Call Logging - An In Depth Study

Introduction
Call Logging Systems
What to do with a Call Logger
Operational Performance
Planning
Conclusion
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What to do with a Call Logger

We have already recognised that there is an overhead involved in maintaining up to date information on your organisational structure. Since such data is important in providing accurate reporting in call logging systems, and there is currently no obvious repository for such information on the modern day software scene, many suppliers of call loggers have attempted to make a virtue out of necessity and heralded this part of the package as a directory system. Some have attempted to give access to this data to other parts of the organisation by a variety of mechanisms but none so elegantly as Telecost. Even the basic version of Telecost allows  users simultaneous access to the organisation structure (and the dialling codes) using a web browser. (Note that to use this facility you must be using TCP/IP on your local area network). This enables users to look up the internal telephone directory simply and easily over your local area network. The added advantage is that, since most users will already have a web browser loaded on their machine, it is achieved with no installation time or effort and the absolute minimum (invisible) footprint.

Traditional call loggers have assumed the passive role discussed before. They often sit in the corner collecting data and being largely ignored after the initial excitement of installation has been overcome. As we shall see below they can have a wide-ranging impact on Economics, Operational Performance, Planning and other areas within your organisation. These benefits are not widely realised in many organisations. The capabilities of call logging are not widely appreciated in many organisations.

To fully realise the benefit that can be derived from such systems everybody in your organisation should be made aware of the systems capabilities. There are genuine benefits that can be "sold" to them like the capability of the system to resolve disputes with clients/suppliers over whether they were called (or not) on a particular day. They should also be aware that their calls are being noted, this acts as a deterrent to abuse in much the same way that speed cameras (with no camera or film!) act as a traffic calming measure on our roads. It is also the case that most people respond positively when they think they're being watched - even if they're not! I am put in mind of an experiment a few years ago with a factory floor where they decided to experiment with the lighting to see if it would improve productivity. They changed the colour of the lighting and productivity went up, they changed it again productivity up again, they introduced music in the background productivity up again, perversely they then changed the conditions back to the original, productivity up again! The mere fact that interest is shown in people and their activities often has a beneficial effect on their performance. Call Logging can help you to perform this function.

Economics

One of the main justifications used for introducing call logging is economic. As we have noted it is possible to get blindly drawn into a cost cutting exercise and forget other considerations, such as reliability. The principal focus for studies on the economics of running a telephone system is on the cost of calls. This is clearly important, but it should by no means be the only consideration, as we shall see. It is also worth noting that for the vast majority of telephone conversations the cost of the labour involved is a lot higher than the cost of the call. A 10% increase in productivity on the phone is likely to produce more economic benefit to your organisation than swapping carrier.

Having so far been a bit negative on attacking the cost base, we have met one prominent member of the telecommunications manager fraternity who claims to have saved his company at least the cost of his salary every year for a number of years.

Before you get drawn into this, think carefully about your sphere of influence, what you can reasonably expect to change and what is simply not in your scope.

As with all projects, a useful exercise is to take stock of the current position. Note your current costs and projected annual expenditure. Undertake your cost cutting exercise and then project again. Our telecommunications manager is only able to make his proud claim by having done exactly this exercise.

Comparing Carriers

Reducing telephone costs is not simple and straightforward. The telephone companies are deliberately muddying the waters. Once the network is in place the cost of delivery of a phone call to them is negligible. Consequently for the established players there has been a string of price reductions and special discounts that will continue for some time to come. It's all part of the strategy. Bewilder the client and hope that inertia takes over and they forget about the phone bill and their attention wanders elsewhere. At the last count there were more than 160 companies registered in the UK to provide telephone services. For the major players there are a number of different tariffs and various discounts schemes that can be bought into. With some of the minor players you can negotiate your own rates.

Even a comparison of the various BT rates available versus C&W UKLink gets complex. Just as an example an old analysis for Local Calls at Standard Rate including discounts is summarized in the following graph: Click on the thumbnail to see the expanded graphic.

It's a nightmare! In order to arrive at the optimal strategy you need to be on top of a number of factors - including forecasting. It's not easy to know how long a phone call will take - except with certain individuals! For a an in depth look at call duration click here.

The smooth words that surround the marketing hype don't translate so smoothly when it comes to deciding how to route your calls.

It is also the case that although the major players are forced to publish their call rates and comparison are then relatively straightforward, some of the minor players in the market will negotiate call charge rates with each individual client (the rates on offer usually relate to the volume of calls that you generate). With no publicly available data, rates comparison becomes difficult. The web site http://www.magsys.co.uk gives a comparison of carrier rates albeit somewhat superficial. There are always "deals" available with the second and third line carriers depending on how much traffic you can guarantee them.

Direct comparison of potential suppliers is not as straightforward as some suppliers of call logging products would have you believe.

Another area on which you might consider is the under utilisation of resources (we will consider over utilisation under a different heading later). Clearly if you are paying fees for lines that you never use then this represents a potentially sizeable saving in your budget.

With some carriers you are able to nominate numbers that then attract a discount. Getting the optimal mix of these numbers is one obvious way of reducing the phone bill.

Directory Enquiries

For some companies calls to directory enquiries service represents a sizeable annual expenditure. Switching all these calls to a different carrier can sometimes make savings. Vodafone and mmO2 have in the past been cheaper than BT for this service. The ability to switch all directory enquiry calls from your organisation may depend on the flexibility of your switchboard. Another area worth investigating on this front is the use of the internet for directory enquiries. BT provides a service on www.bt.com/phonenetuk and 192enquires.com, 192.com, Yellow Pages and Thomson offer a similar service. The cost of a call to the internet is generally a lot cheaper than a 118 call.

Private Wires

For larger organisations the use of private wire (for example to link sites) can also lead to substantial savings. This is a specialist area and outside the scope of this article.

The Internet

The nature of your organisations link to the internet is another area that should be critically examined. There are large differences in the charges levied by ISPs (internet service providers). If you are using a dial-up line then the number called is important (depending on your organisation's use of the internet then you should ensure that this number is one that you can get a discount for). Remember that calls to the internet are, for some configurations, not routed through the PABX and so will not show up on call logging reports. Tuning the nature of the link to the internet can substantially reduce cost. Some routers will allow you to specify the idle time before the link is dropped and the minimum call time. It is important to choose appropriate values so as to avoid continuous call set up fees when the connection falls idle for short periods. More sophisticated equipment will allow you to vary the idle time and minimum call time with the time of day which can allow you to further optimise the use of the internet.

There comes a point in the use of the internet when dedicated private wires become economic - a point which should not be lost on the cost conscious.

As the use of the internet is widely expected to carry on growing at current rates, its use in your organisation can also be expected to grow. This is one area that should be kept under close and continuing scrutiny. The most cost effective solution today may not be so in 6 months time. Avoid long term (more than 6 months) contracts. You may want to switch provider and/or the nature of the link that you have to the internet.

Telephone Abuse

Abuse of the telephone comes in many forms. Potentially the most costly abuse is when your PABX is used merely as a switch, for example to change a low cost tariff call into a high cost tariff call. A simple example is an incoming call (probably a local call) for a particular extension transferred to say a number in Australia. These calls manifest themselves as trunk to trunk transfers. Exactly how this is achieved will depend on your PABX. Some may require the PABX to be configured, more advanced PABX's may allow users to simply put a follow-me number on their extension. Such frauds can prove very expensive. On some switchboards these calls will not be attributed to an extension and can be easily overlooked. You should be very wary of all such calls.

Another annoying and potentially expensive abuse is when people start calling premium rate numbers for chatlines and other entertainment. There are a number of ways this can be countered. It can sometimes be stopped at the PABX by getting the PABX to signal the engaged tone when such numbers are called. This could be perceived as a draconian measure. Reporting on the dialling of such numbers and examining each call on its merits is perhaps preferable but requires more effort to police.

Some staff persistently make personal phone calls. This can also be a significant abuse of the telephone and may be worthwhile monitoring. The labour costs here are often more than the cost of the calls.

Attributing costs within an organisation

Some organisations just consider the cost the telephone system to be a central expense. If you run internal accounting within your organisation then call loggers can be used to simply apportion the cost of the telephone within the organisation. The cost of the telephone can be attributed to each cost centre/profit centre within the organisation. As is often the case when organisations are faced with large amorphous bills, divide and rule is generally a good approach. It forces each profit centre/cost centre to take responsibility for its share of the cost. The costs often come tumbling down. The downside is, of course, the cost of the internal bureaucracy. A call logger should provide you with an easy means of producing internal bills.

Other economic benefits can sometimes be derived by examining the trunk line utilisation (see Operational Performance).

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Introduction

 

Call Logging Systems

 

Operational Performance

 

Planning

 

Conclusion

 

 

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