Financial Services Call Centers: Less than 10% of Banks Profit From Call Centers

DURHAM, N.C., Aug. 28 /PRNewswire/ — Despite the financial services
industry’s innovation in implementing cross-selling and up-selling strategies,
less than 10% of banks claim they turn a profit in their call centers,
according to a new report from business intelligence firm Cutting Edge
Information.

The report reveals, in fact, that between 55% and 70% of banks and
financial institutions operate their call centers at a loss. The study
contends that financial services companies must implement profit-growing
strategies, such as up-selling and cross-selling additional services.

“Managing Financial Services Call Centers,” available at
http://www.cuttingedgeinfo.com/FS80_Call_Centers/ contains more than 200
metrics and features practices from top companies including Merrill Lynch,
Fidelity Investments, Citigroup, Capital One, Allstate, Wachovia and MetLife.
Those call centers that do turn a profit typically belong to companies that
strategically position the customer service function to drive profits.

“Too frequently, financial services companies view call centers as a
necessary evil,” said Elio Evangelista, senior analyst at Cutting Edge
Information. “While it’s true that call centers are necessary to handle
customer service calls, reps can take the opportunity to walk customers
through new, more complex products and services.”

Cross-selling and up-selling require in-depth customer relationships and
an extensive knowledge of customer behavior. For example, one profiled company
regularly monitors important dates in customers’ lives and responds with
targeted marketing. So when a particular customer’s birthday rolls around, he
may receive marketing reminding him to fund his retirement account.

“Managing Financial Services Call Centers” showcases quantitative metrics
and qualitative practices in the following areas:

* Call center agents’ incentive and compensation packages
* Turnover, blocked calls, cost per rep and many other key performance
measurements
* Inbound and outbound call metrics for the financial services industry
* Up-selling and cross-selling strategies
* Offshore outsourcing
* Process efficiency and call center technology

To view the online summary of this 114-page report, visit
http://www.cuttingedgeinfo.com/FS80_Call_Centers/ . For more information on
this report or to learn about other research being conducted by Cutting Edge
Information, contact Chip Pecora at [email]chip_pecora@cuttingedgeinfo.com[/email] or
919-433-0219.

Cutting Edge Information is your one-stop shop for real-company business
research. Our reports will help your team execute strategy, understand key
business issues, and support your ideas in meetings with key executives. Move
ahead of your competition with Information from the Cutting Edge. For more
information, call 919-403-6583 or visit http://www.CuttingEdgeInfo.com/

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