Call Center Profit Simulation Model
Database Systems Corp. provides a simulation model to assist call center administrators in projecting potential revenue and expense associated with a particular predictive dialing or auto dialer campaign. Additional variables needed beyond other simulations include project revenue per sale and percentage of close rate. On the expense side, the administrator must consider more definitive estimates including the telecommunication cost and the unit labor cost associated with the call center agents.
The purpose of this simulation is to closely estimate the profit that will be realized from a particular dialing campaign. Since this campaign is based upon revenue resulting from a phone sale, this model only applies to commercial marketing campaigns.
The predictive dialer and auto dialer model simulates outbound phone calls placed by a predictive dialing phone system with answered calls being connected to live agents. Calls can be made predictively, i.e. calls made even when no agents are currently available, "predicting" that when a call finally reaches an individual, an agent will be available.
An auto dialer only places calls when an agent is known to be available to handle the connected call.
The following is an example of the results our predictive dialer simulation program can produce.
Predictive Dialer Profit Simulation Parameters
The following parameters may be entered to run our Predictive Dialing simulation model. (Information highlighted in Red is mandatory. Information highlighted in Green is optional):
- Phone Campaign Delivery Type - This is the type of phone campaign that is to be simulated.
- Live Answers - Dialer delivers message to live answers, ignoring answer machines.
- Live Answers / PT/PD - Dialer contacts Live Answers with either a message and "Press Through" or connects call to Predictive Dialer (PD) agent. Dialer ignores Answering Machines.
- Machines Only - Dialer only leaves messages on answering machines ignoring live answers.
- Live Answers / Machines - Dialer delivers recorded message to both Live Answers and Answering Machines.
- Live Ans/Machines/ PT/PD - Dialer contacts Live Answers with either a message and "Press Through" or connects call to PD agent. Dialer leaves message on Answering Machines.
- Phone List Size - This is the number of phone numbers contained in the list provided to the predictive dialing system that will dialed.
- Number Of Lines Dedicated To Dialing (Not Including Agent Lines) - Our predictive dialer system comes with any number of digital or analog phone lines. All or part of this configuration can be dedicated to running a particular predictive dialer campaign. This is the number of phone lines
that will be used for dialing the above list of phone numbers.
- Number Of Agents Handling Calls - The number of agents that will be handling your connect phone calls. The phone system dials numbers from the phone list and when a "live answer" is detected, the call is transferred internally to the next available agent. If no agents are available, the call will be suspended.
- Number Of Passes Attempting To Contact Each Number - The predictive dialer system can attempt to re-dial phone numbers that were originally answer machines, busy or no answer. If more than one pass is requested, the campaign will require additional time to complete. Generally a predictive campaign will make a maximum of three attempts to complete a call.
- Average Talk Time Call Length (Seconds) - This is the length of time on average that your agent talks with a call recipient (in seconds).
- Estimated Percentages Of Call Results (Must Add Up To 100%) - This is an estimate of the quality of the phone list and may vary based upon the time of day in which the campaign is run. There are five different types of call results listed here:
- (answering machines detected) - predictive dialer detected an answering machine (default 52%). (It is important to note that the technology today is only about 90% accurate when detecting the difference between an answering machine and an live person.)
- (live answers detected) - predictive dialer detects a live person answering the phone call (default 32%).
- (fax or disconnected) - A bad number (or fax) is detected. Call will not be re-dialed (default 7%).
- (no answers) - No one answers the call - re-dial potential (default 7%).
- (busy signals) - dialer detects a busy signal when calling a number - re-dial potential (default 3%).
- Estimated Predictive Dialer Costs and Projected Sales Data - This is an estimate of quality of the sales campaign and profitability that may be achieved per unit sale. Costs are likewise estimated.
- Single Unit Profit - This is the average revenue achieved when each unit of product is purchased as a result of a successful phone sale.
- Hourly Labor Cost - This is the average labor cost per hour associated with each agent.
- % Close Ratio - This percent represents the number of successful sales calls versus the total number of calls reaching Live Answers.
- Cent Per Telecom Min. - This is the telecommunications cost. It represents what is being paid to the telephone company per minute for each phone call.
Predictive Dialer Profit Simulation Run
To obtain the simulation report that is listed below, the following parameters were used in the model:
After entering the above information into the simulator, the following results were returned:
- Campaign Type: Live Answers / PT/PD
- Phone List Size: 5,000
- Average Talk Time Call Length (Seconds) 120
- Number Of Passes Attempting To Contact Each Number: 3
- Number Of Lines Dedicated To Dialing: 40
- Number Of Agents Handling Calls: 30
- (Call Completion Statistics)
- answering machines: 52
- live answers: 32
- fax or disconnected: 7
- no answers: 6
- busy signals: 3
- Estimated Predictive Dialer Costs and Projected Sales Data
- Single Unit Profit: 75
- Hourly Labor Cost: 8
- % Close Ratio: 3
- Cent Per Telecom Min.: 5
The above results demonstrate how closely the predictive dialer simulation approximated the input parameters set by the administrator. As you can note, the percentages of the input variables and the results achieved by the simulator were within a percent or two of each other.
Predictive Dialer Results and Analysis
Result Statistics The following results were observed after running this Predictive Dialer simulation:
Analysing Results The predictive dialer model successfully simulated the calling campaign where our predictive dialer used 18 outbound lines and connected live answers to available agents. Model parameters and predictive throttle can be adjusted to operate within FTC guidelines.
- Predictive Campaign - The particular model selected for this campaign was not a true predictive, rather a campaign that only dialed numbers when an agent was available. A 0% nuisance rate therefore was anticipated and observed.
- Call Result Statistics - The number of calls connected to a live person was 35% of the original list. This equates to the original 32% simulator input parameter plus the number of individuals contacted during the second an third call attempts.
- Campaign Elapsed Time - The campaign was completed in 5 hours 40 minutes including the second and third pass at no answer, busy, and answering machine calls.
- Telecom Resources - The predictive dialer campaign consumed approximately 3781 minutes of billable phone connect time.
- Live Answer Service Statistics - Of the 1751 calls that reached a live answer, 0 calls were unable to be connected to an agent because all agents were busy. This was the expected outcome because of the type of predictive campaign performed.
- Agent Productivity Statistics - Agents were effectively on calls 85.8% of the time which is less than published predictive dial results, but was expected because the dialer was not predictively dialing numbers ahead of agents becoming available.
- Revenue Generated - $3900
- Agent Labor Cost - $544
- Telecom Expense - $189
- Net Income - $3167
Predictive Dialer and Call Center Phone System
The PACER phone system is a state-of-the-art predictive dialer that handles inbound and outbound phone calls for small to large call centers.
Calls are either initiated by the phone system or accepted from the outside and distributed in an intelligent fashion to your service agents using ACD systems. Developed with industry standard components (Dialogic, Intel, and Windows), the PACER phone system has features and functions that can only be found in large scale PBX’s, but at a fraction of the cost.
And the PACER phone system has predictive dialer capability that cannot be found in most of these larger phone systems. With the optional IVR systems available with the PACER phone, callers can perform self-help functions without speaking with your agents by making simple selections using the keypad on their phone sets.
Plus the PACER phone system can connect calls to your employees who are working at home or in remote offices.
Contact DSC for a FREE analysis and quote and to learn more about our voice broadcasting systems and services.