasons for adopting the cloud model in contact centres. Here we discuss various technical advantages and business benefits of cloud based contact centers. These advantages and benefits can be categorised as follows: Advantages and Benefits Good return on investment (ROI) Huge capital investments are not required for cloud based contact centres. The cloud solutions (hosted solutions) provide network based contact centre functionality and are offered on a subscription model. The hosted solutions can be delivered in less than one day. They are more cost effective as they involve minimal set up costs. 1
  • 3. At least 75% of Contact centres all over the world are moving to hosted platforms at a contact centres rapid pace. Gartner predicts that by 2013 at least 75% of contact centres will be using will be using a form of cloud services. The cloud service is accessible from cloud based any computer connected to the web and it doesn’t require client side services by 2013. software. Apart from monthly fee per agent or per seat, there are no hidden costs. The integration and implementation fee is low. The total cost of ownership (TCO) is significantly less than the premised based services. The companies can clearly mention the cost of service in their monthly budget reports. This helps the companies in avoiding the surprises for maintenance and other services. By using cloud models, the contact centres can lower their costs by up to 43% over a five year period, according to the new Frost & Sullivan research report. Some studies have predicted that a hosted contact centre with 400 or more seats can save up to 45% on TCO over five years. Scalability By adopting cloud The Asia-Pacific continues to be a high growth region for the contact centre models, contact industry. The domestic demand for customer service continues to increase centres can lower in developing markets such as India, China, Indonesia and Vietnam. their cost by up Despite attrition, the growing contact centre market employed around 3.16 to 43% over a million agents in 2010. One of the biggest challenges faced by these period of 5 years contact centres is agent scheduling. Scheduling the appropriate number of agents based on call volumes is almost a constant juggling act. The volumes may generally fluctuate as per the seasonal cycles. The cloud platforms offer extreme scalability that is beneficial to businesses with variable call volumes. They provide generic solutions that unite various contact centres and work-from-home agents. With a hosted platform, businesses can scale up or scale down the number of seats on a need basis. The managers can login from any browser and can view the agent’s activity in real time and monitor the calls irrespective of their location. There is no need to invest in additional hardware in running the seasonal campaigns that require more agents. With the capability of analytics, the hosted solutions can forecast the accurate requirement of the agents for a given shift. This boosts the productivity of the agent and customer satisfaction. According to Frost & Sullivan analysis, the APAC region has recorded 8.5% growth in the agent seats of contact centres in 2010. By 2017, the seats are expected to grow at a compound annual growth rate (CAGR) of 9.5%. Disaster Recovery Disaster recovery solutions are critical for a busy contact centre that can not afford to have downtime. Severe conditions such as hurricanes, floods and earthquakes constitute natural disasters. Technical disasters include local or regional power outage and failure of local infrastructure. 2
  • 4. Most of the contact centres are not fully equipped in handling these disasters. In case of emergencies and server failures, the cloud contact centre can utilise a cloud based service provider as a backup. The contact centre has to pay the cloud based provider a minimal monthly license fee per employee backup. If something goes wrong, the calls are immediately re-routed to these backup agents without a single point of failure. The backup agents usually reside in a different location. This is generally less expensive than leasing a shared space. With hosted solutions, the contact centres can utilise the same incoming phone numbers of their customers and provide an efficient transition. This helps the contact centres in retaining the customers and their trust. Efficient Dialing and Routing The Asia-Pacific Cloud solutions offer various core technologies and capabilities such as region had 2.2 automatic call distributor (ACD) with skills based routing, computer million agent telephony integration (CTI) to facilitate integration with CRM systems and seats in 2010. databases, Predictive Dialing and interactive voice response (IVR) with The region speech recognition. recorded 8.5% growth in the With universal queuing capability, cloud ACD routes phone calls and chats agent seats in made to the service number to the next available agent via a single queue, 2010. regardless of their location. It shortens the queue and the caller spends less time in reaching an agent. Cloud ACD can route the contacts to the appropriate agent based on contact type and agent’s skill sets. Priority routing helps in prioritising the calls and chats from specific customers over others. The calls of premium customers are immediately routed to the available agent. This speeds the service by reducing the hold time. The hosted predictive dialing is the best tool for outbound calling campaigns. It connects agents to the calls answered by humans and not voicemail or busy signal. This improves accuracy by predicting agent availability and average length of the call. With predictive dialing solutions, you can minimise the cost per lead and place up to three times more calls in less time. They help in generating more profits by supporting profitable telemarketing campaigns. They can also fill sales pipelines through a campaign targeted to thousands of customers in one manageable task. The agents can gain more leads and maximise sales quotas. The implicit call scripting allows the campaign administrators to easily define a set of agent questions and responses to meet sales expectations. Agents can monitor their leads throughout the sales process from the lead generation to the end of their life cycle. With the integration of CRM system and other databases, the customers can be identified the instant they call, by their profile menu. CTI helps in providing the details such as past purchases and other activities of the customer, enabling the agents to serve customers efficiently and quickly. 3
  • 5. APAC - Cloud The hosted IVR solutions address many of the concerns and challenges contact centre associated with speech enabled IVR implementations. Users of various sizes applications can find the solutions for all their needs. The solutions offer flexible pricing market posted a models. Some are based on the cost per minute, others are based on 3.4% growth in success rates and some others on completed transactions. They handle H1 2010. 45% to 75% of all the calls received by an inbound contact centre. This reduces the work load of the agents and makes manager’s job easier and customers happier. Upgrade Benefits Cloud contact The provider (hosting company) of cloud solutions takes the responsibility centre market of of future upgrades. Technology management is done centrally and it is the Asia-Pacific provided as part of the service. When the hosting company improves or region set to upgrades the platform, the customers can get all those benefits without any grow at a CAGR of additional charge. Providers are regularly improving their platforms by 15.4% till 2016. adding new functionality based on the feedback of customers. Rising interest in cloud model has favoured the hosted contact centre market in the APAC region. The cloud contact centre applications market posted a 3.4% growth in H1 2010. Research reports expect the cloud contact centre market to grow at a CAGR of 15.4% till 2016. Conclusion Hence, cloud platform is poised to be a vital player in contact centres now and in the predictable future. In its best form, it provides the means for information technology to be dispensed to customers as a service. The service offerings and products in the cloud model continue to grow every year. While choosing a vendor that hosts contact centre technology in cloud, we need to ensure the vendor’s ability to integrate with other systems such as CRM systems and databases. Having gone through this white paper, would you consider moving your contact center to the Cloud? The answer is obviously yes. 4