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A Call Center Uses Simulation to Drive Strategic Change

Author

Listed:
  • Robert M. Saltzman

    (Information Systems and Business Analysis Department, San Francisco State University, 1600 Holloway Avenue, San Francisco, California 94132)

  • Vijay Mehrotra

    (Onward, Inc., 888 Villa Street, Suite 300, Mountain View, California 94041)

Abstract

A large, customer-focused software company relied on simulation modeling of its call center operations in launching a new fee-based technical-support program. Prior to launching this rapid program, call center managers were concerned about the difficulty of meeting a proposed guarantee to paying customers that they would wait less than one minute on hold. Managers also wanted to know how the new program would affect the service provided to their existing base of regular, nonpaying customers. We quickly developed an animated simulation model that addressed these concerns and gave the managers a good understanding for the impact on system performance of changes in the number of customers purchasing the rapid program and in the number of agents. The one-minute guarantee would be fairly easy to achieve, even if the percentage of callers in the rapid program became quite high. Managers also gained confidence that, with appropriate staffing levels, they could successfully implement the new program, which they soon did.

Suggested Citation

  • Robert M. Saltzman & Vijay Mehrotra, 2001. "A Call Center Uses Simulation to Drive Strategic Change," Interfaces, INFORMS, vol. 31(3), pages 87-101, June.
    • Handle: RePEc:inm:orinte:v:31:y:2001:i:3:p:87-101
    DOI: 10.1287/inte.31.3.87.9632
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    References listed on IDEAS

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    Cited by:

    1. Jason R. W. Merrick & Jill R. Hardin & Russell Walker, 2006. "Partnerships in Training," Interfaces, INFORMS, vol. 36(4), pages 359-370, August.
    2. Mor Armony & Constantinos Maglaras, 2004. "On Customer Contact Centers with a Call-Back Option: Customer Decisions, Routing Rules, and System Design," Operations Research, INFORMS, vol. 52(2), pages 271-292, April.
    3. Vijay Mehrotra & Thomas A. Grossman, 2009. "OR Process Skills Transform an Out-of-Control Call Center into a Strategic Asset," Interfaces, INFORMS, vol. 39(4), pages 346-352, August.
    4. Joseph M. Milner & Tava Lennon Olsen, 2008. "Service-Level Agreements in Call Centers: Perils and Prescriptions," Management Science, INFORMS, vol. 54(2), pages 238-252, February.

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