Increasing Customer Satisfaction through Km Systems - Case Study Example

Increasing Customer Satisfaction through Km Systems Table of Contents 1. Abstract 2. Introduction 3. Problem Analysis 4. Introduction to Knowledge Management   5. Selection of an appropriate KM Tool 6. Improving Efficiency through KM Systems 7. Increasing Customer Satisfaction through KM Systems 8. Implementation of Self-Service Tools 9. Application of New KM Technologies 10. Cost Analysis of KM Systems 11. Rate of Return (ROI) Analysis 12. Conclusion 1. ABSTRACT  Knowledge Management is a technique that is utilized to collect relevant information from a set of data, enhance the value of that information, its fast delivery along with its efficient storage and maintenance. The purpose of the paper is to study the Knowledge management and its effects on the business of the Telus Call centre. The integration of KM with effective client service and support software and how KM can be implemented to increase efficiency, reduce costs, and enhance client satisfaction levels for the company is of basic significance to this study. A proper method and timing of KM implementation is significant for improving the profits for the Telus Call centre. In this case, KM is more closely connected to processes employed in the business operation rather to technology. After the selection of appropriate technologies, it is easier for managers to deliver as per expectations by applying KM to their processes. 2. INTRODUCTION  Telus is a leading call centre that caters to IT companies and serves as a contact centre for consulting services and systems /applications. The company also deals in providing IT and communication solutions to small and medium scale businesses. The company management strictly believes in the fact that its KM workers are under the constant pressure of facing complex interactions with the clients and therefore need to be well equipped. In order to satisfy the client / caller queries, the KM workers need efficient and fast resources.  As a result the Telus management has recommend new investments that focus on enhancing the productivity of the KM workers so that they can easily collect, segregate, create, distribute, and store information more efficiently. The main aim of this investment is to achieve the desired results related to company performance and promote the use of KM as a valuable intellectual property for modern organizations. 3. PROBLEM ANALYSIS Figures have recently reported to the Telus management that the business of the company has gone down by a staggering 15% during the last financial year. With new companies entering into the call centre industry, surviving with decent profit margins has become an absolute necessity for Telus. The management has proposed a series of strategies to enhance every operation front involved in the company business. Poor client communication and interaction methods, short termed marketing procedures, inefficiency and under utilization of existing company resources, have seemed to fail the business profits for Telus. The KM managers at Telus identified some common and major causes of low clientele and poor profits. Here are some of them: 1. Similar client queries are being given diverse response or complicated answers which has a negative effect on the client satisfaction and service standards offered by the KM workers 2. Poor and inefficient information sharing techniques between a.       KM workers and the management b.      KM workers and the client c.       Amongst the KM workers 3. Lack of IT intelligence tools that help to integrate KM with fast and efficient customer service. 4. KM workers have to deal with growing numbers and more complex of products without a proper backup support 5. Lack of proper training and guidance to KM workers for client interaction and resource utilization 6. New joiners are not productive for over a month 7. Very high call escalation rate from Level 1 to Level 2 8. Repeated research and extra time spent on common queries 9. High percentage of call backs to customers 10. Low client satisfaction 4. INTRODUCTION TO KNOWLEDGE MANAGEMENT   Knowledge management is a recognized business approach that has been able to achieve a lot of recognition in recent times. The main reasons are the escalating client demands and rising competition within the industry segments. Fresh and innovative ideas combined with some major alterations in business conducting procedures that aim to enhance client interaction is the main reason for the emergence of KM techniques and management approach. Every step / activity involved in the product development and delivery routine requires the need of an efficient information and distribution system to facilitate consistent flow and use of information. Well organized and competent sharing of resources and information is a successful method of reducing uncertainties in a business operation, (Broadbent, 2001). It makes it easier for the customer demand data to flow upstream from the sales point, and the product information to move downstream in a methodical manner. An effective information sharing and knowledge management systems guarantee that accurate information is available for the right business associate (KM worker in this case) in the right location and at the right instant of time, which ultimately helps to increase the operation chain visibility in any organization.   Information exchange through KM systems eradicates the delays that occur due to the client demand and the conversion of the client demand data into real time practical business data in the company. Also, KM systems help to closely evaluate the end customer sales data as a virtual forecasting of company profits and business. Experts have suggested three types of Information Sharing Structures - sequential, reciprocal, and hub-and-spoke, (Nonaka, 1997). 1. Sequential Information Sharing - In this type of information exchange through KM systems, the information output of one actor involved in the operations chain, will flow into the next actor as input. This form of sharing forms a sequential chain and is the simplest of all arrangements. In this case, since the flow of information is sequential, every two actors adjacent to each can set up their own information sharing protocols and standards without the need to set up a common universal standard for every actor in the chain.  2. Reciprocal Information Sharing – In this form of bi-directional information sharing, every actor is allowed to transfer information to many other actors that often causes a number of irregularities linking the information exchange centres. To decrease this abnormality and discrepancy in the information chain, it is necessary to synchronize and incorporate the activities involved in a proper manner.   3. Hub-And-Spoke Information Sharing - In this arrangement of information exchange, a central focal point of information is set up which can be regarded as the information “hub” for all types and directions of information exchanges. This central hub for information exchange acts as a virtual office assistant for the organization where all the employees and the clients can freely interact with each other. Knowledge management facilitates organizations in increasing the functionality, scalability, and dependability of modern information systems so that powerful database centres can be built for easy, fast and reliable information mining, sharing and distribution for business advantage, (Awad and Ghaziri, 2003). Combined with faster and accurate data mining and search options within the existing database, KM helps to analyze data in a much more efficient manner than ever before. 5. SELECTION OF AN APPROPRIATE KM TOOL It was the responsibility of the Telus managers to carefully select the best option for an appropriate KM tool for performance enhancements. Here are some of the issues that the Telus managers considered before deciding on a particular KM service / tool. 1. Integrating KM with Call management – The managers understood that KM alone cannot serve any good purpose. However, when KM integrated with efficient call management systems, it showed optimal results by saving time and costs. It helped the support professionals or the KM workers (who attend the client queries) to search the knowledge data base in relation to the case query (which was managed with the help of call management system, like detailing every call query, storing relevant information and searching relevant data). They were also able to close a case much faster with the help of information residing in the knowledge data base. 2. Offering diverse searching options – It was noted that many of the new joinees were not able to perform speedy and accurate searching through the knowledge database. Supporting them with KM tools like simpler search tools, keyword searches, common question searches, and Thesaurus helped them to learn faster and better. Also, for the trained employees, searches supporting Boolean operators, and other refined searches were offered via knowledge management, (Broadbent, 1999). 3. Leveraging current knowledge database – The databases at Telus call centre are mostly in the form of HTML, PDF or MS word files, which is basically unstructured form of knowledge which cannot be directly used by KM workers or support professionals. This data is converted into relational set of XML files with proper fields and titles for every case, date of creation, query, solution etc under different heads. This structured information is then loaded onto the server for the support professionals to deliver faster and accurate services to clients, (Miles, and Snow, 1978).  Also, enabling support professionals to capture and store new knowledge in the data base, easy and faster access to opening and closing case, storing all the relevant information of that case in a structured manner for future use is another form of Knowledge management that has been employed by Telus managers. 6. IMPROVING EFFICIENCY THROUGH KM SYSTEMS This section is dedicated to studying the procedure implemented by the Telus managers to improve the efficiency of the processes involved. It is important that all the client cases can be tracked in future, analysed and evaluated for performance and closed in a proper manner. The process of opening a case and finally closing it requires a number of steps which needs to be properly managed. Given below in brief are the steps involved: 13. Identification of the customer is stored in the database 14. A new case is opened with a unique ticket number / case identification number 15. Submission of query by the client to the support professional 16. Extensive research done by the support professional related to query 17. Identification of the solution by the support professional (in case he knows the solution) 18. Escalating the call to the next level support (in case he is not able to find the solution) 19. Details of the solution are documented in the client case 20. Support professional then conveys the solution to the online customer 21. Support professional may also give a call back /email reply if the customer has gone offline 22. On receiving his satisfactory reply regarding the solution, the case is closed.  It is very important to note that from step 1 to step 8, the customer continues to wait and therefore the cost of providing the solution increases. On many instances, either the customer puts down the call due to delay caused by the support professional in researching the query and this makes the support professional to make a call back to the customer which again increases the cost of finally closing a case.  In order to reduce the time spent in finding the solution, Telus management has implemented KM systems which assist the KM workers / support professionals to search for answers in less time. Here are some KM applications implemented for this purpose: 1. The KM system structures the database in the form of known problems and their solutions, which allows the support professional to find the solution right away. 2. KM systems offer diagnostic research format for the support professional. This is basically a checklist or tested procedures for confirming a type of query / problem. This decreases the time in problem identification. 3. On encountering a new problem, the problem is noted along with its solution in the database, which can be again researched by other support professionals as well. This stops the extra time that is wasted on a problem again and again by other support professionals. 7. INCREASING CUSTOMER SATISFACTION THROUGH KM SYSTEMS This paper has already discussed one of the two gaols of KM implementation in organizations, i.e. – reducing costs. The other goal of achieving customer satisfaction through the application of KM systems will be studied in this section. 1. With the help of a leveraged and diagnostics research format and Knowledge database, support professionals can offer quality and faster solutions to customers which increases the customer satisfaction. 2. KM implementation allows support professionals to reduce the call escalation rate to level 2 and are able to manage the query themselves, thereby making the customer avoid the second call or call backs. 3. KM also reduces the average call time by assisting the support professional in offering speedy and accurate services to the clients and thereby increases the number of calls each support professionals can take up in a day. 4. Regardless of which support professional assisted the clients, the clients get the same quality answers to the same question. This is done with the help of KM systems which document the solutions in the database. 8.  IMPLEMENTATION OF SELF-SERVICE TOOLS In this case, the management allows the customer an access to the knowledge database where the customer can solve their query on their own. However, the access to the knowledge database for the customers is restricted to a certain level. It is very important that the knowledge database which is to be used by the customer has a certain depth of knowledge along with trouble free instructions and uncomplicated language, (Birkinshaw, 2001).   Telus has recently initiated a customer self service department where the company has set up knowledge database for the customers on the Internet, company’s website and other special online forums. The client can log onto these database and search for solutions to their query. Most often the customers are able to trace out the solutions with the help of these simple and trouble free knowledge database. The self service support is available 24 *7 and if in case, the customer is not able to search for their solutions within the database, they are free to make a call to the support professional who then assists them in their query. Self service has noticeably lowered the number of calls and repeat problem calls from customers, thereby reducing the costly interaction of the client with the support professional / KM worker. 9. APPLICATION OF NEW KM TECHNOLOGIES This section will study the latest Knowledge management techniques and initiatives that have been implemented by the Telus management in order to augment the information exchange and inter communication levels between the KM workers employed at Telus call centre. 1. Setting up a Centralized Information Directory Service – The KM managers have initiated the creation of a central information system / directory for the entire company KM employees. This directory is an active real time service, which means that all the client requests and the KM workers response are stored and can be accessed in real time. This system is based upon the Active Directory service, which is a part of the Windows Server 2003 operating programme. This system also assists the managers to schedule the daily targets and routine of KM workers from a remote location also. This saves time as the managers can now spend more time in other activities (like employee training, and practical guidance) rather than sitting behind their computers and checking emails, routine schedules etc. 2. E-mail messaging system – With the intention to save time for the managers from checking their mails on their desks, the Telus management has come up with an email messaging system based on Microsoft Exchange Server 2003 which allows the managers to check their emails on their mobiles with the help of smart cards. This in turn assists them in becoming more mobile and contributing more time to their area management. at an average monthly rate, this system has saved 20 hrs for the management in total. 3. Peri Portal Knowledge Sharing System – This is a central intranet accessible information management system where all the employees of the Telus call centre can collect and share their views/ideas, concerns, respond to queries, search for answers, upload client related queries and find contacts. This technology used in building this system is that of the Microsoft Office Share Point Portal Server collaboration software, Microsoft SQL Server 2005 database software, and analytical software from ProClarity. This portal serves as a common platform for all and helps the employees to build a friendly network at workplace, (Newell, Bresnen, Edelman, Scarbrough, and Swan, 2006). 4. Knowledge management Via Cloud computing – in order to strive the stiff market competition, the Telus call centre management has decided to implement the latest technology for data storage and sharing purposes – cloud computing. The advantage of CC to the operations of the company are that it allows mass storage and efficient data management along with the freedom of easy access to data for its users (KM workers) at reasonable prices. The limitless data storage facility provided by the CC has helped Telus to broaden its clientele and industry portfolios by serving a variety of clients efficiently and securely manage their private and business information. The CC network is also adaptable to latest updating of soft wares as per latest trends.  Moreover, high speed connectivity in real time data access and environment flexibility has made it very easier for KM workers to enhance their performances. The latest addition done by the management in the CC services for the KM workers is the online collaboration and sharing of single and multiple data documents in an online networking 10. COST ANALYSIS OF KM SYSTEMS The basic aim behind companies investing in KM is to offer faster and proficient resources to their employee which fundamentally leads to decreased costs due to higher efficiencies. In the case of call centres and other support activities provided by companies like Telus, the main aim of KM is decrease the costs of various items so as to manage the rising costs of support activities. Here are some of the examples of how the costs were decreased due to the application of KM at Telus. 1. Decreased support call times - it was found that with the help of KM systems, that  professionals were able to execute fast and accurate data searches which satisfied the custiomer’s queries, open and close a case with efficiency, and at the same time devote lesser times to each call. This increased the number of calls a support professional attended and decreased the average cost of the calls for Telus. 2. Higher first call resolution rate – the support professionals are able to solve out more problems during the first call of a client with the help of a strong KM systems and database. This saves costs of callbacks and time that was initially spent on researching solutions for the case. Higher first call resolution rate also decreased the call escalation rate which means lesser calls were directed to level 2 / 3 which meant decreased costs for the management. 3. Higher productive value of new joinees – Giving a full back end support of knowledge data base, which is fast, easily search able and efficient has helped to increase the productivity of new joinees in the support department. This implies a faster rate of return on investments. The total of these cost reductions has made the annual expenses of the company to go down by a substantial margin and has given a right justification for implementing Knowledge management at Telus. 23. RATE OF RETURN (ROI) ANALYSIS This section will study the Returns that were made on the investment done by Telus management by implementing KM systems. In order to calculate the Returns on investment, cost of implementation of KM systems (which includes the cost of hardware / software, training of personals, infrastrurae set up etc) and the maintenance costs. The number used for forecasting the returns for Telus are not the factual or realistic figures, but are intended to study how the study on returns can be made in the case of Telus. Here are some assumed figures:          Total number of client cases attended by Telus – 50,000 / pm          Average cost per client case - $50          Average cost of an elevated case - $200.00          Average extra cost for a KM worker / support professional - $50,000.00          Average talk time with the client during first contact- 15 minutes          Average talk time in case of escalated calls – 16 minutes          Average time for a new trainee to become productive - 6 weeks          Average number of new joinees each year - 10          First call resolution rate is 40% As per the above assumed figures, the calculations are as follows: The average talk time with the client during first contact = 15 minutes 1. The average talk time with the client during first contact after KM implementation = 14m 2. Therefore, Improvement = 1 minute 3. Savings = cases per month * cost of each case * (Improvement time / talk time during         first contact) 4. Savings = 50,000 * $50 * (1/15) 5. Savings = $166666.67 per month   First call resolution rate = 40% 1. First call resolution after KM implementation = 60% 2. Therefore, Improvement = 20% 3. Savings = (cases per month * % improvement) * (The average talk time in case of escalated calls - The average talk time with the client during first contact) * The average cost per client case 4. Savings = (50,000 * 20%) * (16-15) / 15 * $50 5. Therefore, Savings = $33,333 per month % reduction in the number of Escalated calls to level 2/3 after KM implementation = 5% 1. Savings = (Cases each month * % reduction) * (Cost of each escalated call – Cost per case) 2. Savings = (50,000 * 5%) * ($200-$50) 3. Therefore, Savings = $37, 5000 Reduction in the number of weeks for a new trainee to become fully productive after KM Implementation = 3 weeks 1. Savings = ((reduction * number of new joinees each year) * (average extra cost for a KM worker / weeks per year)) / months per year 2. Savings  = ((3*10)*($50,000 / 52)) / 12 3. Therefore, Savings= $2403 per month  % improvement in the increase of calls directed to self service after KM Implementation = 10% 1. Savings = (% improvement * Cases each month) * Cost of each case 2. Savings = (10%*50,000) * $50 3. Therefore, Savings = $25, 0000  The total savings that were accumulated after the implementation of KM at Telus Call centre is = $877402.7 per month. This amount proved to be a real promoter to the company efforts in implementing an efficient Knowledge management system to support and guide the KM workers appropriately. 24. CONCLUSION Knowledge Management has indeed developed into an indispensable mean of improving performance and profits within organizations. As studied, in the case of the Telus call centre, Knowledge management has been proved to be highly successful with very high rate of returns due to increased efficiency and decreased operational costs.  With the help of well trained and proficient support professional work force, and appropriate support software, the Telus call centre was able to improve the support professional efficiency, increase client satisfaction and decrease the cost of service by a high margin (as seen by the ROI). Also, offering the Self Service to clients expanded the service range of the company and reduced the cost of support effectively. The ROI was able to justify the cost, time and resources of the company involved in the implementation of KM systems. Further, the decision in selecting an appropriate Knowledge Management tool for various operations involved in the call centre was the liability of the support center managers who were duly assisted by the IT department with proper advice on the best options and suitability of soft wares. All the tools, software services and improvement efforts were directed towards realizing the anticipated objectives of Telus call centre. With the reduction in costs and increased client satisfaction, cash and client strapped Telus will definitely be able to bring itself back into business. The example set by the telus call centre management will boost the idea of implementing Knowledge management systems in various other companies who are struggling with their performances and profit margins. REFERENCES 1. Broadbent, M. (2001), ``The emerging phenomenon of knowledge management'', Australian Library Journal, Vol. 46 No. 1, pp. 6-24. 2. Awad, E.M. and Ghaziri, H.M. (2003), Knowledge Management, Pearson Education, Upper Saddle River, NJ. 3. Broadbent, M. (1999), ``The emerging phenomenon of knowledge management'', Australian Library Journal, Vol. 46 No. 1, pp. 6-24. 4. Birkinshaw, J. (2001), ‘‘Making sense of knowledge management’’, Ivey Business Journal, Vol. 65 No. 4, pp. 32-6. 5. Newell, S., Bresnen, M., Edelman, L., Scarbrough, H. and Swan, J. (2006), “Sharing knowledge across projects: limits to ICT-led project review practices”, Management Learning, Vol. 37 No. 2, pp. 167-85. 6. Nonaka, I. (1997), ‘‘The knowledge-creating company’’, Harvard Business Review, Vol. 69 No. 6, pp. 96-104. 7. Miles, R.E. and Snow, C.C. (1978), Organizational Strategy, Structure and Process, McGraw-Hill, New York, NY.   Read More