BUSINESS.COM GUIDE TO CALL CENTER SOFTWARE

CONTENTSOVERVIEW OF CALL CENTERS 3

TYPES OF SYSTEMS 6

CALCULATING COSTS 8

COMPARISON CHECKLIST 11

GLOSSARY OF TERMS 12

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HOWCall and contact centers have evolved dramatically in recent years. With changes in technology have come changes in the call center industry.

Success used to depend on assembling the right number of people in the same room or building to handle calls, but all that has changed. Call centers no longer need to be in one fixed physical location. With modern systems, calls can be distributed to employees in different locations, resulting in virtual call centers.

Even with a fixed call center, different technology choices and the number of vendors selling solutions has increased exponentially in recent years.

This had made selecting the right software and systems tricky. This guide will greatly simplify the process for you.

OVERVIEW OF CALL CENTERS

“CALL AND CONTACT CENTERS HAVE EVOLVED DRAMATICALLY IN RECENT YEARS.”

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WHOA call center’s most valuable asset is its people, but the right software system can make a huge difference, as it allows a call center to run smoothly on its own, with little need for IT staff or technicians to keep the phones ringing.

Call centers used to depend on switchboards, complex telephone systems, and other intricate pieces of hardware. These days, only basic equipment is required, such as headsets and PCs. Software is now at the heart of the call center system, so choosing the right software is the most important aspect of setting up a successful center.

“SOFTWARE IS NOW AT THE HEART OF THE CALL CENTER SYSTEM, SO CHOOSING THE RIGHT SOFTWARE IS THE MOST IMPORTANT ASPECT OF SETTING UP A SUCCESSFUL CENTER.”

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WHATThese days, your call center systems choices are vast, which means that the chance of finding a solution custom tailored to your needs that’s also in your price range is excellent. The first step in making any decision is to have a clear understanding of your requirements.

A number of factors need to be taken into account when assessing different solutions. Once you know what’s available, you can narrow your search to the best vendors and plans. The major considerations include:

Size. A software system should not just be able to cope with your current workload, but should also take into account any potential future expansion. Ensure that you’re choosing something that’s flexible and that can grow as fast as the expected expansion of your operation.

Location. While most call centers are in a fixed physical location with all operators working in the same building, it’s possible to have some or all of your staff working virtually. If this is the case, a cloud-based system operating over the Internet will give you much more freedom than a call center system installed on machines or servers in a specific location.

Incoming or Outgoing. Some call centers handle only inbound calls, others handle primarily outbound ones, and some require a system capable of both. While low

subscription costs may look tempting, high call charges could make an inexpensive solution costly in the long run.

Features. These days, call center systems don’t just route calls to different operators. The software enables all sorts of features such as routing calls to specific people, forecasting call volume, and storing and analyzing call data. Many of these features promote the smooth running of a call center, but not all are needed by every organization

Support. Choosing a system that looks after itself, or one that comes with technical support included in the price, can make a big difference to both your budget and your staffing levels.

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A major decision concerning call center systems is how the software will be hosted. Software can be installed on an office server in what is known as a managed system, it can be hosted in the cloud, or it can be hosted by a third-party hosting company. The hosting system you opt for can make a big difference in cost, but it’s not just a matter of looking at subscription fees.

While a third-party hosting system tends to have more expensive subscription fees than a self-hosting one, having someone else look after the software means you need little if any in-house technical support.

Self-Managed Systems. While self-managed systems seem like the simplest solution-just install the software and run the system yourself-they can be the most difficult when you factor in your own time. On the positive side, you have full control over the system. The downside is that you have complete responsibility for keeping the system running. Any errors or problems fall to your in-house staff to put right. Although many providers of self-managed systems offer some support, it might not be what you need when you need it. If having your call center operating efficiently is essential to your profits, be sure to consider the costs of maintaining the system, not just the base price of hosting it.

Cloud-Based Systems. To avoid in-house servers and all the hardware and software headaches that come with them, more and more call centers are now self-hosted on the cloud. The cloud is just another way of saying that the system is hosted online. Self-hosted means that you’re the one who set it up on the cloud, and you’re responsible for keeping it operating. Your cloud host provides space for you to do your thing, but usually

TYPES OF SYSTEMS

“TO AVOID IN-HOUSE SERVERS AND ALL THE HARDWARE AND SOFTWARE HEADACHES THAT COME WITH THEM, MORE AND MORE CALL CENTERS ARE NOW SELF-HOSTED ON THE CLOUD”

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offers no support beyond providing reliable storage. The drawbacks of cloud hosting are latency (running slowly) and security (vulnerability due to being online). But as more and more cloud-based systems are emerging, these problems are disappearing. Most cloud services now offer redundant backups and data encryption.

Third-Party Hosting. For a complete, no-headache solution, third-party hosting is favored by many call centers-particularly large ones. While annual hosting subscriptions tend to be much higher than both self-managed and cloud-based systems, the initial costs are incredibly low. Essentially, you don’t have any capital expenses with a hosted system, and the cost savings in operation and support can be truly significant. In addition, you also have a partner that’s handling all the complexities of running your software system, enabling you to take advantage of their expertise. However, the depth of experience can vary from vendor to vendor. One problem with third-party hosts is the need to get your hosting partner to understand your needs, challenges, and preferences.

“FOR A COMPLETE, NO-HEADACHE SOLUTION, THIRD-PARTY HOSTING IS FAVORED BY MANY CALL CENTERS-PARTICULARLY LARGE ONES”

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Calculating the true cost of a particular call center system isn’t easy, as different variables and factors can turn what seems like a good deal into something that is, in reality, quite expensive. Finding a solution that provides the best value for you means assessing three different sets of costs: capital expenses, subscription fees, and outbound calling charges.

Capital ExpensesSelf-managed. If you choose a system that will be installed on your own servers and computers, you’re going to have to pay for the initial hardware and any additional storage required for expansion. You’ll need lots of storage capacity if you’re going to use functions such

as call recording or workstation recording. You’ll also need staff to look after the running of the system. This might amount to one or two people for a small outfit, up to a whole team of IT professionals for a large call center.

CALCULATING COSTS

“IF YOU CHOOSE A SYSTEM THAT WILL BE INSTALLED ON YOUR OWN SERVERS AND COMPUTERS, YOU’RE GOING TO HAVE TO PAY FOR THE INITIAL HARDWARE AND ANY ADDITIONAL STORAGE REQUIRED FOR EXPANSION.”

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Then you have the cost of the software. Buying all this in advance could be very costly, but is the preferred solution for those who want total control of the operation. It can even be the least expensive solution, depending on the cost of keeping the system running. Purchasing a system over time on a contract basis usually entitles you to some technical support from the vendor. After all, vendors don’t want to lose your business if you’re having problems they could easily fix.

Cloud hosting. Running on the cloud will cut down on capital expenses, as there will be no need to buy or lease servers or hard drives. You’ll still need support staff to look after the software; however, as cloud-based systems can be accessed from anywhere, you don’t have to hire in-house technicians to keep your call center running. You can outsource the maintenance of your system separately from outsourcing the staffing of the phones, if you choose.

Third-party hosting. Beyond the basic hardware-such as workstations and headsets-the capital expense with a third-party hosting system is negligible: no servers, no software, no IT team, and no setup costs. The hosting company should take care of everything. Watch out for low entry-level pricing combined with contracts that are difficult to terminate. Contracts vary from one to five years, and some of them have high termination fees.

Subscription FeesMonthly or annual subscription fees vary from vendor to vendor, but these are meaningless unless you factor in the total costs of operating the system. Usually a software company charges on a per-operator basis, making it more expensive for larger call centers. If you expand, for every additional operator, the subscription rate will increase. And subscription costs are not the only regular expense. You also need to consider the cost of outbound calls. Your subscription agreement might lock you into a high cost for outbound calling.

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Outbound CallingThese days, VoIP (Voice Over Internet Protocol) services provide the most cost-effective solutions for call centers because outbound calling plans are so much cheaper than regular business landline rates. The great freedom of a self-managed system is that you can choose from the large number of VoIP service companies, ensuring that you get a competitive price. Perhaps the most common and popular VoIP service is Microsoft’s Skype, which offers 5,000-minute bundles for $30 to U.S. landlines and mobiles.

With a hosted system, you not only pay a monthly fee per operator, but you’ll also be charged a per-minute or per-30-second rate for outbound calls, and usually you have no choice as to the outbound call provider.

Discounts are normally offered for higher call volumes. Typical per minute charges are as follows:

• $0.035 / 60 seconds (0 - 350,000 minutes per month)

• $0.015 / 30 seconds (350,001 - 500,000 minutes per month)

• $0.012 / 30 seconds (500,001 - 1,000,000 minutes per month)

• $0.011 / 30 seconds (1,000,000 - 2,000,000 minutes per month)

• $0.010 / 30 seconds (2,000,000 - 5,000,000 minutes per month)

Another option, especially if you go the self-managed route, is to sign up for an unlimited calling plan. These plans allow for unlimited outbound calls, usually within certain areas or countries, for a monthly fee per operator. Whether this works out to be a better value than paying for individual calls will depend on the number and average duration of calls your operators make. Unlimited domestic calling plans typically start at around $10 per month, per operator.

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This checklist will help you quickly assess the best vendor for your needs.

Basic Features

Number of Phones Supported

Auto-attendantAutomated Directory

Call ForwardingCall HoldConference CallsLast-number RedialMusic on Hold

Speed Dial

Extra FeaturesFree TrainingAbility to UpgradeFuture-proofHosted by ProviderInternational Call SupportChargesCost of Central UnitCost of InstallationCost of AccessoriesCost of MaintenanceCost of Handsets/HeadsetsCost of Employee TrainingService and SupportFree Live Online AssistanceFree Live Phone AssistanceTraining Videos Available

My Needs Vendor 1 Vendor 2 Vendor 3

CALL CENTER CHECKLIST

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Automatic Call Distribution (ACD): An automatic system that uses either caller ID, or requests that a caller input numbers on a keypad, to route calls. ACD makes a call center more efficient by automatically routing calls to the correct operator.

Cloud: Cloud computing is the hosting of software on the Internet, which saves you from having to install a system on your own PCs or servers. It also makes your system accessible from any device connected to the Internet, such as a tablet or smartphone.

Computer Telephony Integration (CTI): This turns a PC into a telephone system, providing all the functionality and more of a telephone without the need for specialized equipment.

Interactive Voice Response (IVR): A system that recognizes speech and what a person is saying. IVR enables automated operator systems where callers can vocalize what they want.

Virtual Call Center: Instead of having operators in the same room or building, virtual call centers allow calls to be routed to any operator anywhere on the system. This allows operators to work remotely.

Virtual Operators: Also called “virtual attendants,” virtual operators are call-answering systems that instruct users in how to serve their own needs by either speaking commands or entering them on a keypad.

Voice Over Internet Protocol (VoIP): The use of the Internet to make voice calls. Often VoIP is much cheaper than regular landline call rates.

GLOSSARY OF TERMS