social customer service roi - focus roundtable
Post on 20-Oct-2014
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Social Customer Service ROI
www.kathyherrmann.comDrNatalieNews
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Call Center Savings:• Increased Agent Deflection:
• Direct, • Indirect.
• Improved Agent Productivity.• Lowered Average Handling Time• Increased First Contact Resolution Rate and• Knowledge Base generation.
ROI Gains
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Common costs for social customer service programs:
• People, • Technology, and• Marketing (of the social customer service
program).
ROI Costs
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ROI = (Gains - Costs)/Costs x 100
ROI is shown as a percentage.
ROI Formula
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Sample Calculations
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Gains
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FORMULAS
# New Convos answered by Customers = (# Total New Convos Answered) x (% New Convos Answered by Customers)
# of Direct Deflected Contacts = (# New Convos answered by Customers) * Est Direct Deflection Rate
Savings per period= (# of Deflected Calls) x (Avg Cost per Call)
Call Center Savings - Direct Agent Defection
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CALCULATION: # New Convos Answered by Customers = (6,500 New Convos Answered/month) x 70% = 4,550 New Convos Answered by Cust per month
# Direct Deflected Calls = (4,550 New Convos Answered per month) * 10% = 455 per month
Savings = (455 Deflected calls per month) * ($25/call) = $11,375 per month = $136,500/year.
Call Center Savings –Agent Defection
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FORMULAS
# Social Cases Impacted = (# Social Cases per period) x (% Social Cases Impacted)
Savings per period = AHT x (Agent Cost per hour) x (# Social Cases Impacted)
Call Center Savings – Reduced AHT
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CALCULATION
# Social Cases Requiring Assistance will be a known metric.
For example purposes, assume based on examples related to Agent Deflection shown above. Out of 6,500 New Social Conversations per month, a total of 1,755 were deflected. 4,745 cases still require agent assistance.
Call Center Savings – Reduced AHT
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CALCULATION
# Social Cases = 4,745 Social Cases/mo = 56,940 Social Cases/yr
# Social Cases Impacted = (56,940 Social Cases/yr) x 10% = 5,694/yr
Savings per period = (12 min/case) x ($30/hr x 1 hr/60 min) x (5,694 Cases/yr) = $34,164/yr
Call Center Savings – Reduced AHT
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Costs
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People costs…
FORMULAS:
Burdened Compensation per Social Team Member = (Salary + bonus + benefits load) x (% Time Devoted to Social).
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People costs…
CALCULATION: Cost of Manager = ($105,000/yr burdened compensation) x (20% Time) = 21,000$/yrCost of data analyst = ($100,000/yr burdened comp) x (20% Time) = $20,000/yr
Total costs = $41,000/yr
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Tech costs
FORMULA
Tech costs = Sum of individual tech components described above. Use incremental costs only.
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Tech costs
Assume 3 Support Techs (shown under People Cost example) are new hires.
Need incremental CRM seats with Social Add-on functionality.
Also needed is modest community solution to supplement searchability of Facebook community.
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Tech costs
Total Tech Solution costs for example =
[Incremental seats social customer service solution] + (Cost for modest Community solution) + (Subscription Costs for Premium Social Monitoring) + Implementation Costs
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Tech costs
CALCULATION:
Tech costs= [($200/user per mo for CRM/SCRM) x (3 seats)] + ($4,167 per mo Community) + ($1,500 per month Social Monitoring) + $15,000 = $90,204 for first year.
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ROI
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ROI = (Gains - Costs)/Costs x 100
ROI is shown as a percentage.
ROI Formula
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GAINS =$136,500 + $34,164 = $170,664
COSTS = $41,000 + $90,204 = 131,204
ROI = ($170,664 - $141,204)/$131,204 x 100 = 22.5%
ROI Formula
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Contact information
Kathy [email protected]
@KathyHerrmann+KathyHerrmann
Natalie [email protected]
DrNatalieNews
@DrNatalie+DrNatalie