1. Using Interactive Voice Technologies to Reduce the Burden on IS, Customer Service and Finance Utility Payment Conference

2. What is an IVR? An Interactive Voice Response system (IVR) is essentially a man/machine interface Uses the telephone as an interface tool to add information to and extract information from an existing data base

3. Goals Maintenance of Staffing Levels (not replacement of existing employees) More Effective Use of Customer Service Representative (CSR) Time and Effort Expansion of Service to Nights and Weekends Expanded Report Capabilities and Record Keeping Improved Customer Contact and Communication Reduction in Late Payments and Subsequent Disconnects for Non-Pay

4. CSR Tasking The average CSR handles many types of transactions during an eight hour day. Among those transactions are: Account inquiries Payment collection and terms – Includes Credit Card and E-Check payments General information Connects, disconnects and re-connects Call direction/transfer

5. Time is Money The average CSR works 238 days per year Research shows that the average call length of a customer call is 3.3 minutes Results: a CSR at 90% efficiency can handle approximately 17 calls per hour or roughly 191 calls in an eight hour day (less lunch, breaks, etc.) Annual call handling capability, as a result, is approximately 28,322 (17 1x 238 days) per CSR.

6. Time is Money Estimated Total Hard Cost of a CSR Annually Cost Category Compensation (Wage/Salary) Hourly Compensation (Wage/Salary) $10.00$15.00$20.00 Annual Compensation (Wage/Salary)$20,800$31,200$41,600 Employee Benefits (40% of Compensation)$8,320$12,480$16,640 Employee Training (Estimated 5%)$1,040$1,560$2,080 Employee Overhead (Estimated 15%)$3,120$4,680$6,240 Total Annual Per Employee Cost$33,280$49,920$66,560

7. IVR Call Handling Comparison A standard keypad activated IVR typically handles customer service calls in 1.5 minutes. That means that each telephone line connected to the standard IVR can handle 40 calls an hour. 40 calls times eight business hours per day, times 253 days [non-weekend and non-holiday days], totals 80,960 calls per line annually.

8. Adding Voice Recognition With voice recognition: average call length is 52 seconds – Requires customer familiarity with the system As a result, each telephone line can handle 69 calls per hour or, using the same calculation done for the standard IVR, 139,656 calls annually.

9. Results More calls answered with fewer employees Less organizational overhead Allows Customer Service Reps to spend more time handling the more difficult customer calls Increased customer service

10. Time is Money Average Cost of an 8 port IVR = $42,000.00 Resource Cost$32,687$42,000 Annual Calls Taken 28,322161,920279,312 Per Call Cost$1.15$0.26$0.15 Relative Cost100%23%13% Calculation of Per Call Cost Customer Service Standard IVR with Voice Representative IVR Recognition

11. Per Call Cost Over Ten Years Customer Service Standard IVR with Representative IVR Voice Recognition 1 st Year Resource Cost $ 32,687$ 47,250 2 nd Year Resource Cost$ 32,687$6,300 3 rd Year Resource Cost$ 32,687$6,300 4 th Year Resource Cost$ 32,687$6,300 5 th Year Resource Cost$ 32,687$6,300 6 th Year Resource Cost$ 32,687$6,300 7 th Year Resource Cost$ 32,687$6,300 8 th Year Resource Cost$ 32,687$6,300 9 th Year Resource Cost$ 32,687$6,300 10 th Year Resource Cost$ 32,687$6,300 Cumulative Resource Cost$326,870$103,950 Adjusted Annual Cost$32,687$10,395 Annual Calls Taken28,322161,920 279,312 Per Call Cost$1.15$0.064$0.037 Relative Cost100%5.5%3.2% NOTE: The $6,300 annual cost for the standard IVR and IVR with voice recognition reflects maintenance and support costs.

12. So……Should a utility replace all it’s CSRs with an IVR System? Absolutely not!

13. A Mixed Use Model A mixture of CSRs and an automated voice system with voice recognition provides the best (most effective) approach to providing high quality customer service for utility customers while holding the line on expenses for the utility.

14. CSRs offer effective service for: Handling complex situations such as complaints or exceptions to normal procedures Handling non-routine business that requires extensive research or other skills Completing transactions such as arranging for new service or purchase of utility products or services Handling customers who prefer/demand talking with a live operator

15. An automated system with voice recognition offers effective service for: Handling routine inquires and business transactions Handling calls during peak calling periods Handling calls during non-business hours (24/7 service) Handling customers who prefer quick response time over being placed on hold or operator assistance

16. Handling a variety of customer notification tasks such as past due notification, cut-off notification, load management notification and customer surveys Providing general utility information Marketing utility products & services

17. After Hours IVRs have the additional benefit of being available 24/7 Available: Nights Weekends Holidays Greatly impacts call loads Typically moves from 20% to 35% of call volume to after hours, reducing call loads during peak daytime hours Standard CSR time on line increases due to type of call being handled

18. IVR Misconceptions 1.My customers will hate it! 2.I have to use it all the time 3.I already have voice mail and automated attendant so I can’t add a separate IVR 4.I’m not manned 24/7 so there’s no one to monitor the system 5.Others?

19. Summary Customers – receive better customer service Customer service is consistent Utility – improves customer service while obtaining operating costs savings Employees – better utilized when helping customers, while free from monotonous inquires and tasks

20. Contact Information John R. Abrams Director of IVR Development john.abrams@milsoft.com 850.380.8275