1. Customer Care Operations Anxieties: Cost, Quality, Control & the Role of the Outsourcer Presented by Joe Feldkamp Senior Manager, Business Development

2. ©2003 Convergys Primary Anxieties to Outsourcing Care Operations Cost Quality Control  No one can know my business or customers as well as I do.  If I outsource my care, I lose control of my data and ability to anticipate my customers’ wants and needs.  Outsourcing can’t possibly be a less expensive alternative.

3. ©2003 Convergys Balancing Cost, Quality, and Control Wants & Needs Analysis Conducting a true needs assessment What are the client’s strategic priorities for care? Is care a core competency? What does the client want to accomplish? How do they want to get there? What is truly important vs. nice to have? Optimal Program Mix

4. ©2003 Convergys Is it Really all About Cost?

5. ©2003 Convergys How Do We Measure/Define Cost? What are the typical costs? What is typically left out? This is a representation based on a tier 1 North American wireless company.

6. ©2003 Convergys How does an Outsourcer drive down costs? Fewer live agent interactions through increased self service Shorter handle time Less idle time Less time spent in training, team meetings, etc. Fewer repeat calls Greater productivity Market/site selection Offshore services Recruiting and training practices that reduce cost of acquiring labor Manage attrition Lower cost of labor Lower infrastructure, technology & telecom costs Higher facilities utilization Contact center core competency Scale of support personnel Scale of operations Reduce operating costs Reduce capital costs Guaranteed cost savings

7. ©2003 Convergys Where Do the Cost Savings Come From? People 30% Defined program performance management Agent desktop performance management tools Attendance IVR Timekeeping system Recruiting/training Technology 20–25% Proprietary integration capabilities Contact center automation Computer telephone integration Desktop Manager Intelligent call routing IVR / advanced speech recognition (ASR) Web self service Processes 15–20% Best practices Quality model Customer satisfaction tool Self service channels Streamline call flows Scale 15% Facilities utilization Scale efficiency Consolidation Labor costs 15% Market selection Recruiting Typical Breakdown of Cost Savings

8. ©2003 Convergys Operating and Capital Expenses Clients need to reduce & better define Operating Expenses (OpEx) Clients need to eliminate Capital Expenses (CapEx)

9. ©2003 Convergys Isn’t it Really all About Quality?

10. ©2003 Convergys How Do We Define Quality? Security. Confidence in the secure transaction and storage of customer/account information. Reliability. Ability to provide consistent support and service around customer needs in all types of business scenarios. Redundancy. Ability to seamlessly shift interaction from one center to another with no impact on the service level or type. Scalability. Capable of ramping or declining support and service per customer (peak and valley) demands. Training. Leveraging cross-trained agents to facilitate multi-functional roles (service, sales, marketing, etc.) within the enterprise. Industry expertise. Having industry specific knowledge around customer facing business processes.

11. ©2003 Convergys How Does an Outsourcer Impact Quality? People Agent recruiting & training that targets performance quality Agent benefits & incentives that improve retention Performance management that enables agents to improve Technology Proprietary integration capabilities that minimize risk Knowledgebase technologies that improve data utilization Interactive alert technologies that reduce cost and drive revenue growth Web self service that reduces inbound call volume Processes Continuous improvement process that drives down cost Quality model that improves best practices Customer satisfaction tool that measures and reports in real-time Fewer live agent interactions through increased self service Shorter handle time Less idle time Less time spent in training, team meetings, etc. Fewer repeat calls Greater productivity

12. ©2003 Convergys How Does Quality Boost Revenues? Increase and retain customer base while driving new revenue growth Identify new revenue streams Typical 20 - 40%+ more revenue vs. in-house Reach more prospects Outbound programs Interactive alert technologies Access to customer prospect lists Better retain customers First call resolution focus Save programs Agent training Call routing technologies Agent benefits & incentives Agent desktop applications Intelligent call routing Continuous improvement Greater up-sell / cross-sell Convert more prospects Customer scoring & segmentation Data warehouse Demographic profiling Agent recruiting & training

13. ©2003 Convergys Or, is it Really all About Control?

14. ©2003 Convergys How Do We Define Control? Customer and brand ownership? Program management?  Accountability –Business continuity planning and execution –Financial stability of the vendor  Access to a management dashboard

15. ©2003 Convergys Business Continuity Planning and Execution It could happen to you…… Natural disasters and unforeseen accidents

16. ©2003 Convergys Financial Stability of the Vendor Indicators of financial stability –Conservative executive management –Strong balance sheet Cash to debt ratio (12-20%) –Breadth and depth of their client base –Long-term client relationships –Vertical-specific industry experience –Outsourcing experience

17. ©2003 Convergys What is a Management Dashboard? Real-time, Customizable Reporting Tool –Information at your fingertips –Retention of detailed data –Built-in to IT infrastructure –Accessed via secure URL What information should be available? Key Performance Indicators (KPIs) System availability Customer satisfaction First call resolution Average wait time Average handle time Agent utilization rates Churn rate

18. ©2003 Convergys Balancing Cost, Quality, and Control Optimal Program Mix

19. ©2003 Convergys Anxieties vs. Reality Cost Quality Control  No one can know my business or customers as well as I do.  If I outsource my care, I lose control of my data and ability to anticipate my customers’ wants and needs.  Outsourcing can’t possibly be a less expensive alternative. Reality – A credible outsourcer will provide a team of experienced, industry specific professionals to better manage your program. Reality – A credible outsourcer will deliver exemplary program management and accountability. Reality – A credible outsourcer will guarantee the promised cost reductions.

20. ©2003 Convergys Thank You! Joe Feldkamp Senior Manager, Business Development Convergys Corporation +513.723.3777 +513.608.7423 (Mobile) +513.784.2505 (FAX) joe.feldkamp@convergys.com