Table of Contents
Issues in the Market
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- Scope of the report
Insights and Opportunities
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- An aversion to overseas call centres creates opportunity for some
- Communication and security issues need to be addressed
- Offshore providers need to demonstrate service improvements
Market in Brief
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- Call centres form a key part of the financial services distribution mix
- A variety of pros and cons are associated with offshore call centres
- There has been a notable drift offshore, although the tide may have turned
- Mintel’s research findings: Users and uses of call centres
- Mintel’s research findings: What frustrates callers
- Mintel’s research findings: Attitudes to overseas call centres
Fast Forward Trends
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- Trend 1: Stop being so English
- Definition
- Context
- Market touchpoints/implications
- Trend 2: Our Friends Electric
- Definition
- Context
- Market touchpoints/implications
- Trend 3: I Want it All and I Want it NOW!
- Definition
- Context
- Market touchpoints/implications
Background
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- The telephone has revolutionised financial services distribution
- A number of factors have facilitated this rapid development
- Penetration of telephones has now reached saturation point
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- Figure 1: Proportion of households with a telephone, UK, 1970-2006
- Mobile phone penetration has risen rapidly in the last few years
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- Figure 2: Proportion of households with a mobile phone, UK, 1997-2006
- Use of new technology is further changing the face of distribution
- Rising Internet penetration will boost online financial services
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- Figure 3: British Internet penetration at home/work/place of study or elsewhere, 2001-06
- An increase in broadband connections will also be significant
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- Figure 4: Internet connections by type, UK, 2001-06 Q1
- This growth is likely to spawn multimedia contact centres
- Technological advancements have facilitated call centre growth
- Increasing prominence of CRM has also been a boost to call centres
The Size of the Call Centre Market
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- Defining what constitutes a call centre can be difficult
- The UK call centre market continues to grow
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- Figure 5: Growth in UK call centres, by numbers of centres and agent places, 2002-06
- Financial services accounts for around a third of all agent places
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- Figure 6: Segmentation of UK call centre agent places, by market sector, 2002-06
- More than a quarter of UK call centres are based in the South East
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- Figure 7: Location of call centres in the UK, 2006
- Offshore outsourcing has been a notable trend in recent years
The Rationale for Offshoring
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- Mintel’s Call Centres Industry Survey
- Call centre location needs to be aligned with strategic goals
- Potential cost savings are usually the key driving force
- Trade comments relating to potential cost savings:
- Availability of highly skilled workers has been another advantage
- Offshore call centres can also aid operational flexibility
- Trade comment relating to operational flexibility:
- But surveys point to growing antipathy to offshore centres
- Security issues are also a cause of consumer concern
- Trade comments relating to consumer aversion to offshore call centres:
Identifying the Onshore and Offshore Providers
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- The call centre industry has witnessed a steady drift offshore
- Many financial providers have established offshore operations
- Many providers have retained exclusively UK operations…
- …and the tide may be turning in favour of onshore centres
- There is a notable split between the onshore and offshore brigades
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- Figure 8: Selected financial services providers split according to location of call centre roles, February 2007
Case Studies
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- Aviva plc
- Barclays plc
- Esure
- Nationwide
The Consumer – Users and Uses of Call Centres
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- Survey background
- Around 20 million consumers use the phone for their finances
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- Figure 9: Channels used to manage day-to-day finances, November 2006
- Implications
- Consumers have adopted a multi-channel approach
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- Figure 10: Channel usage combinations, November 2006
- Implications
- ABs are prolific users of the phone for managing their finances
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- Figure 11: Channels used to manage day-to-day finances, by gender, age, socio-economic group, lifestage and Special Groups, November 2006
- Implications
- High earners are keen to utilise both the phone and Internet
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- Figure 12: Channels used to manage day-to-day finances, by working status, income, TV region and ACORN group, November 2006
- Implications
- Internet users and broadsheet readers are keen on remote channels
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- Figure 13: Channels used to manage day-to-day finances, by technology usage, newspaper readership, commercial TV viewing and supermarket usage, November 2006
- The phone is now used for a wide variety of financial tasks
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- Figure 14: Financial tasks conducted via the telephone, November 2006
- Implications
- Men are more likely than women to buy products via the phone
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- Figure 15: Financial tasks conducted via the telephone, by gender, November 2006
- Implications
- The 35-44s use the phone for a wide range of financial tasks
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- Figure 16: Financial tasks conducted via the telephone, by age group, November 2006
- Implications
- ABs are the most likely to arrange products via the phone
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- Figure 17: Financial tasks conducted via the telephone, by socio-economic group, November 2006
- Implications
- A fifth of phone users carry out five or more financial tasks
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- Figure 18: Number of financial tasks conducted via the telephone, November 2006
- Implications
- 35-44-year-old phone users perform the most tasks
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- Figure 19: Number of financial tasks conducted via the telephone, by gender, age and socio-economic group, November 2006
- A general enquiry is the most common activity for the single-task group
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- Figure 20: Repertoire of financial tasks conducted via the telephone, November 2006
The Consumer – What Frustrates Callers
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- Time spent on hold is the most common source of frustration
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- Figure 21: Consumers' frustrations when using financial call centres, November 2006
- Implications
- The 45-54s and ABs are the most frustrated call centre users
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- Figure 22: Consumers' frustrations when using financial call centres, by gender, age and socio-economic group, November 2006
- Sales messages are most likely to annoy the ABC1 55+ group
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- Figure 23: Consumers' frustrations when using financial call centres, by gender, age and socio-economic group, November 2006
- Implications
- Communication problems are more likely to irritate high earners
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- Figure 24: Consumers' frustrations when using financial call centres, by lifestage, working status, income and TV region, November 2006
- Third age consumers harbour many call centre frustrations
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- Figure 25: Consumers' frustrations when using financial call centres, by lifestage, working status, income and TV region, November 2006
The Consumer – Attitudes to Overseas Call Centres
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- Most consumers would rather not use overseas call centres
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- Figure 26: ‘I would rather not speak to someone in a call centre which is based overseas’ , November 2006
- Implications
- Over-45s, C2s and women are more likely to criticise offshore agents
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- Figure 27: ‘I would rather not speak to someone in a call centre which is based overseas’, by gender, age, socio-economic group and lifestage, November 2006
- Urban Prosperity group is the most tolerant of overseas agents
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- Figure 28: ‘I would rather not speak to someone in a call centre which is based overseas’, by TV region, ACORN group and newspaper readership, November 2006
- The potential for account misunderstandings is a major concern
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- Figure 29: ‘I would worry that an overseas-based call centre could lead to a misunderstanding with my account’, November 2006
- Implications
- This fear of a mix-up permeates the entire consumer base
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- Figure 30: ‘I would worry that an overseas-based call centre could lead to a misunderstanding with my account’, by gender, age, socio-economic group and lifestage, November 2006
- Scottish consumers are most likely to fear a potential error
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- Figure 31: ‘I would worry that an overseas-based call centre could lead to a misunderstanding with my account’, by TV region, ACORN group and newspaper readership, November 2006
- Security fears also make consumers wary of overseas call centres
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- Figure 32: ‘I would worry that my information is less secure with providers who use overseas call centres’, November 2006
- Implications
- Older consumers are more likely to feel anxious about security
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- Figure 33: ‘I would worry that my information is less secure with providers who use overseas call centres’, by gender, age, socio-economic group and lifestage, November 2006
- Consumers in Anglia/Midlands tend to worry about security
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- Figure 34: ‘I would worry that my information is less secure with providers who use overseas call centres’, by TV region, ACORN group and newspaper readership, November 2006
- Most people prefer companies that only have UK call centres
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- Figure 35: ‘I would rather deal with companies that only have call centres based in the UK’, November 2006
- Implications
- Support for UK call centres is strong across all segments
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- Figure 36: ‘I would rather deal with companies that only have call centres based in the UK’, by gender, age, socio-economic group and lifestage, November 2006
- There was strong support in Yorkshire/North East and Scotland
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- Figure 37: ‘I would rather deal with companies that only have call centres based in the UK’, by TV region, ACORN group and newspaper readership, November 2006
- Cheaper products would only win over a minority of consumers
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- Figure 38: ‘I would be happy for my provider to use an overseas call centre if it meant I received cheaper products and better rates’, November 2006
- Implications
- Young adults may be swayed by the lure of better rates
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- Figure 39: ‘I would be happy for my provider to use an overseas call centre if it meant I received cheaper products and better rates’, by gender, age, socio-economic group and lifestage, November 2006
- A majority in the Urban Prosperity group would take cheaper products
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- Figure 40: ‘I would be happy for my provider to use an overseas call centre if it meant I received cheaper products and better rates’, by TV region, ACORN group and newspaper readership, November 2006
- Better service standards could provide the key to success
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- Figure 41: ‘I do not mind where a call centre is based as long as I receive a good service’, November 2006
- Implications
- ABs typically care more about service than call centre location
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- Figure 42: ‘I do not mind where a call centre is based as long as I receive a good service’, by gender, age, socio-economic group and lifestage, November 2006
- Most broadsheet readers could be won over by good service
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- Figure 43: ‘I do not mind where a call centre is based as long as I receive a good service’, by TV region, ACORN group and newspaper readership, November 2006
- Dissecting the sample according to attitudes to call centres
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- Figure 44: Typologies based upon attitudes to overseas call centres, by gender, age, socio-economic group and TV region, November 2006
The Future – Offshore or Onshore?
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- What does Mintel’s research tell us?
- The offshore brigade should not necessarily lose heart
- But onshore providers appear to have a clear opportunity to exploit
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