The key to a successful revenue growth strategy may be closer than many organizations realize. Contrary to popular belief, contact centers play a mission-critical role in improving a company’s bottom line. Research shows that businesses that value contact centers as revenue drivers see up to a 20% increase in revenue, even in saturated markets.
The modern contact center has transitioned from call hub to revenue driver. So, how can organizations make the leap and capitalize on the benefits? Below is a breakdown of how to increase contact center ROI (renturn on investment) and the key KPIs (key performance indicators) that demonstrate its impact.
Contact centers are a vital part of revenue growth strategies
Many executives believe that contact centers drive up business costs, sucking the life out of the company budget. This is because many companies fall into the trap of separating tech support from sales. Or, they lack critical capabilities like omnichannel customer service.
The truth is, when done right, contact centers become revenue hubs. Contact centers are key to a good customer experience (CX), and a positive customer experience is vital to improving a company’s bottom line. Research shows that companies that prioritize CX double revenue growth compared to those that don’t.
Additionally, a well-run contact center can lower operational costs. It’s estimated that bad customer service costs global businesses $3.7 trillion annually.
So, how do contact centers help improve profits? Ultimately, contact centers’ ROI improves through a combination of upselling, improved customer service metrics and data-driven insights. Additionally, by improving customer service, organizations can lower business expenses, meaning they can save money that otherwise might be spent on the consequences of poor customer experiences.
How to boost contact center ROI
Contact centers are critical to success in oversaturated telecom and broadband markets, but how can businesses ensure they reap the benefits? Below are a few ways organizations can leverage customer service to boost contact center ROI.
Contact centers provide up-selling and cross-selling opportunities
Contact center agents are well-positioned to help a business increase its profitability. This is because they’re actively interacting with current customers.
It’s much easier to upsell or cross-sell to a current customer than to try to convert new ones. The probability of successfully upselling an existing customer is up to 70%, whereas the chances of selling to a new customer are only as high as 20%. This means focusing on call center upselling and cross-selling to current clients is a much more effective strategy for increasing contact center ROI.
Additionally, contact center agents are usually effective at upselling and cross-selling during customer interactions. 77% of agents say they can successfully upsell or cross-sell when handling support requests. This is because businesses already have credibility with their existing customers, making them more receptive to upselling and cross-selling opportunities.
So, what does upselling to existing customers look like in action? Let’s say a telecom customer calls in with an issue regarding their data plan. A contact center agent helping them might suggest a more comprehensive data plan that better meets their needs for higher data usage. Or, if the customer has recently bought a new smartphone, agents might suggest a protection plan or a compatible accessory.
The bottom line is that existing customers are more likely to buy from a business they already know. By ensuring the contact center provides a strong service experience, organizations can deepen customer relationships and turn the contact center into a valuable resource for increased revenue potential.
Improve customer retention through better CX
Improving customer retention is critical to higher contact center ROI. It’s seven times more expensive to acquire new customers than to keep current ones.
A first step to improving customer retention is understanding why customers churn. Often, it boils down to bad customer experiences. Some examples of poor customer service include lengthy contact center wait times, the inability to speak with a live representative and a lack of self-serve support options.
Customers who experience bad customer service aren’t giving brands a second chance. 96% of customers will leave after only one bad support experience. That’s why prioritizing good CX and customer retention is critical to improving ROI.
Given the importance of getting customer service right the first time, many organizations may wonder what steps they can take to improve customer retention. There are many examples of customer retention strategies that win customer loyalty and stop churn in its tracks.
For businesses aiming to decrease churn, a great first step is to consider using customer self-service to create a better experience. 77% of customers view a brand more favorably if the company has self-service options. By providing self-serve support, customers can get immediate resolutions to their ongoing tech issues. They don’t have to wait on hold for an agent, and can access support at any time of day or night. This is particularly critical for retaining Gen Z customers, with a whopping $360 billion in spending power.
Another critical step for improving CX is providing proactive customer service. Proactive customer support refers to anticipating customer needs before problems arise. It’s uncovering potential issues before customers become aware of them and providing solutions before customers need to take action. Proactive customer service is crucial for enhancing customer retention, reducing churn and lowering business costs.
Increase ROI through personalization
There are many advantages of personalized customer service. Personalization is key for increasing contact center ROI. Research by McKinsey found that companies offering personalized customer interactions can improve revenue by as much as 40%.
Customers crave service interactions that feel unique to them. 76% of customers report feeling frustrated by the lack of personalized interactions with brands. This suggests that companies that prioritize personalized experiences are well-positioned to deliver the level of service customers expect and strengthen brand loyalty.
There are several ways organizations can personalize customer service interactions. For example, one starting point is ensuring that self-service materials are available in the customer’s preferred language.
Consider a telecom business that serves provinces across Canada. If self-service tutorials are provided only in English, the company risks alienating the one in five Canadians who say French is their preferred language. By ensuring customers can access the support they need in the language they feel most comfortable, businesses create a more tailored service experience.
Another great way to deliver personalized customer service is by leveraging live video support. Undoubtedly, live video support is the future of customer service. Live video allows for more effective communication between customers and contact center agents.
For example, imagine a customer is having trouble connecting to their Wi-Fi. Without live video, they have to describe the location of their router in their house over the phone. This can lead to potential miscommunication and make it more difficult for the agent to troubleshoot effectively.
With live video, agents can eliminate the guesswork by seeing the location in real time. This enables them to provide faster and more accurate service resolution. It also helps them better guide customers through troubleshooting. Many live video support tools enable agents to draw on the screen or extract text from a device, allowing them to guide the customer through the necessary steps to resolve the issue. Given its impact on operational efficiency and customer satisfaction, the financial benefits of personalized support are too significant for businesses to overlook.
Quantifying impact: Key KPIs for measuring contact center success
Many organizations have diligently invested in their revenue growth strategies — setting up customer self-service options and prioritizing improvements to the overall customer experience. The next step is quantifying the impact.
So, how can businesses measure the value their contact centers are delivering? Below are a few essential contact center metrics organizations should be tracking:
- Net promoter score (NPS): How satisfied customers are with a service and the likelihood they’ll recommend a company to someone else
- Average handle time (AHT): Length of the average interaction between agents and customers
- First call resolution rate (FCR): A company’s ability to resolve customer service issues within the first interaction
- Customer retention rate: A company’s ability to keep customers after acquiring them
- Customer churn rate: The rate at which customers stop doing business with a company in a specific time period
Contact centers are now critical revenue drivers
The modern call center is no longer a drain on the budget — it has become a strategic asset for maximizing ROI, reducing customer churn and lowering operational expenses. By implementing the strategies outlined here and tracking key metrics, organizations can optimize their call centers to enhance profitability and stand out from the competition.
For those seeking additional guidance on using customer service to drive business growth, this free guide explores how to leverage customer support to boost sales, increase customer loyalty and reduce churn.
