The Value Proposition of Home Agents-What Does It Mean For Your Business? Sally Hurley: President and CEO, VIPdesk Michele Rowan: President and CEO, Customer Contact Strategies LLC The home-agent model Cost reductions Critical success factors Risks and contingencies Cost benefits of scaling an at-home strategy Building your strategic analysis and operationalizing your plan Developing an effective pilot program Technology: data transfer, call routing and other best practices Why adopt our culture? The power of the people Profile and preferences of at-home agents Recruiting, training and managing the best. Hiring best practices

1. VIPdesk Webinar Series March 3, 2010
Cover Slide
The Value Proposition of Home
Agents-What Does It Mean
For Your Business?
Presented by:
Sally Hurley: President, VIPdesk
Michele Rowan: President and CEO, Customer Contact
Strategies, LLC
View The Webinar
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2. Agenda
• The home-agent model
● Cost reductions
● Critical success factors
● Risks and contingencies
• Cost benefits of scaling an at-home
strategy
• Building your strategic analysis and
operationalizing your plan
• Developing an effective pilot program
• Technology: data transfer, call routing
and other best practices
• Why adopt our culture?
• The power of the people
● Profile and preferences of at-home agents
● Recruiting, training and managing the
best.
● Hiring best practices
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3. About Today’s Presenters
Sally Hurley
President, VIPdesk
• 20+ years experience delivering premium customer
service
• Passion for customer experience
• Committed to building a culture that supports work-life balance
• Proud to be a green company- supporting thousands of individuals
that work from home across North America
• Former President of Entrepreneurs Organization in D.C.
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4. About Today’s Presenters
Michele Rowan
President and CEO
Customer Contact Strategies, LLC
• 12 years with Hilton Hotels Corporation as Vice
President – Performance Management
• Both US and International Experience
• Designed European At-Home Program
• Led US expansion from 200 to 1000+ agents
• Consultant, Speaker and Author ‘Go Home’
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5. Growth of At-Home Agent Model

6. CBRE Survey Results
Participants: Healthcare, Financial, Hospitality/travel, BPO
 65% utilizing home agents today
 42% of those not utilizing WAHA are considering implementation w/in 2 yrs
Size of At-Home Agent Pool Today
55% < 100 agents
29% 100-500 agents
13% 500-1500 agents
3.2% 1500-3000 agents
Percentage of Agent Population At-Home
58% < 10%
16% 10-15%
9.75% 16-25%
6% 26-35%
9.7% > 35%

7. Why Hilton Hotels Scaled the
At-Home Agent Model
Attract & retain best talent
Cost reductions – the bonus!

8. Cost Benefits of Scaled At-Home 8
US-based
Near-Shore Offshore
At-Home Brick &
Brick & Brick &
Agents Mortar
Mortar Agents Mortar Agents
Agents
Price $23.00 $27.00 $18.00 $13.50
Calls per Hour 10.8 11.8 12.4 10.8
AHT (in seconds) 230 210 200 230
Sales Conversions 30% 23% 15% 23%
Cost per Call $2.13 $2.29 $1.45 $1.25
Revenue per Hour $178.20 $149.27 $102.30 $136.62
Return on
Investment* $155.20 $122.27 $84.30 $123.12
Source: WestAtHome.com, 2009
* Results based on 92% agent efficiency, ultilization of 75%., revenue per sale of $55

9. Cost Reduction Strategies
Cost Center Common Variable
Facilities and energy • Reduce facilities and energy cost
Reduced base wage • 20% lower for new starts
• 10% lower for in-house transfers
Reduced training wage • Additional 15-20% for new hire
training period
Reduced new hire training budget • Virtual training < 25%
Reduced trainer overhead • Trainers un-tethered from single
new hire classes
Shift equipment ownership • Employee owns PC, headset, phone
Shift mix from full time to part-time • Eliminate insurance costs
Work force management • Improved scheduling efficiency with
increased PT work force
ACD upgrades and maintenance • Move to hosted solution SaaS
Call/screen recording and pushed • Move to hosted solution for one or
recurrent training both

10. Sample Risks and Contingencies for Strategic Planning
Risk Risk
Factor Impact Contingencies Level
1. Turnover – Part time evening • Forecasted turnover • Accelerate plan to hire PT day Medium-High
employees could be less loyal than benefit is depleted WFH agents
Part time day and/or Full time • Recruitment and labor
employees (driven from desire for costs exceed targets
temporary -only added income)
2. Virtual training is poorly • Training retention rate • Thorough benchmarking with Low
assembled and/or delivered – suffers successful long distance
Mediocre or poor transfer of new hire • After training performance companies
training from classroom to virtual thresholds diminish • Leverage established internal
distance learning resources
3. Brand and social connection • Turnover and related costs • Execute more robust, readied Low-Medium
weakens as a result of long distance rise plan of connection and social
relationship • Performance thresholds activities
diminish • Reduce supervisor to agent ratio
4. Technology limitations materially • Negative impact to service • Research high speed internet Medium
disrupt connectivity for certain agents levels and revenue availability in major markets
and/or in specific markets where we plan to hire agents
• Establish minimum standards for
PC and internet speed, type of
service and test prior to live
working
5. Legal environment – new • Potential for increased • Develop contingency plan for Low
legislation may create obstacles or costs, delayed start-up of delayed/depleted home working
inefficiencies in the areas of security, agents on line volume to be redeployed
home working environment or payroll • Others unknown at this • Closely monitor federal and state
time legislation in employment,
compensation and technology

11. Key Drivers of Effective Scaling
Technology
Voice
Data
Capital Expenditures
People
Process

12. Demographics 12
Traditional Brick and Mortar At-Home Agents
Agents
 Average Age: 23  Average Age: 38+
 30% have some  80% college-level experience
college-level  40% management
experience experience
 30% bilingual
 Stay-at-home
parents
 Military spouses
 Retirees
 Disabled
Source: Frost & Sullivan

13. Attributes & Preferences of
At-Home Agents
- Independent
- Problem-solver
- Mature
- Engaging
- High technology aptitude
- Less social interaction and touch
- Share experiences
- Collaborate on work schedule

14. Why Adapt our Culture?
At-Home Agent
Attribute/Preference Impact to Organization
Independent Communicate
Problem solver Train
Mature Coach
Very effective at engagement Less emphasis
High tech aptitude Different training (less)
Less social interaction Reduced one-to-one time
Share experiences Restructured development
Collaborate on work schedule Re-engineer WFM

15. What About Hiring?
1. Fish where the fish are - on line!
2. Phone interviews – job modeling
3. Engage problem-solving and
navigational skills in pre-work
3. Look for experience working
independently; social interaction
4. Use your existing selection tools,
assuming they are effective

16. Building an Effective Pilot
1. Reasonable sample size – minimum 5-10%
2. Mix of high, average, low performing for in-house agents (2/3)
3. Minimum one-third new hires and send home after training/nesting
4. New hires should meet your new profile expectations (i.e. part-time)
5. Established KPIs with frequent, systematic measurement & reporting
6. Trained and focused supervisors with intent to succeed
7. Clear, defined expectations for at-home agents (in writing and signed)

17. At-Home Impact on the
Customer Experience
Better at selling.
Better at educating and informing.
Better at engaging our customers.
“Satisfaction without engagement? Worthless.
Satisfaction with engagement? Priceless.”
Gallup Organization

18. Questions?

20. Upcoming Workshops

21. Upcoming VIPdesk Webinars
• March 23: Social Media and Customer
Service: The Tools to Use and Best Practices
For more information or to register for the
VIPdesk Webinar series, visit
www.vipdesk.com.
Confidential & Proprietary VIPdesk Information 21

22. Find Us Online
Website: http://www.vipdesk.com
Blog: http://blog.vipdesk.com
Twitter: http://twitter.com/vipdesk
Facebook: http://facebook.com/vipdesk
LinkedIn: http://linkedin.com/companies/vipdesk
YouTube: http://youtube.com/user/vipdesk
Via RSS: http://twitter.com/statuses/user_timeline/23095083.rss
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23. Thank You for Attending!
Michele Rowan
President and CEO
Customer Contact Strategies, LLC
mrowan@gohome.us.com
972-510-8591
Sally Hurley
President
shurley@vipdesk.com
(703) 837-3518
Confidential & Proprietary VIPdesk Information 23