Block Buster DVD Rentals

“Your Movie, Your Time, Our Service”

Online Movies Marketplace

Launching a online DVD Rental Business

CONTACT: Amit Roy Choudhary Author

EMAIL: amit@roychoudhary.com

Created by: Amit Roy Choudhary

Table of Contents

1 Background 31.1 Product 31.2 Customer Base 31.3 How will you reach your Customer 3

2 TRAI Regulations 42.1 TRAI Approval 42.2 Telecom Unsolicited Commercial Communications Regulations 4

3 People 53.1 Recruitment 5

3.1.1 Sourcing Process 5

3.1.2 Job Description 5

3.1.3 Performance metrics for recruitment 6

3.2 Training 63.2.1 Objective 6

3.2.2 Structure 6

3.2.3 Content 7

3.2.4 Timelines 8

3.2.5 Evaluation 8

3.2.6 Performance metrics for training 8

4 Team Structure 94.1 Operations Org Chart 9

5 Processes 105.1 Sourcing Contacts 105.2 Scripts 10

5.2.1 Outbound Script 10

5.2.2 Inbound Queries from customers 10

5.3 Quality and Score Card 115.3.1 Transaction Monitoring 11

5.3.2 Agent Score Card 12

5.4 Performance Metrics for Operations 125.4.1 Performance Metrics for Outbound telesales 12

5.4.2 Performance Metrics Inbound Custome Service 13

5.5 ROI/Targets for agents 14

Prefacei

5.5.1 Targets for agents 14

6 Technology 156.1 Phone 156.2 Dialers 15

6.2.1 Predictive dialers 15

6.3 Quality Monitoring 166.4 Performance Metrics for technology 16

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1 Background

1.1 ProductA comprehensive collection of English, Hindi and local language (Marathi, South Indian etc.) DVD’s

1.2 Customer BaseAnyone across India who owns a device that can play a DVD’s

1.3 How will you reach your CustomerPotential customers can be reached using the following ways:

Online and offline media: Ad’s on popular websites, creating awareness on social networking sites, TV, Radio, Newspapers etc.

Cold calling: Cold calls will be made to contacts sourced from database providers.

Inbound lead calls: Customer who call, as a response to Ad’s are all potential customers

Promotional offers: Tie up with electronic shops and offer a free DVD to everyone buying a DVD player and promote your offerings

Emails: Mass emails

SMS: Bulk SMS

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2 TRAI Regulations

2.1 TRAI Approval

For an Organization to start its telesales operations in India, it requires prior approval from TRAI. This can be done by filling in the “TM-1” form which is available from the TRAI website. For complete details please refer the attached document.

2.2 Telecom Unsolicited Commercial Communications Regulations

As per the “Telecom Unsolicited Commercial Communications Regulations, 2007” it is very important that utmost care is taken while calling potential customers. All available contacts should be scrubbed for NDNC numbers. Non compliance to this could have serious repercussions.

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3 People

3.1 Recruitment

Getting the right talent for a job in a timely manner is a very important part of every organization. To enable this it is important to have a detailed Job Description for every role that needs to be hired. The JD should list, in detail, the exact work that a candidate is expected to do and the skills and competencies required to be productive and successful in the role.

3.1.1 Sourcing ProcessTypically resumes can either be sourced by the internal recruitment team from sites like Naukri, Monster, and LinkedIn, or with the help of external recruitment consultants. Ideally a combination of both these methods is the best option since this helps in generating more resumes and in turn helps in hiring the positions quicker.

3.1.2 Job DescriptionIn the current setup there are 2 main kinds of resources that are required

Out Bound Telesales executive: This group of people will be responsible for making cold calls and to sell them membership plans. Detailed JD for this role is attached below.

Inbound Customer Service executives: This group of people will be responsible for attending incoming calls from customers, answer their queries and sell them membership plans. They will also be responsible for account management for existing customers.

The

2 Team Leads

1 Process and Quality Lead

1 MIs executive

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3.1.3 Performance metrics for recruitment

The recruitment team will be measured on the parameters listed below

Parameter Description Required Internal MetricsTarget

s

Recruiting/Hir-ing

Acquiring the necessary hu-man resources to meet the staffing needs of the opera-

tion.

On Time (e.g., percent of staffing requests filled by the targeted date)  95%

Quality (e.g., percent of staff which successfully complete new-hire training program)

 95%

3.2 Training

A well structured training program is essential to ensure that the agents over the phone are equipped with all the skill they require to be successful at their job.

3.2.1 ObjectiveThe Objectives of the telesales training are as follows

Understand the laws of the land

Increasing Sales

Higher lead conversion ratio

Overcome sales objections

Understand the product offerings

Improved team communication

Enhance closing skills

3.2.2 StructureThe Method of delivery of the training will be as follows:

Classroom training

Group Work

Role Plays, role plays, role plays

Coaching

Live Calls

Final Assessment

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3.2.3 ContentThe content of the training will be as follows

TRAI regulations/NDNC numbers: It is imperative that every individual on the telesales team is aware of the TRAI regulation, the concept of NDNC numbers and the implications of non compliance. They should also be taught to handle a situation if at all they reach a user whose numbers exists in NDNC.

Telephone personality

Asking the right questions & listening : Developing verbal, vocal skills and Non verbal skills

Call Script/structure and how to use it effectively

Getting through the gatekeeper and talking to the decision maker: It is important that you are able to speak to the decision making authority else you won’t be able to make a sale.

Making effective benefit statements : Explaining the customer “What is in it for him”

Handling objections

How to respond over the telephone to responses like:

o “I haven’t got the time”

o “Call me back later”

o “I am happy with what I have got”

o “I don’t have the money”

o “I’m not interested”

o “Just send me some information”

Self-Motivation & “Keeping Up” even when you feel down

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Spotting the buying signals

Closing the sale and all of the different ways to do this

Effective follow up strategies when the sale is not made

Dealing with enquiries

Product Training

Detailed Telesales training manual by Peter Wyllie is attached below

3.2.4 TimelinesThe entire training program will take 3 weeks to complete, with one week dedicated for mock calls and call listening (If available). It is also important to reinforce the trainings that have been conducted, hence once the agents are on production there will be regular “reinforcement” training on specific modules every week.

3.2.5 EvaluationEvery individual will be evaluated after the completion of every module of the training. Once the entire training is completed there will be a final test which will be a combination of a written test and mock calls. Only once an individual passes all the tests he will be allowed to go on production.

3.2.6 Performance metrics for training

The training team will be measured on the parameters below

Parameter Description Required Internal Metrics Targets

TrainingTraining staff to minimum skill and knowledge require-ments.

Quality (e.g., percent of staff passing transaction monitoring 30 days after completing training)

 90%

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Head of Operations

(1)

Team Manager(1)

Inbound Team Lead(1)

Inbound Customer Care

team (10)

Tele Sales Team Lead

(1)

Tele Sales+ Verifiers

Team(8+2)

Process and Quality Lead

(1)

MIS Executive(1)

4 Team Structure

4.1 Operations Org Chart

w

The telesales team will comprise 2 main teams, the inbound customer care team who will also be responsible for inbound lead conversion and the outbound telesales team who will be responsible cold calling.

Each of these teams will have a Team Lead who will responsible for managing these teams.

A process and Quality lead will be responsible for Quality Monitoring and process improvements

A MIS executive will be responsible for generating reports.

Once a caller has agreed to take a membership he will be sent to a verifier who in turn will then help to close the transaction by taking all the relevant payment details and explain the customer the terms and conditions of the deal.

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5 Processes

5.1 Sourcing Contacts

Lead database will have to be sourced so that it can be fed into the dialers. This database is available from a variety of vendors, some of them are mentioned below

Fundoo Data - All India Database

Pyrumas - Profiled database of South India

Krono - Pan India Database

Indopia - North India

The total count of contacts across all these database providers is ~30 million + and the cost of procurement will be ~5p/contact

5.2 Scripts

An effective script is the foundation for any successful telemarketing program. A well-thought-out script will standardize the length of calls; provide a means of quality control regardless of agents experience or skill levels; and help sales executives to increase lead conversion. When Telesales executives are clear on the message and comfortable with its delivery, they are free to do the real work of selling, listening to prospects' needs and objections, and responding with confidence in ways that specifically address those concerns

5.2.1 Outbound Script

It is crucial to give your agents every opportunity to think on their feet. A good script that details selling points and anticipates objections will let them focus on what the prospect is saying instead of puzzling over how to respond -- or worse, concentrating on delivering the message at the prospect's expense.

Call scripts cannot be the same all the time and the agents should be given some liberty to use their own sentences if required. Attached below is a sample call script ( Please note it is not an end to end call script)

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5.2.2 Inbound Queries from customers

After a big-budget pan-India advertising campaign thousands of incoming calls will be expected. To effectively handle these calls it is important that we anticipate maximum number of queries that can come up from the callers and have the agents trained to answer these questions. All these questions will be uploaded into a Knowledge Management System which will be easily accessible to all the agents and will be scalable in a way that new knowledge can be added into it easily and quickly.

Attached below is a laundry list of the type of support queries we could expect from potential customers and existing customers on account management.

5.3 Quality and Score Card

5.3.1 Transaction Monitoring

Transaction monitoring is a process of monitoring calls to improve the quality of service. This is one of the most important processes required to ensure that operations meets a minimum defined standard of quality. This also helps in a higher lead conversion ratio. This process must ensure the following:

Both inbound as well as outbound calls should be monitored

Both side-by-side and remote monitoring should be performed on an on-going basis. Screen capture and voice recording applications cannot be substituted for side by side monitoring.

The methodology used to select the sample of transactions to be monitored should be unbiased.

All information given and received by the agent (e.g., information entered by agent into information systems) should be included in monitoring.

Critical error accuracy must be measured

There must be a clear performance threshold, e.g., pass/fail

Individuals performing monitoring should be trained and calibrated

There is a need to analyze monitoring results and take action at the program level as well as a telesales executive level

Agents who fail a transaction monitoring must be:

o Individually (one-on-one) coached on all transactions that do not meet target.

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o Monitored more frequently in order to determine if the failure is an isolated case or symptomatic of poor performance.

For executives who repeatedly fail transaction monitorings, corrective actions must be implemented and for agents who consistently make critical errors should be taken off calls.

5.3.2 Agent Score Card

To ensure the highest lead conversion rate it is very important that all the team members work at an optimum level of productivity and quality. This can be ensured by implementing a score card. This score card will have parameters and targets against each of these parameters, once an agent is aware of the parameters he will be measured on and the targets he needs to achieve he will automatically work towards meeting those. There should be incentives linked directly to score card which motivates the agents.

5.4 Performance Metrics for Operations

5.4.1 Performance Metrics for Outbound telesales

Just like a score card is used to measure the performance of an individual, there should be parameters used to measure the performance of operations. Listed below are the metrics that we should measure for outbound telesales operations. These metrics have been derived from the COPC standards which are among the best standards for this kind of business.

Parameter Description Required Internal Metrics Target

Client Satis-faction and Dissatisfaction

Assessing how satisfied/dis-satisfied Clients arewith the services

Overall Client Satisfaction - Must track overall ClientSatisfaction, at the program level, at the team level, and at the agent level

95%

On Time Complaint Handling – Must resolve on time to client com-plaints

98%

AttritionAssessing the rate of staff de-partures for Agents and Team Leaders.

Staff Attrition - Annualized attrition of staff calculated at both the program and team level

>20%

AbsenteeismCalculating the amount of time that is lost due to un-scheduled absenteeism.

CSR Absenteeism (e.g., % of hours lost through absenteeism) >5%

Closing out-bound con-

Obtaining end-user commit-ment (e.g., sales, leads,

Closure Rate - Must track at least one metric to measure 20%

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tacts membership pledges, etc.)closure effectiveness (e.g., percent sales closed, leads to sales ratio, per-cent pledges redeemed)

Activating Ac-counts

Includes creating of a mem-bership account

Backlog (e.g., average time late of accounts not activated on time)

1 busi-ness day

Critical Error Accuracy (e.g., per-cent of accounts that were correctly activated in a timely manner)

98%

DVD Delivery Delivering the DVD's on time

On Time (e.g., percent of times DVD's issued in required time)  

Backlog (e.g., average time late of DVD's not delivered on time

1 busi-ness day

Critical Error Accuracy (e.g., per-cent of DVD's sent that were incorrect titles)

98%

End-user calls

Attempting to contact end users either using automated

(dialer) or manual dialling methods.

End-User Critical Error Accuracy (e.g., accuracy rate of end-user affect-ing critical errors of calls monitored)

98%

Cost per Unit (e.g., cost per sale, cost per call, cost per hour) TBD

Yield (e.g., sales per hour, contacts per hour, pledges per hour) TBD

CSR Utilization - Must be calculated as (transaction handle time + avail-able time)/(paid time)

TBDAHT- Must be calculated as (transac-tion handle time)/(number of transac-tions processed)

5.4.2 Performance Metrics Inbound Custome Service

KCRP Description Required Internal Metrics Target

Processing in-bound end- user calls

Answering end-user return (inbound) calls

Speed of Answer- Must track Ser-vice Level (i.e., percent of calls answered within target time period), Average Speed of Answer (ASA)

TBD

Abandonment Rate (e.g., % of transactions abandoned before being answered by a live agent)

TBD

End-User Critical Error Accuracy (e.g., accuracy rate of end-user affect-ing critical errors of calls monitored)

TBD

Revenue Generation - Must track conversion rate (e.g., percent of calls with a sale)

TBD

Volume (e.g., number of calls re-ceived per period) TBD

CSR Utilization - Must be calculated as (transaction handle time + avail-able time)/(paid time)

TBD

AHT- Must be calculated as (transac-tion handle time)/(number of transac-tions processed)

TBD

Cost per Unit or Occupancy - Must track cost per unit (e.g., cost per unit sold, cost per transaction, cost per de-livered revenue, cost per sale or cost per subscriber) or occupancy [(trans-action handle time)/(transaction

TBD

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handle time + available time)]

5.5 ROI/Targets for agents

5.5.1 Targets for agents

It is very important to give daily, weekly and monthly targets to the telesales executives. At the same time these target should not be unrealistic. Mentioned below is the calculation methodology for calculating the daily targets and the AHT.

Parameter Value CommentsAverage Salary/Annum/Agent 120000 Average Salary/Month/Agent 10000

Overload cost 10000

Management Costs, Infrastructure, Support staff, other variable costs etc. This is an assumed number considering employee salaries compromise of 50 % of the total Company costs

Total Monthly Cost 20000 Monthly Target /Agent 32000 Assuming 60% ROI

Average Sale Price 600 Considering most people go for 1 DVD at a time plan

Total Monthly Sales required to meet target 53 Weekly Sales 13 Daily Sales Target 3 No of sales/100 calls 4 Calls to be made/month to meet the target 1333 Call/Day 63 Total Staffed Time (Mins) 540 9 hours staffed timeTotal Productive time (Mins) 360 Considering 6 hours of productive calling timeRequired AHT (Mins) 5.67

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6 Technology

6.1 Phone

AVAYA and Nortel are two of the most popular phone systems available which can be used both with VOIP as well as local lines. Both the systems offer similar features and have the ability to interface with various other infrastructure equipments like the IVR and dialer.

6.2 Dialers

6.2.1 Predictive dialersPredictive dialers are the most popular dialers used today for an outbound call center operation. A predictive dialer, as the name implies, predicts the number of call center agents that are available using specific algorithms and automatically dials a batch of telephone numbers from a database source. The predictive dialer then distributes the calls to the available agents. With this tool, the agents will not remain idle during a shift waiting for calls to come in, as a result increases the productivity of agents.

Types of Predictive Dialers:

Hosted Dialers – you do not need to make a purchase of an actual system but rather you pay a company that hosts the system and the agents access the system remotely. All you need is an Internet connection to be able to use the system. The downside is that if there is disruption in the Internet connection, then the whole process is affected.

Software Dialer – is a simple solution for smaller centers with an existing PABX phone system. The software is installed and configured to connect directly with the PABX. Older models of PABX though may not be compatible with this type. This is the best suited option for a small team.

Hardware Dialer –uses a dedicated telephony board. As an agent reports for a shift, the dialer will place a call to the agent and keep the line open during the duration of the agent’s shift and process and assigns inbound and outbound calls to that agent.

Smart Dialer – automatically makes calls when it detects that agents are available and processes the calls so that agents will only be talking to actual interested persons. The system also automatically plays a recorded welcome message should there be some delay in the availability of an agent to take the call.

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There are a variety of dialers available in the market listed below are few of the brands

Vertical

NEC

Nortel

Aspect

Five9

Among the above brands the Aspect Unison Predictive Dialer is popular.

However in the current scenario since the team size is small a full-fledged hardware dialer may not prove to be cost effective hence the “Smartcall Box software from XS Infoways can also be a good option. This is a software dialer and can be installed on any server. This has a onetime implementation cost of Rs 40000 and per agent license costs around Rs 7500/-.

6.3 Quality Monitoring

Witness and NICE are the two most popular call recording and monitoring systems available in the market. Both offer similar features.

6.4 Performance Metrics for technology

Parameter Description Required Internal MetricsTarge

t

Telecommunica-tions (Technology )

Providing and maintaining telecommunications hard-

ware, software and ser-vices (e.g., long distance service, local line service, telecommunication switch, CSR phones, and call man-

agement software).

Uptime/Accessibility (e.g., % of time the system is fully functional, % of time lines are fully available)

 

Blocked Transactions (e.g., the number of calls not received due to network, trunk, or PBX limitations and /or settings)

 

Managing dialer

Providing and maintaining hardware and software to support the CSP's auto-mated dialing function.

Uptime/Accessibility (e.g., % of time the dialer is fully functional)  

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