HeartMath Case Study -- ROI
A Fortune 50 High Tech
Firm--Call Center
Building A High
Performance Contact Center
Reducing Stress, Turnover And Increasing Productivity, Morale And Customer Satisfaction
I. Executive Summary
This case study
reports on the Key Performance Indicators (KPIs)
measured before and after a HeartMath training program
in a Fortune 50 High Tech Firm's technical support
call center. This call center was the frontline of
technical support for the company's technology product
lines. The business goals of the program were to
reduce stress, improve communication and improve
morale of the technical support group, thereby leading
to increased customer satisfaction and loyalty. By
training the technical personnel to be able to recalibrate
their stress levels after difficult calls, it was
also expected that turnover would decrease and productivity
would increase. The total estimated savings realized by the firm from the HeartMath training
program was $632,539.
The changes in the KPIs based upon those who reported in the categories of "often" or "most of the time" were:
- 67% reduction in intent to leave the job (decrease in turnover)
- 16% increase in productivity
- 100% reduction in stress, anger, exhaustion, tension and depression
- 38% improvement in communication between staff and managers
- 33% improvement in listening to customers and fellow employees
- 36% improvement in feeling cared about by the organization.
The key driver of these results was: participants learned techniques that were used in real-time to transform their physiological reactions from stress, thereby boosting their performance when dealing with customers and co-workers. In addition, several individuals who were on high blood pressure medication were able to reduce or stop taking the medication after the training (with doctor's approval). While potentially significant, the outcomes of the health care cost savings were not tracked in this study.
II. ROI Calculations
The Technical
Call Center group's goal was to solve the customer's
issues in the first call and, thereby, increase the
number of "First and Done Calls." At times the issues could not be solved and were escalated. Problems not resolved
in the first call would upset some customers. As
a result, the Call Center group would feel pressure
when they could not satisfy the customer immediately.
At times, when operating under reduced staff situations,
the group felt overloaded with calls and stretched
for resources. As a result of the difficulties on
the job, anxiousness and concern were common complaints.
The Senior Manager of the Education Department was
concerned about costly turnover and looked for a
proactive solution.
The following tables are the changes in KPI metrics over a period of 60 days. Baseline measurements were taken before the HeartMath program started. After 60 days, the same group of people was measured again. This program generated benefits for the entire call center group, especially those that were most discontent or least satisfied.
The following calculations are the potential return on investment for a reduction in turnover and an increase in productivity for two of the measured changes in KPIs.
Business Benefit ROI #1: Increased Productivity
Assumptions:
1. The salary
of a Technical Call Center Professional was $51,120.
Calculations:
From Table 1.1,
out of 27 people, the increase in productivity was
16%.
The value of the increase in productivity is calculated in the following manner:
Productivity before
HeartMath was at 84%.
27 x $51,120 salary/Technical Call Center Professional/year x (.84) productive
before HeartMath =$1,159,401.
Productivity after
HeartMath was at 100%.
27 x $51,120 salary/Technical Call Center Professional/year x (1) productive
after HeartMath = $1,380,240.
Benefit of Solution = Difference in Productivity = $220,839.
Cost of Solution = Cost of training 27 people = $25,000.
ROI = Benefit of Solution
- Cost of Solution x 100
Cost
of Solution
ROI = ($220,839 -
$25,000) = $195,839 = 7.83 x 100 = 783%
$25,000 $25,000
This means that for every $1.00 spent on HeartMath, $7.83 was potentially saved through productivity gains.
Total potential productivity savings after HeartMath training = $195,839.
Note: Even if the gain in productivity was only 1/3 of the reported value, the ROI would still be approximately 261%, or result in a total potential savings of $65,279 for one year.
Business Benefit ROI #2: Reduce Turnover
Assumptions:
1. Actual Technical
Call Center Professional replacement costs per person
in the Fortune 50 High Tech Firm were reported as
$25,650. (Actual call center turnover costs may vary from center to center. In 2003,
Purdue University's Center for Customer Driven Quality
states that replacements costs are $6,350 per individual.)
2. The average salary of each Technical Call Center Professional was $51,120.
Calculations:
From Table 1.2,
out of 27 people, a 67% reduction in intention to
quit their job means that there was a cost benefit
of not replacing 18 people. (27 x .67 = 18.09 = 18)
Benefit of Solution = 18 people x $25,650 = $461,700 in replacement costs
Cost of Solution = Cost of training 27 people = $25,000
ROI = Benefit of Solution
- Cost of Solution x 100
Cost
of Solution
ROI = ($461,700- $25,000)
= $436,700 = 17.47 x 100 = 1747%
$25,000 $25,000
This means that for every $1.00 spent on HeartMath, $17.47 was potentially saved in replacement costs for these Technical Call Center Professionals. Total potential savings after HeartMath training = $436,700.
Note: Even if the savings from replacement costs were only 1/3 of the reported value, the ROI would still be approximately 582%, or result in a total potential savings of $145,566 for one year.
III. Observations
Current industry
research from Purdue University's Center for Customer
Driven Quality and BenchmarkPortal, Inc. states that
the number one reason Technical Call Center Professionals
leave their jobs is due to stress.
Figure 1. Stress--the
number one reason for turnover.
Before the HeartMath
Program:
Pre-program
surveys revealed the following percentages of participants
reporting "often" or "most of the time": 27% were tense, 19% were depressed, 18% were unhappy, 14% were sad, 9% were
angry.
From other research conducted by HeartMath, it has become well established that stress experienced on the job causes changes in the physiology of workers and executives alike, in this case the Technical Call Center Professional. Those stress-induced changes in physiology often result in people leaving and less productivity on the job. Prior to the HeartMath training, average performance in this group had resulted in increased operating costs and more customer complaints. People leaving resulted in a reduction in staff. Therefore, the remaining staff was unable to reach Customer Service business goals. Increased operating costs also increased due to additional recruiting and retraining costs resulting from the turnover. This High Tech Firm recognized that personnel performance issues had been directly related to the pace of their business and that was costly for their Customer Service organization and for the corporation.
After the HeartMath
Program:
After the HeartMath
program, post program surveys of the same participants
revealed: 0% were tense, 0% were depressed, 0% were
unhappy, 0% were sad, 0% were angry (based on "often" or "most of the time" responses.)
The Technical Call Center Professional and managers reported being able to monitor, measure and control their own stress levels, thereby feeling more in control of their unpredictable environment and the pace. They felt more equipped to provide improved customer service under stressful situations.
IV. Conclusion| Total Savings for this High Tech Firm after HeartMath Training Program | |
| $436,700 - | Reduced Turnover |
| + $195,839 - | Increased Productivity |
| $632,539 | Total Estimated Annualized Savings measured over 60 days |
(Note: Even the most conservative estimates, 1/3 of total savings = $210,846.)
V. Recommendations:
In future HeartMath
programs at this site, it is recommended that the
sample group be measured to include all results achieved
beyond the pilot and compare this data to a control
group not receiving HeartMath Training to factor
other variables in the environment. We understand
that 350 people were trained after the initial pilot.
Include KPIs in the baseline measurement to associate
the decrease of health care costs and benefits to
the organization, i.e., increased time on the job,
decrease in absenteeism, etc.
Testimonials
about the HeartMath Training Program from Fortune
50 High Tech Firm
"In
dealing with customers, our group is under stress
all the time. Members of the team have said, 'Communication
with their managers is more effective after the HeartMath
training.' Also, prior to HeartMath, a lot of people
had said they were thinking about leaving the organization.
After the HeartMath training, they aren't thinking
of quitting anymore. The quality of people's lives
is improved as people are less stressed at the end
of the day. They have more energy to work better
with customers and also have more energy for their
family when they leave work."
"I personally am more efficient at work and in how I balance my time. Specifically, in a group I listen with more clarity for core messages so that we can focus meetings effectively. Essentially, I have become more efficient at getting to solutions. These tools are universal. Wherever you are these tools work."
--Program Manager/Education Department
"In our high-pressure customer service jobs, Freeze-Frame® is fantastic technology. We are able to give customers time to vent using our intuitive listening skills. Since we have had our entire team using HeartMath, we have an 80% improvement in our focus on the business problem at hand. We draw on our full creativity."
--Technical Call Center Professional
For more information on corporate programs contact:
Sibyl Cryer
Director, Corporate Programs
Telephone: (800) 450-9111, Ext. 747 (Toll-Free)
Telephone: (831) 338-8700, Ext. 747 (International)
E-Mail: scryer@heartmath.com
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