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Typical Return On Investment

Case Study - Time Warner ROI Study
  

This document details the actual returns on the investment that TW4 (a Time Warner company) made in Synthesys™ from Noetica.
 

 

 

 Time Warner ROI

The following is an analysis of the actual return on the investment made in Synthesys™ at TW4 (a Time Warner company) during the first year of operation following the deployment of the system across their 70 seat contact centre:

 

First of all, there is the issue of agent training. When the project started, all agents were working directly on the mainframe screens. This meant that agents would take a minimum of 4 weeks training before they could even begin to take calls. Some reports indicated that this was even longer, suggesting that 10 to 15 weeks and more were sometimes required in order for agents to be able to work independently on all three mainframe systems.

Agents now require 1 week of training. Also, the attrition levels during training have been reduced. Assuming an attrition level during training of about 25% prior to the introduction of Synthesys™ and about 5% now, we can roughly calculate the cost of training per year before and after Synthesys™:

Before:

  • Total number of agents: 70
  • General attrition rate: 30%
  • Attrition during training: 25%
  • Cost of an agent per week: €700
  • Cost of training: 70*30%*125%*8*€700 ~ €150,000

After:

  • Total number of agents: 70
  • General attrition rate: 20%
  • Attrition during training: 5%
  • Cost of an agent per week: €700
  • Cost of training: 70*20%*105%*1*€700 ~ €10,000

It follows that there is a reduction of €140,000 in the annual cost of training.

In addition, the fine blending between email and inbound call handling has enabled better use of agents in the call centre, thus reducing the number of abandoned calls and reducing the number of agents required to run the volume of traffic. We estimate that by eliminating the requirement for the dedicated team dealing with email, there has been a de facto reduction of 3-4 agents in the workforce requirement for the same level of calls/emails and a better level of service at the same time.

The result is an additional saving of about 3.5 * €36,000 = €126,000

Finally, we estimate that the level of abandoned calls has been reduced from well over 30% to about 10%. We accept that this is not entirely due to Synthesys™ and the CTI capabilities that we provided, but we can safely assume that at least a quarter of this reduction can be attributed to it. This can be thought of as the equivalent of a 5% increase in the workforce.

The result is an additional saving of about 70*5%*€36,000 = €126,000

Therefore, without even considering additional benefits such as more accurate and detailed reporting, additional management information, flexibility including the flexibility to take on new types of customers in the future and so on:

Therefore, the annual saving generated by the use of Synthesys™ is at least in the region of €400,000.