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Editorial

The Contact Center Cost Cut That Actually Improves CX

3 minute read
Tod Chisholm avatar
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AI, automation and smarter staffing are flipping the old script — efficiency and customer experience no longer have to compete.

The Gist

  • Efficiency and CX are no longer trade-offs. Modern contact center strategies show that lowering operational costs can align with improved customer experience when applied strategically.
  • AI is shifting work, not eliminating it. Automation handles routine interactions at scale, freeing human agents to focus on complex, high-empathy engagements that drive better outcomes.
  • Operational intelligence is the new ROI lever. Speech analytics, workforce management and performance data are enabling smarter staffing, faster resolution and more targeted service improvements.

By all accounts, we’re in a business climate where no one knows for sure where we are heading. Tools like artificial intelligence promise to alternately accelerate business outcomes while also decimating the job market, depending on the day.

Capitalism is thriving, yet 16,000 employees were recently laid off from Amazon, so hiring managers can be excused if they don’t see a clear path forward. In essence, finding ways to lower total cost of operations or create new efficiencies in an organization is always welcome, especially in the contact center, which has been historically seen as a cost center, and not necessarily a department that can drive revenue.

The ultimate goal of any business strategy must be to improve outcomes, through any combination of leaner processes, better execution and elevated customer service. Customer engagement remains a priority for any successful organization, whether it’s delivered by in-house teams or contracted agents.

When strategically applied, companies can introduce cost efficiencies and improve customer experience, which should be the objective of any business that has ambitions for success in today’s economy. Here are a few ways to achieve this:

Table of Contents

Leverage Automation to Handle Rote Tasks

This lesson was learned early in the contact center, since automated IVR routing systems and customer service chatbots were one of the first areas where AI proved truly functional. Incorporating these tools judiciously into back-end workflows allows agents to focus on high-value work instead of mundane tasks.

Gartner predicted that conversational AI in the contact center would reduce agent labor costs by $80 billion this year. The ability to provide self-service capabilities through conversational AI is gaining appeal among end-users. According to SalesGroup.ai, chatbots now handle nearly 85% of queries, which reduces human workload by around 30%.

Agents are hardly obsolete, however. Human communication and empathy are essential for escalation of more complicated service needs, like technical support or a serious customer service problem. In these dynamics, human empathy and alignment goes much further to de-escalate and resolve a thorny issue.

Related Article: What Is a Contact Center as a Service (CCaas)?

Apply Workforce Management and Resource Optimization

Workforce management involves reallocating resources, usually through forecasting and optimizing personnel schedules, to better utilize people’s skills, availabilities, tolerances and strengths. WFM develops more accurate staffing plans that consider variables like seasonal business, spikes around company promotions, rotating staff breaks, scheduled vacations or even changing weather conditions. It helps companies avoid wasteful spending on overstaffing, reduces idle time and lowers the likelihood of being caught shorthanded, which could lead to lost sales and eroded customer trust.

Technology in this category has similarly developed more precise automation that reduces administrative overhead and error. This allows agents to conduct more effective customer engagements, since these teams will likely be properly staffed, even in moments of higher traffic. Scheduling that leverages agent strengths and expertise opens the door for more satisfying customer experiences, with smarter results.

Take Advantage of Speech Intelligence and Performance Metrics

Speech intelligence has made amazing strides both in the contact center and the collaboration space, dramatically reducing time and labor associated with transcription and analysis. When evaluating agent performance, AI-based speech analysis tools can theoretically run 24/7, incorporating far more data into their assessments than humans can possibly accommodate. This yields more accurate evaluations of voice patterns, response levels, emotional sentiment, call lengths, hang-up rates and other insights that can help business owners elevate service.

For instance, a company can apply speech analytics to isolate and assess responses from a spike in billing disputes. Evaluation of these interactions can allow that company to design a better response system for billing inquiries, leading to more rapid and customized resolution—not to mention better intelligence into the cause of the discrepancies. This improves customer experience, decreases agent involvement and boosts ROI.

Learning Opportunities

Growing use of these AI-driven tools has signaled a shift from cost-per-minute metrics to cost-per-resolution, significantly lowering operational economics while enriching customer interactions. With AI handling more customer inquiries, human agents become more specialized, and more productive. Training costs are lower, and both job performance and customer satisfaction rise. Churn drops. Customer loyalty becomes more entrenched.

A recent McKinsey report backs up these claims, saying that speech analytics can improve customer satisfaction in excess of 10 percent or more while lowering call center operational costs as much as 30%.

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About the Author
Tod Chisholm

Tod Chisholm has nearly 30 years’ experience in driving growth for financing and channel companies through the strategic leadership of high-performance business teams, with expertise in business process outsourcing (BPO), portfolio management, technology, customer experience, contact center, automotive, and asset-backed lending. Tod is an entrepreneur and a visionary, and has held executive positions with private, public, and regulated organizations including Travelers Group and Wells Fargo. Connect with Tod Chisholm:

Main image: JJ Gouin | Adobe Stock
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