Etelecare’s Unique Marketing Proposition

Being a U.S. outsourced call center in the Philippines, what is Etelecare’s unique marketing proposition to its clients?

It is amazing how call centers in general have suddenly become the trend in Asia most especially here in our country. I have been a satisfied employee of one of these booming call centers in Manila — eTelecare International — from February 12, 2001 up to May 6, 2002. And it was the most fun and fulfilling job I have ever had before I got hired by GSIS.  It continues to amaze me how only 2 years ago, there were only 500 employees in the company and now, it has increased to thousands and still counting! Taking these things into consideration, I would like to have an initial study and further insight with regard to its  marketing proposition, financial sustainability and corporate endurance in case someday, I might find myself  crawling back to the arms of the call center industry, particularly that of eTelecare, the same company I once called my home.

The call center industry has awakened — it seems overnight — to the reality that it’s not just North America in the driver’s seat anymore. Whether because of favorable cost structures or an increasingly global customer base, the fact is that many companies are looking outside the United States, particularly in the Philippines, for help in handling customer interactions and hosting their call center infrastructure. Outsourcers are taking the lead and “offshoring” is helping them provide unparalleled flexibility in ramping up and down programs and handling volume spikes. Many in the US fear offshoring because it is sometimes perceived as part of a contraction of the US call center industry. Let’s take a somewhat different view — the growth of call centers worldwide is a sign of an increasing commitment to customer care, and an inevitable outcome of the use of globe-spanning technologies like IP telephony and advanced call routing. International outsourcing enhances the abilities of American companies to more effectively manage their customer care resources. Whether you are at an American firm facing the question of outsourcing for the first time, or an offshore call center hoping to attract business from North America and Europe, offshoring is the biggest trend to hit call centers in years.  (A special digital supplement from the editors of Call Center Magazine, August 2003).

But why offshore/outsource in the Philippines? What are its advantages against its neighboring countries like China, India, Japan and Singapore? Are these advantages enough to sustain Etelecare’s profitability and growth in our country? And aside from these Philippine advantages, what are its unique marketing propositions to its U.S. clients that make eTelecare the leader in the Philippine Call Center Industry?

This article will tackle these points. It will show (and is limited to) why Philippines has the greatest advantage over all the other prospective Asian countries and using these advantages, what other values does eTelecare offer that make its clients invest in their services.

Brief History

eTelecare was founded in November 1999 by Jim Franke and Derek Holley, two alumni of the call center consultancy of McKinsey & Company.   These founders had years of first-hand experience with the problems facing the U.S. call center industry, including low quality, high turnover, and high costs.   They created eTelecare with a vision to provide superior value by simultaneously improving quality and reducing costs for their clients.   Combining their industry experience with the advantages of the Philippines has enabled eTelecare to fulfill its vision of becoming one of the world’s leading providers of outsourced call center services. 

eTelecare’s first call center went live with inbound telecommunications and financial services programs in September 2000.   Since then, they’ve grown to handle inbound sales, outbound sales and technical support from multiple centers.   Their growth in volume from existing clients and their continuous addition of new clients is a testament to the quality and value that eTelecare offers. Currently, they have garnered twelve (12) awards namely: Customer Interaction Solution 2003 Top 50, 2003 Gold MVP Quality, 2003 Best Outsourcer, 2003 Best in Show,2002 Best Agent & Best Business Partner, 2002 Best outsourcer and Best Solutions Provider,  2002 CRM Excellence Award, 2002 Best Outsourcer, 2002 Gold MVP Quality, 2001 Gold MVP Quality, 2001 Best Hosted Service.

Analysis

A.    Comparison table of important factors affecting the decision-making of investors to set up eTelecare in the Philippines

Let’s take a look at this table of comparison with respect to  English proficiency, familiarity with Western culture, high-quality telecommunications infrastructure and low tax imposed on IT zones  of Asian countries that serve as potential area for setting up an outsourced call center :

An Executive Interview with Derek Holley, President of eTelecare by ContactCenterWorld.com on November 14, 2003 reveals that  “clients are still finding problems with the quality of voice service available from India. Even though transmission technology has improved, accent and culture issues still make it difficult for Indian operators to build rapport with American consumers. Similarly, although it is even cheaper than India, there simply aren’t enough people in China who speak clear, unaccented English to make voice service workable. However, in both of these countries, back office and email operations can be tremendously successful. “ This is also true for Japan and Singapore who place high value on their practices and culture and will not readily succumb to Western influence. 

B.    Other Advantages that the Philippines offer

1.     The Philippines has offered a stable, pro-business and pro

investment environment since the country became a democracy in the late 1980s. The Philippine population has a strong cultural affinity for the United States, and the country’s political, legal and financial systems are based on US-models, which will make them easier for US clients to navigate. The country offers tax incentives and reduced tariffs on imported equipment for outsourcers. In addition, the crime rate in Manila is far below that of any major US city. Other key factors include the literacy level of the population, their ability to build rapport with the callers they will handle, and the local telecommunications environment. In all of these areas as well, the Philippines shines (Executive Interview: Derek Holley, President, eTelecare ContactCenterWorld.com, November 14, 2003).

2.      From a language and culture perspective, the Philippines is closer

to the United States than any other offshore market. English is the official language of business and higher education in the Philippines, and Manila’s 95% literacy rate exceeds that of United States. Local accents sound natural to American ears, and young Filipinos are culturally tuned to America. They watch American television and follow American pop culture. More than 400,000 Filipinos graduate college every year, and these graduates are familiar with U.S. speech patterns and slang, enabling them to relate to buyers through conversations instead of just reading a script. The importance of travel and tourism to the national economy also means that the Philippines has a large pool of candidates who understand the value of customer service (You Can Sell Here From There, ContactCenterWorld.com, Derek Holley, President eTelecare,  November 21, 2003).

3.     On the consumer side, Filipinos’ cultural connections to American

consumers, as well as their pro-customer attitudes, help drive sales. When it comes to selling specialized products and services, such as software, the Philippine labor force offers a large pool of candidates with technical and advanced degrees at affordable rates (You Can Sell Here From There, ContactCenterWorld.com,Derek Holley, President eTelecare,  November 21, 2003).

4.     Companies that outsource in the Philippines will find financial, legal,

and tax systems that are modeled after those in the U.S. The Philippine Economic Zone Authority. (PEZA) has established developmental zones that are tax exempt for first 5 years, and the country’s labor laws are not particularly onerous (You Can Sell Here From There, ContactCenterWorld.com,Derek Holley, President eTelecare,  November 21, 2003).

C.    How eTelecare maintains its status as the leading U.S. Outsourced Call Center in the Philippines (taken from www.etelecare.com)

1. eTelecare hires quality people

Etelecare employees are highly skilled agents. Their  Customer Service Associates are dedicated, energetic problem solvers,  100% university graduates (they recruit from the top graduates of leading universities), have undergone rigorous recruiting process by  offering jobs to less than 2% of all applicants and more than 90% accept, and possess Outstanding communication skills (Filipinos speak American English and follow American culture. They also screen for strong verbal and written skills as well as neutral accents. )

2.     eTelecare offers extensive training  

Their devotion to training produces superior customer service skills. In terms of Core skills, before they train for client programs, new hires receive four weeks of in-depth training in crucial call center skills, including communications, dispute resolution and sales. They also provideClient training wherein eTelecare’s “train-the-trainer” approach returns outstanding results on the full range of client programs.  And most unique is their  Ongoing training wherein their employees receive extensive refresher training to keep their skills sharp and their focus on continuous improvement.

3.     eTelecare provides  Experienced Employees:

Their high employee retention rates mean more experienced and

better-trained associates to handle their clients’ customers; Employee turnover at eTelecare is less than 25% per year ; eTelecare invests 100 hours of training into every employee annually; and eTelecare promotes from within, inspiring the best efforts from their employees.

D.    eTelecare’s Unique Marketing Proposition To Its Clients

1. Best Practice Management Processes

eTelecare’s founders drew on their McKinsey&Co. experience to create a  non-hierarchical, performance-based culture that promotes open communication and continuous improvement.   Thier employees know that their opinions and positive ideas are valued, and they believe that their culture inspires them to do their best.   The results of this culture will be apparent in the superior dedication and initiative eTelecare’s agents bring to their programs.  

This continuous improvement approach is built on a proprietary Performance Management System that American Express, Dell and GE have praised as world-class.   The four steps outlined below are a mark of the relentless attention to quality that they will bring to every interaction with their most important asset: their customers.

Step 1: Set Expectations
Their employees know that they expect them to give an outstanding effort on every call. They set clear, individualized performance targets for their employees and give them the tools to track their own performance.
Step 2: Monitor Quality
Their dedicated QM team evaluates 20 calls per CSA per month. They record calls at random and grade them against behavioral checklists to ensure objective evaluations and then they benchmark their appraisals with their clients.

Step 3: Evaluate Efficiency
The QM team tracks each employee’s average handle time, schedule adherence and talk ratio. They study their top performers to learn how to handle their customer’s issues quickly.

Step 4: Coach/Mentor
One-on-one coaching is the key to ensuring that lessons are learned and applied to future performance. Our 8:1 ratio of CSAs to Team Leaders ensures that employee gets an hour of coaching every week. These sessions turn into action plans that motivate employees with generous bonuses tied to stretch performance goals.

Each step reinforces the others, building a perfect circle of continuous improvement that delivers better, more efficient service to their customers and stronger value to their project.

2. Advanced Technology

eTelecare’s Advanced Technology gives their Clients complete confidence that their customers will receive reliable quality service with state-of-the-art functionality (Voice, Web-chat, Email, Voice over Internet or VoIP, Fax). They haveFoolproof Transmission where their clients’  calls route to their centers over a private, terrestrial network that provides toll quality sound with the following specifications: multi-path, multi-provider network for 100% end-to-end reliability , multiple data centers and multiple call centers, dedicated fiber optic bandwidth. Moreover, they possessState-of-the-Art Systems or advanced proven technologies to offer the broadest variety of service (Customer Relationship Management, Computer Telephony Integration, Interactive Voice Response, Skills-based routing, Email and web chat and On-site IT development team.

Summary and Conclusion

eTelecare’s unique business model provides better people, world-class quality and proven technology to offer the lowest overall cost-per-interaction while delivering outstanding customer satisfaction. Their focus on continuous improvement ensures that they will continue to provide efficient, excellent service to their clients’ customers. Quite simply, eTelecare gives them much more value for their money. With these things in mind, eTelecare will no doubt continue to be the leader in U.S. Outsourced Call Center Industry here in the Philippines.

References:

1. A Special Digital Supplement from the Editors of Call Center Magazine, August 2003

2. www.etelecare.com

3. You Can Sell Here From There, Contact Center World.com, Derek Holley, President eTelecare,  November 21, 2003).