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Always On Call? The Competitiveness of the UK's Call Centre Industry

Why aren't all call centre operations based on the Internet?

Many observers expected that the Internet would host all customer support and sales functions. This was expected to lead to the demise of the UK call centre, but there are few signs of this happening, according to analysts.

The use of the Internet by firms such as Asos.com to handle all customer enquiries indicates why call centres aren't being replaced by new technology. Asos, which was previously known as AsSeenonScreen, specialises in selling 'celebrity-style' clothes to young consumers. In December 2004, Asos reported a 70% rise in sales, with almost a million customers visiting its Web site.

The business relies on its customers being sufficiently confident with using the Internet. Asos' customers fit into the 18-24 demographic group and are very used to using the Internet in their everyday lives; other people may not share their confidence. This allowed the firm to replace its call centre, which previously handled customer enquiries, with an email-only service. Quoted in the Guardian, Asos chief executive Nick Robertson justified this decision:

'We are an Internet business and I only really want shoppers used to buying on the Web. If you start talking to them they cost more.'

Source: 'Fashion Statement: Celebrity Clothes Firm Lets Rip', Article in The Guardian, January 22nd 2005

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