Genesys and Overstock.com - A Brand Built on Service
Page content transcription
If your browser does not render page correctly, please read the page content below
SUCC ES S S TORY Genesys and Overstock.com A Brand Built on Service Founded in 1997, Overstock.com is a premier online retailer that offers a wide variety of quality, brand-name merchandise at discount prices. The company provides customers the convenience of online bargain-shopping, while giving manufacturers, distributors and other retailers an alternative sales channel for liquidating inventory. Overstock.com offers 24x7 sales and customer service and support via phone, email, and the Internet—and prides itself on providing customers with white-glove treatment. Around the time of its eight-year anniversary, Overstock.com had reached a business crossroads. The company enjoyed a well-earned reputation for providing outstanding customer At a Glance service—a key differentiator in the highly competitive online retail space. But as it continued to Overstock.com grow and experience seasonal spikes in call volume, the infrastructure that supported its high www.overstock.com standard of customer service was starting to become stressed. Industry: Signs of Stress Online retail At the time, the Overstock.com contact center infrastructure consisted of a combination of on-premises hardware, hosted software applications from third parties, and both manual and “homegrown” systems. The ACD/PBX distributed incoming calls, but lacked the advanced skills-based routing needed to match caller with skilled agent to deliver the desired levels of customer service. The retailer also relied on an outsourcer to supplement the in-house agents during the high volume holiday period. The Overstock.com contact center and the outsourcer’s contact center operated on separate platforms running different systems. The combination of the existing infrastructure, use of an outsourcer and the limitations of network-based routing led to a number of problems. The on-premises contact center systems weren’t flexible and couldn’t easily expand when needed. Call routing was slow and inefficient at matching agent skills with customer needs, and agents couldn’t easily find the information needed to fully resolve customer issues on the first call. Finally, disparate reporting systems,
SUCC ES S S TORY Genesys and Overstock.com / page 2 Challenges coupled with management tools and agent > Meet internal customer service • Call routing was slow and pools lacking a common infrastructure, enhancement metrics while reducing inefficient at matching couldn’t provide Overstock.com with a agent head count by increasing agent agent skills with customer comprehensive view of the total customer efficiencies. needs. experience, which hindered its overall goal > Redeploy IT resources and staff personnel • Agents couldn’t easily find of increasing customer satisfaction. managing contact center infrastructure the information needed to other more strategic Overstock.com to fully resolve customer A Costly Situation business initiatives. issues on the first call. Complicating matters further, the > Satisfy Service Level Agreements hardware-based nature of the overall (SLA) to ensure the high availability on-premises contact center architecture necessary to drive customer service and required costly backup equipment to deal other corporate goals. with potential system failures. As such, Overstock.com conducted an evaluation comprehensive system-wide redundancy process to select the best solution to achieve across all applications was lacking, further its objectives. The retailer concluded early stressing system reliability. In order to on that advanced routing was essential, support the contact center infrastructure, both to handle its current customer service Overstock.com had allocated three full-time objectives and the anticipated additional lines IT resources solely devoted to contact center of business. A decision was made to select systems management and support, as well contact center routing technology from as an ongoing contract with an external Genesys, the market leader in advanced consulting firm. Further investment in the routing capabilities. existing infrastructure would continue to require a disproportionate amount of system Beyond the routing technology itself, the support from the IT department. And the company also examined vendors that could purchase of incremental contact center deliver the required contact center solutions hardware and software would only partially in a cloud-based, Software as a Service solve the problems. (SaaS) model. As an early adopter of cloud technology, Overstock.com did not want to continue to devote the time, IT staff, and Exploring New Options overall cost of managing and maintaining its At this juncture, Overstock.com adopted contact center infrastructure on premises. a strategic goal of increasing customer A cloud-based model would also alleviate satisfaction levels as it grew. The company the scalability and flexibility challenges that also realized it would need to cut contact Overstock.com experienced during its peak center infrastructure costs. Recognizing that holiday season. a new approach to its contact center systems and technology would be required, the company determined that a new solution The Genesys Cloud-Based would need to: Contact Center > Provide a flexible contact center After diligent investigation, analysis, and model able to match seasonal call volume speaking with other large enterprise clients fluctuations without the costly need to as references, Overstock.com selected have full-time agents during the other Genesys to provide, integrate and manage its nine months of the year. complex contact center environment. Genesys offered extensive contact center capabilities, a cloud-based delivery model, industry-leading Service Level Agreements, and solid existing enterprise customer references.
SUCC ES S S TORY Genesys and Overstock.com / page 3 The Genesys Professional Services and on premises. Unlike the previous contact Customer Engagement resources engaged center infrastructure, Genesys provides with the team at Overstock.com to fully Overstock.com a Service Level Agreement Solutions discover, analyze, evaluate, and (SLA) with performance guarantees • Genesys Cloud-based recommend possible system configuration to ensure overall system availability Contact Center designs to address strategic and tactical and reliability. goals. The process was completed in fewer than 45 days, and the recommendation was accepted by Overstock.com executives, Designed for Continuous contact center, and IT support teams. Improvement The new Genesys solution included a full, Overstock.com wanted its new contact virtualized contact center with advanced center solution to offer capabilities and Benefits routing, IVR, multi-site transparency, methodologies for continuously improving • Enhanced agent and supervisor single-view reporting and administration, customer satisfaction. Because Genesys productivity integrated call monitoring and quality captures and stores all historical interaction data between callers and Overstock.com • SLA with performance guarantees assurance, and integrations to legacy ensure system availability and applications. The final system implementation agents, the entire scope of agent and contact center performance has become reliability took place within just 90 days of the project both available and quantifiable for • Average hold time decreased kickoff, both rapid and well within the over 93% window necessary to support the intense management through dashboards and holiday period. internal consolidated reporting. With • Abandon rates decreased by 85% Genesys, Overstock.com now generates • TCO savings of $13,908,000 over activity reports and agent scorecards, five years compared with an IT and Operational Savings analyzes and measures agent and customer on-premises solution Compared to the on-premises solution that feedback, and highlights potential new required several full-time Overstock.com IT opportunities for improvement across all resources plus outside consultants, the of their sites and various agent groups. company has been able to redirect those valuable IT resources to more strategic Future Proof initiatives and projects, and eliminate the need for the consultants. Furthermore, As a further benefit, there is no technology Genesys enhances the productivity of both obsolescence for Overstock.com, as the agents and supervisors so they can be Genesys cloud-based service delivery more effective in their jobs and Overstock. model and platform is continually being com can realize ongoing operational savings. upgraded with the most current technologies—essentially providing a future-proof solution. Overstock.com can A Unified System with easily add new “best-of-breed”components Performance Guaranteed and features to the solution as they become By fall 2010, Overstock.com added a available to further enhance customer second contact center facility in Salt Lake engagement and improve ease of use. City with over 90 full-time agents. Both Genesys provides ongoing scheduled and sites are now managed as a single virtual ad hoc client services to help Overstock.com contact center through the Genesys leverage industry best practices and achieve solution with 24x7 Genesys support. All the maximum value from existing contact systems are fully redundant through center applications. With Genesys providing Genesys, and all existing applications are industry thought leadership, valuable insight, integrated by Genesys, including a small advice, and extensive analytics, Overstock. number of legacy applications that com is able to achieve their goals of Overstock.com continues to maintain delivering an outstanding customer
SUCC ES S S TORY Genesys and Overstock.com / page 4 experience and maintaining competitive TCO Results market differentiation at dramatically For the on-premises solution, the five-year lower costs. combined cost was $19,828,000, including all relevant costs. Total Cost of Ownership (TCO) For the cloud-based solution from Genesys, Analysis and Comparison the five-year combined cost was $5,920,000. As part of the overall evaluation for TCO analysis shows that the cost of the cloud- replacement of its existing contact center based solution at the projected peak seat infrastructure, Overstock.com compared the count of 462 seats is significantly less costs of a new cloud-based based contact expensive: less than the on-premises solution center solution with the equivalent cost of a by $13,908,000. In addition, the cloud-based traditional hardware-based purchase solution solution cost advantages began in year one requiring capital expenditure spending and IT and remained less expensive throughout the resource dedication. TCO five-year time frame. Five-Year TCO Cumulative Cost Comparison On-premises option cumulative cost: Estimated Annual Costs $19,828,000 Genesys cloud option $8,000,000 cumulative cost: Annual Cost $6,000,000 $5,922,000 $4,000,000 $2,000,000 $0 1 2 3 4 5 Year Premises-Based Hosted-Based TCO Annual Cost Comparison Observed total cost of ownership savings year over year On-premises option Estimated Cumulative Costs cumulative cost: $3,966,000 $25,000,000 Genesys cloud option Cumulative Cost $20,000,000 cumulative cost: $15,000,000 $1,184,000 $10,000,000 $5,000,000 $0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 Months Premises-Based Hosted-Based
SUCC ES S S TORY Genesys and Overstock.com / page 5 With the Genesys cloud-based contact center solution, virtually Contact Center every targeted metric has improved within the Overstock.com Improvements contact center environment.. Contributing to Greater Operational Efficiency TCO Assumptions Operational Results and • Advanced skills-based routing The comparison utilized a comprehensive Ongoing ROI capabilities TCO analysis of alternatives. It examines Results since the 2007 Genesys and compares all the costs to install and implementation have exceeded all • Ability to establish call priority maintain the different solutions, but does levels by group expectations. not include anticipated agent performance • Enhanced agent overflow The ability to measure and calculate capability improvement and associated cost savings. agent activity enables Overstock.com to The TCO analysis for Overstock compared understand the operational efficiencies • More granular reporting to the Genesys cloud-based SaaS contact enable fast response to achieved with the Genesys cloud-based center offering with an equivalent changing conditions contact center in comparison with results on-premises solution. during the previous environment. It also allows • Enhanced real-time comparison between specific periods (e.g. dashboards and a The TCO framework assumed: 360-degree view of all month or quarter) on an ongoing basis. > Equivalent costs over the five-year reporting records Consequently, Overstock.com has visibility into timeframe that Overstock.com was areas where the contact center is performing • Agent workflow projecting. well or might need additional improvement. optimization tools > The full set of required applications and Furthermore, Overstock.com has been able the associated IT staff to manage either to see beyond the forecasted cost savings solution. shown in the pre-deployment TCO analysis > A peak load of 462 agents: 287 to view and calculate the actual ongoing year-round and 175 seasonal in Q4 Return on Investment (ROI) from new only, with an agent utilization rate of operational efficiencies and cost savings 85% and all calls being connected to l resulting from deployment of the Genesys solution. ive agents. > Inclusion of every contact center component from each alternative solution: Average Speed of Answer software licenses, hardware, professional Decreased Over 93% services, maintenance, operations, Callers now reach agents in less than two connectivity, upfront costs, periodic event seconds compared to over 22 seconds costs (for patches, upgrades, hardware previously, and to the newer three-second refresh), other associated recurring costs, target. Streamlining of the reporting package and the SaaS monthly expenses for the and the new 360-degree views that include full contact center services from Genesys. both the ACD and CRM records, and the website purchase records allow supervisors to > Inclusion of additional costs to support quickly identify potential blockages and hurdles the contact center: facilities, power, air to incoming transactions and to utilize dynamic conditioning, security measures, and the routing and queue change capabilities to required IT resources. immediately address the issues. Priority levels that were established by group, coupled with the enhanced call overflow capabilities, also positively impact the overall significant improvement in customer service.
SUCC ES S S TORY Genesys and Overstock.com / page 6 Average Hold Time Decreased productivity was attributed to several items, including the implementation of real-time Over 21% dashboards and reports that indicated a Average hold time (AHT) has decreased from previously “hidden” large population of 537 seconds (8.9 minutes) to an average of agents who were erroneously logged out as 422 seconds (7.0 minutes) including higher “not ready”. The previous Nortel contact Q4 call durations since Overstock implemented center environment had required Overstock. the Genesys solution. By design, Overstock. com to overstaff their workforce in particular com typically increases AHT beyond the agent groups to overcome the inherent seven-minute target during Q4 to provide product reporting deficiencies. outstanding “white-glove” service during the busy holiday period when customers typically have more complex conversations related to Abandon Rates Reduced gift orders. The AHT goals were met with the Abandon rates have been reduced by 85% to help of advanced routing capabilities which less than .4%, helping further drive improved ensure that callers are directed to the most customer satisfaction. This is due to the capable agents. implementation of multiple agent pools with assigned skills. Dynamic queue management immediately re-directs calls to lower skilled Service Level Agreement available agents when queue thresholds are Objective Exceeded exceeded, thus enabling significantly greater Over 99% of all incoming calls to Overstock. call capture rates. com last year were answered within two seconds compared to the internal goal of 80% Scaling Up is Easier answered within 30 seconds. As a direct Overstock.com seamlessly scales up with correlation between call answer and customer Genesys by 175-plus agents during its busy satisfaction, Overstock.com staffs its two season in Q4 with no capital expenditures, contact centers with sufficient agents to and none of the quality control issues promptly answer each customer call, as well associated with the outsourcer utilized prior to as designing their call flow patterns to ensure the Genesys deployment. This enables the adequate agent distribution and minimal company to realize annual savings of over queue lengths. Caller queues are managed $1,678,000. Overstock.com was able to bring aggressively to provide for almost immediate the outsourced agents in house at a lower overflow to secondary agent pools for overall cost due to two factors. First, the cost maximum customer service. The ability to of the new in-house agents was offset by the reposition agents from other less productive significant cost savings achieved from the areas into critical service environments, while improved efficiency in the primary internal closely managing costs, has been a major contact center. Second, the flexible Genesys change in the Overstock.com contact center cloud model saved the company from having framework. Exceeding this internal 80% SLA to hire the seasonal agents during the less has helped enable Overstock.com to achieve busy times of the year. its overall high Net Promoter Score ranking. Agent Productivity Improved Net Promoter Score Improved. Post-incident Net Promoter Score has Overstock.com has increased agent improved to over 60% and the company occupancy rates by 27% since 2007, achieved its fifth consecutive year ranked in requiring 30 fewer Full-Time Equivalent the top five in customer service by the National (FTE) agents and realizing annual savings of Retail Federation. Enhanced agent training, over $930,000. The improvement in agent
SUCC ES S S TORY Genesys and Overstock.com / page 7 In addition to meeting the primary contact center metric goals, the Genesys solution also enabled Overstock.com to achieve significant benefits in other tangential objectives. monitoring, and compliance—capabilities Total Savings Opportunities now provided by a fully capable quality management and call recording from the Genesys Solution solution—help the contact center The total savings emerges from the contribute to the company’s score combination of the infrastructure savings improvement. A much more streamlined derived from the total cost of ownership incoming call flow and reduced queue analysis, the conversion to a Genesys solution, holding times also help Overstock.com and the ongoing separate operational maintain the higher score. savings. Combined total savings are over $26 million. Ongoing Cost Savings from Contact Center Improvements Operational Changes Contributing to Greater Due to operational improvements resulting Operational Efficiency from the Genesys cloud-based platform, Overstock.com is saving over $2,608,000 on Total TCO savings over $13,908,000 an ongoing annual basis in agent labor costs, five-year period: beyond the comparative savings of the Total ROI operactional $14,040,000 infrastructure platform in the TCO analysis. savings over five-year To put these ongoing operational savings in period: perspective, we look at both the monthly Total five-year savings $26,948,000 incremental ROI and the annual ROI. with Genesys cloud-based On an annualized basis, the full year costs solution: divided by the monthly savings show ROI Annual savings with $5,390,000 payback in terms of months. Calculated as Genesys cloud-based an annualized ROI (which would assume full solution: annual payment in advance), the Genesys solution payback period for Overstock.com is measured at just 3.84 months.
SUCC ES S S TORY Genesys and Overstock.com / page 8 Solution Details The following chart compares the on-premises Overstock.com infrastructure with the Genesys cloud-based solution. Capability Before Genesys With Genesys Discussion Carrier Verizon Verizon and Gained redundancy, and managed by Genesys XO PBX Nortel, tied to Cisco-PBX Cisco now used just for internal calls ACD only ADC Nortel Genesys Gained cloud-based scalability Symposium Auto RightNow IVR Genesys Gained skills-based routing Attendent/IVR Telephone TDM SIP Reduced cost and gained scalability Platform WFM IEX/Nice IEX/Nice Integrated by Genesys Call Recording Manual Verint Integrated by Genesys, enables agent coaching & Monitoring Call Reporting Nortel OTM Genesys Genesys feed to Business Intelligence CRM Hosted RightNow Hosted Integrated by Genesys RightNow Redundancy Raid 5 selective Genesys—all Gained cost-effective system-wide redunancy only but COAM Agent Internal & Internal—in Improved agent skills, gained comman platform Outsourced multiple sites Summary Mostly COAM Mostly Creating virtual contact center with common cloud-based reporting, fully intergrated application set, scalable, calls routing to best agent Genesys Applications > Genesys cloud-based IVR System using Genesys Voice Platform (call prompting, The complete set of Overstock.com contact menu tree design) fully integrated to the center applications includes: Genesys contact center solution to provide > Genesys cloud-based ACD/contact center call delivery information to the agents using Genesys technology and Genesys > Overstock.com owned and maintained Software as a Service delivery supporting in-house IEX workforce management, two different locations integrated to the Genesys contact center > Cloud-based Workforce Optimization solution to retrieve call handling data solutions utilizing Verint Technology > Genesys cloud-based reporting: real-time call recording, live monitoring, full-time and historical reporting through Genesys recording, and complete integration to all and Microsoft reporting services Genesys solutions
SUCC ES S S TORY Genesys & Overstock.com / page 9 A robust, cost-effective and agile contact center plays a pivotal role in creating the competitive differentiation and brand loyalty so important to enterprise success in rapidly evolving markets. Genesys-Provided Integrations Cloud-Based Contact Centers > Hybrid integration to on-premises and Offer Substantial Benefits for customer-owned IEX WFM solution the Large Enterprise > Net based API for integration to hosted Today’s cloud-based contact center RightNow Technologies CRM application solutions offer substantial benefits for the > FTP feed for Genesys data sent to an large enterprise. As demonstrated by the Overstock.com on-premises Business Overstock.com experience, whether Intelligence system for generation of companies need to address agent executive management reports and scalability or business seasonality, enhance dashboards that include contact center company agility, consolidate or virtualize data, as well as internal customer service multiple contact centers, enable IT or and sales data and benchmarks business transformation, or facilitate faster time to market, there are proven > SIP Infrastructure (Genesys SaaS cloud-based solutions available to solve and Overstock.com on-premises these tough challenges. And while a infrastructure) to support greater decision to “move to the cloud”can have application and integration capability, significant cost savings and compelling as well as lower network costs lower total cost of ownership results, the > A fully redundant solution portfolio across opportunity to empower business change all systems and applications provided while improving the customer experience under the Genesys service offers are powerful motivators in today’s highly competitive global marketplace. A robust, cost-effective and agile contact center plays a pivotal role in creating the competitive differentiation and brand loyalty so important to enterprise success in rapidly evolving markets. Corporate Headquarters About Genesys Genesys Genesys is a leading provider of multi-channel customer experience and contact center solutions. With over 3,500 customers 2001 Junipero Serra Blvd. in 80 countries, Genesys orchestrates more than 100 million customer interactions every day across the contact center and Daly City, CA 94014 back office. Genesys helps customers power optimal customer experiences that deliver consistent, seamless and personalized USA experiences across all touchpoints, channels and interactions. Worldwide Inquiries: For more information visit: www.genesys.com, or call +1 888 GENESYS. Tel: +1 650 466 1100 Fax: +1 650 466 1260 Genesys and the Genesys logo are registered trademarks of Genesys Telecommunications Laboratories, Inc. All other company www.genesys.com names and logos may be trademarks or registered trademarks of their respective holders. © 2014 Genesys Telecommunications Laboratories, Inc. All rights reserved.
You can also read
NEXT SLIDES ... Cancel