Measuring ROI On A Call Center Investment
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Sam Miller
May 4, 2013, 7:10:02 AM5/4/13
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Article Title: Measuring ROI On A Call Center Investment
Author: Sam Miller
Word Count: 531
Article URL: http://www.isnare.com/?aid=168713&ca=Business+Management
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=168713
Easy Publish Tool: http://www.isnare.com/html.php?aid=168713
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Traditional ROI calculations use the level of profit generated by an asset divided by the value of the asset and expressed as a percentage. That's fine but when we seek to ascribe a value to non-profit generating assets we need to look at ways in which we can quantify the value that the call center is contributing to overall business operations.
Call center data management and manipulation has lent itself particularly well to KPI metric and Balanced Scorecard methodology. KPI/Balanced Scorecard techniques are a mainstay of the management of any call center and using the metrics that are being produced from these management information tools allows to start calculating an approximation for ROI.
If we move away from the idea of profit centers that need to be maximized and cost centers that need to be cut so logically increasing profit, we can start thinking of the different business components as contributing value.
What is the value that we can ascribe to a call center it doesn't create anything?
First, lets look at a revised ROI calculation, we can pretty easily work out a cost for the call center which is going to be used in the ROI calculation if we use that as asset value of the ROI number crunching.
Second, if we look at the relative contribution of call center activities we can start ascribing a value based on the effect on our financial and management accounting information. Linking information from customer service feedback and focus groups will allow us to develop an idea of the impact on repeat business for instance. Repeat business is something that our accounting and CRM system will be monitoring so we can get a value for that. The customer survey and feedback groups will also give an indication as to how important our customer service is in winning repeat business orders and that will in turn allow us to infer a value for that proportion of repeat business that is attributable to the call center efforts.
We are now close to being able to perform an ROI calculation in that we have determined a value that is created for the expense of our customer service efforts made by the call center.
Using such attributable value calculations for ROI is not flawless but it does provide a valuable tool for tracking the value of a non-revenue division that is being contributed to overall business success. Tracking ROI of this nature over time, as long as the calculation is made on a consistent basis will help indicate and highlight the relative success of initiatives and investment in the call center.
Calculating an overall ROI can be done by a broader attribution of value that is created by the call center and the total expense that is incurred by it. Used alone such an ROI calculation is not going to be of much help but the use of the incremental ROI that can be calculated for discrete costs and further investment in the call center is very useful for helping to justify whether incremental investment should be made or not.
About The Author: If you are interested in measuring http://www.strategy2act.com/solutions/call-center-balanced-scorecard.htm call center roi, check Sam Miller new web-site.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=168713
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Sam Miller
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=168713
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=168713
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Measuring ROI On A Call Center Investment
Author: Sam Miller
Word Count: 531
Article URL: http://www.isnare.com/?aid=168713&ca=Business+Management
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=168713
Easy Publish Tool: http://www.isnare.com/html.php?aid=168713
*********************** ARTICLE START ***********************
Traditional ROI calculations use the level of profit generated by an asset divided by the value of the asset and expressed as a percentage. That's fine but when we seek to ascribe a value to non-profit generating assets we need to look at ways in which we can quantify the value that the call center is contributing to overall business operations.
Call center data management and manipulation has lent itself particularly well to KPI metric and Balanced Scorecard methodology. KPI/Balanced Scorecard techniques are a mainstay of the management of any call center and using the metrics that are being produced from these management information tools allows to start calculating an approximation for ROI.
If we move away from the idea of profit centers that need to be maximized and cost centers that need to be cut so logically increasing profit, we can start thinking of the different business components as contributing value.
What is the value that we can ascribe to a call center it doesn't create anything?
First, lets look at a revised ROI calculation, we can pretty easily work out a cost for the call center which is going to be used in the ROI calculation if we use that as asset value of the ROI number crunching.
Second, if we look at the relative contribution of call center activities we can start ascribing a value based on the effect on our financial and management accounting information. Linking information from customer service feedback and focus groups will allow us to develop an idea of the impact on repeat business for instance. Repeat business is something that our accounting and CRM system will be monitoring so we can get a value for that. The customer survey and feedback groups will also give an indication as to how important our customer service is in winning repeat business orders and that will in turn allow us to infer a value for that proportion of repeat business that is attributable to the call center efforts.
We are now close to being able to perform an ROI calculation in that we have determined a value that is created for the expense of our customer service efforts made by the call center.
Using such attributable value calculations for ROI is not flawless but it does provide a valuable tool for tracking the value of a non-revenue division that is being contributed to overall business success. Tracking ROI of this nature over time, as long as the calculation is made on a consistent basis will help indicate and highlight the relative success of initiatives and investment in the call center.
Calculating an overall ROI can be done by a broader attribution of value that is created by the call center and the total expense that is incurred by it. Used alone such an ROI calculation is not going to be of much help but the use of the incremental ROI that can be calculated for discrete costs and further investment in the call center is very useful for helping to justify whether incremental investment should be made or not.
About The Author: If you are interested in measuring http://www.strategy2act.com/solutions/call-center-balanced-scorecard.htm call center roi, check Sam Miller new web-site.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=168713
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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