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Report says customers hanging up on offshore call centers
Tuesday, June 12, 2007

A new report on call centers shows catalog retailers are doing the best job of pleasing customers, while personal computer centers perform the worst.

The report, to be released today by CFI Group in Ann Arbor, Mich., also raises questions about the wisdom of contracting out call center operations to foreign countries. The offshoring trend is one of the biggest issues facing call center executives looking to save costs.

Among six key industries studied, catalog call operators were the stars, scoring 80 out of 100 points for customer satisfaction. Banking was next with a score of 77.

The rest of the pack did significantly worse, with cell phone services scoring 69, followed by cable and satellite television, 68, insurance, also 68, and personal computers, 64.

"It would appear that the catalog industry's call centers have developed an approach and a rhythm to keep pace with the consumer's changing wants and needs," said the report, which polled roughly 900 call center participants online.

Customer service representatives were rated in five areas: courteousness, knowledge, speaking in an understandable manner, interest in helping and effectiveness in handling the issue.

A customer service rep's ability to resolve the caller's issue was the chief factor contributing to overall satisfaction, the report said.

Across the six industries, 18 percent of customers reported hanging up without getting their issue resolved. Personal computer call centers had the most unresolved issues, with nearly one-quarter of callers unsatisfied. In contrast, 9 percent of callers to catalog retailers reported an unresolved issue.

The report also warned call center operators about potential negative effects of offshoring on customer goodwill and retention.

The study found that customers who believed they were dealing with a call center outside the United States rated their overall satisfaction 26 points lower than those who believed the center was U.S.-based. In addition, callers to foreign centers were almost twice as likely to sever business relations with the company.

Specifically, service reps at offshore centers were rated much harder to understand and less adept at solving customer problems.

Despite the cost savings, "there is concern that customers will be turned off both by the loss of American jobs and by the lower level of service," the report said.

First published on June 11, 2007 at 7:30 pm
Patricia Sabatini can be reached at psabatini@post-gazette.com or 412-263-3066.
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