Predeployment testing is an obvious win: your organization can save time and money, ensure a great customer experience, ensure technology works as required, and more.
However, before you implement a test scenario, you’ve got to make a case for testing. This usually involves creating some kind of ROI analysis for someone on your finance team. Here are the ingredients you need to put together this analysis, as well as some of the key metrics that can enable you to make a proposal that will to meet your CFO’s ROI threshold.
Step 1: Focus on hard cost savings
You know there will be soft incremental customer satisfaction and revenue gain improvements. But forget about using that kind of argument when you build your case – no one will buy them in this analysis.
Focus only on the incremental hard dollar cost savings you’ll achieve. They are credible and can be measured. This is the first step to delivering a convincing story to your finance team.
Step 2: Identify only the key metrics that directly impact potential hard cost savings
At Empirix, we did some primary research recently to discover top cost saving metrics for our customers to consider. Not all of these will be applicable to every situation, so choose the best ones for you:
- Reduction in Poor Voice Quality – Cost savings from eliminating call extensions that occur because of poor voice quality.
- Reduction in Misdirected Calls – Cost savings from eliminating incorrect and unnecessary call transfers.
- Reduction in Repeat Calls (Callbacks) – Cost savings from eliminating repeated calls that occur because of poor voice quality
- Reduction in “Lost” Agent Time – Cost savings from eliminating idle time that occurs because of lags created by the communication technologies.
- Reduction in Containment (Self-Service) Overages – Cost savings from increasing the percentage of calls completed via self-service to the containment percentage goal.
- Reduction in Customer Churn Attributable to Better Call Quality – Revenue increase due to a reduction in customer losses that are perceived to be attributable to poor voice quality.
- Reduction in Project Completion Delays by Finding Issues – For new communication technology projects, elimination of delays that occur because of problems that can be resolved quickly.
- Discovery of Issues in Pre-Production Rather than in Post-Production – Cost savings from identification and elimination of problems early.
- Automating Testing – In addition to productivity improvements since automated testing is much more productive than manual, there are cost savings because manual testing is no longer necessary.
- Reduction in Performance-Impacting Incidents (Annually) – Cost savings in man-hours from the elimination of performance-impacting incidents.
- Reduction in Mean Time to Diagnosis (and Hence Repair) – Cost savings in man-hours from the decrease in the average amount of time that it takes to identify the root cause of a problem.
Step 3: Validate your ROI model inputs
Know, to the penny, each cost, and in particular, those associated with the list below. Some people know these values by heart, but most do not. If you do not, you’ll be surprised at what you discover as you look to assign values to the measurements below. Note, think in annual numbers.
- # Incidents Annually
- # Concurrent Self-Service Calls to be Tested
- # Concurrent Agent Calls to be Tested
- Actual Containment %
- Containment % Goal
- # Completed Calls Annually
- Average $ Cost per Call
- # Transfers Annually
- Average $ Cost per Transfer
- % Transfers Annually that Could be Eliminated with Improvement
- # Repeat Calls Annually
- Average $ Cost per Call
- Lost Agent Minutes Annually Due to Poor Voice Quality
- # Customers Churning Annually
- % Churn Attributable to Poor Customer Experience with Technology
- $ Value of a Customer
- Average Project Length (in Days)
- Average Number of People per Project
- # of Incidents Likely to be Found in Post-Production if Testing is NOT Done
You’ll find this process of discovery to build your ROI model, validate costs and focus on hard costs savings to be a very interesting process. If you mix together the correct ingredients, there is no doubt in my mind that by the time you’re ready to present your case, you’ll be in a much better position to manage your efforts to success and minimize the risk of new technology in your contact center deployment.
Do you have other metrics you are using to augment your case to include testing? Let me know in the comments below.