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May 2008

May 22, 2008

The "Oprah Effect" Hits Contact Centers Too

I find it interesting that some things can cause a ripple effect, influencing multiple actions and reactions. Lately I've been hearing a lot about the "Oprah Effect", in everything from selling products to politics. The presence she has is evident, as she clearly influences ideas, perceptions and thoughts. Publicly giving her stamp of approval to books, products, movies, services, etc. almost automatically increases their popularity.

A couple clients of our contact center benefited from this effect. One was actually on Oprah Winfrey's show, which provided some exposure for them, leading to a spike in calls for customer support. Another indirectly benefited, where Oprah spoke about the benefits of a certain type of product/material. This client's product was very similar, and as a result noticed increased sales leading to increase calls and inquiries from customers as well.

The point I'm getting at is that contact centers can be hit by call spikes as an indirect influence from Oprah. I know this theory doesn't hold a lot of merit and probably doesn't have any significant value, but could be good to know when consulting clients.

As a contact center, you like to help clients estimate an expected volume of calls they will likely receive. To help them, you take into consideration the marketing methods they use to gain exposure and prompt orders/customer service/inquiries/etc. It may be helpful to consider other influencing factors such as the Oprah effect, which can assist you in advising.

Can you think of any other factors that may cause call spikes?

- JU

May 09, 2008

Are You Ready for the US Hispanic Market?

Is your call center ready to service the growing US Hispanic market?

In a recent report by NACC (National Association of Call Centers) written by Tony Malaghan (CEO of Arial International), the US Census Bureau recently put the US Hispanic demographic at 14.4% of the total US population. This is 1 out of every 7 people in the US is of Hispanic decent. By 2050, this is estimate to grow to 1 in 4 or 25% of the total US population.

It is not a surprise that the growth rate of this population is increasing each year with 60% being native born. But what is the impact on business and what is the buying power of this population? Stated in the article, the economic impact of the Hispanic population has grown 307% from 1990 to 2007, according to the Selig Center for Economic Growth (University of Georgia). By 2012, it is forecasted to be over $1.2 Trillion with a growth rate of 495% from 1990 - 2012. To put it in perspective, the non-Hispanic buying power is growing at a rate of 189% over the same period. Due to this quick growth, this population was forecasted to exceed the buying power of the US African American population over 2007.

So, why are not more call centers strategically serving this growing market?

The article states some distinct challenges many customer service managers may be facing. One is the fact the population is not homogeneous. Hispanic refers to people of Spanish speaking descent, despite where they are originally from - Cuba, Mexico, Spain, Latin America, etc. Also, although Hispanics share a common language, as with all languages there are regional differences in vocabulary, accents, and cultural traits. These challenges are good examples of risks that may impact the ability to successfully target this market. Even just the magnitude of the marketing investment alone can be a deterrent. Companies must create culturally relevant products and services, language specific marketing material, communication, websites, and also invest in bilingual agents and technology features (IVR), etc.

However, as the numbers continue to rise, businesses must make a strategic decision to research and service this market. They may even be first movers in their industry and able to gain loyalty with this customer base. However, with every new business initiative, there must be strong commitment and a reasonable budget allocated to make the initiative a success.

- MK