Say it quietly if you like, but businesses are grown and maintained through increases in customer numbers and/or customer value. Undoubtedly cost management is also a critical factor, but ultimately sales and retention activity that provides topline growth is critical to ongoing success and business value.

We all know that the chances of winning or retaining a customer are increased when you provide a great product or service. And that those who deliver, not just on price but perceived value, are in prime position to pick up customers from competitors when they do not.

Yet many businesses are focused on the potential cost savings that could be achieved through AI and automation. Have they have lost sight of the potential benefits of delivering a personalised service and those golden opportunities to encourage a customer to buy more or stay for longer?

Are you getting the best sales through service opportunities from AI and automation?

There are two key scenarios that could be playing out for many organisations, both B2B and B2C. Either of which could be limiting sales success:

1. The technology is doing great stuff

Customers are getting the service that they need in the moment they need it. Which means the brand is working on the assumption that because they’re well-served, they will come back to buy more. However, they are not engaged with these customers, they are simply dealing with their admin when they need to and as a result are being passive in their habits. This may work for on a number of levels, and it is reducing the cost to serve. However, is this a step away from brand bypass, as ultimately a gap in the connection with customers will result in them moving on when they see a better offer?

2. The technology isn’t hitting the mark

Customers are trying to resolve their issues, but are struggling. The automation or self-serve models don’t provide the right options and/or have no ‘way out’ for customers and as a result they become frustrated. So at the first opportunity, they are going to look to an alternative brand.

The examples are out there in key sectors.

Ofgem March 2024 data 

Harder to contact and less satisfying to deal with?

Despite and improving picture, the latest Ofgem data shows that 16% of customers find it difficult to contact their supplier, up from the low of 10% in Q1 2019.  Meanwhile, the same Ofgem data suggests that overall satisfaction with customer service across the energy industry currently sits at 66%, down from the peak of 74% seen in Q2 of 2020.

What’s more, the latest UKCSI data shows utilities performing the poorest with a score of 69.8. Telecommunications and Media brands are doing a little better at 73.3 (though down from January’s 74.7), but are still some distance short of the podium positions achieved by Retail (non-food) at 80.4, Tourism at 79.3 and Banks & Building Societies at 79.3. However, we can see drops in satisfaction across the board.

Could automation be contributing to those less satisfying experiences?

UKCSI data from earlier in the year tells us that for 53.7% of automated contacts, the customer still needed to speak with a human being.

Equally concerning, though, was that neither AI/chatbot or customer service employees are managing to resolve customer queries more than 54.2% of the time, as seen in the January results. Quite the damning indictment.

Consider also that 45.4% of customers would avoid using an organisation again due to poor use of technology.

Clearly there is work to be done.

Companies with higher customer satisfaction show stronger growth

But what is the impact of this on a brand’s fortunes? Is the 2-point drop in score for Telcos material?

Research in the UKCSI report from January 2024 shows that between 2017 and 2023 “companies with customer satisfaction at least one point higher than their sector average achieved stronger revenue growth”.

With c.80% higher compound revenue growth, 6.6% higher EBITDA, more than double the operating profit margin and a whopping £283.9k – more than half as much again – revenue per employee on the table for that increase of just one point, the importance of customer satisfaction to both the topline and the bottom line is stark. On the other side, the virtual lack of revenue growth and much reduced operating profit margin for 1-point lower puts into context the plight of Tourism, Leisure, Insurance, Public Services and the rather more beleaguered Telcos.

The same report highlights that 27.6% of customers who score an organisation 9 or 10 out of 10 for overall satisfaction will look to buy other products or services from them, whilst 20.8% of customers scoring 1 to 4 will spend less with the organisation and 41% scoring them at 1 to 4 will avoid dealing with the organisation again in the future if possible.

And so, it is easy to see why investment in customer service is critical to the success of an organisation. Why an organisation should be – and hopefully is – highly focused on it. And why a pure cost-reduction focus for automation or AI is short-sighted.

While these numbers tell quite the story, let’s assume things are the right side of the line service-wise, whether through AI or not. The next question then is, are you following up with the appropriate sales activity to effect further topline growth?

Are you ready to pick up the sales baton?

Effective sales operations depend on 7 key factors for growth, the same apply to both sales team and those required to deliver sales through service:

1. Access to the best people with the necessary sales and communication skills,
2. Clear reward and recognition structures with incentives, creating a culture and environment which encourages growth,
3. Appropriate product knowledge and ongoing team development, ability to handle objections effectively and to share learning to advance the performance of the team,
4. Effective technology which the team can leverage to access customer insights, understand which are the best customers to be contacted, when to contact them and what solutions to offer,
5. Practical approaches to sales compliance, which provide clear guidelines but can be managed without excessive burden to managers, allowing sales to be signed off effectively and if necessary, learning applied in a timely manner,
6. Ability to manage data and reporting to maximise sales opportunities which benefits the organisation, the sales agents and also the customers through ensuring access to right information at the right time,
7. Understand market conditions, customer behaviours and how your team needs to react to these.

If just one of these seven isn’t working too well, sales will suffer. But so may customer service or perceived value. For example, an intrusive offer in the middle of a customer complaint is likely to occur as unempathetic and may see the customer running for the hills. A well-handled complaint can increase value – or at least maintain it.

A colleague described a recent interaction about a problematic return with a well-known retailer, where mid-conversation they were invited to look at product that may interest them. Unsurprisingly, their reaction was not to immediately head to the link to browse, but instead to give a sharp retort – and then tell anyone who cared to listen how annoyed they were.

Not only did the retailer not make the sale, they likely turned the customer off. An excellent example of numbers 1, 2, 3, 4 and 7 (at least) not working. Not only was it bad scripting and a lesson in not what not to do, it may speak to overly aggressive reward structures and an environment that favours sales over growth. The nuance of which is important and why point four is critical – this was not the best customer to be contacted in this way at that time.

The same colleague similarly experienced rather odd service (from a Telco…) in store recently, where a service conversation without a satisfactory outcome turned to an attempt to upsell on a different product, followed by a recommendation to leave the brand for the product where the service outcome was unsatisfactory. Quite the rollercoaster! And no doubt an experience driven by a particular sales focus that the brand’s managers would be horrified to learn they have – let’s hope – inadvertently incentivised.

Picking your moment to turn service into sales is critically important and relies heavily on the skill of the individual, their training and incentivisation, supported by culture, technology and management.

With so much focus on customer service, do you have the need, will and capacity to optimise sales?

Great agents who can both serve and sell can be hard to find, and can be even harder to retain..

The use of technology and automation is increasingly expected for customer service – and rightly so, simple service issues don’t need complex solutions. But they do need human intervention when the service question isn’t simple, or the automated response fails. Or perhaps when a sales opportunity requires a more personal service.

The ability to deal with customers, their nuanced needs and when selling, their objections, still has a high level of dependency on human interaction.

Yet the data from Ofgem and UKCSI both illustrate that customers are frequently frustrated by both automated and agent interactions. Service delivery in many sectors is still some way short of previous highs, meaning there are still gaps to fix in customer service before you can even think of perhaps selling.

And to some extent, when improving customer experience can deliver increased revenue, getting the basics of service right first is a significant route to growth and building value – whether you agree or not about whether they ought to be, measures such as revenue growth, EBITDA and revenue per employee are important to investors and share price.

How you achieve optimised service, then layer on sales through service or even pure sales activity is a significant question. Each have their own challenges, but successful outcomes add up to an organisation that both sells to and retains customers optimally.

Traditionally, contact centres have relied on a somewhat impersonal approach to assigning agents to clients. This method, often arbitrary and based on immediate agent availability, overlooks the potential of personalised interactions. Such a lack of customisation can result in missed opportunities for both agents and clients, leading to inefficiencies and general dissatisfaction. Personally, I think it’s time to move beyond this one-size-fits-all strategy and embrace the uniqueness of every individual involved.

Embracing the power of AI and Human connection

The integration of AI into your contact centre offers a promising solution. By analysing vast amounts of data, including historical interactions and behavioral patterns, AI can intelligently match clients with the right agents. This strategic pairing goes beyond mere transactions, aiming to create meaningful relationships where both parties find value and understanding. It’s about rekindling the human element in every conversation, ensuring that each interaction is not just efficient but also genuinely engaging.

A smarter approach

Technology should enhance, not diminish, human connections. Every individual has a unique mosaic of needs, desires, and dreams. Our mission is to foster meaningful work by appreciating and understanding this individuality By acting as matchmakers, we ensure that agents find joy and meaning in their work, leading to more positive and successful engagements with clients.

For agents, this approach transforms each workday into an opportunity for meaningful interactions. For clients, it ensures a more personalised and less stressful experience. And for leaders, this synergy between well-matched agents and clients not only streamlines workforce management but also enhances team engagement and success, contributing to the overall achievement of organizational goals.

The competitive advantage: valuing people

In a market where differentiation is key, the unique personalities of our people, combined with innovative matching technology, stand out as the competitive advantage. This focus on positive engagement and deep human connections within the corporate environment leads to enhanced profitability and a distinctive market position.

Final thoughts

The contact centre industry is poised for a significant transformation through the integration of AI, with a focus on enhancing human connections. By moving away from impersonal assignments and embracing a more strategic, data-informed approach, we can significantly improve agent satisfaction, client experiences, and overall success rates. Our commitment at Bestpair is to lead this change, ensuring that every interaction is not only successful but also truly enjoyable, reaffirming the undeniable value of meaningful connections in the modern workplace.

If you’d like to find out more, get in touch.

Starting 2023 without the spectre of pandemic lockdowns, but instead with the uncertainties related to Brexit, the recession, industrial action and increasing energy prices, means maintaining a team of people with the capability to deliver against your business objectives is critical. This may be the number one challenge, along with managing increasing business costs.

Running effective sales operations has never been easy and I’m not sure this will change anytime soon. Delivering the buzz of a thriving sales environment can be tough. Costs are increasing; people, heat and light all cost more than they used to. So, when contacting a customer or potential customer, are you making the most of the opportunity?

For those buying data there has always been the question of when to give new agents the good quality data. Do you save the good stuff for when they have learned their craft and making more sales? However, this may risk agents losing heart by working through sub-optimal data and as a result, prolong improvements in competency.

Most commonly, people associate Contact Centres with the long-established, bums-on-seats “cost plus” model, where clients are charged based on the cost of agents plus overheads and a margin, for an agreed contract or campaign period.

However, our industry is changing. You only have to read some of the articles on CCP’s News pages to understand that the dynamics around the introduction of automation technologies, the need to add value and planning for the future mean that traditional commercial models have to be challenged by Contact Centres and clients alike, to achieve the best results going forwards. If clients and are going to keep customers happy and Contact Centres are going to remain profitable, the charging regimes need to reflect the clients’ desired results much more closely.

To get a perspective from within the industry, we looked back at some research from within the sector and spoke to David Gauntlett, Managing Director of The Prospect Factory.

The Prospect Factory is a business built on outbound calls aimed at generating leads for business-to-business (B2B) clients. David set up the business in 2008 following a number of years in the Contact Centre industry, where he’d worked to generate sales leads for some of the biggest brands. Initially, on the client side for large automotive brands, David employed telemarketing agencies using a traditional retainer model and became frustrated that the charging models didn’t always reflect performance. As a result, he chose to set up The Prospect Factory to focus on results-oriented lead generation for clients who preferred to pay for qualified prospects.

David’s perspective should give some food for thought if you’re thinking of moving towards a payment-by-results model… although it’s important to remember that not all campaigns are outbound lead generation, so there are clearly environments where other commercial models will work best.

What makes a pay-per-prospect model different?

David explains: “We use a pay-per-appointment low risk telemarketing model to get appointments for our clients’ sales teams. This contrasts with the fixed price per day or hour that most Contact Centres charge, regardless of success.

“We agree in advance what a good prospect appointment looks like and we audit against those criteria, so we only send results to the client if they meet those criteria. Then our clients are billed per appointment each month. Any appointments that get cancelled are rebooked, ideally, or credited if we can’t reschedule them.”

As you’d expect, every appointment-generation job has a different level of complexity and difficulty, so the commercial model has to be adapted to reflect the client’s needs and the characteristics of the prospect audience. David gave us some examples, but it’s vital to use experience and industry knowledge to set pricing and expectations, which is where an in-depth knowledge of the client’s sector can be very handy:

“The price depends on the difficulty of the task. In the automotive industry, for example, there is a wide range of prices per appointment, averaging less than £300 but ranging as high as £700 for the most complex (but most rewarding) appointments.

“It’s also possible to have a tiered approach, where a lower price is charged, for example, for a webinar or conference call for a smaller opportunity or more exploratory sales conversation. This reflects the size of the opportunity or the stage in the sales funnel.”

What types of client do cost-per-result models suit best?

“Any business with a tangible product offering which salespeople need to be outselling can benefit from a cost-per-appointment arrangement. The salaries earned by salespeople in high value markets mean that their time is not well used prospecting – they can add value much more effectively when they’re in front of their targets having sales conversations built on high quality, qualified appointments.

“There are many sectors that don’t suit the model though. These include the Telecoms, IT and Software, Management Consultancy and other sectors. Also, it’s virtually impossible to apply a cost-per-appointment model to any sector that isn’t B2B as there simply isn’t the value per sale to justify it.”

Considering newer commercial models

David’s opinions about the future are worth noting: “The Contact Centre and Outsourcing sector is fairly settled, with most large operators continuing to price on an hourly retainer basis. It’s not very easy to find a great Contact Centre that’s happy to charge on a per-success basis. I don’t envisage much change in the short term, because the traditional retainer model is what most Contact Centres have built their business around. It’s what they do and it’s what they’re going to prefer to carry on doing.

“That’s what makes businesses like the Prospect Factory different. We’ve built our business on a cost-per-result basis and whilst that makes us careful about who we work with, it’s what makes us different and the right match for our clients.

“There are some very useful extensions to the cost-per-success commercial model though. Contact Centres like ours are also able to offer complementary services such as mid-life customer retention calls, renewal solutions for clients with near-expiry customer contracts, and customer satisfaction calls. These all build on the positive strengths of our pre-sales appointment-setting work and add value for clients who are looking to maximise returns from their outbound Contact Centre work.”

As well as the value-adding outbound services mentioned by David, there are a number of other commercial charging models that can be applied to Contact Centre and Outsourcing work. The right model to choose depends on factors such as what a good result looks like, agent availability, industry served and the length of the campaign/relationship, but typical examples include:

• Cost plus – The more traditional approach, agent costs plus overheads plus margin, based on volume forecasts and agreed in advance;
• Unit pricing – Per call/second/minute/incident – or per appointment/sale. This model can also be adapted by volume steps or complexity levels e.g. Lower cost per sales call than for a full meeting
• Fixed price – Typically per agent hour, especially useful for inbound work
• Incentive based – Per sale/appointment, but also rewards for other metrics such as First Call Resolution, Time per call etc. Payment for results, not for time
• Gain sharing – The client and outsourcer share a proportion of the results or cost savings, often beyond a minimum threshold
• Managed service – A fully customised payment regime based on client/outsourcer partnership agreement

How can Contact Centre Panel help?

At the Contact Centre Panel, it’s our role to find the perfect match between a client’s needs and a Contact Centre’s strengths. Ultimately all negotiations about commercial agreements are between the client and the outsourcer, but we are able to help in a number of ways.

At the outset of working with any client, CCP holds a consultative discussion around the pro’s and cons of various commercial models which might be able to meet the client’s needs. The general commercial terms of engagement are then set out and reflected in the brief we send to appropriate members of our Network of over 80 Contact Centres and Outsourcers. We’ll only approach businesses that can meet the needs of the brief, including the commercial model/s chosen.

We’re profiling all of our Network Members to establish which of our 80+ partners can satisfy a wide-ranging series of client requirements, from commercial models to compliance, from lead generation to excellent customer service.

It is important to us that our clients are able to compare potential partners fairly. We carefully prepare our briefs to ensure that apples are compared to apples, that fair comparators are included in our brief so that results are expressed properly.

Following receipt of responses to the brief, CCP collates all commercial solutions in a comparative matrix, allowing the client to compare like for like. Within this stage of the process, CCP will point out any obvious anomalies. This gives our clients the best possible information to choose their preferred Contact Centre partner, to meet their own specific needs. One size does not fit all!

If you’re not sure whether your Contact Centre is meeting your needs, talk to us here at The Contact Centre Panel for an unbiased review of your current status – just contact us by email or call 0114 209 6120 to talk about your needs. We won’t push: we will only help if you need it.

Keep in touch

Follow CCP on LinkedIn for regular industry news and updates. It’s not all about us! Just look at our website’s News & Publications page for many more helpful articles.

To find out more about working with the perfect partner for your business, give us a call on 0114 209 6120 or contact us using the form on our website.

We spoke to two industry stalwarts from very different Contact Centres and asked them about their approach to B2B work. Anne Bagnall is Managing Director of Phonetic Limited, a flexible Contact Centre with a core of B2B and some B2C clients amongst the client list, allowing her to give an all-round perspective. Paul Fletcher is MD of CC33, a boutique Contact Centre focused on inbound and outbound B2B calls including appointment setting and lead generation, working hand in hand with clients to deliver and end-to-end solution. These two industry leaders shared their experience and honest opinions with us.

B2B versus B2C – How is Business to Business Contact different from Business to Consumer?

When most people think of Contact Centres, they think of B2C outbound contact and customer service. There’s no doubt that Consumer contact is a huge and important slice of the industry, but Business contact remains a consistent and rewarding area for Contact Centres possessing the right mix of skills, experience and tools. We put three key questions to our B2B experts to identify what it takes to provide a top-level outsourced B2B Contact service.

What are the biggest differences between your approach to B2B Contact, compared to your experience of B2C work?

Anne Bagnall talked about the sheer lack of knowledge and familiarity of B2B brands and buyers with regard to potential outsourcers: “The biggest B2C brands have used Contact Centres for years – they know the outsourced providers and the outsourcers tend to know them too. B2B clients tend to be nervous because the business has tried and failed to do the work before and is looking at outsourcers to fix the problem. Quite often the clients look for a Cost Per Acquisition or some other kind of risk & reward model, because of this nervousness.

“Typically B2B work uses a much lower number of seats than a B2C contract: 8 seats can be a large team for B2B! Despite the smaller teams, much more hands-on management is used than for B2C teams because the approach tends to be less formulaic and more flexible. Smaller, more targeted audiences mean that a very proactive approach is needed. It’s not an easy environment but with a high ratio of management per agent and a close relationship with clients, we can achieve great results.

“On a positive note, good B2B clients enable you to put roots into their organisation. We have a list of very long tenures, ultimately down to building relationships on trust and performance. This means we can deal with challenges together, like last year’s introduction of GDPR for example. The close working relationship that’s needed to achieve good results can really help to grow successful partnerships with clients.”

Paul Fletcher’s experience is slightly different, but there are definite common threads in the conversation: “We find it important to be extremely realistic with our B2B clients. We’re very heavy on our management ‘mothering’ clients but by working closely, we can really improve the results clients receive compared to initial expectations.

“Working with B2B clients on a closely-managed cost per hour basis, we can build a value-led quality assured operation, which isn’t often possible with the cost-per-acquisition model.

“One huge benefit of working in B2B markets is the availability of enhanced data. GDPR has helped, but in B2C sectors you can’t usually obtain extra data about the risk of a contact. For B2B data, on the other hand, we can check for financial indicators which can be very important when it comes to leads moving through our clients’ sales funnels… by checking for financial risk information up front, we can maximise the convertibility of leads we pass through.”

Why do you think more organisations don’t outsource B2B Contact work?

Paul from CC33 echoed Anne’s earlier comment when we asked this question: “Fear. Many buyers have been burned before. What most buyers don’t know is that the industry has changed a lot from a ‘bums on seats’ model with high client churn between Contact Centres, towards a much better appreciation of what really works for B2B clients.

“Potential clients aren’t always aware of the extra things a good Contact Centre can do to help a B2B brand achieve better results. Great data quality, transparency and working hard together with the clients to find the right approach can all make a big difference. Being up front with the client about how they can influence the results is important, too. It’s our job to make our buyers look good!”

Anne Bagnall identifies some different reasons that B2B operations have for keeping things in-house; “Some brands may have already built a specialist in-house team. If they’ve done this, there are barriers to disbanding this and if the work is done well, it can be cheaper than outsourcing. On top of this, there can be perceived loss of control when thinking about moving an in-house operation to an outsourcer.

“On the other hand, some clients already have a good in-house operation but don’t have capacity to expand or handle spikes in activity. This is where a good outsourced Contact Centre can help by adding a layer of lead generation, passing or hot-keying leads to the internal team and improving their success rates.

“As outsourcers, it’s our job to educate B2B organisations about how the right outsourcers can enhance an in-house team, rather than offering a complete alternative to it.”

Is there such a thing as a perfect B2B agent, as opposed to a B2C agent?

Anne from Phonetic uses agents on both B2C and B2B contracts, so she should be in a good position to compare the best characteristics needed to succeed in each area. “For B2B work the perfect agent shares many traits with a good B2C agent, but some are more important for business contacts. Someone who is intelligent and has a lot of common sense will work well in both B2B and B2C work, but an ability to listen and communicate well is great for B2B work because agents need to rely much less on scripts and more on a less structured call guide. The flexibility to adapt to training and guidance is more essential in B2B environments as conversations tend to be more exploratory and less scripted.

“Talking to business contacts whilst they are working can actually be much less stressful than B2C work when it’s done well, as the business people a B2B agent is calling are in their work environment rather than at home trying to avoid calls. A polite and articulate agent might have to arrange another time for a conversation, but finding a better time can result in a positive outcome, so it’s often worthwhile establishing a rapport over a longer timescale.”

What Does This Mean For B2B Organisations?

With B2B-specialist skills in evidence in some established Contact Centres, outsourcing is definitely an option for B2B brands who are considering a new approach, or who need additional capacity to help their existing team to meet demand. Adding a layer of lead generation or qualification is also a real option to improve the performance of an already-successful internal contact team.

Knowing which Contact Centres possess great B2B competence and infrastructures shouldn’t be expected, thankfully here at The Contact Centre Panel it’s our job to make sure that Brands and businesses find the best Contact Centres to meet their needs. An in-depth knowledge of the sectors we work with, coupled with our rigorous selection process and network of over 80 outsourced Contact Centre providers, means that we can work with brands in B2B environments to find the right partners.

We offer a free, no-obligation assessment of your current Sales and Customer Service Contact provision, so just contact us by email or call 0114 209 6120 to talk about your needs. We won’t push: we will only help if you need it.

Keep In Touch

Follow CCP on LinkedIn for regular industry news and updates. It’s not all about us! Just look at our website’s News & Publications page for many more helpful articles.

To find out more about working with the perfect partner for your business, give us a call here at Contact Centre Panel on 0114 209 6120 or contact us using the form on our website.