The $100 MBA Show: MBA2504 Q&A Wednesday – Determining the Optimal Number of Customer Support Agents

Episode Overview

• Title: MBA2504 Q&A Wednesday: How many customer support agents do I need?
• Host: Omar Zenhom
• Release Date: August 7, 2024
• Description: In this episode, Omar Zenhom addresses a listener's query about scaling customer support as their business grows. Drawing from his extensive experience running Webinar Ninja, Omar provides a comprehensive framework to determine the optimal number of customer support agents required to maintain excellent service without overstaffing.

Introduction to the Topic Omar kicks off the episode by acknowledging the listener’s dilemma—balancing growth with effective customer support. He emphasizes the critical role of customer support in shaping a brand's reputation and customer satisfaction.

Listener's Question:

Terry: "How many customer support agents do I need? I've been building my online community for years and I've been doing customer support myself. But the company's growing, we're getting a lot of customers and I'm thinking about hiring a customer service agent or two, maybe even more. Not really sure how many I actually need so that I don't have to touch customer service emails or chats."
[02:15]

Omar’s Response: A Strategic Approach to Hiring Customer Support Agents

1. Drawing from Personal Experience

   • Omar: "We ran one of the best customer support teams in the business when we ran Webinar Ninja... We were known for our excellent customer support..."
     [05:30]
   • Emphasizes the importance of firsthand experience in managing customer support before scaling out the team.

2. Key Factors to Consider Omar outlines four crucial factors to assess when determining the number of customer support agents needed:

   • a. Volume of Customer Inquiries

     • Explanation: Understand the daily number of inquiries across all channels (email, chat, phone, etc.).
     • Example from Webinar Ninja:
       "We were getting about 200 customer support inquiries a day. Both of us were doing a hundred inquiries a day."
       [10:45]
     • Tools Mentioned: Zendesk and Intercom for tracking inquiries.

   • b. Response Time Goals

     • Explanation: Define how quickly you aim to respond to customer inquiries.
     • Notable Quote:
       "At Webinar Ninja, our average response time was under five minutes. We wanted to make sure that when somebody reached out to us, email, chat, they got an answer under five minutes."
       [15:20]
     • Impact: Faster response times may require more agents to handle inquiries promptly.

   • c. Complexity of Inquiries

     • Explanation: Assess how intricate the customer issues are and how much time each inquiry typically takes.
     • Example:
       "If your average inquiry takes an hour, an agent can only handle eight inquiries a day."
       [18:55]
     • Consideration: More complex inquiries necessitate fewer tickets per agent.

   • d. Availability and Coverage

     • Explanation: Decide on the hours during which support will be available (e.g., 24/7, business hours).
     • Strategy Used at Webinar Ninja:
       "We tried to have two people on shift at all times... we had a manager on shift at all times."
       [22:10]
     • Shift Management: Rotating shifts to balance workload and exposure to different customer segments.

3. Practical Steps to Determine Agent Numbers Omar provides a step-by-step guide to calculate the required number of agents:

   • Step 1: Track Inquiry Volume

     • Utilize tools like Intercom or Zendesk to monitor daily inquiries.

   • Step 2: Set Response Time Goals

     • Define desired response times based on the nature of your business and customer expectations.

   • Step 3: Assess Inquiry Complexity

     • Determine the average time needed to resolve an inquiry.

   • Step 4: Calculate Agent Requirements

     • Formula:
       Number of Agents = Total Daily Inquiries / Inquiries Per Agent
       Example Provided:
       "If you receive 100 inquiries a day and each agent can handle 20 inquiries, you need five agents."
       [25:40]

   • Step 5: Plan for Coverage

     • Ensure sufficient agents are available to cover the selected support hours.

4. Efficiency and Workforce Optimization

   • Optimal Capacity:
     "I feel like the sweet spot is 80% capacity, that they're working at 80% of what they actually can pull off."
     [30:15]
   • Avoiding Burnout: Maintaining agents at optimal capacity prevents burnout and ensures high job satisfaction.
   • Preventing Understaffing: Overstaffing leads to inefficiency and increased operational costs.

Conclusion and Final Recommendations Omar wraps up by reinforcing the importance of balancing customer support efficiency with quality service. He advises ongoing assessment and adaptation as the business evolves, ensuring that the support team scales appropriately without compromising on customer experience.

Key Takeaways:

• Understand Your Metrics: Accurately track inquiries and response times.
• Define Clear Goals: Set realistic and customer-centric response time objectives.
• Evaluate Inquiry Nature: Tailor staffing based on the complexity of customer issues.
• Strategize Coverage: Align agent availability with customer needs and business operations.
• Maintain Optimal Capacity: Aim for agents working at around 80% capacity to ensure efficiency and prevent burnout.

Final Quote:

Omar: "Determining the right number of customer support agents for your business involves understanding these factors... because at the end of the day, you want to make sure your support team is not overworked, but also not underworked."
[35:50]

Additional Resources For those seeking personalized advice or further questions, Omar encourages listeners to reach out via email at over@omar100mba.net for future Q&A episodes.

Subscribe and Support Omar concludes by urging listeners to subscribe and follow the show on various podcast platforms to support and help the show reach a wider audience.

This summary encapsulates the essential discussions and insights from Omar Zenhom's episode on determining the optimal number of customer support agents, providing actionable strategies for business owners aiming to scale their customer service effectively.