One of the most interesting areas in analytics these days (at least for me) is determining revenue attribution – or what specific actions an organization takes that actually impacts revenue. Today, most of the credit goes to marketing or sales, but in all honesty, that’s only a piece of the complete story and business units such as the contact center aren’t getting the revenue recognition that they truly deserve.
An example of revenue attribution…
Recently, my family had to make a pretty significant choice on which hospital to select for several medical procedures. In other words, a revenue opportunity for whatever hospital we chose. Why did we choose the one we did?
Well, if you were to ask individual hospital staff:
- The doctors will say – “our patient outcomes brought them in the door”
- Operations will say – “patient satisfaction did it”
- Media buyers in the hospital’s marketing department will say – “our advertisements did it”
Organizations today only capture a glimpse of what actually drives revenue. Another example would be turning in a coupon – it is easy to assume that the coupon was the reason for the purchase, but in reality, it could be very far from the actual truth - yet the coupon gets the credit.
Back to my story…
In reality, what actually did lead us to choose a particular hospital? Well, for my family, it was a complex and wide variety of factors that led to the final decision including: previous customer experience with multiple departments, past ER visits, reviews, referrals from medical staff and previous patients, and a multitude of other facets – including shared electronic medical records with my primary care physician.
Why should contact center executives care?
Revenue attribution is an extremely important concept for executives who manage contact centers to understand and be able to communicate. Why? Most senior executives don’t have a clear (measurable) understanding of the contact center’s impact on revenue. As a matter of fact, most contact center leaders don’t know the measurable impact the contact center has on revenue.
Consider the following statistics:
93% of us will take action following inadequate service (source)
44% of US Consumers will take their business elsewhere as a result of inadequate service (source)
34% would take revenge following poor service by posting a review online (source)
Following a positive customer experience, 69% of Americans would recommend that company to others (source)
On average, loyal customers are worth up to 10 times as much as their first purchase (source)
If your contact center is viewed as a “cost center” and not a “revenue center”, then customer experience is at risk of not be viewed as a top priority and ultimately your organization will suffer along with your center.
I think it is time to flip the equation… and connect the value your group delivers with the revenue you drive.
Where should you start?
Dig deeper. Many centers measure things such as customer satisfaction, net promoter score, handle time, and a host of other statistics. However, those statistics alone do not connect back to top line revenue contribution. It’s time to take the next step and connect the dots. There are many ways to do this. Depending on the makeup of your business, how you connect those dots could be somewhat unique.
Look for direct connections to revenue. If your contact center takes orders, what is your average order size and how can your agents increase it? If you offer chat on your website, does it help increase conversion? Do you answer specific customer questions that lead to a buying decision? What other direct connections can you pursue and track?
Evangelize. Once you are armed with the information, you need to do some internal marketing. Everyone else needs to understand the contact center’s revenue contribution. An excellent book that will help you is Made to Stick.
If there is anything that this financially minded marketing geek can help you with on your journey to uncovering your contact center’s connection to revenue, don’t hesitate to reach out.