What gets measured gets improved.
The practice of measuring and tracking performance is not new. From the ancient Chinese Wei Dynasty’s royal performance assessments to Robert Owen’s pioneering techniques in 19th-century Scottish cotton mills, it has deep historical roots. Over time, this concept evolved alongside accounting and management practices, resulting in the advent of modern KPI frameworks.
Today, KPIs are a commonly used tool in businesses to measure the value of a specific business parameter. In the fast-paced BPO call center industry, there are countless KPIs that are measured to provide better customer service.
When analyzing call center KPIs, it’s often unclear which metrics should be consistently measured and tracked. This article aims to provide clarity on which metrics to monitor and how a call center solution can facilitate this process.
Let’s delve into the top 10 call center KPIs that are crucial for gauging performance and driving efficiency in BPO call centers.
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1. Customer Satisfaction Score
Customer Satisfaction (CSAT) scores measure the satisfaction level of customers based on their interaction with the call center. Higher CSAT scores correlate with increased customer loyalty, repeat business, and positive word-of-mouth referrals, all of which contribute to revenue growth. CSAT scores are usually assessed through post-call surveys and are calculated by dividing all positive responses by the total responses.
To improve CSAT scores, you need to focus on delivering exceptional customer service by resolving issues promptly and effectively and actively seeking feedback to address areas of improvement.
2. Net Promoter Score
Net Promoter Score (NPS) is a BPO call center metric that gauges customer loyalty and the likelihood of them recommending your company to others. A higher NPS indicates greater customer advocacy and, subsequently, increased customer growth and revenue through referrals and positive reviews. A high NPS also translates to a strong brand reputation and it is calculated by subtracting the percentage of detractors from the percentage of promoters. Detractors are customers who are unhappy with your call center services and promoters are customers who rate your customer services very high and recommend your services to others. These are obtained through survey questions that are sent to customers quarterly or bi-quarterly.
To boost your NPS scores, you need to prioritize customer experience improvements, exceed expectations, and foster strong relationships with customers to turn them into promoters.
3. First Contact Resolution
First Contact Resolution (FCR) measures the percentage of customer inquiries or issues resolved during the initial contact without requiring further follow-up. High FCR rates lead to enhanced customer satisfaction, loyalty, and retention, as customers appreciate the swift resolution of their concerns. FCR is calculated by dividing the total number of issues resolved on the first contact by the total number of first contacts.
A higher FCR shows that the call center agents are able to quickly understand and troubleshoot customer queries without any callbacks or transfers. FCR can be improved through comprehensive agent training, empowering agents with resources and authority to resolve issues promptly, and streamlining processes to minimize handoffs.
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4. Call Abandonment Rate
Call abandonment rate is a call center KPI that indicates the percentage of calls that are disconnected by customers before reaching an agent. High call abandonment rates signal dissatisfaction with your call center services and can result in lost revenue opportunities and decreased customer loyalty. Customers may hang up if they are held in a queue for a long time, leading to a negative impression of your services.
This BPO call center KPI is calculated by subtracting the calls handled from the total calls received and then divided by the total calls received. Some of the common strategies to reduce call abandonment rates are improving Interactive Voice Response (IVR) menus, optimizing staffing levels to minimize wait times, providing accurate wait time estimates, and offering callback options for customers who cannot wait.
5. Average Handle Time
The call center metric of Average Handle Time (AHT) measures the average duration that agents spend handling customer interactions from start to finish. For this KPI, you need to find a balance between speed and customer service as shorter handle times can indicate efficiency but excessively short times may indicate that the call center agents are not able to address customer’s needs. On the other hand, higher AHT may indicate that the BPO call center agents do not have the skills or tools to handle the customer’s issues.
The Average Handle Time is calculated by adding together the total talk time, hold time, and handle time and dividing it by the total number of calls received. To optimize average handle time, you need to provide your call center agents with effective training and tools, encourage active listening and problem-solving skills, and streamline processes to eliminate unnecessary steps.
6. Average Speed of Answer
The Average Speed of Answer (ASA) is a call center KPI that calculates the average time it takes for calls to be answered by call center agents. ASA involves the time the customer spends waiting in the queue as the agent’s phone rings, but it excludes the time spent navigating the interactive voice response (IVR) system.
As customers value quick access to call center support, promptly answering calls enhances customer satisfaction and loyalty. Since it indicates the customer wait time, the lower this call center KPI, the better. Scaling staffing levels according to call volumes, implementing call routing strategies, and prioritizing high-value customers are some of the strategies you can implement for lower Average Speed of Answer.
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7. Service Level
Service level measures the percentage of calls answered within a specified time frame, typically expressed as a percentage of calls answered within a certain number of seconds. The Service Level Agreement (SLA) with your call center describes the service level standards like answering 90 percent of the calls within 20 seconds.
This call center metric tracks the percentage of calls that are answered within the threshold limit set by the SLA. Meeting or exceeding service level targets ensures timely customer support and satisfaction. To maintain a high service level, monitor call volume and agent availability in real-time, adjust staffing levels accordingly, and implement efficient call routing strategies.
8. Agent Turnover Rate
Agent turnover rate is a call center KPI that indicates the percentage of call center agents who leave the organization within a specific period. High turnover rates can disrupt operations, decrease productivity, and negatively impact customer service quality. The lower your agent turnover rate, the better your call center’s performance.
Employee engagement activities, career development programs, and competitive compensation packages can reduce the agent turnover rate.
9. Cost Per Call (CPC)
Cost per call calculates the average expense incurred for handling each customer call, including agent wages, technology expenses, and overhead costs. This call center KPI gives insight into the cost-effectiveness of your call center and helps you paint a better picture of your resource allocation.
Lower CPC indicates greater operational efficiency and cost-effectiveness. You can improve your cost per call by implementing workforce management strategies that maximize agent productivity while minimizing expenses.
10. Percentage of Calls Blocked
The percentage of calls blocked is a key call center metric that indicates the percentage of inbound callers that received the busy tone or were routed to voicemail when calling customer support. It’s calculated by dividing blocked calls by total incoming calls. High percentages of this call center KPI signal issues like staffing shortages or inefficient call routing.
This metric should not be ignored as every blocked call is a missed opportunity to connect with a customer. If you find your percentage of blocked calls getting higher, you can invest in advanced call routing, optimize call center staffing during peak times, and provide comprehensive agent training.
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These highlighted call center KPIs represent just a fraction of the multitude of metrics essential for optimizing call center performance. While tracking KPIs serves as the initial step, it’s the insights obtained from this data that can truly empower your call centers.
As you delve deeper into your call center’s performance metrics, you start uncovering valuable insights that can be transformed into actionable strategies. While the KPIs outlined here offer a comprehensive overview, selecting the most relevant metrics tailored to your specific business objectives is crucial for driving success. By aligning your call center KPIs with your organizational goals, you can effectively measure progress and implement targeted strategies for continued improvement and success.
