GigCX & Contact Centers
The gig economy has reshaped various industries by offering flexibility and autonomy to workers while meeting the demand for scalable labor solutions.
The concept is widely recognized in sectors like transportation and food delivery with giants like Uber and DoorDash leading the charge.
However, an emerging frontier for the gig economy is in the realm of contact centers, where traditional models are being upended by innovative gig-powered platforms.
This shift is not only addressing the persistent problem of agent attrition but is also enhancing productivity and efficiency within contact centers.
Understanding GigCX
GigCX, or gig customer experience, refers to employing freelance or gig workers for customer service roles.
These agents are typically independent contractors who choose their work hours and manage their schedules.
There are a few companies that really pioneered the space and offer a gig-powered contact center model that exemplifies how this approach can solve some of the critical issues faced by traditional call centers.
Check out this podcast with Nate Nammour, Director of Partnerships at ShyftOff, he talks all about their business model.
Benefits of the GigCX Model
Let’s compare the typical 9-5 model to the GigCX model and see the vast differences that a gig economy can have.
Enhanced Flexibility and Availability
Unlike traditional contact centers, gig-powered models allow agents to choose their working hours. This flexibility attracts a diverse workforce, including individuals who may not be able to commit to standard 9-to-5 schedules. For instance, construction workers or field workers who are busy during the day can work in the evenings when they are available.
Increased Productivity
Data shows that traditional W-2 contact center employees are productive for about 65% of their work time. In contrast, gig workers, who choose when they work and are paid only for productive time, exhibit 70-80% productivity.
This means clients get more value for their money as gig workers tend to be more focused and efficient during their shifts.
Reduced Attrition and Shrinkage
One of the most significant challenges in the contact center industry is high attrition rates. Traditional models often see high turnover and non-attendance, leading to constant hiring and training cycles.
GigCX tackles this by onboarding more agents than required (sometimes three to four times the necessary number) and using a rigorous performance-based system to ensure only the most committed and effective agents remain active.
This approach virtually eliminates the back-end attrition felt by clients as there’s always a pool of trained agents ready to step in.
Incentive-Based Performance Management
Most gig economies employ a unique algorithm called “priority boarding” to incentivize performance. Agents are ranked based on client-specific KPIs and grouped into performance tiers. Those in the top tier get the first pick of shifts, encouraging all agents to maintain high performance to secure more work opportunities.
This not only enhances productivity but also ensures that clients consistently receive high-quality service.
Where to start
We know how enticing it might sound to want to start a GigCX of your own internally. But something to be aware of is that mixing gig workers and standard W-2 employees comes with many challenges.
The business models are extremely different in order to meet the needs of each type of worker.
However, we know contact center leaders can sometimes be in a pinch, so here are a few places you can start.
Define your needs and objectives
This really goes with anything you want to start doing, but for some reason it’s often skipped. Defining exactly where your weaknesses are can be difficult, but it’s absolutely worth it.
Here are some metrics to define and understand where you sit:
- Volume of Calls: Estimate your daily, weekly, and monthly call volumes.
- Peak Times: Identify peak hours when call volumes are highest.
- Service Level Requirements: Determine the key performance indicators (KPIs) that are critical for your business, such as average handle time, first call resolution, and customer satisfaction scores.
- Flexibility Needs: Assess how important it is for your agents to have flexible working hours.
Evaluating new tech
Whether you do this in-house or hire a company, it’s important to understand the technology behind the success. Are they using an agent assist platform to help gig workers live on calls? How are they ensuring what is being said falls within your compliance standards?
We have a whole risk assessment (mostly focused on AI), but it dives into questions you should be asking yourself and vendors before making a decision.
The technology used by a GigCX provider is crucial to their effectiveness. Consider the following aspects:
- Scheduling Flexibility: Ensure the platform allows agents to choose their working hours and can dynamically adjust to changing call volumes.
- Performance Management: Look for systems that track agent performance based on KPIs and provide feedback and incentives to high-performing agents.
- Integration Capabilities: The platform should integrate smoothly with your existing CRM, helpdesk, or other customer service tools.
- Real-Time Notifications & Analytics: Access to real-time data and analytics can help you monitor performance and make informed decisions quickly.
The Future of Contact Centers
As the gig economy continues to evolve, its application within contact centers is likely to expand. The GigCX model addresses many of the fundamental inefficiencies and pain points of traditional contact centers – agent attrition.
Attrition is accepted as normal and many companies think of it as a sunk cost. Oliver Catt talks all about this on our podcast.
By offering flexibility, reducing attrition, and enhancing productivity, GigCX platforms are not only transforming how contact centers operate but also setting new standards for customer service excellence. Gig workers want to perform because they get preference on shifts, customers, and performance bonuses. It’s fair market competition.
In conclusion, GigCX is not just an alternative to traditional contact centers; it’s a transformative approach that aligns with modern workforce trends and customer expectations.
Companies are demonstrating that gig-powered models can deliver superior results and sustainable solutions for the contact center industry.
As more businesses recognize the benefits of this model, the gig economy’s impact on customer service is poised to grow, promising a future where flexibility, efficiency, and high performance are the norms.