Over the past twenty years, the contact center marketplace has undergone a digital revolution. Technological advances, evolving customer expectations and the move towards omni-channel engagement have forced contact center operators to adapt their business strategies. A move away from voice-only engagement to a broad range of synchronous and asynchronous channels led to a period of expansion for contact center operations, as owners and operators sought to meet the needs of a digitally enlightened customer base.
For a long time, operational efficiency seemed to be the primary objective. Consolidation, outsourcing or offshoring services, the adoption of cloud technologies and the introduction of IVR were all designed to bring down the total cost of owning a contact center. However, measuring the success of your contact center is about more than just the bottom line. Contact center success metrics are both quantitative and qualitative, and there are no more important qualitative metrics than agent satisfaction (ASAT) and customer satisfaction (CSAT).
The COVID pandemic forced many businesses to rethink the way they ran their contact centers. The global economic slowdown placed greater emphasis on cost-efficiency, with human resources replaced by new investment in technology. As businesses adapted to the “new normal” delivering against traditional contact center KPIs become challenging. Following the initial disruption, large bricks-and-mortar facilities gave way to remote working, and an initial decline in global CSAT and ASAT was gradually reversed. Post-pandemic, the landscape looks different. There are still financial considerations, adding pressure to contact center operators to deliver more for less, but there has been a renewed emphasis on delivering improvements in CSAT and ASAT.
AI, automation, and big data analytics make it possible for contact center operations to streamline operations and scale back on headcount. However, there is a tipping point, beyond which efficiencies begin to negatively impact agent performance and customer experience. From a long-term profitability standpoint this doesn’t make sense, as low ASAT and CSAT will impact future revenue opportunities.
Why are ASAT and CSAT so important?
It may sound like an obvious question, but ASAT and CSAT are more than just a couple of numbers on a dashboard. The impact of poor agent and customer satisfaction is widespread and can be felt across the business, from productivity to service quality, employee retention to business reputation, brand loyalty and long-term profitability.
Agent Satisfaction (ASAT) measures how happy and engaged your contact center agents are. Work environment, tools and overall job experience all factor into this. High ASAT typically leads to better performance, lower turnover and improved customer service.
Customer Satisfaction (CSAT) gauges how happy customers are with your products, services or interactions. It’s a key metric for understanding customer loyalty and the overall success of your customer experience efforts, directly impacting customer retention and business growth.
How cost-cutting can impact ASAT and CSAT
A single-minded focus on cost reduction to improve efficiency may prove to be a false economy. In the quest for economies of scale, greater automation and a lower cost of operations, businesses can inadvertently add costs through adversely impacting ASAT and CSAT.
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Agent empowerment
A talented agent workforce can achieve great things with the right support. However, performance and productivity depend upon access to the right tools and resources. Scaling back on enablement tools raises questions about how agents can deliver against KPIs. A reduction in investment in the back office could introduce inefficiencies on the front line.
In contact center environments this could lead to a higher rate of escalation points and repeat calls, as agents struggle to solve more complex engagements at the first attempt. This decrease in problem solving efficiency leads to longer resolution times. ASAT is negatively impacted as burnout and frustration set in, and CSAT also suffers when agents are unsupported.
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Reduction in Force (RIF)
In the first quarter of 2024, there were 4.9 million layoffs across all industries in the US. RIFs are often used in larger businesses to improve operational efficiency, as payroll resources can be redirected to other critical areas of the business. Core business functions can be prioritized with redundant roles out of the way, and a leaner workforce can be the catalyst for deploying automated systems.
With layoffs, decreased morale, uncertainty and ‘survivor’s guilt’ are all to be expected. The departure of colleagues can disrupt team dynamics and weaken the sense of community, eroding company culture and negatively impacting ASAT. When ASAT suffers, CSAT often becomes collateral damage.
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Learning and development
More than two-thirds of learning and development (L&D) professionals say the function has a positive impact on revenue, but it doesn’t stop there. Employee retention is 20 times greater at companies that focus on their employees’ skills development. Despite this, L&D is often scaled back when the bottom line is under scrutiny.
Employees have an appetite for learning and development, attributing it to career advancement, self-confidence and increased salary potential. With this in mind, it’s not so surprising that 41% of employees will look for another job in 2024 if their company doesn’t provide them with training opportunities. As ASAT falls, expect higher staff turnover. For those that remain, low morale and decreased competencies are potential consequences of a cut in L&D. For CSAT, a lack of training can lead to inconsistent customer experience, variable service levels and a knock-on effect on other KPIs, including AHT and FCR.
Efficiency through innovation
For businesses still hoping to “do more for less” there is an alternative to simple cost-cutting. Innovation can deliver operational efficiencies and revenue increases, without impacting ASAT or CSAT. When measuring contact center efficiency, cost is not the exclusive measure of success. Cost-per-contact metrics need to be balanced against quality of service. Contact center operations have a long list of KPIs that contribute to efficiency. Average handle time and first call resolution rates are vital measures of success, both of which are influenced by process automation and agent empowerment.
Chatbots
Chatbots are a logical first step when it comes to process automation and call avoidance. Powered by machine learning, the latest generation of AI-driven, automated assistants can do more than simply answer frequently asked questions. Interactions can be used to inform agent training, identify escalation points and qualify new business opportunities, freeing agents to perform high-value tasks and tackle complex enquiries.
When it comes to operational efficiency, chatbots are compelling additions to the contact center. Their 24/7 availability means continuous, predictable levels of support, even during peak times. Chatbots can provide automated, intelligent responses that are consistent and without error, thanks to pre-defined information, and they continually learn from their customer interactions, improving performance and accuracy over time.
AI support
Artificial intelligence is being used to augment the agent’s experience, providing intelligent agent-assistance and predictive analytics to support improved decision making. AI-driven knowledge bases empower agents with instant access to the most relevant information, ensuring they can confidently guide customers through any issue with dynamic, real-time solutions. Natural Language Processing (NLP) tools can be used to summarize customer interactions, improving agent efficiency and helping agents understand the context and history of individual cases.
Technology has always played an important role in driving operational efficiency. With the introduction of self-service portals and AI-driven chatbots, human interaction is becoming less frequent within the contact center space, but there comes a point where automation is no longer the answer. When it matters most, during complex or emotionally invested engagements, there is no substitute for talking to a real person. Innovation still has a role to play during these complex interactions.
Co-browsing
Adoption rates for co-browsing are increasing for sales and support functions in multiple verticals, thanks to its unique ability to address the most complex customer enquiries. Extensively used by financial services, utilities, healthcare and software businesses, co-browsing allows companies to deliver efficiencies where they have traditionally been hard to come by.
Real-time, personal guidance is lowering the AHT of complex support cases, improving FCR rates and contributing to increases in CSAT and ASAT. For sales, it reduces call and cart abandonment and helps increase average order and customer lifetime values. Integration with AI chatbots and a choice of flexible session initiation protocols allow businesses to introduce co-browsing at the critical moments when customers and prospects need it most.
Achieving the right balance
Achieving a balance between ASAT, CSAT and operational efficiency is essential. High ASAT ensures agents are motivated and capable, leading to better customer interactions. Strong CSAT reflects satisfied customers, which drives loyalty and brand reputation. Operational efficiency keeps costs in check and allows the center to handle more inquiries without sacrificing quality.
Innovative technologies can be essential in making this all-important balance possible, allowing streamlining and cost-cutting measures to be made and establishing a positive feedback loop. Happy agents lead to happy customers, all while maintaining efficient operations that contribute to contact centers’ long-term business success.
