At-Home Reps Provide Big Benefits for Home-Shoring CPG Companies

Original Publication: Customer Management Insight - March 2009

"Companies are becoming more comfortable in letting their customer service representatives work at home,” says Stephen Loynd, IDC program manager for contact center services.

Consumer products and service companies successfully adopting work-at-home customer service practices include hotels and airlines like Hilton Hotels and JetBlue, with 900 and 1,200 at-home reservation agents, respectively. And ConAgra Foods, a consumer packaged goods (CPG) company, has over 80 at-home customer care representatives.

Operating customer care through home agents is new for CPG consumer affairs and customer relations departments and is proving attractive because the benefits can be significant for the companies, their representatives, and their customers. Tasks that customer care agents perform regularly in contact centers can be handled as effectively and efficiently in a home office. In addition to taking consumer calls, many contact centers receive a third — if not more — of their inquiries as emails. These too may be handled as easily in home offices as in company cubicles. Similarly, inquiry response letters and contact center activity reports may also be processed online from home offices.

Work-at-Home Technology Has Arrived

CPG companies are equipping their at-home customer care employees for handling all channels of in- and outbound contacts — online chat, email, facsimile, voice, and white mail. Essential components include a telephone on a dedicated line, a wireless headset, an integrated digital call recorder, printer, and fax machine. At-home workers’ PCs
must have a secure high-speed Internet connection and Internet browser that enables the worker to access the company's consumer relationship system (CRS).

Representatives work online through secure log-in and encrypted transmission to register and respond to calls, emails, facsimiles, letters, and to enter data and generate reports with the CRS. The at-home CRS workstations are configured for speedy workflow processing, and the programs can be “locked down” to prevent unauthorized access to other company systems.

ConAgra Foods exemplifies a hybrid of at-home and on-premises customer care. In an initiative to gain efficiency in responding more effectively to an increasing large volume of consumer inquiries, ConAgra adopted the work-at-home model for 80 representatives in their Consumer Affairs contact center. Four senior representatives, six team leaders, and two managers, as well as product trainers, IT, and workforce and business analysts complete the staffing.

ConAgra's at-home operation has reduced operating costs by $1 million annually and improved customer and representative satisfaction. Annual agent turnover is approximately 20 percent compared to a much higher rate at the outsourcer. Representatives use Wilke/Thornton’s CRS with intelligent workflow processing that enables them to integrate and attach call recordings to caller records for reference by quality and management staff.

Work-at-Home Model Benefits Companies

Progressive companies are applying the home agent model to better manage customer care costs, in addition to experiencing savings and service quality improvements. Peter Ryan, senior analyst for contact center outsourcing and off-shoring at Datamonitor, reports representatives working at home reduce overhead 25 percent. The Telework Advisory Group at WorldatWork reports a typical $25,000 real estate savings for each representative7, and IDC found the typical cost to employ a call center representative is $31 per hour, while cost for the at-home worker is $21 per hour, about 30 percent less.

Scheduling at-home representatives to cover after-hours and expanded hours during bad weather and holiday shopping periods is easier and costs less than extending center hours.

At-home coverage also helps maintain company reputations for excellent service. Home-shoring can maximize efficiency of outsourcing since pre-trained home representatives augment staff during seasonal contact peaks and overflow work.

A satisfaction "halo effect" occurs when home-based representatives who are happier convey their positive attitudes to callers who, in turn, feel more satisfied and likely to remain loyal. For example, since ConAgra implemented its home agent program, customer satisfaction has jumped up to 97 percent or better. This compares to a 75 percent customer satisfaction industry average.

Home agents' work productivity and quality also show increases. Working in the relative isolation and quiet of a home office enables representatives to work with fewer distractions and greater concentration. Consequently, they can accomplish more work in the same time with fewer errors. Representatives working at home who become sick help reduce absenteeism since they do not infect associates. In contrast, when their on-premise counterparts are ill they may come to work ill and infect others or stay home, causing loss of productivity in either case.

In ConAgra's hybrid operation, Wilke/Thornton’s Consumer Relationship System (CRS) has intelligent contact handling capabilities that enable the representatives to process contacts based on pre-established relationships between the caller’s issue, the product or service item in question, and the item’s location of manufacture. Depending on the specific product-location-subject (PLS) combination, the flow of each contact process assembles a specific appropriate response letter or email which the representative may add personalized tailoring to address each unique consumer.

The PLS may also trigger an interactive survey that the Consumer Affairs department has designed to use to capture consumer insights for inputs to product quality management and for marketing purposes. The representative can email the response from their home office, or have the response printed at the company contact center where appropriate attachments, such as refund checks, discount coupons and other literature, are included in the reply. Of course, the CRS also captures the details of each inquiry for systematic reporting.

Operating work-at-home customer care programs can reduce staff turnover and the cost of hiring and training replacements. One study reports staff retention above 80 percent. In contrast, retention among on-premises representatives is less than 25 percent. Significantly higher retention of the at-home group may be attributed to their greater satisfaction with work arrangements.

At-home workers can benefit companies during catastrophic emergencies such as when earthquakes, hurricanes, or epidemics impact business operations for extended periods. During these occurrences geographically-dispersed at-home representatives can mitigate disruption of normal business activity.

Working At Home Benefits Representatives

Many consumers in the United States have expressed preference for dealing with native speakers. Companies are responding by staffing native speakers in their customer care operations. “Service providers need productive, professional, and dependable agents to enhance the customer experience,” says IDC's Loynd. These factors are helping to create favorable employment conditions for at-home workers.

Studies of home-shoring indicate consumer products and services companies need qualified representatives who can become expert in handling inquiries and exceed customer expectation. Frost & Sullivan reports the median age of at-home workers is 38, and 80 percent of at-home representatives have degrees or some college education. Many have prior work experience and know how to be productive independently. For ConAgra, 40 percent of its at-home representatives are degreed and have professional work experience.

The majority of work-at-home customer care representatives are women, many with years of prior professional work experience. They find working at home advantageous for the cost and time savings it affords. Working at home eliminates daily commutes to the office and their time and transportation costs. It also minimizes the expense of purchasing and maintaining work clothing, as well as the cost of office lunches. Because these employees have more flexibility in scheduling at-home work hours, they are able to balance work and child care much more easily.

Companies are finding that typical applicants for at-home representative are in their mid- 30s to mid-40s with significant industry experience. Also, the work-at-home model offers opportunities for elderly or disabled but otherwise qualified individuals to work at home as customer representatives. The number of applicants for home-based positions far exceeds positions available. As many employees are approaching retirement, and given the state of the economy, a customer representative position working from home may be very appealing to them. Such positions support those who are retiring but do not have the resources to fully retire.

Tips for a Successful At-Home Program

While the benefits are many and the return can be substantial, do not expect the implementation and continuing operations of an at-home program to happen effortlessly. Simply hiring representatives, training them, and sending them home will most likely result in failure. An at-home program requires just as much effort and attention, initially maybe more, than any team you are leading in the office. There are multiple opportunities to realize benefits with an effective at-home program. The following table outlines some of these:

 

Consider these best practices for sustaining a successful at-home program:

Hiring the Right Individual
To attain great results in retention, use some type of assessment or tool to help ensure that you are hiring the right people, not only for the job, but also as a good fit for an at-home program and for your company. While this may be no different than your current practices, the difference is ensuring that you are hiring people that have the capability to work at home, not surrounded by peers and regular social interaction. There are people who need daily social interaction and face-to-face time, and there are those that do not need or even want it. Providing remote support in a variety of ways reduces the need for social interaction.

A question that many people have is, "how can we avoid the barking dog, baby crying or bird chirping as these home agents are on the phone speaking with customers? " The truth is, you really can’t guarantee that it won’t happen. Just like you cannot guarantee that the customer won’t hear people talking loudly or laughing in the background when speaking with a representative in your office. How you mitigate the risk of it happening is clearly articulating your expectations. You talk about it during the phone screen, the formal interview, upon making the job offer, during training and in one-on-one’s between the employee and team leader.

On-Boarding and Training
Depending upon the type of distributed workforce you implement (i.e., dispersed nationwide or concentrated in a geographical region), your options include computer-based training (CBT), traditional instructor-led classroom training, or a combination of both. The downside of traditional classroom training is the inability to address individual learning styles and paces. In a physical classroom, you often have a team of new hires that learn at a different pace. This can lead to frustration if the students feel the facilitator is moving too fast or too slow. On the other hand, learners can move at their own pace using an e-learning system.

Instead of having a train-the-trainer model, consider utilizing resident subject matter experts throughout your on-boarding and continuing education programs. Introducing different people, whether it’s in a computer-based training module or a live classroom setting, will add interest and increase engagement with the audience. It will also introduce the importance of the agent’s role and raise awareness among others across your company.

Emotional Connectivity
When working remotely, there will be times when
the employee will feel as though they are on an island without support. The trick is engaging that employee, creating the environment of individual value and recognition for a job well done. The home agents’ supervisors or team leaders must take great care in making sure the at-home workers feel connected to the company and to the in-house team. You need to care for your representatives if you expect them to care for your customers. Allow
for a large investment in time for communicating between the team leader and the at-home worker.

Providing an online internal network for remote workers is an avenue for them to connect and build relationships with each other. There are some creative ways to increase the level of connectedness; however, be wise where you spend your time and energy. In most cases, people join companies and leave bosses. Do everything you can to support that relationship between employee and manager.

Measure employee engagement on a regular basis, not just when you want to get a feel for how bad things are. Survey all your employees and study that feedback. Provide the high-level results to them along with your action plans. Follow-through with your action plan and make changes to your program. This is where you will gain a great amount of confidence and trust with your team.

Technology
The must haves for operating a world-class virtual contact center are:

• CRS/contact center database

• Knowledgebase

• Reporting tool (to extract data from the database)

• Call routing/call management tool (handling all channels)

• Workforce management

• Customer satisfaction tool

• E-learning tool

• Instant messaging

• Redundancy (to address disaster recovery)

The more you can integrate the better. CosmoCom reported that telephone company agents managed an average of 7 different legacy applications on their desktops, and for some it was as high as 15. This situation translates directly into cost factors: agent time for navigation, training time and cost, agent churn and the cost of inevitable errors in customer satisfaction.

Implementation Checklist

Here are some things you’ll need to get in place to roll out an at-home agent program.

An Executive-Level Champion
It's important to have a high-level executive's support in order to take on a project like this. In the beginning, you may not be able to gain full support from your CEO or president. However, it is important to have the full support from your division’s vice president or someone in your organization that has the executives' ears. Your champion should provide status updates to the president and/or CEO. The odds are good they will eventually understand the benefits and support a virtual workforce, particularly after they see the positive return on their investment.

A Business Plan (including ROI)
In order to discover the initial savings in implementing a remote employee program, you must have a full understanding of the costs involved. Depending upon your financial structure, you may need to complete a capital investment request to cover the start-up and one-time expenses. Compiling a three-year cost analysis, including the investment rate of return, is recommended to gain executive level approval.

A Project Plan
This holds true for any large project implementation. A roadmap is a requirement for this project. The question to ask is can you attempt such a large, complex project on your own? Do you have the resources? If so, how will doing so interrupt your business (e.g., taking people away from their day-to-day jobs to focus on implementing the at-home program)? Consider hiring project management consultants who have experience in implementing an at-home program.

A Technology Plan
Assess your existing technology to determine if it's the best fit for an at-home program. This may mean customizing your current technology to improve efficiencies or possibly transitioning to another software vendor who specializes in this arena. Ensure your systems are easy to use and flow in an efficient manner. Integrate as much as possible. Doing so will increase your potential employee productivity.

The two choices for the network infrastructure are on-premise or hosted. On-premise requires a large capital investment if it's not already built and ready to use.

A hosted solution requires little or no upfront capital expense. A secure, stable on-demand framework should include a powerful network, supported by multiple data centers with industry leading redundancy and reliability. The platform should be monitored 24/7 via a network operations center. The solution should also not require you to purchase a new phone system or other equipment. You should be able to connect to the system as you would any other long distance or local provider and run the system with your current PBX. Combining a powerful connectivity infrastructure with the right contact-handling platform, a robust consumer relationship system and an integrated suite of agent improvement tools will empower you to deliver exceptional customer experiences while simultaneously reducing your total operating costs.