Service with a Smile and a Click

9 Aug, 2010

By: Rob Duncan

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Technology’s Role in the Growth of Virtual Call Centers

"The gains in productivity will be staggering for those countries, companies and individuals who can absorb the new technological tools."
~~Thomas Friedman, author of The World is Flat

Advancements in technology have profoundly changed business processes across the world by eliminating barriers to collaboration and communication. From instant messaging to smartphones, the age of technology has redefined customer expectations for “on-demand” service. No longer are customers willing to wait for what they need. Instead, they demand instant issue resolution and access to information from anywhere in the world. Fortunately, the same technology that created amazing tools for consumers also played an important role in the historic rise and ensuing growth of a new model for customer support - the virtual contact center.

Technology Makes it Easier to Provide Highest Quality Service
Many people assume technology created the virtual call center market; that without improvements in connectivity and processing capabilities, it wouldn’t be possible to have an at-home service model. In actuality, the virtual or at-home model was developed when two men had an idea for creating a remote workforce. To get started, they made do with the technology that existed. When automation wasn’t possible, they stuck with the old-school, manual processes used by traditional brick-and-mortar centers. Over time, improvements in personal computers, Internet access, broadband networks and security made operations drastically easier and more efficient.

• Personal Computers
  According to Bill Gates, if the auto industry “had kept up with technology like the computer industry has, we would all be driving $25 cars that got 1,000 MPG.” Progress in the personal computing industry has been astounding over the past decade. When the first virtual contact center was founded, it was a challenge to find qualified candidates who even owned a computer, much less one powerful enough to run the necessary programs. Over time, PC penetration has grown from 45 to 80 percent of U.S. households due, in part, to a significant drop in price. The average cost of a PC in 1998 was $1,000. Now, people can purchase a machine for less than $500.

• Internet Prevalence
  One of the “ah-ha” moments that spurred further development of technology processes for virtual contact centers came with the advent of web-based relationship management systems. Suddenly, call centers could access customer information instantly over the Internet and use it to provide higher quality, more personalized service. The ability to tap into a customer’s account in real-time was a major improvement, which resulted in higher one-call resolution and greater up-selling and order conversion. Through the sharing of customer data over the Internet backbone, call center agents also no longer needed to be situated on-premise in a traditional brick-and-mortar environment. Instead, they could access systems, databases, and records from any Internet connection – even one in their home. In 1998, less than 1 percent of the US population had Internet access. Today, 72 percent can access the Internet from home, providing a nearly limitless talent pool of prospective home-based call center professionals.

• Connectivity
  200 million Americans now have broadband at home with the government setting a goal for another 100 million. According to a recent survey by Pew Research, U.S. broadband penetration has grown to 87 percent among adults who access the Internet from home. Access to high-speed connectivity is so prevalent today, it is hard to remember the days of dial-up; but dial-up was what original virtual contact centers had to use for their operations. Fortunately for companies seeking to harness the power of a distributed workforce, the rapid expansion of broadband access to even the remotest areas of the country allows virtual contact centers to employ professionals and route data nearly anywhere in the U.S.

• Security
  Security-focused technology requirements, such as PCI DSS criteria, have also helped virtual call centers keep up with the growing number of industries seeking the benefits of the at-home model. Take, for example, the financial services market. More than 75 percent of Fortune 500 financial services companies, including retail banks, credit card companies, mortgage providers and insurance carriers, are currently using or are considering using home-based customer service agents. This mainstream adoption has been fueled not only by the model’s compelling value proposition, but also because virtual contact centers can protect highly sensitive information even better than traditional brick-and-mortar centers. Sophisticated security systems deployed by virtual centers feature, for example, 100 percent call recording, co-located data centers, centrally controlled remote endpoints, and multiple telephony suppliers. These items, coupled with PCI compliance and a more educated and experienced workforce, provide extreme customer privacy and reduce the risk of security breaches.

In summary, keeping up with new technologies is both difficult and exciting. Ten years ago, the technology didn’t exist to fully exploit the advantages of the at-home business model. Over time a convergence of accessibility and affordability has created what can only now be described as the era of the virtual call center. Businesses of all sizes have realized the at-home model provides the best overall solution for extraordinary customer care. It’s time to take a look at how it can benefit your business as well.