Automatic call distribution (ACD)

Automatic call distribution is a function performed by several components—software and hardware—in a call center. ACD essentially involves taking incoming calls and moving them to the right place—the CSR's desktop computer screen. Behind this simple description of the function of an automatic call distributor are a number of underlying processes and technologies, including

• Voice mail systems

• Auto-attendant routing

• CTI

• IVR

• Public networks

• Workforce management software

Managing information effectively with ACDs

As call centers have evolved, a number of changes have affected the ACD and its functions. The ACD is responsible for more than moving or routing calls; it also manages the information associated with those calls. The ACD function is performed by a variety of different kinds of processors.

The following ACD options are offered by vendors:

• Traditional PBX with either internal ACD software or external server-based software

• Stand-alone ACD

• Multifunctional contact handling system

• Hosted software ACD

• VoIP-integrated platform with ACD

At the low end is the PBX with built-in ACD that routes calls to CSRs. This function may also be performed by a software application. Calls may also be routed within carrier networks, using the intelligence built into these networks. The ACD, however, is the real engine of productivity and the single piece of technology that can make the call center effective and productive for inbound sales, order taking, and customer service. The ACD enables call volumes to escalate intelligently, in increasingly specialized complexity. It is not simply a call-routing feature, it is the nerve center and control point for the call center, for both inbound and outbound voice calls and data traffic. It is a call center's arbiter: setting priorities and alerting supervisors to patterns and crossed thresholds.

ACDs: all shapes and sizes

ACD functionality is available in a wide range of telephone switches that vary in size and sophistication. Earlier versions of ACDs were very specific types of telephone switches with highly specialized features and particularly robust call-processing capabilities that served at least 100 stations (or extensions). One of the primary applications was in airline reservation centers. Among the various types of ACDs available to the modern call center are the following:

• PC-based ACDs

• Key systems with ACD functions

• Key systems integrated with a computer and software to create a full-featured ACD

• PBXs with sophisticated ACD functions

• Stand-alone ACDs that serve centers with less than 30 CSRs

• Traditional stand-alone ACDs—usually the most sophisticated

• ACDs integrated with other call center technologies

• Nationwide networks of ACDs

ACD functions and features

There is simply no technology more suited to routing a large number of inbound calls to a large number of people than an ACD. The ACD ensures that calls are answered as quickly as possible, and it can provide special services for selected customers. ACDs are capable of handling call rates and volumes far exceeding human capabilities and the capabilities of other telecom switches. They provide a high degree of call-processing horsepower and augment human resources very effectively. An ACD provides the resources to manage the many parts of the call center, from telephone trunks to CSR stations and from callers to CSRs and other staff members.

Despite the availability of all of these call-handling options in a variety of open and modular products, some organizations still prefer an expensive, stand-alone ACD in their call centers, for two reasons:

1. Power—a first-tier stand-alone system has a tremendous call-processing power, and no other product is so uniquely suited to meeting the needs of the larger megacenters found in the reservations or financial service sectors.

2. Technology—integration with other call center systems, IVR, data warehouses, and intranets is significantly easier with a powerhouse ACD. This is also true for multisite networking and skills-based routing, two of the most popular inbound features.

Smaller systems—PC-ACDs and PBX/ACD hybrids—which account for much of the industry's phenomenal growth in small centers, have their place in the range of call center solutions. However, for high-volume applications there is no substitute for the call-managing power of the stand-alone ACD.

Vendors are providing stand-alone ACDs in several different ways. Some acquire the technology envelope with their switches, while others concentrate on software development to add value to the core switch. Still others are paying more attention to integration with third-party call center technologies like the Internet and IVR. Some are adapting their switches to smaller, departmental call centers in an effort to capture some market share in this call center segment. The benefit to the user community is that there are a number of options available from vendors for installing ACD functionality.

New challenges for the ACD

The role of the ACD is changing because of two significant, current trends in call center operations. ACDs are required to channel more information, of many different kinds, in more directions. In earlier call center models, the ACD handled two kinds of information: the call itself and raw log information about the total number of calls. To analyze this data using a PC and software, call details were provided from a special port.

Call center managers need information in a form that makes it easy to understand and analyze. Vendors have added data management modules to the high-end ACD, and there are many outside programs that can connect to the ACD and transfer data in and out. These modules provide two key functions:

• Workforce management tools that forecast loads

• Software systems that convert real-time and historical data into any required format

Along with these new tools, supervisors are now able to modify the ACD while it is in operation, to accomplish such functions as creating groups "on the fly," moving calls and personnel around, and monitoring quality.

Alternative methods of call delivery

Another dynamic change concerns the kinds of calls the system has to route. Call centers have been integrating ACDs with IVR and fax communication for a long time. Systems now have to integrate Websites and the Internet with calls that come in from PCs and that terminate in databases instead of with CSRs. As a result, the call center is now being referred to by a broader, more appropriate term that better describes its enhanced scope and current role in this age of technology: the contact center for customer communication, which recognizes that the transaction between the customer and the company is what is important, not the communication medium and the process that carries the transaction.

Skills-based routing

Skills-based routing is another advanced feature that has changed the role of the ACD. This feature was added by switch designers because it was an interesting and available technology that could be added easily to a switch, not because call centers were clamoring for it. Unfortunately, it has taken a long time for call centers to understand and to derive benefit from this feature, because skills-based routing has some negative aspects involving the proper use of workforce management software. Nevertheless, skills-based routing is a very interesting advanced technology for distributing calls handled by an ACD. Traditional routing is based on two factors—an equitable distribution of calls among available agents and the random nature of incoming calls. Skills-based routing changes this by routing calls to the "best-qualified" CSR, using individual call center parameters to define this attribute.

The ACD routes calls in two stages, the first being to identify the needs of the caller using some front-end technology. This operation is usually accomplished through a DNIS, ANI, or an IVR system. Once the caller is identified, the information is matched against the sets of CSR skill groups. Two advances in ACD technology allow skills-based routing to operate effectively:

• Leaving a call in an initial queue while simultaneously and continuously checking other CSR groups for availability

• Allowing a CSR to be logged on to more than one skills group at a time, assigning priorities to those groups by skill type

Corporate requirements to link call centers together into multisite call center networks have caused changes in call routing to be implemented at a faster pace. This development can be viewed as an extension of skills-based routing, because in some situations, it is not enough to select the best available agent; it may be desirable to select the best available agent at the most appropriate location, based on factors such as

• Skill clusters

• Call priority

• Time of day

• Traffic at one or more sites

Requirements for small centers

Small call centers may have different needs than large ones, and they may have financial and human resource limitations. For those centers that cannot afford an expensive, stand-alone ACD, call routing is available as part of the PBX configuration, thus making the same tools available to these facilities as to larger call centers. A smaller call center within a larger customer service center, such as the 5- to 10-person collections department in a larger company, is an example of this type of application. The CSR needs are the same as those of CSRs in larger centers, and advances and refinements in call center technology, as well as economies of scale in electronics manufacturing processes, now enable these smaller centers to take advantage of state-of-the-art features at a reasonable, affordable cost that will be within their budgets.

In addition, staff members in these smaller departments are not always dedicated to call center functions and roles. They need flexible solutions that build on the systems already in place and that also provide room to grow. For these situations, the PC-based ACD, a new type of call-handling system, is available. The previously mentioned new-found openness of switch vendors has resulted in the development of these products, making possible a host of software products that add ACD features to key systems and hybrid switches.

ACD rules of thumb

It is less expensive to incorporate ACD features into an existing business phone system—there is no capital expenditure on a large piece of hardware. There are also rules of thumb for the number of agents per ACD. At the level of 6 CSRs, or even up to 30 agents, it is difficult to justify large ACDs. However, systems and products are much more flexible than they used to be, and it is now relatively easy to integrate top-notch systems like interactive voice response or voice mail, giving a small center a very professional appearance to customers.

Another feature critical to call center operations is third-party call control. Third-party call control can, for example, provide special treatment to customers based on the language they speak and call routing can be accomplished based on skill sets or on time of day for full 24-hour coverage. Using the PC, it is not difficult to set up a rules-based system for directing the right call to the right CSR. This has become a low-end solution for small call centers.

The PBX/ACD allows an organization to implement a call center in stages; however, a low-end ACD in a PBX switch will only allow a facility to grow to a certain point—here the rule of thumb is about 50 CSRs. At this point, it will be necessary to explore larger, stand-alone ACDs. Low-end systems should be evaluated for their upgrade capabilities. Vendors can now offer systems that can be upgraded smoothly in stages, a result of their efforts to capture some share of the small call center market. PC/ACDs or PBX/ACDs may handle smaller centers—typically, 10 to 15 CSRs—very well, placing them on the same technological level as bigger centers. Organizations that already have in-house PBXs can experiment with available ACD software. A commonly used technique is to convert a few users, and if this conversion works well, to expand the availability of the ACD function to other CSRs.

In addition, there are software products available (see Appendix A) that allow overflow patterns to be set among multiple small groups and that also allow these parameters to be changed quickly, with a minimum of software knowledge. These systems do not deliver the same functionality as a dedicated ACD, but in many situations that is not necessary. Departmental needs differ—for example, few need multisite routing—and department heads may need reports on sales and costs rather than call traffic.

It is interesting to note that many small "call centers" have not realized that they are call centers! Once they are recognized as call centers, these facilities, need the same kind of technologies that larger ones have been using for several years. After all, customers demand the same high service standards, no matter how big or how small the organization. The small-scale ACD solution allows small organizations to obtain a much higher level of customer relationship management at a reasonable cost.

Networking ACDs

One change in switching technology is the use of the network itself as a platform for queuing and routing even after a call has been answered. Call-routing systems that let the call center perform ACD-style call flow manipulations directly within the network are available from some vendors. This system works well with a variety of phone switches and carrier networks. It has the advantage of turning a collection of linked calls into a true, single "virtual" center. The switch data is processed by intelligent query services, which direct the carrier where to send the call before it enters the switchboard. Network-based call routing works in conjunction with routing schemes that may already be in use, such as CSR skills and time-based routing, ANI, or caller-entered information, just as if the CSRs were working with a single-site ACD. Networking also allows these techniques to be applied across varied and remote sites.

Another approach to networking ACDs is the use of software-based products with ISDN (integrated services digital network) to provide full ACD features to CSRs wherever they are required. This technology directs calls to geographically dispersed locations from within the public network and does not require dedicated T1 links or ACDs.

Carrier networks can provide many features, including off-site transaction processing and call routing. A long-term goal of carrier organizations is to replace on-premises equipment with network infrastructures that provide the same capabilities, thereby growing their business by making it possible for them to obtain additional revenue from the value added by network features.

Switching and routing systems

Suppliers of switching and routing systems for call centers are numerous. Some of the major vendor organizations are listed in Appendix A, with special emphasis on those vendors that have established reputations for supplying reliable, proven call center products and for being market leaders, as reflected by their commitment to develop new features and seek out third-party partners. These organizations have also captured significant market share.

Among the capabilities offered are those that allow customers to use a broader range of software applications, including some that appeal to the smaller department or distributed call centers. These products enable the linking of multiple integrated application modules (IAMs) from the main unit to create a chain of interconnected applications, all processing customer communication in tandem. Some of these software products also provide a construction and maintenance tool that places call-routing templates on a single drag-and-drop desktop, including such things as IVR integration and call delivery channels from multiple media.

A newer tool that has come on the market for the growing e-commerce/ Internet call center activity is a real-time, browser-based information sharing tool that can be added to a call center for about $1,000 per CSR, including CTI connectivity. These products enable the person on either side of a Web transaction to navigate though different pages and allow the CSR to guide the customer through a series of screens according to a script. In this scenario, the product works through a choice of multimedia options, including a desktop IP connection, Web-based text chat, or a traditional two-line callback using the public network.

Open system products

One of the most important aspects of some of the more recent call center products, from a user perspective, is that they are "open system" products. This means that they will work with other ACDs, interface on the network side with existing IT and telecom infrastructures, and are easy to integrate into existing systems. The advantage to "Webifying" an existing call center seat is that it allows the organization to leverage trained CSRs and equipment to sell existing products, no matter how complex, to a "Web lurker," who might not even have been an overt caller. Converting these Web lurkers into callers is the first step in turning them into customers.

Some vendor organizations are attempting to assemble an end-to-end, all-in-one call center system. The concept of the "call center in a box" has been popular for some time; however, the complexity and variety of call center technologies make it unlikely that a single vendor will be able to create and "shrink-wrap" a complete hardware and software application to meet all call center requirements. What has evolved in the marketplace is a collection of integrated applications from which to choose that are certified to meet the required specifications under the management and control of a single vendor.

Competition among switch vendors serving the call center market has created a growing portfolio of technology that is often very interesting and innovative but does not really meet real-world functional requirements and therefore has not become part of the established set of operational tools. Among the examples of this exotic technology are some that have been discussed previously, including skills-based routing and universal agent blending; "call-me" buttons on Web pages are also in this category. The more exotic technology has not found a place in call center operations because of the many operational and cultural hurdles to their implementation and application in real-life call centers.

The considerable degree of competition among vendors on product features and the high cost of development have also led larger companies to add value to their switch products through aggressive acquisition strategies. Small companies find a multivendor environment very costly; they must spend huge sums of money on marketing to bring their products to the attention of call centers. Under these circumstances, partnerships among vendors proliferate.

The Internet in the call center

A discussion of networks in the call center would not be complete without mentioning the significance and dramatic growth of the largest and most extensive network in the world—the Internet—which is available to the public and becoming increasingly important to the business community. It is hard to grasp how the Internet became so important to business in such a short time, and how dramatically it has changed many of the rules of conducting business. It has provided alternatives for how to work, where to work, how to communicate, how to keep informed, and how to communicate with customers. All of these aspects of the Internet have an impact on call center operations.

Customers have choices for how they communicate, and there are a number of them—some would say too many! There will always be some companies that want to stick to the older business models, but they will gradually be replaced because they will no longer be competitive.

In the context of the Internet, the call center is revolutionary. Call centers are automated service delivery points, full of customer data and products, dedicated to one major objective: providing customers with whatever services or products they require. How does the Internet fit into the call center model? It is just one more communication channel for the customer, a channel that call centers need to manage at least as well as traditional communication channels.

The Internet is a relatively low-cost communication channel, easy to establish and manage and using many of the same network and communication infrastructures as the traditional communication channels. It provides a range of opportunities to CSRs operating from sites remote from the "home" call center and to customers with Internet connections on their home and office desktops. In this "cyberworld," each customer has the equivalent of the CSR terminal and can be provided with the same information as the CSR. However, CSRs must be in place to assist and guide customers who want to talk to a real person. The CSR represents the company's interests in a sales transaction and may pull or push the customer toward a product and (possibly) away from a problem. Customers usually need guidance at some point in a transaction, no matter how much information they have obtained from a Website. There may be confusing options or other procedures to be followed that need explaining, and the CSR can assure customers that their needs will be looked after.

Integrating the Internet into the call center

What is the best method for integrating the Internet into a call center that was designed as a telephony contact center? There are several options. The help desk was the first stage in the process in some companies. E-mail was a natural way to provide technical support to customers, enabling them to register their problems and track them as they were resolved. A second stage of integration occurred when the Internet became a tool for distributing technical documents to a wide community of problem solvers, sometimes including customers. This stage occurred in the late 1990s, when the Web had not yet reached predominance and was still not being considered in the planning for a call center. The e-mail model remains the basis for most real-life combinations of call centers and the Internet. It is the primary form of communication used by the Internet customer and the major form of non-telephony interactions in the center.

One of the problems in integrating the Internet and the call center is coordinating the multiple streams of input that are now available to callers. If an unhappy customer sends an e-mail describing a problem and, after an hour or so without a response, then calls a CSR and begins all over, what happens to service statistics? Current generations of customer information systems can handle this situation, but in the early days of the Internet in the call center, it upset service statistics and caused problems for the help desk manager. One model of interaction based on the Internet gets around the problem of coordination. It involves customers who click on Websites to request either a call back or to initiate an Internet-based phone call with a CSR. The logic in this process is sound—the customer is already armed with information about the transaction, the reason the information is placed on a Website in the first place. This model can result in good customer interaction if the CSR is in the right place with customer information, if the telephony part of the transaction works perfectly, and if the call is placed within a reasonable time frame.

The products that make interaction over the Internet possible are examples of leading-edge technology that push the boundaries. Unfortunately, the vendor community is still in the process of integrating them into systems that work in the daily life of a call center. As time goes on, these applications will sort out into those that work and those that don't, and eventually some of them will find a place in call center operations.

Text-based interaction

Real-time, text-based interaction also demonstrates the power and capability of the Internet in the call center. In this scenario, a caller connects to a Website and asks for a CSR's assistance using a chat window. Removing the hardware and bandwidth necessary for voice communication permits live interaction, or what at least appears live to the caller. One benefit is that the CSR in the center can handle multiple callers at once because of the delay inherent in chat mode and can use scripts to speed up responses. The CSR is also able to guide the caller to a particular Web screen, share information, and participate fully in bringing a transaction to a successful close. Another, major benefit of this model is that the Internet/call center connection is moved from the service side to the sales side, and at a level of technology that is available to smaller companies. CSRs can guide a Web surfer to a sale or the next level of the sales process at the same cost savings as the more complex "call-me button" model of Web interaction. This is also one of the features available in call center/Internet integration but one yet to be accepted by call center managers, for reasons noted earlier.

The choice of which of the several methods of integrating the Internet into the call center for each organization will depend on several factors: the resources available, the comfort level with transitional technology, and, most importantly, the relationship between a company and its customers.

Database management technology

This section provides an overview of database management systems, in particular the relational database management systems (RDBMS) that are a component of most data warehousing systems, the technology that enables vast amounts of customer data to be stored, some of which will ultimately end up on the CSR's screen in a call center. This overview is not intended to be a definitive or detailed analysis of database technology; however, it does provide some selection criteria for and characteristics of this technology. The material is included in this book to illustrate its importance in the overall process of providing customer information to call centers.

Data mining, the process of extracting customer data from the data warehouse, is also reviewed and described, as is the importance of ensuring that only "clean" data are provided to the data warehouse.

Database management software is the technology that manages the data stored in the data warehouse and provides the tools for accessing and querying the data. In combination with the data warehouse, the repository of customer transaction data, this technology enables organizations to store, access, and manipulate customer data and to provide call center CSRs access to the data.

Database alternatives

There are several viable database management systems used in data warehousing. However, as is typical of the IT sector, vendors often offer products that are in the final development stages and ready for first release. There are, therefore, usually implementation glitches and code that doesn't work in these products.

Determining database requirements is one of the critical areas of data warehousing, and the impact of their selection will filter down to the call center, one way or another. Organizations often tend to select a database with the rationale that it is the "company standard," because it is expedient and it eliminates the need for support IS staff to learn another database. However, the selection of database products should follow the same rigorous evaluation process as for any other IT product. Database management software should be selected on its own merits, that is, because it meets the objectives of the type of data warehouse to be implemented—operational data warehouse or informational data warehouse—and for its contribution to the corporate CRM strategy.

Most RDBMSs are based on on-line transaction processing. These products can handle operational data warehouses and have short but high transactional volumes, a response time requirement, and a very limited amount of historical data. These characteristics contrast very clearly with database requirements for the informational data warehouse, which has low transactional volumes, no real response-time requirement, and a large amount of historical data. The access characteristics of these two data warehouse environments are completely different. Database management systems need to differentiate between these two types of data warehouses, so it is important when selecting the RDBMS to be aware of its architecture for providing effective data access to either or even both data warehouse configurations.

Data mining

Data mining and analytical tools, in combination with the data warehouse and database management technology, assist in increasing the return on investment (ROI) on stored customer data. In addition, they allow organizations to understand customer behavior patterns, rather than just grouping or segmenting them according to products they buy, age, or other personal characteristics, and highlight cross-selling opportunities and pinpoint the most profitable client profiles. These characteristics of the RDBMS are important to call center CSRs because they determine the ease of access and the usefulness of the customer data they will use in their day-to-day activities.

Integrating customer data and the call center

The information that can be gathered from the data warehouse and the RDBMS should form a ready source of customer data for the call center as well as provide information to marketing and salesforce automation programs. Conversely, customer information obtained in the call center should be continually fed back into the data repository. The more integrated the process, the closer the organization is to achieving one of the key objectives of a CRM strategy: a single view of the customer throughout the organization.

Data standards

Standards are necessary for the data stored in the data warehouse—consistent formatting reduces complications for data extraction. Ensuring that the highest quality of data is provided at the input stage promotes acceptance of the data and develops a high degree of confidence in it. Many corporate CRM strategies are thwarted by faulty, inconsistent data that prevent users from having a clear, unified profile of each customer. Disjointed data, blanks in some of the critical fields, and broken business rules are a few of the ways in which data can be corrupted, resulting in data integrity problems.

Integrating customer datasets is a challenge for any organization that wants to achieve a single view of the customer. Various departments—call centers, ordering, shipping, manufacturing, sales, and marketing—have customer contact and therefore customer information to contribute to the database. In a typical financial institution or insurance company, for example, there could be 50 to 150 different systems containing customer data. To have a single view of each customer to establish value levels and to meet customer needs, this data must be combined and integrated. Combining and integrating data to obtain a complete, current customer profile requires assembling different data stores, with data of varying ages, on different databases, and usually involving multiple programming languages and data formats. Vendor software is available that can assist in assembling and profiling data, as well as analyzing data before it gets stored in the data warehouse. Typically, these products locate different relationships in customer data from multiple sources, irrespective of source code and documentation, and provide information on how to clean and restructure the data.

Data clustering

Cluster analysis is an exploratory data analysis tool that uses statistical algorithms to identify distinct groups of customers that may not traditionally group together. It is used in segmentation not only to independently validate business assumptions but also to discover new interrelationships between variables that were previously not associated. This technique may be useful in call centers that have an outbound call requirement that targets certain demographics in a customer population.