The $100 MBA Show: Episode MBA2504 Q&A Wednesday - "How Many Customer Support Agents Do I Need?"

Release Date: August 7, 2024
Host: Omar Zenhom

Introduction

In this insightful episode of The $100 MBA Show, host Omar Zenhom addresses a pressing question from a listener named Terry: "How many customer support agents do I need?" Drawing from his extensive 20+ years of entrepreneurial experience and his successful tenure at Webinar Ninja, Omar provides a comprehensive framework to determine the optimal number of customer support agents for a growing business.

Tackling the Core Question

Listener's Query:
Terry has been managing customer support personally while building his online community. As his company grows, he's overwhelmed with customer inquiries and is contemplating hiring one or two customer service agents but is uncertain about the exact number needed to maintain quality without overextending resources.

Omar’s Response and Insights

1. Understanding the Importance of Customer Support

Omar commends Terry for prioritizing customer support, emphasizing that it serves as an extension of one's brand and marketing efforts. He shares his experience at Webinar Ninja, where he and his co-founder Nicole personally handled every customer support ticket before expanding the team. At their peak, they employed eight to nine agents plus a manager to manage the increasing volume effectively.

Notable Quote:

"Customer support is an extension of your branding, is extension of your marketing."
— Omar Zenhom [02:15]

2. Factors to Consider When Hiring Customer Support Agents

Omar outlines four critical factors to evaluate before determining the number of support agents required:

a. Volume of Customer Inquiries

• Definition: Total number of inquiries across all communication channels (email, chat, phone, social media, etc.) per day.

• Example: At Webinar Ninja, they managed approximately 200 inquiries daily, split between Omar and Nicole.

• Recommendation: Know your baseline inquiry volume using support tools like Zendesk or Intercom.

Notable Quote:

"You should have this number on hand. You should know how many inquiries you're getting."
— Omar Zenhom [04:10]

b. Response Time Goals

• Definition: Desired time frame within which customer inquiries should be addressed.

• Considerations: The criticality of the product/service dictates response time. For instance, Webinar Ninja maintained an average response time of under five minutes to ensure customer satisfaction.

• Impact on Staffing: Faster response times may necessitate more agents to handle the same volume efficiently.

Notable Quote:

"Our average response time was under five minutes... we felt like this makes a huge difference and makes a great impression."
— Omar Zenhom [07:30]

c. Complexity of Inquiries

• Definition: The level of difficulty or time required to address customer questions or issues.

• Implications: More complex inquiries consume more agent time, reducing the number of inquiries an agent can handle daily.

• Example: Technical support for sophisticated software may take longer to resolve compared to simple e-commerce queries.

Notable Quote:

"If your inquiries are complex and take an hour per customer, an agent can handle only eight inquiries a day."
— Omar Zenhom [09:00]

d. Availability and Coverage

• Definition: The hours during which customer support is available (e.g., 24/7, business hours, specific time zones).

• Strategies:

  • 24/7 Support: Requires multiple agents covering different shifts, possibly including overlap periods for high demand.
  • Limited Hours: Fewer agents needed but must ensure coverage during peak times.

Notable Quote:

"If you want to have 24/7 support, you're going to need somebody, one person at least on shift at all times."
— Omar Zenhom [10:20]

Practical Steps to Determine Agent Requirements

Omar provides a step-by-step approach to calculate the necessary number of customer support agents:

Step 1: Assess Inquiry Volume

• Track daily inquiries across all channels using support software.

Step 2: Define Response Time Goals

• Establish acceptable response times based on business needs and customer expectations.

Step 3: Evaluate Inquiry Complexity

• Determine the average time required to resolve different types of inquiries.

Step 4: Calculate Agent Requirements

• Use the formula:
  Number of Agents = Total Daily Inquiries / (Inquiries per Agent per Day)

• Example Provided:
  150 daily inquiries, 2-hour response time goal, 15 inquiries handled per agent = 10 agents needed.

Notable Quote:

"If you receive 100 inquiries a day and you want a response time within an hour, and each agent can handle 20 inquiries a day, you're going to need five agents."
— Omar Zenhom [14:50]

Step 5: Plan for Coverage

• Ensure sufficient agents are available to cover the desired support hours without overburdening any individual agent.

Optimizing Agent Efficiency

Omar advocates for operating at approximately 80% capacity to prevent agent burnout and maintain high-quality support. This balance ensures agents are productive without feeling overwhelmed.

Notable Quote:

"The sweet spot is 80% capacity... they don't burn out and they're not stressing out about every single ticket because things are so tight."
— Omar Zenhom [16:00]

Long-Term Strategies for Enhanced Customer Support

Omar emphasizes the importance of continuous improvement in customer support:

• Develop Self-Service Resources: Create FAQs and support articles based on recurring inquiries to reduce the volume handled by agents.

• Product and UX Improvements: Address frequent customer issues by refining the product or user interface to minimize common questions.

• Leadership Role: Focus on making customer support processes more efficient and aligned with overall business goals.

Notable Quote:

"The job of the leadership in your business is to make the job of customer support better, easier, more efficient."
— Omar Zenhom [17:00]

Conclusion

Omar Zenhom provides a structured and actionable framework for businesses to determine the optimal number of customer support agents. By meticulously evaluating inquiry volume, response time goals, inquiry complexity, and desired availability, entrepreneurs like Terry can make informed hiring decisions that uphold customer satisfaction and operational efficiency.

Final Thought:
As businesses grow, refining customer support operations is crucial. Employing the right number of agents ensures that support remains a strength rather than a bottleneck, contributing positively to the brand's reputation and customer retention.

Have More Questions?
If you're navigating similar challenges or have other business-related queries, reach out to Omar at omar@100mba.net. Your questions could be featured in upcoming Q&A Wednesday episodes!

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