IVR self-service can cut per-call handling costs by 90%. That can save call centers a bundle in agent staffing and locations costs.

But self-service can only deflect calls from live agents and save money if it is implemented right. Unfortunately, too many call centers don't do that.

A groundbreaking study by Empirix (Waltham, MA; www.empirix.com) found that most banks fail to deliver a reliable, efficient, consistent customer experience, despite CRM software deployment.

Joe Alwan, vice president of Empirix Contact Center Performance Group, says that as a result these banks pay twice for the same transaction: about 40 cents for the abandoned self-service attempt; and $6 or more for the subsequent live agent transaction.

"Banks with the worst self-service performance have increased their costs because customers often abandon their self-service efforts and seek out a live agent," he says.