A customer support call center grades their employees on how quickly they resolve customer problems (average call time) and how many times the customer request escalates to the point that a supervisor must be summoned to resolve the dispute
What might an employee do to perform well on these metrics without actually providing good customer service? What could management do to prevent such behaviors?
Answers will vary, but two common tactics are to transfer the call back to the queue so that another employee must handle the request or to hang up on the caller. Both actions serve to reduce the average call duration and prevent the supervisor from being summoned by the employee. Management can collect data on the number of dropped calls, transferred calls, and randomly monitor the representatives to determine the percentage of calls handled in this fashion.
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Four entrepreneurial students want to open a shaved ice business during the coming summer
Maxine thinks that demand will be high and therefore they should purchase a large stand and acquire a premium ice shaving machine. Minnie feels strongly that demand will be low and that they should purchase a tarp and some basic hand tools to work the ice. Midelia is pretty sure that demand will fall in-between these two extremes, so they can get by with a shack and a used ice shaving machine. Their financial wizard of the bunch, Probableah, has estimated the costs, revenues, and likelihoods of each level of demand and created the table shown below. What is the expected profit for this venture? Demand Total Revenue Total Expenses Probability Low $500 $15 .2 Medium $2,000 $125 .3 High $5,000 $519 .5 A) $1700 B) $2300 C) $2900 D) $3300