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Queueing Models and Call Centre Operations: Insights and Technologies, Study notes of Business Administration

The role of queueing models in call centre operations, providing qualitative insights into economies of scale, cross-selling, and quality-driven vs efficiency-driven approaches. It also discusses the use of mathematical models beyond queueing, such as operations research, and the types of information collected for call centre agents. Technologies like automatic call distribution, agent performance analytics, and workforce management software are highlighted.

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Mathematical theory
A call centre can be viewed, from an operational point of view, as a queueing
network. The simplest call centre, consisting of a single type of customers and
statistically-identical servers, can be viewed as a single-queue. Queueing theory is a
branch of mathematics in which models of such queueing systems have been
developed. These models, in turn, are used to support work force planning and
management, for example by helping answer the following common staffing-
question: given a service-level, as determined by management, what is the least number
of telephone agents that is required to achieve it. (Prevalent examples of
service levels are: at least 80% of the callers are answered within 20 seconds; or, no
more that 3% of the customers hang-up, due to their impatience, before being served.)
Queueing models also provide qualitative insight, for example identifying the
circumstances under which economies of scale prevail, namely that a single large call
centre is more effective at answering calls than several (distributed) smaller ones; or that
cross-selling is beneficial; or that a call centre should be quality-driven or efficiency-
driven or, most likely, both Quality and Efficiency Driven
(abbreviated to QED). Recently, queueing models have also been used for planning and
operating skills-based-routing of calls within a call centre, which entails the analysis of
systems with multi-type customers and multi-skilled agents. Call centre operations have
been supported by mathematical models beyond queueing, with operations research, w
hich considers a wide range of optimization problems, being very relevant. For example,
for forecasting of calls, for determining shift -structures, and even for analyzing
customers' impatience while waiting to be served by an agent.
Accommodation
The centralization of call management aims to improve a company's operations and
reduce costs, while providing a standardized, streamlined, uniform service for
consumers, making this approach ideal for large companies with extensive customer
support needs. To accommodate for such a large customer base, large warehouses are
often converted to office space to host all call centre operations under one roof.
Centralised offices mean that large numbers of workers can be managed and
controlled by a relatively small number of managers and support staff. They are often
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Mathematical theory A call centre can be viewed, from an operational point of view, as a queueing network. The simplest call centre, consisting of a single type of customers and statistically-identical servers, can be viewed as a single-queue. Queueing theory is a branch of mathematics in which models of such queueing systems have been developed. These models, in turn, are used to support work force planning and management, for example by helping answer the following common staffing- question: given a service-level, as determined by management, what is the least number of telephone agents that is required to achieve it. (Prevalent examples of service levels are: at least 80% of the callers are answered within 20 seconds; or, no

more that 3% of the customers hang-up, due to their impatience, before being served.) Queueing models also^ provide^ qualitative^ insight,^ for^ example^ identifying^ the circumstances under which economies of scale prevail, namely that a single large call centre is more effective at answering calls than several (distributed) smaller ones; or that cross-selling is beneficial; or that a call centre should be quality-driven or efficiency- driven or, most likely, both Quality and Efficiency Driven (abbreviated to QED). Recently, queueing models have also been used for planning and operating skills-based-routing of calls within a call centre, which entails the analysis of systems with multi-type customers and multi-skilled agents. Call centre operations have been supported by mathematical models beyond queueing, with operations research, w hich considers a wide range of optimization problems, being very relevant. For example, for forecasting of calls, for determining shift -structures, and even for analyzing customers' impatience while waiting to be served by an agent. Accommodation

The centralization of call management aims to improve a company's operations and reduce costs, while providing a standardized, streamlined, uniform service for consumers, making this approach ideal for large companies with extensive customer support needs. To accommodate for such a large customer base, large warehouses are often converted to office space to host all call centre operations under one roof. Centralised offices mean that large numbers of workers can be managed and controlled by a relatively small number of managers and support staff. They are often

supported by computer technology that manages, measures and monitors the performance and activities of the workers. Call centre staff are closely monitored for quality control, level of proficiency, and customer service. Typical contact centre operations focus on the discipline areas of workforce management, queue management, quality monitoring, and reporting. Reporting in a call centre can be further broken down into real time reporting and historical reporting. The types of information collected for a group of call centre agents typically include: agents logged in, agents ready to take calls, agents available to take calls, agents in wrap up mode, average call duration, average call duration including wrap-up time, longest duration agent available, longest duration call in queue, number of calls in queue, number of calls offered, number of calls abandoned, average speed to answer, average speed to abandoned and service level, calculated by the percentage of calls answered in under a certain time period. Many call centres use workforce management software, which is software that uses historical information coupled with projected need to generate automated schedules. This aims to provide adequate staffing skilled enough to assist callers. The relatively high cost of personnel and worker inefficiency accounts for the majority of call centre operating expenses, influencing outsourcing in^ the^ call^ centre industry. Inadequate computer systems can mean staff take one or two seconds longer than necessary to process a transaction. This can often be quantified in staff cost terms. This is often used as a driving factor in any business case to justify a complete system upgrade or replacement. For several factors, including the efficiency of the call centre, the level of computer and telecom support that may be adequate for staff in a typical branch office may prove totally inadequate in a call centre. Technology Call Centres use a wide variety of different technologies to allow them to manage the large volumes of work that need to be managed by the call centre. These

F 0B 7 Virtual queuing

F 0B 7 Voice analysis

F 0B 7 Voice recognition

F 0B 7 Voicemail

98

F 0B 7 Voice recording F 0B 7 VoIP F 0B 7 Speech Analytics

Call centre dynamics

Types of calls are often divided into outbound and inbound. Inbound calls are calls that are made by the consumer to obtain information, report a malfunction, or ask for help. These calls are substantially different from outbound calls, where agents place calls to potential customers mostly with intentions of selling or service to the individual. Call centre staff are often organized into a multi-tier support system for a more efficient handling of calls. The first tier in such a model consists of operators, who direct inquiries to the appropriate department and provide general directory information. If a caller requires more assistance, the call is forwarded to the second tier, where most issues can be resolved. In some cases, there may be three or more tiers of support staff. If a caller requires more assistance, the caller is forwarded to the third tier of support; typically the third tier of support is formed by product engineers/developers or highly-skilled technical support staff of the product. Management of call centres

Management of call centres involves balancing the requirements of cost effectiveness and service. Callers do not wish to wait in exorbitantly long queues until they can be helped and so management must provide sufficient staff and inbound capacity to ensure that the quality of service is maintained. However, staff costs generally form more than half the cost of running a call centre and so management must minimise the number of staff present. To perform this balancing act, call centre managers make use of demand estimation, Telecommunication forecasting and dimensioning techniques to determine the level 99

F 0B 7 The percentage of calls which completely resolve the customer's issue (if the customer does not call back about the same problem for a certain period of time, it is considered a successful resolution or FCR - First Call Resolution). F 0B 7 The percentage of calls where a customer hangs up or "abandons" the call is often referred to as Total Calls Abandoned or Percentage of calls abandoned. Calls are often abandoned due to long hold times when a call centre experiences a high call volume. F 0B 7 Percentage of time agents spend not ready to take calls, often referred to as

Idle Time. F 0B 7 Quality Assurance monitored by a quality assurance (QA) team.

Refinements of call centres

There are many refinements to the generic call centre model. Each refinement helps increase the efficiency of the call centre thereby allowing management to make better decisions involving economy and service. The following list contains some examples of call centre refinements:

Predictive Dialling – Computer software attempts to predict the time taken for an agent to help a caller. The software begins dialling another caller before the agent has finished the previous call. This, because not every call will be connected (think of busy or not answered calls) and also because of the time it takes to set up the call (usually around 20 seconds before someone answers). Frequently, predictive dialers will dial more callers than there are agents, counting on the fact that not every line will be answered. When the line is answered and no agent is available, it is held in a retention queue for a short while. When still no agent has become available, the call is hung up and classified as a nuisance call. The next time the client is called an agent will be reserved for the caller.

Multi-Skilled Staff – In any call centre, there will be members of staff that will be more skilled in areas than others. An 'Interactive Voice Response' (IVR) Unit can be used to allow the caller to select the reason for his call. Management software, called an Automatic Call Distributor, must then be used to route calls to the appropriate agent. Alternatively, it has been found that a mix of general and specialist agent creates a good balance. Prioritisation of Callers – Classification of callers according to priority is a very important refinement. Emergency calls or callers that are reattempting to contact a call centre are examples of callers that could be given a higher priority. Automatic Number Identification – This allows agents to determine who is calling before they answer the call. Greeting a caller by name and obtaining his/her information in advance adds to the quality of service and helps decrease the conversation time. Additional issues in call centres

There are many other issues that have to be planned for when managing a call centre. A few of these issues are listed below: F 0B 7 Call Center Noise Hazards

F 0B 7 Planning for failure of equipment F 0B 7 Need for flexibility in meal-times F 0B 7 Need for job variety and training

F 0B 7 Job exhaustion and stress F 0B 7 Staff turnover (high attrition rates are common in the call centre industry) F 0B 7 Call Center Noise Hazards Place Operators at Risk F 0B 7 Many employers are unaware of the hazard of acoustic shock, despite the fact that up to 300,000 victims have been paid over $15 million worldwide.

post-delivery enables call centres to route a call they‘ve received to another call

centre.

Interaction Centres – As call centres evolve and deal with more media than telephony alone, some have taken to the term, "interaction centre". Email, Web Callback and more are gradually being added to the role. Criticism of call centres

Criticisms of call centres generally follow a number of common themes: From Callers: F 0B 7 operators working from a script. F 0B 7 non-expert operators (call screening). F 0B 7 incompetent or untrained operators incapable of processing customers' requests effectively. F 0B 7 overseas location, with language and accent problems. F 0B 7 automated queuing systems. From

Staff: F 0B 7 close scrutiny by management (e.g. frequent random eavesdropping on operator's calls). F 0B 7 low pay. F 0B 7 restrictive working practices (e.g. there isn't much space for personal creativity since many operators are required to follow a pre-written script). F 0B 7 high stress: a common problem associated with front-end jobs where employees deal directly with customers. F 0B 7 poor working conditions (e.g. poor facilities, poor maintenance and cleaning, cramped working conditions, management interference)

As detailed above, none of these are inherent in the call centre model, although

many companies will experience some or all of the above while implementing a call 104

easier to achieve and maintain. In essence, if the call control can be embedded into the call processing system, consistency is the welcome byproduct. Pre-planning a call via scripting will not negate the need for agent training, monitoring, and evaluation, but it will make those efforts simultaneously more effective and less needful. Advanced software allows call centers to handle the high expectations of today‘s clients who demand fewer errors and more sophisticated message processing. Intelligent Messaging guides the agent through each step of taking a call, gathering information from callers and then quickly dispatching that information to clients. The benefits include: F 0B 7 Reduced agent errors F 0B 7 Simplified difficult account call handling F 0B 7 Agents guided through each step of message handling F 0B 7 Simplified appointment taking, order entry, or brochure requests F 0B 7 Customized look and feel of each script

The Web-based scripts make it easy for agents to handle detailed calls to schedule appointments, classes, or seminars and to take orders. The voice-based scripts use IVR (Interactive Voice Response) system to create automated voice applications. Empower customer service, telesales and 3rd party vendors with customizable call scripts. Make sure that the agents are asking the most appropriate questions at the right time using customized workflow. Information captured on the call is collected directly, ensuring high-quality data and more effective calls outcomes. Benefits of Call Scripting:

F 0B 7 Reduces agent training time F 0B 7 Drop-down choices change dynamically based on customer response F 0B 7 Supports personalized interactions based on existing record data 106

F 0B 7 Cost of acquiring a new customer is 5 to 7 times greater than retaining current ones

F 0B 7 Cost of hiring and training a new employee is up to 10 times greater than retaining current ones Your customer's perception of the value of your company provides is based on the following attribute foundation: F 0B 7 Organizational F 0B 7 Product F 0B 7 Service F 0B 7 Future behaviour