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Speech Analytics ROI: Speech Analytics ROI: Uncovering Key Business Uncovering Key Business Intelligence Can Save Intelligence Can Save Revenue From Dropping Revenue From Dropping off the Bottom Lineoff the Bottom Line
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Agenda
• Speech Analytics background– Why speech analytics?– State of the art in speech analytics– Analytics – more than words– Typical application stack– Application scaling
• Case study– Reducing churn for broad band provider
• Variables• Cost of churn• Methodology for saving revenue with speech analytics• Revenue saved• Return on investment
• Sample applications• Summary
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Why Speech Analytics?
• 90% of customer contact outside of the storefront comes through the call center
– Cable companies– Wireless & wire line carriers– Consumer goods
• Most overlooked source of customer information– Over 225 million calls recorded daily– Less then 1/10 of 1% is ever analyzed– More than 223 million opportunities to analyze customer needs are
being irretrievably lost.
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
State of the Art in Speech Analytics
• Underpinnings:– Advanced speech to text engines – converting audio to minable words
and data– Natural language processing– 2nd order recognition using patterns– Auto identification of key words and phrases and other meta data
• Applications:– Dashboards for KPI reporting– Trend analysis– Visualization tools to uncover complex data relationships– Advanced analytics to drill-down and across data sets
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Analytics - More than words
Conversation Analytics – Defining context in content– Words/Phrases together with:
• WhoWho is talking
• WhenWhen is it said in reference to other words - temporal awareness
• SilenceSilence – Boundaries have meaning
• TempoTempo – rate of speech, emphasis
• Stress – Speaker identified important words
– Meta-Data:• E.g. - customer number, purchase history, products purchased,
preferences, how often the customer called, length of call, called number, call reason, inquiry, support, complaint, etc…
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Application Stack
Call Center Recording SystemsCall Center Recording Systems
CoreEngineCoreEngine
Analytics: search, discovery, Analytics: search, discovery, reporting, alertsreporting, alerts
Virtual ServerVirtual ServerRoomRoom
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Application Scaling
Site #1
CoreEngineCoreEngine
• Retrieve callsRetrieve calls• Convert audio to Convert audio to Minable text and Minable text and metadatametadata
CallMinerCallMinerDatabaseDatabase
CallCallRecordingsRecordings
AudioAudioDatabaseDatabase
Site #2…n
CallCallRecordingsRecordings
AudioAudioDatabaseDatabaseCoreEngineCoreEngine
• Retrieve callsRetrieve calls• Convert audio to Convert audio to Minable text and Minable text and metadatametadata
AnalysisAnalysisReportingReportingVisualizationVisualization
AnalysisAnalysisReportingReportingVisualizationVisualization
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case study
– Reducing churn for broad band provider:• Variables• Cost of churn• Methodology for saving customers with speech
analytics• Revenue saved• Return on investment
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case study
– Variables:– $4 billion annual revenue– $200 per customer acquisition cost– $516 annual revenue/customer– 18% per year churn
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case study
– The cost of churn: • $720 million/year• Only a 1% reduction in churn saves $20 million
dollars from dropping off the bottom line• The $20 million could be used to recruit 200,000
new subscribers• Takes ~ 5 months to recover the customer
acquisition cost
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case study
– Methodology for saving customers with speech analytics:
Profile historical Profile historical churn factorschurn factors
ProduceProducechurn risk reportchurn risk report
Retention group callsRetention group callsout to customersout to customers
Customer Customer lostlost
Customer Customer SavedSaved
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case study
Profile historical churn factors:
– Some speech applications can tell you what you don’t know – e.g. what are the top 50 reasons why customers are calling?
• Billing complaints
• Competitor mentions
• Service issues
• Hardware problems
• Cost
• Reliability
• Performance
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case study
Profile historical churn factors – tag cloud:
yes, I'm calling to pay my bill, no it's not overdue, why did I have to wait so long. Yes,
I'll order the basic service, what is the cost? this is the third time I've called to get help I
want to speak to your supervisor yes thank you the system has been down for two
hours, I have a business to run, can't you help? Yes I'm a business first customer the agent
told me it would be fixed by 5pm, and the system is still down I appreciate your
help no, I don't want that service, it's too slow, I should have switched to satellite are you
kidding me! The sales person said the service would cost only 40 dollars
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case Study
– Product churn risk report:
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Revenue Saved
– Churn Reduction:• Current churn costs $720 million/year• Only a 1% reduction in churn saves $20 million
dollars from dropping off the bottom line• Using a conservative outcome of .25% churn
reduction results in $5 million in saved revenue
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Case Study - ROI
– A conservative .25% reduction from speech analytics yields $5 million in saved revenue
– Implementation cost:• Number of call centers – 15• Total seats – 5,250• Total implementation cost $2.625 million
– Time to recover costs 6.3 months
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Sample Uses
• Identify Call Trends – Identify often used word & word combinations over time
– ID calls and view trends– Search for “repeat” language
• Classification– Categorize calls by type
• Scoring– Validate that words or phrases were spoken
• Reduce and/or Eliminate the Cost of Call Monitoring– Automate call scoring
• Use Tireless Supervisor to automate the process of call evaluation
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Sample Uses
• Listen to the right calls– CallMiner can immediately reduce the required time to review calls by an
average of 50%– Auto selects calls that match (or don’t match) specific criteria
• Reduce Calls into the Call Center – ID reasons for calls into the contact center
– Use TrendMiner and Tireless Supervisor to identify why customers are calling - specific categories of calls may be directed to other channels like the web or IVR.
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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
www.ITEXPO.com
Summary
• Make the most the enterprises most important assets – what customers are saying
• Conversation analytics uncovers critical insight into what customers are saying and how agents are responding
• Analyzing and reporting on actionable information can result in significant cost savings and opportunities to increase revenue
• Vendor choice critical – not all speech analytics are created equal
Cliff LaCoursiere, SVP Cliff LaCoursiere, SVP Business DevelopmentBusiness Development
[email protected]@callminer.com
