Bringing Lean to call centers

If businesses asked consumers what the most frustrating part of the brand-customer relationship is, having to deal with customer service over the phone would likely be towards the top of the list. Although many companies have invested substantial resources into their call centers, many are still characterized by customers spending hours at a time waiting on hold.

As Tech Mahindra notes, businesses can no longer afford to have ineffective call centers. With customers using technology in new ways, several shopping-related activities can now be done from the palm of their hands, from price comparisons to actual purchases. In a society that expects fast response times, delays at call centers can have a negative impact on consumers' perception of a brand.

Leading challenges faced by call centers

Call centers, much like any other business, face a variety of challenges – some with greater impact than others. Here are three of the top setbacks that call centers deal with:

1. Unavailability of resources: Call centers tend to have low profit margins, which can lead to the recruitment of less-than-ideal candidates with inadequate working skills and poor attitudes due to low wages. This translates into an inefficient use of these already scarce resources on employees who aren't giving it their all.

2. Attrition: Call centers are notorious for their high turnover rates. Manning the phones requires a specific type of personality, and many times people get burned out by the job after a few months. According to a study conducted by Cornell, the average call center has a turnover rate of 33 percent, with some (such as subcontractor call centers) hitting as high as 51 percent.

3. Flexibility: Call center operations are dynamic and need to change based on the season, products being sold and market demands. However, few call centers actually have their finger on the pulse of the market and are unable to adjust.

Utilizing Lean

Fortunately, Lean manufacturing processes can be applied cross industry to call centers. Kaizen practices and mindsets address the core issues of call centers – resources and employee engagement – by training businesses to be more efficiency and embracing their workers.

For instance, by identifying wasteful processes, call centers can expedite the customer handling process. This leads to better profit margins, which enables call centers to hire better employees. Additionally, Kaizen encourages businesses to empower their employees, which can lift satisfaction and deter turnover.