Overview - October04

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• Speech Analytics ROI
• Uncovering Key Business Intelligence Can Save
  Revenue From Dropping off the Bottom Line

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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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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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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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Analytics - More than words

• Conversation Analytics Defining context in
  content
• Words/Phrases together with
• Who is talking
• When is it said in reference to other words -
  temporal awareness
• Silence Boundaries have meaning
• Tempo 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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Application Stack
Analytics search, discovery, reporting, alerts
Virtual Server Room
CoreEngine
Call Center Recording Systems
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Application Scaling
Site 2n
Site 1
Call Recordings Audio Database
Call Recordings Audio Database
CallMiner Database
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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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Case study

• Variables
• 4 billion annual revenue
• 200 per customer acquisition cost
• 516 annual revenue/customer
• 18 per year churn

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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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Case study

• Methodology for saving customers with speech
  analytics

Profile historical churn factors
Produce churn risk report
Retention group calls out to customers
Customer Saved
Customer lost
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Case study

• Profile historical churn factors
• Some speech applications can tell you what you
  dont 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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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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Case Study

• Product churn risk report

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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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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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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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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 dont 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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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

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Cliff LaCoursiere, SVP Business
Development cliff_at_callminer.com