Innovation Drives Quality Management Market
Innovation Drives Quality Management Market
By Donna Fluss
Customer Interface/The ICCM Journal
If you haven’t purchased or upgraded a Quality Management (QM) solution in the past three years, now is the time to seriously consider doing so. In fact, 2005 will be a landmark year for Quality Management (QM) and Liability Recording in contact centers, according to DMG Consulting’s newest research. We forecast growth in all segments of the greater QM/liability recording market this year, driven by market innovation and compelling product offerings.
The overall QM/liability recording market is expected to grow by 12.5%, from $817 million in 2004 to $919 million in 2005. The fast-growing contact center sector should increase by 14%, from $471 million to $536 million. And this year will see the significant adoption of speech analytics, performance management, surveying, and coaching offerings as traditional QM vendors extend their reach further into the enterprise. DMG Consulting also expects 2005 to be a landmark year for Voice over Internet Protocol (VoIP) recording, with at least a 100% increase in market penetration. That’s because end users are making it clear that they want flexible recording solutions to address their dynamic operating environments.
Do You Need a New Solution?
If you’re wondering whether to invest in a new QM/liability recording solution for your contact center, ask yourself these questions:
- How important is it to your contact center to share more information with your company’s sales and marketing departments-i.e., ‘leverage’ customer interactions?
- Is your contact center expected to help optimize revenue and profitability for your company?
- Must an investment have an ROI of less than six months?
- Do you need to make your contact center activities more transparent to relevant corporate stakeholders such as sales, marketing, operations, finance, and the executive suite?
- Do you want your contact center to reduce operating expenses while bolstering your strategic advantage?
If you answered ‘yes’ to one or more of these questions, then it’s worth evaluating the newer QM/liability recording solutions on the market.
There are more than 30 vendors in this market and others are emerging all the time. The market leaders include Dictaphone, Envision, etalk, NICE Systems, Verint Systems, and Witness Systems, and there are many smaller vendors, such as Magnetic North, Voice Print and VoiceLog, that are worth a look.
2005 represents the beginning of a new stage for the expanding QM/liability recording market. Current and planned releases, particularly those built upon portal-based frameworks, bring tremendous value to enterprises, even those that have already invested in QM/liability recording solutions. The newer suites will yield a rapid ROI, increase customer satisfaction and loyalty, enhance contact center quality, and improve agent and supervisory satisfaction. These applications also have the potential to increase revenue and improve relationships between the contact center and the internal constituents that it services. All it takes is a clean implementation and willingness to introduce new best practices.
Trends to Watch
There are a number of trends driving change in the QM/liability recording markets, including:
Migration of contact centers from cost centers to more strategic profit centers – as inbound contact centers get more actively involved in generating revenue, they need to invest in recording solutions to conform with legislative requirements around the globe and to mine every customer interaction for additional revenue opportunities.
Growth of VoIP recording – in 2004, for the first time, the market saw strong demand for VoIP-based recorders in small and mid-size organizations. This growth is accompanying the adoption of IP-based private branch exchanges (PBXs) and contact center solutions.
Replacing old and outdated recording equipment – organizations are still using a great deal of old recording equipment that is no longer 100% dependable, a basic requirement for a recording system. In some situations, it’s an analog solution that struggles to record digital calls, resulting in poor quality. In other cases, calls that appear to have been recorded can?t be retrieved and replayed. While there are many reasons for the abundance of antiquated equipment in place today, organizations that have put off replacements are likely to buy new recording equipment during the next couple of years.
Speech analytics – these new applications were considered a novelty through 2004, but enterprises are now considering the purchase of these solutions to help structure contact center phone conversations for identification of customer insights, wants, and needs.
Coaching – larger and more expensive eLearning applications that include modules for formal training classes are still struggling for adoption, but coaching has captured the mind share of contact center managers, who see its value proposition and ROI. Contact center managers view coaching as a tool for quickly and effectively communicating with their agents.
Workforce management – contact center forecasting and scheduling is a relatively new entrant into the greater QM/liability recording suites, but it’s software that’s been used in contact centers longer than quality assurance.
Commoditization of recording – recording solutions are now considered commodities, which is putting downward pressure on pricing.
Professional services – the leading vendors are now offering professional services beyond system integration.
Contact Center on Demand (CCOD) offerings – Worldwide there are quite a few NSPs selling hosted contact center offerings that also include recording and basic QM capabilities.
Shift from hardware-based to software-oriented recording solutions – end-user organizations are increasingly seeking software-based recording offerings (in addition to QM products that have been software-based from the beginning). The preference is driven by a number of factors, including:
- the need to more easily integrate contact center solutions with existing products
- the desire to share customer data with other parts of the organization, including sales and marketing
- the need to reduce support requirements and TCO by using a standardized hardware platform
The next five years will bring great changes and innovation in enterprise contact centers. Companies like yours have no choice but to begin transitioning cost-oriented contact centers to organizations that are dedicated to generating revenue and contributing to your company’s bottom line. That means you should select vendors, solutions, and services that make measurable contributions: increasing revenue and yielding a high ROI and low total cost of ownership (TCO). Vendor delivery to – and end user demand for – these requirements will ensure the greater QM/liability recording market thrives during the next few years.