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Failure Demand

"The distinction between 'failure demand' – demand caused by a failure to do something or do something right for the customer and 'value demand' – what the call centre exists to provide, is a distinction that few call centre managers make. I find that many call centre managers do try to determine the reasons for a customer call, but they do so with an 'internal' – 'what we do with it' – perspective; when I look at call coding I find the codes make no distinction between value and failure demand. Worse, call coding is often 'compulsory' – it is a forced part of the wrap-up. This only encourages operators to put in any code that will move them on to the next call (after all, too much time in wrap-up will mean you get paid attention to)."

How failure demand can lead to escalating costs. Via.

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