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Abstract: Call centres have emerged as an important channel for the sale of
infrequently purchased goods and services. The purpose of this paper is to
examine the predictors of sales agent performance and their changed role in
inbound call centres. Two independent samples were taken from a single
inbound call centre, the first taken during a peak sales week, and the second
from an off-peak sales week. PLS was used to model the relationship between
agent tenure, selling time, administrative time and sales performance metrics.
Agent tenure was found to have a limited effect on sales performance.
Increased selling time and reduced administrative time increased both sales
performance metrics. Both of these findings are contrary to traditional sales
and call centre management theory. From these results it is apparent that
adaptive selling techniques are required to deal with the reduced information
asymmetry in the information age.
Reference to this paper should be made as follows: Bendixen, M., Yurova, Y.,
Abratt, R. and Rawdan, M. (2014) ‘Death of a salesman: birth of a knowledge
broker’, Int. J. Electronic Customer Relationship Management, Vol. 8, Nos. 1/2/3,
pp.1–14.
1 Introduction
One of the most neglected areas in service research is the role played by agents in
inbound sales call centres. The sales role in an inbound call centre is different from
the traditional sales job. Management therefore has to manage these agents differently
from the traditional approach used to manage either general call centre agents or a
conventional sales team. The purpose of this paper is to examine the predictors of sales
agent performance and their changed role in inbound call centres.
The internet has changed the way in which consumers purchase products and services
by way of re-intermediation of the roles that manufacturers, retail salespersons and
intermediaries play. This is particularly true for infrequently purchased items where
consumers face additional risk (Coltman et al., 2001; Kracht and Wang, 2010). The
internet has not only changed the roles but created new channels of distribution and even
a new set of intermediaries, e.g. comparison websites (Laffey and Gandy, 2009).
Consider the example of a consumer purchasing a domestic appliance now as
compared to 25 years ago. Historically, the consumer would seek information about
competing brands by way of asking friends, family and colleagues. This would be used to
generate a shortlist which would be the basis of visiting retail outlets where pricing,
features and delivery details could be established, and a final purchase decision made.
The salesperson played a significant role in affecting the purchase decision in this
scenario.
Nowadays, information from friends, family and colleagues would initiate a search of
manufacturers’ websites where very detailed information on features could be sought.
This would probably be supplemented via social media (Senders et al., 2013), by a visit
to retail or comparison websites where prices, features and other details for competing
products could be directly compared. The consumer then has several options in terms of
purchasing the product through a variety of channels, viz. traditional retailer, online or
via a call centre (Coelho and Easingwood, 2008; Rhee, 2010). The influence of the
Death of a salesman 3
salesperson is significantly reduced in this scenario and their role changed completely.
This example serves to illustrate how the internet has resulted in a breakdown of the
information asymmetry between buyer and seller (Coltman et al., 2001; Sharma, 2007).
The sales process is clearly different today with a change in the asymmetry of
information brought about by the internet and the different buying channels available to
customers. In this study we examine the impact of these changes in the little researched
area of an inbound sales call centre. This research was conducted in a single organisation
located in the USA. The organisation is a leading global provider of products,
technologies, software, solutions and services to individual customers and businesses.
The 150 seat inbound sales call centre is located in the USA and assists individual and
small business customers with their purchases of electronic equipment including
computers, printers, other peripherals, and supplies.
In the remainder of this paper, the circumstances of inbound call centres in the USA
is described, followed by theoretical considerations of call centre management, sales
processes and the effect of tenure on sales performance. This results in the development
of hypotheses, a description of the methodology employed and presentation of results.
The results are then discussed and conclusions drawn.
Batt and Moynihan (2002) suggest alternative call centre production models. The
mass production model would correspond to the Taylorist approach while the professional
service and mass customisation models adopt a more customer-focused approach that
would be more appropriate to a sales call centre. This would shift the performance metric
away from AHT toward customer satisfaction and sales performance. Such a shift is
compatible with the principles of lean management which have been successfully applied
to call centres (Jones et al., 1999; Marr and Parry, 2004; Piercy and Rich, 2009). Under
this approach, AHT is a consequence of the processes used and does not act as the
primary driver of performance. This is supported by Morrell (2014) who describes AHT
as a “typical old fashioned metric, which seems to be going out of favour, based on the
idea that each call is different and should take as long as it takes” (p.93). It is interesting
to note that Friebel and Seabright (2011) found that in a call centre environment, females
had a 15% longer talk time than males and had slightly higher sales per shift than males.
We suggest that AHT should be partitioned into two components. Firstly, there is the
‘selling time’ in which the sales agent attempts to close the sale. If successful, this would
result in a second component, ‘administrative time’ during which the completion of
transaction details is the primary aim. It is usually during this time that up-selling and
cross-selling takes place.
satisfaction with the explanation provided by the salesperson. This activity also results in
customers’ achieving psychosocial benefits by being able to decide what is best for them
and achieve a feeling of self-respect. The outcome is the achievement of terminal value,
satisfaction” (p.111).
Because of the consultative and adaptive nature of the sales task faced by call centre
agents, we argue that a longer selling time will result in both a higher conversion rate and
a higher ARC. This is in sharp contrast to the Eveleth and Morris (2002) finding and the
Taylorist approach to call centre management (Bain et al., 2002) but in line with the
principles of lean management (Piercy and Rich, 2009), the modern approach to AHT
(Morrell, 2014) and the findings of Friebel and Seabright (2011). Conversely, because
many customers view the processes of up-selling, cross-selling and ‘completing the
paperwork’ as tedious, we argue that increasing administrative time will reduce both
the conversion rate and ARC. This aligns with the findings of Singh (2011). Thus, the
following hypotheses are thus posited:
H1a: Selling time increases sales performance
H1b: Administrative time decreases sales performance.
2.5 Tenure
There have been many studies in recent years confirming that a salespersons’ experience
positively affects sales performance (Franke and Park, 2006; Fu, 2009, Jaramillo and
Grisaffe, 2009; Rapp et al., 2006). Most of these studies were conducted in conventional
sales settings and not ones in which reduced information asymmetry prevails.
Selling steps 1 to 4 usually improve with experience. We propose that adaptive
selling has become the key skill needed to overcome objections and to close the sale
(Eveleth and Morris, 2002). Adaptive selling involves the acquisition, analysis and the
use of customer information and these skills can be mastered in a relatively short time
period. Franke and Park (2006) found that salespersons’ experience is positively
correlated with adaptive selling and performance. Detailed product knowledge greatly
enhances sales agent’s ability to establish the context and provide a sales solution. Again,
product knowledge can be acquired in a relatively short period of time. This implies that
in a sales world where there is lower information asymmetry, experience is likely to play
a less important role as the salesperson’s role becomes more one of knowledge broker
than persuasion agent. We therefore posit the following hypothesis:
H2a: Tenure has a smaller effect on sales performance than does selling time
H2b: Tenure has a smaller effect on sales performance than does administrative time.
3 Methodology
3.1 Sample
In order to test the hypotheses, data was collected from the operations management
system of the call centre described in Section 1. The detailed data for all agents were
collected for a full week during the busy ‘Back-to-School’ sales period (Sample A). A
follow-up sample (Sample B) was collected one month later. Sample B is used to test the
6 M. Bendixen et al.
robustness of the findings. In sample A, the results of 141 agents were collected
compared to 128 agents in sample B. The only demographic detail of the agents available
from this data source was the hire date of the agent which allowed the calculation of
agent tenure. In order to protect the identity of the agents, other demographics (such as
age and gender) were not provided to the researchers. A comparison of the two samples
is presented in Table 1.
Table 1 Two samples for the study
Average
Total calls Gross No. of Average handle Conversion
revenue per
handled revenue agents time (AHT) rate
call (ARC)
Sample A
18,313 $3,185,952 141 11.44 24.54% $172.03
(peak sales week)
Sample B
14,875 $2,292,856 128 11.80 27.48% $150.28
(off-peak sales week)
3.2 Metrics
Sales performance for each agent was measured by two variables. Conversion rates for
each agent were measured as a proportion of total calls handled which resulted in sales;
ARC, based on total number of calls handled, was also measured for each agent. Agent
tenure was measured as the number of days elapsed between the time of the research and
the hire date. Short of listening to each call and measuring the actual time taken for each
process, it is impractical to measure selling and administrative time for each agent
directly. Therefore, proxies were used to this end. The selling time for each agent was
taken as the average handle time for unsuccessful calls (e.g. calls that did not result in a
sale). Such calls would not involve any administrative activities that are necessary
subsequent to a sale and, thus, represent a proxy for pure selling time. Administrative
time per agent was calculated as the difference between the average handle times of
successful calls (e.g. calls that resulted in a sale which would involve both selling and
administrative times) and the average handle time for unsuccessful calls (i.e. selling
time). It is important to note that these are only proxies and the absolute values of the
metrics may not be meaningful. However, their relative values are what is important in
the analysis.
3.3 Model
Hypotheses H1a and H1b are represented by casual links between selling time and
administrative time to the two performance measures. Hypotheses H2a and H2b are
represented by causal links from tenure to both conversion rate and ARC. Once a sale has
been made (i.e. a successful conversion has been achieved), the opportunity for selling
additional products and services exists and, thus, a causal link between conversion rate
and ARC is included in the model. Although, no hypotheses have been generated from
the literature in this regard, it is likely that tenure could affect both selling and
administrative times. These two causal links are added to the model for the sake of
completion. This model is illustrated in Figure 1.
Death of a salesman 7
4 Results
Sell Admin
Mean Median SD Min Max Conversion ARC Tenure
time time
Sample A (n = 141)
Conversion
24.54 24.71 4.63 9.84 34.46 1.00
(%)
Ave revenue
per call (ARC)
172.75 171.14 57.18 3.33 380.95 0.76* 1.00
(dollars
per call)
Tenure
348 145 325 69 874 0.24* 0.18* 1.00
(days)
Selling time
(minutes 6.18 5.75 2.49 0.57 14.52 0.75* 0.71* 0.04 1.00
per call)
Admin time
(minutes 23.27 20.36 14.27 2.79 125.86 –0.68* –0.51* –0.26* –0.31* 1.00
per call)
Sample B (n = 128)
Conversion
27.48 27.31 5.95 8.33 50.00 1.00
(%)
ARC
(dollars 150.28 146.86 55.31 16.7 326.64 0.58* 1.00
per call)
Tenure
374 179 328 12 908 0.08 0.20* 1.00
(days)
Selling time
(minutes 6.58 6.23 1.96 1.56 14.66 0.54* 0.38* –0.12 1.00
per call)
Admin time
(minutes 19.98 18.74 7.41 5.05 48.14 –0.68* –0.36* –0.23* –0.20* 1.00
per call)
Note: *p-value < .05 for a two-tailed test.
The results from both samples clearly support all hypotheses. Furthermore, a significant
relationship between conversion rate and ARC is confirmed. Tenure was found to have a
significant negative direct effect on administrative time but no significant direct effect on
selling time. The variable importance in projection scores is presented in Figure 3.
Variables with VIP scores >1 are considered very important, scores between 0.8 and 1 of
moderate importance while scores <0.8 indicate variables that are of little importance
(even if they are significant). These results indicate that both selling time and
administrative time are very important direct drivers of the conversion rate but tenure is
of little relevance. Conversion rate is a very important driver of ARC while selling time
and administrative time are of some importance. Again, tenure is of little relevance.
Death of a salesman 9
Figure 2 Estimated sales performance model for inbound sales call centre
The results of the permutation test are presented in Table 3. Significant differences
between the path coefficients between samples A and B for both administrative and
selling times to conversion rate were found.
Table 3 Path coefficients of the estimated sales performance model
Path Coefficienta
Differenceb
Sample A Sample B
Tenure → Admin time –.264* –.228* .036
Tenure → Selling time .038 –.115 .154
Tenure → Conversion .172* –.011 .184
Tenure → ARC .082* .112* .030
Admin time → Conversion –.493* –.808* .315*
Admin time → ARC –.229* –.201* .029
Selling time → Conversion .541* .719* .178*
Selling time → ARC .316* .216* .100
Conversion → ARC .339* .326* .013
a
Notes: Significance of path coefficients was obtained using bootstrap with 1000
re-samplings.
b
The differences between path estimates for the two samples were tested using
permutation test with 1000 permutations. *p-value < .05
5 Discussion
The finding that tenure has no significant direct effect on selling time for either sample is
interesting in that it implies either that agent training is perfect (a new agent performs
identically to an experienced agent) or that agents have no control over the selling time of
a call. As the former is unrealistic, the latter must apply which provides some support for
our contention that steps 1–4 in the selling process (Moncrief and Marshall, 2005) are of
reduced significance in an inbound call centre and, consequently, that adaptive selling is
key (Fujun et al., 2007; Sharma, 2007). It is also in keeping with customers striving for
the terminal value of satisfaction (Singh, 2011). This contention is further supported by
the conformation of H1a that selling time increases sales performance.
Tenure, however, does have a significant negative effect on administrative time in
both samples. It seems that more experienced agents are able to handle the administrative
tasks more efficiently. This is important as administrative time has a large negative effect
on both conversion rate and ARC for both samples which is a reflection of customers’
desire to minimise the time taken for this stage of the selling process. This finding is
possibly explained by the ‘ambidextrous behaviour’ of more experienced agents in that
they are better able to deal with the conflicting demands of selling to as opposed to
servicing customers (Jasmand et al., 2012).
While the direct effects of tenure on both the conversion rate and ARC are small, this
does not imply that tenure is not important. The indirect effects of tenure must also be
taken into account which results in a different conclusion. This is reflected in the direct
and total effects reported in Table 4 (the difference being indirect effects). Tenure
does have a significant direct and total effect on conversion rate in sample A but not in
sample B.
Death of a salesman 11
Table 4 Direct and total effects of the estimated PLS model for inbound sales call centre
Sample A Sample B
a a
Direct effects Total effects Direct effectsa Total effectsa
Tenure → Admin time –.264* –.264* –.228* –.228*
Tenure → Selling time .038 .038 –.115 –.115
Tenure → Conversion .172* .323* –.011 .090
Tenure → ARC .082* .264* .112* .162*
Admin time → Conversion –.493* –.493* –.808* –.808*
Admin time → ARC –.229* .396* –.201* –.464*
Selling time → Conversion .541* .541* .719* .719*
Selling time → ARC .316* .500* .216* .451*
Conversion → ARC .339* .339* .326* .326*
a
Notes: Significance of direct and total effects was obtained using bootstrap with 1000
re-samplings. A direct effect of an independent variable onto a dependent
variable is measured by the estimated path coefficient; a total effect is
measured as a sum of the direct effect (path coefficient) and the indirect effect
propagating from the independent variable to the dependent variable through
other causal paths. *p-value < .05.
This too is an interesting finding in that it implies that in pressure circumstances created
by a peak sales period, experience does make a difference. This again is probably
explained by greater ambidextrous behaviour displayed by more experienced agents
(Jasmand et al., 2012). It is also important to note that the indirect effects of both selling
time and administrative time on ARC are not insubstantial for both samples.
6 Conclusion
a metric that should not be used in inbound sales calls centres for any purpose other than
capacity planning. Morrell (2014) reports that the three most pressing managerial issues
in call centres are: improving customer satisfaction, increasing revenue and achieving set
metrics. He also reports that the most important industry trend is “customer experience
improvement”, more so in the retail and distribution sector than all other markets
(Morrell, 2014, p.340). Customer experience measurement, conversion rate and ARC
should thus be the focus of performance management and processes established to
support these. These may include:
methods of assessing call quality and feedback/coaching provided to sales agents
should focus on selling technique;
supervision should be focused on developing adaptive selling skills;
technology support that provides easy access to competitive product information;
technology support that allows rapid transaction processing to speed up the
administrative time for successful calls.
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