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Measuring the Outsourcer Results
by
Craig Bailey
This is the fourth article in our series on maximizing outsourcer
relationships. The
prior edition discussed the importance of establishing and managing to
policy. We will now discuss the topic of creating realistic, aligned and
measurable goals.
To set the stage, let's assume that you are an enterprise solutions
provider and have outsourced your telemarketing function. What would you
suggest that the telemarketing outsourcer focus on for performance
metrics? Would it include metrics such as daily talk time or number of
dials each day? To be clear, these are important metrics to know, but they
certainly do NOT represent the primary objectives of the telemarketing
function. These are purely production or activity measures, not measures
of results.
Why then are they measured, you might ask? Because they are easy to track
via the phone system. Fair enough. But you want more from your outsourced
telemarketing function.
If you want a finely tuned outsourced telemarketing function, I'd suggest
that a set of metrics to consider would include:
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Number of leads generated per week
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Accept / reject ratio (by your sales team)
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Revenue contribution of leads generated
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Profiling and nurturing progress
Tracking the
above gives you a very good sense of the "results" created by the
telemarketing function.
Once the metrics have been defined, a next step is to take a baseline of
current performance (how well you are doing today) and set realistic goals
for continuously improving. This includes "baking" the key performance
metrics into SLAs that you will build into the contract with the
outsourcer. And, in doing so, consider a win-win scenario. For example, if
the outsourcer "under-achieves" (doesn't achieve the defined SLAs), then
your bill is reduced by some agreed upon percentage or amount. If the
outsourcer over-achieves, then you pay them a premium or bonus for doing
so.
And there you have an aligned set of metrics. It is realized that some of
the suggested metrics may be difficult to measure (e.g., profiling and
nurturing progress). However, if you are using an effective CRM process
and system, then this should be a breeze. Need help in this regard? Give
us a call. In the next edition of this newsletter, we will cover including
your outsourcer within the inner circle.
In closing, if you'd like an objective perspective on how effectively you
are managing your outsourcer relationships, give us a call. We would be
happy to perform a situational assessment, providing you a read-out of
what is working well (to keep doing), opportunities for improvement and a
pragmatic road-map for closing the gap between where you are and where you
want to be. Alternatively, if you are considering outsourcing as an
approach to addressing key business needs, we can help you evaluate
options (including the basic question: does outsourcing even make sense
for us), consummating the relationship through implementing the standard
operating practices to ensure an ongoing and effective relationship. In
fact, we have the references to prove it!
View previous articles in this series.
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Contents
+ Measuring the Outsourcer Results
+ Recommended Reading
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Score 2006 Symposium
Join Customer Centricity
president Craig Bailey as he moderates one of the tracks at the annual
Symposium for Customer Operations and Relationships Exposition,
sponsored by Omega Management Group Corp. and Customer Relationship
Management Institute (CRMI). The symposium will be held
June 12-15, 2006,
at the Seaport Hotel,
Boston, MA.
Recommended Reading
This issue we
recommend CRM Today Magazine article
Get Your CRM to Work the Way You Do, Not The Other Way Around by Jim
Stout. Mr. Stout encourages you to understand what motiviates - or
inhibits - CRM adoption by business users. People do not like change -
despite the fast-paced evolution of technology - so make sure they
understand exactly how CRM will make their lives easier. And keep CRM
simple - let it model your business, not vice versa.
About Customer Centricity, Inc.
We strengthen overall company performance through
better service delivery and management.
We boost efficiencies in front-line customer service and technical support
teams, order processing, fulfillment, field service, logistics and other
key operations functions.
In short, we align the resources of your organization to exceed your
customers' expectations in the most effective and efficient manner
possible.
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