Social Customer Service ROI

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Call Center Savings:• Increased Agent Deflection:

• Direct, • Indirect.

• Improved Agent Productivity.• Lowered Average Handling Time• Increased First Contact Resolution Rate and• Knowledge Base generation.

ROI Gains

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Common costs for social customer service programs:

• People, • Technology, and• Marketing (of the social customer service

program).

ROI Costs

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ROI = (Gains - Costs)/Costs x 100

ROI is shown as a percentage.

ROI Formula

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Sample Calculations

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Gains

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FORMULAS

# New Convos answered by Customers = (# Total New Convos Answered) x (% New Convos Answered by Customers)

# of Direct Deflected Contacts = (# New Convos answered by Customers) * Est Direct Deflection Rate

Savings per period= (# of Deflected Calls) x (Avg Cost per Call)

Call Center Savings - Direct Agent Defection

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CALCULATION: # New Convos Answered by Customers = (6,500 New Convos Answered/month) x 70% = 4,550 New Convos Answered by Cust per month

# Direct Deflected Calls = (4,550 New Convos Answered per month) * 10% = 455 per month

Savings = (455 Deflected calls per month) * ($25/call) = $11,375 per month = $136,500/year.

Call Center Savings –Agent Defection

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FORMULAS

# Social Cases Impacted = (# Social Cases per period) x (% Social Cases Impacted)

Savings per period = AHT x (Agent Cost per hour) x (# Social Cases Impacted)

Call Center Savings – Reduced AHT

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CALCULATION

# Social Cases Requiring Assistance will be a known metric.

For example purposes, assume based on examples related to Agent Deflection shown above. Out of 6,500 New Social Conversations per month, a total of 1,755 were deflected. 4,745 cases still require agent assistance.

Call Center Savings – Reduced AHT

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CALCULATION

# Social Cases = 4,745 Social Cases/mo = 56,940 Social Cases/yr

# Social Cases Impacted = (56,940 Social Cases/yr) x 10% = 5,694/yr

Savings per period = (12 min/case) x ($30/hr x 1 hr/60 min) x (5,694 Cases/yr) = $34,164/yr

Call Center Savings – Reduced AHT

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Costs

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People costs…

FORMULAS:

Burdened Compensation per Social Team Member = (Salary + bonus + benefits load) x (% Time Devoted to Social).

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People costs…

CALCULATION: Cost of Manager = ($105,000/yr burdened compensation) x (20% Time) = 21,000$/yrCost of data analyst = ($100,000/yr burdened comp) x (20% Time) = $20,000/yr

Total costs = $41,000/yr

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Tech costs

FORMULA

Tech costs = Sum of individual tech components described above. Use incremental costs only.

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Tech costs

Assume 3 Support Techs (shown under People Cost example) are new hires.

Need incremental CRM seats with Social Add-on functionality.

Also needed is modest community solution to supplement searchability of Facebook community.

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Tech costs

Total Tech Solution costs for example =

[Incremental seats social customer service solution] + (Cost for modest Community solution) + (Subscription Costs for Premium Social Monitoring) + Implementation Costs

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Tech costs

CALCULATION:

Tech costs= [($200/user per mo for CRM/SCRM) x (3 seats)] + ($4,167 per mo Community) + ($1,500 per month Social Monitoring) + $15,000 = $90,204 for first year.

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ROI

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ROI = (Gains - Costs)/Costs x 100

ROI is shown as a percentage.

ROI Formula

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GAINS =$136,500 + $34,164 = $170,664

COSTS = $41,000 + $90,204 = 131,204

ROI = ($170,664 - $141,204)/$131,204 x 100 = 22.5%

ROI Formula

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Contact information

Kathy Herrmanninfo@kathyherrmann.comwww.kathyherrmann.com

@KathyHerrmann+KathyHerrmann

Natalie PetouhoffDoctorNatalie@gmail.com

DrNatalieNews

@DrNatalie+DrNatalie