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Although the internet is booming as a sales channel, the telephone reigns when it comes to customer service. The reason is basic human nature - the need to connect with another person and have an old-fashioned conversation.

Outbound telemarketing faces growing consumer discontent, but the diverse capabilities offered by contact centres - response handling, data processing and fulfilment - remain vital to brands. By combining technology with client and project management skills, suppliers are able to provide marketing and customer service departments with seamless offsite extensions to their teams. When executed well, customer contact centres do more than just process orders, answer enquiries, and capture data, they also bring brands to life by articulating company values and building customer relationships.

As a result, choosing the right contact centre for your organisation is a critical decision. John Price, head of the DMA's call centre committee and managing director of Price Direct, likens it to buying a car. To find the right one, he says, you need to look beyond the superficial metrics and the bells and whistles and get to the heart of what drives the contact centre itself.

A brand manager must first decide which contact centre model is right for his or her organisation. Philip Moore, director of corporate development for Aspect Marketing Services, says brands must consider whether it is necessary to develop an in-house operation that is customised to business requirements, or to contract the services out. "The decision should be based on scalability - will you face fluctuations in usage?; flexibility - can your systems be adapted to providers' or can their systems be adapted to yours?; and cost," he says. "A permanent in-house contact centre requires considerable fixed expenses to recruit, train, equip and maintain."

Bringing value home

Prolog Connect contact centre director Paul Miller suggests a fourth consideration: the value an outside expert can add to your organisation.

"A supplier can sometimes eliminate the learning curve for a client by solving a problem, providing expertise in a new market, or addressing a business need that couldn't be handled in-house," he says. "A new product launch is one example of a situation in which it might make sense to outsource."

When considering outsourcing, brand managers should understand that working with a supplier is a partnership and both sides must contribute to the venture's success. A common misperception is that outsourcing eliminates the need to devote time and resources to getting a contact centre up and running. Not so, says Rachel Robinson, group business development director at MM Teleperformance. "At the start of working with an outsourced contact centre, the effort required of the client is no different from that required to establish a call centre in-house." However, this will change as the supplier gets to know the client and its customers.

Delivering on targets

In the case of Liverpool Direct, the award-winning customer contact centre for Liverpool City Council, the organisation's business model combines the operational expertise of the private sector with the service knowledge of the government's workforce. The result is a 'co-sourced' contact centre, formed as part of a joint venture between BT and the City Council. Governed by a board of directors, the Liverpool Direct joint venture operates a 300-seat centre and other CRM-based programmes designed to deliver a service with reduced costs and bureaucracy.

The venture is a first for local government in Europe, and has helped the council address what chief executive Dr David McElhinney describes as an unsatisfactory reputation for customer care and service. Prior to the creation of Liverpool Direct in 1999, the City Council was receiving 12 million calls a year with 40 per cent of them lost or abandoned. The service now receives more than 8.5 million calls a year and resolves 95 per cent of them at the first point of contact.

Brand managers who decide to outsource will find no shortage of options in the UK and abroad. The Department of Trade and Industry estimates that there are approximately 5,700 contact centres in the UK. Because contact centres directly impact sales, service levels and overall brand image, the screening of potential suppliers should not be taken lightly. Some brand managers test-drive short-listed suppliers; others search for capabilities to match their performance goals. Robinson suggests getting to know the people behind the scenes who make the contact centre work.

"When considering various providers, do more than just meet with the pitch team," she explains. "Bring colleagues from human resources and IT to the provider's facility and hold individual breakout sessions during which you can discuss nitty-gritty topics, such as implementation, recruiting, training and policies."

Robinson also advocates meeting employees from both ends of the spectrum.

"Spend 20 minutes with a director of the business. If you are going to invest time and energy in a partnership with this organisation, you need to find out where they are going over the next one to two years."

She further advises visiting the call-handling floor to observe agents in action and to learn first-hand how they perceive their employer's culture and values.

While walking the calling floor, it can also be helpful to take note of the details. Are employees provided with pleasant surroundings and the equipment they need to do their jobs? Are agents relaxed and comfortable dealing with customers? As founder and chief executive of Garlands Call Centres, Chey Garland knows from experience that appearances really do matter. "Employees who work in pleasant environments - those who feel valued, are properly trained, and who understand the manner in which their performance is judged - generally perform better," she says.

Training is a key area to focus on when evaluating potential partners.

"Historically, there is a lot of upfront effort taken to train call centre agents but, after induction, training is limited to critical business needs, such as new software or equipment," says Calcom chief operating officer Angela Hunter. "Ideally, there needs to be ongoing development of customer management skills."

Continued training might also address complex issues such as compliance or challenges relating to the growing sensitivity among consumers about data protection.

To ensure suppliers are diligent in selecting the best teams for clients, managers should enquire about agent selection procedures and whether contact centre employees are shared or dedicated exclusively to one client.

MM Teleperformance works with clients to develop agent profiles to recruit and place employees who will best serve brands' customers. This approach helps two different clients satisfy their vastly different customer service needs. When placing agents with Virgin Holidays, Robinson says the company looks for employees who are aged 18 to 40, lively, fun and helpful. For National Blood Service the requirements are different. The profile is 25 to 70 and able to empathise and deal with emotional situations.

Team dynamics

Managers screening contact centre providers should also find the right supplier for their company culture, values and priorities and by articulating these qualities to prepare the contact centre team for the work ahead.

After meeting the people behind prospective providers' operations and touring facilities to get a feel for the set up, there are a few final factors to consider. First and foremost is ethical background. Look into suppliers' compliance records with key regulations, such as the Privacy and Electronic Communications Regulations and the Data Protection Act, particularly if the provider also engages in outbound telemarketing. Any grey areas on a record should be investigated since lax attention to industry best practices reflects poorly on all associated companies.

Robinson recommends contacting the Financial Services Authority (FSA), which keeps records of regulatory breaches. Also, verify that the Telephone Preference Service does not record the company not using its screening service, she adds.

In addition, brand managers should consider their technological requirements on both the front- and back-end. Dudley Larus, vice president of marketing at Amcat, recommends a technology audit as part of the screening process.

This should include "comprehensive agent scripting capability for messaging, top-notch reporting and statistics for performance control and full contact compliance with DMA guidelines," he elaborates.

Finally, there are the intangibles. Philip Moore says chemistry is one of the most overlooked factors but can make or break an outsourcing relationship.

And there's the all-important trust factor. Chey Garland says: "You are entrusting your most precious asset - your customers - to this organisation." Trust must be established from the start.

TOP TIPS ... HOW TO MAKE OUTSOURCING WORK

1. Agree on expectations from the start. Define specifications for such things as strategies, scripts and reporting, 'what-if' scenarios, the level of discretion the contact centre should use, and preferences for day-to-day contact. Also, create mechanisms through which the contact centre can channel customer feedback on everything from marketing creative to product satisfaction.

2. Communicate clearly. Designate one decision-maker to serve as the supplier's contact for all enquiries.

3. Give the contact centre the support it needs to ensure a seamless experience for customers. This includes briefing them in advance on your marketing schedule, providing product information, photos, and/or samples, and supplying copies of marketing creative.

4. Make the call centre an extension of your business. Paint the walls in corporate colours and have products on site and available to agents. Kit the agents out in corporate wear, and let the staff live the brand. Visit the centre regularly and listen-in remotely to see (and hear) what's happening on the ground.

5. Empower contact centre agents to handle any situation. Handing the customer over to other parties only frustrates the caller and increases the likelihood of things going wrong.

CASE STUDY: TOYOTA

Owners may buy their first Toyota for its style, quality and reliability, but it is customer service that keeps them coming back for their second, third, or fourth vehicle. That's why Stephen Duval, Toyota's customer relationship marketing manager (pictured right) for UK operations, invests time and energy into managing his relationship with contact centre supplier 2Touch.

Toyota consolidated its teleservices in the UK under 2Touch in 2001 after working with a variety of providers. Today, 2Touch handles approximately 20,000 inbound calls a month for Toyota, and makes 5,000 to 6,000 outbound calls to new and existing customers. In addition to processing transactions and enquiries for owner benefits programme Club Toyota, 2Touch responds to general customer requests and provides information on various Toyota services. It has added value to Toyota's business by helping fine-tune messaging for marketing communications and improved sales processes.

"We treat our contact centre staff like our own employees by giving them a branded workspace, seeding them on mailing lists, including them in briefings at headquarters, giving them access to our CRM database, and investing in training," says Duval.

In fact, to help contact centre employees live and breathe the Toyota brand, the company has even despatched a transporter-load of new cars to 2Touch's Sunderland site for the agents to familiarise themselves with.

"In my experience, you get the most out of the contact centre by investing a lot into it," he says.