- Issues in the Market
- Scope of the report
- Market in Brief
- 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
- Background
- The telephone has revolutionised financial services distribution
- A number of factors have facilitated this rapid development
- Penetration of telephones has now reached saturation point
- Figure 1: Proportion of households with a telephone, UK, 1970-2006
- Mobile phone penetration has risen rapidly in the last few years
- 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
- Figure 3: British Internet penetration at home/work/place of study or elsewhere, 2001-06
- An increase in broadband connections will also be significant
- 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
- Defining what constitutes a call centre can be difficult
- The UK call centre market continues to grow
- 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
- 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
- Figure 7: Location of call centres in the UK, 2006
- Offshore outsourcing has been a notable trend in recent years
- The Rationale for Offshoring
- 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
- 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
- Figure 8: Selected financial services providers split according to location of call centre roles, February 2007
- Case Studies
- Aviva plc
- Barclays plc
- Esure
- Nationwide
- The Consumer - Users and Uses of Call Centres
- Survey background
- Around 20 million consumers use the phone for their finances
- Figure 9: Channels used to manage day-to-day finances, November 2006
- Implications
- Consumers have adopted a multi-channel approach
- Figure 10: Channel usage combinations, November 2006
- Implications
- ABs are prolific users of the phone for managing their finances
- 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
- 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
- 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
- Figure 14: Financial tasks conducted via the telephone, November 2006
- Implications
- Men are more likely than women to buy products via the phone
- 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
- 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
- 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
- Figure 18: Number of financial tasks conducted via the telephone, November 2006
- Implications
- 35-44-year-old phone users perform the most tasks
- 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
- Figure 20: Repertoire of financial tasks conducted via the telephone, November 2006
- The Consumer - What Frustrates Callers
- Time spent on hold is the most common source of frustration
- Figure 21: Consumers' frustrations when using financial call centres, November 2006
- Implications
- The 45-54s and ABs are the most frustrated call centre users
- 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
- 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
- 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
- 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
- Most consumers would rather not use overseas call centres
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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?
- 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
|
0 items
