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WHY CALL CENTERS FAIL

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  • #17750 Reply
    T M Malik
    Guest

    Hi all,

    lots of people are saying that most of the new call center fail and end up going out of bussines
    I want to know what are the reasons to fail. Is it because that there is not enough work available, managment or financial issues?
    please shed some light on this.

    Thanks

    #17751 Reply
    Tom
    Guest

    I think the lack of response to this thread answers your question.

    A lack of diligent business planning.

    Read the posts on this forum. Plenty of people wanting free advice to get them up to speed, but no real discussion.

    Basically, too many people are trying to make a quick buck in an industry they do not understand. Some basic queestions people could consider are:

    1. What will my customers expect?
    2. How much will it cost me to provide it?
    3. How much will customers pay for it?
    4. How will I find my customers?
    5. How much will it cost me to find my customers?
    6. How much will it cost me to retain my customers?
    7. So, will I make a profit?

    #17752 Reply
    T M Malik
    Guest

    Thanks Tom,

    you are right most of new people get in to this industry do not go over these type of questions.
    They just get advised by so called consultants (yes there are some good guys out there too) that there is plenty of customers in the market you just need good technology and capital to servive first few months so go look for an investor and jump in.

    TM

    #17753 Reply
    Dale Harries
    Guest

    A callcenter is very similar to a Website is terms of the time frame for profit.

    The general viewpoint is “Oh il start a Callcenter/Website and il be rich by Wednesday!”

    Anyone who has had a stab at the 118??? Directory Assistance Market in the UK or tried to rank in the top 10 listings for a competitive result in Google will understand these three rules. I live by them!

    1.Creating a stable profit takes time, Patience is the key. Its true to say most Internet based ventures set up years ago are still in the red, however they are catching up http://www.amazon.com being a cracking example coming in on budget two years earlier than predicted.

    2.Invest small amounts often, dont splurge large amounts of cash early on and run out of it at a later date. I feel this is the killer esp for small to medium size set ups.

    3.Nurse your customers, Nurse your Advertising Campaign, infact spend time (not always money) on every aspect of your business. Its not all about money, its about long term profits, a steady but increasing customer base thats kept happy. Not to mention carefull forward thinking related to SEO and other advertising measures.

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