Posts Tagged ‘call center metric’

Top Call Center KPIs to Watch and Measure

Posted on: January 15th, 2019 by dorarapcsak No Comments

In call centers, everything revolves around numbers and targets. And in such a competitive environment, it’s of the utmost importance to measure and analyze the most important call center KPIs.

KPIs (Key Performance Indicators) are performance measurements that help you evaluate the success of your business – think of them as the fuel that keeps your call center’s engine running.

In this article, we’ve collected some of the most essential KPIs call center managers definitely need to keep track of. Read on to find out what call center KPIs you need to be focusing on!

Customer experience

Customer experience is perhaps the most important call center KPI there is.

Why? It’s simple: if a customer is happy with the customer service they receive from your company, chances are they will purchase again or even recommend your brand to their acquaintances.

Considering this, it’s no surprise that more and more companies are prioritizing customer experience-related metrics.

How to measure it

The easiest way to measure customer experience is simply by asking your customers about it. For example, use customer surveys to compile customer feedback.

Call quality

Put simply, there is nothing more frustrating than when you’re trying to explain an issue to a customer service agent with a phone line that keeps dropping in and out. You can be sure that such situations will not only make your customers lose their patience but also harm your company’s reputation.

Indeed, low call quality results in inefficient communication and a negative impact on customer experience, so you better ensure that the communication channels between your customers and agents is crystal-clear at all times.

How to measure it

There are several ways your call center can mitigate call quality issues. For example, it might be a good idea to implement end-to-end Quality of Service (Qos) to ensure voice quality is high-level throughout. Furthermore, make sure to systematically check latency, as this is often what causes delays.

First call resolution

We have already talked about first call resolution in a different article, and for good reason: it is an absolutely essential KPI to watch out for in call centers.

First call resolution shows whether or not a customer’s need is properly addressed by the customer service team during the first contact. FCR is the main indicator of customer satisfaction, so make sure you think of it as a key priority.

How to measure it

Any issues that require a callback or are escalated during the first contact do not count as a first call resolution.  Luckily there are quite a number of ways to increase first call resolution, including systematic training, increasing agent knowledge bases and reliable call center software solutions.

Cost per call

In the call center business, money talks. Running a call center is extremely costly, so it’s no surprise that reducing costs in a way that doesn’t affect customer experience is always on a call center manager’s mind.

Cost per call is another essential call center KPI that allows call centers to calculate the total cost involved in handling calls during a specific period of time. As well as being an essential KPI, keeping cost per call low is a major priority for any call center manager.

How to measure it

Now that you know that cost per call is an important call center KPI it’s time to check out our previous article and find out how you too can calculate (and reduce) your cost per call!

So, there you have it: customer experience, call quality, first call resolution, cost per call and service level. By focusing on these call center KPIs, your call center will be able to keep track of some of the most important things that contribute to the successful operation of a call center.

How to Calculate (and Reduce) Your Cost Per Call

Posted on: July 6th, 2018 by dorarapcsak No Comments

Let’s be honest: in the business world, money talks. And, as we also all know, running a call center is costly. Very costly, in fact. Considering the amount of expenses that are inevitably required to run a call center, one of the most important responsibilities call center managers have is to figure out how they can reduce costs in a way that doesn’t affect customer experience.

Cost per call is a business metric that allows call centers to calculate the total cost involved in handling calls during a specific period of time. As well as being an essential metric, reducing cost per call is typically a high priority on call center managers’ to-do list.

In short, cost per call can be calculated by dividing operational costs by the total number of calls in a given period of time. But how do you do that in practice? Check out our article, and see for yourself!

 

Calculating cost per call – let the numbers speak for themselves

The first thing you have to do is to compile a list of the agents working for your call center and then define the time period for which you want to calculate the cost per call.

Next, determine the number of calls an agent handles per hour during an average shift. For example, let’s take an agent – we’ll call him John – and calculate the number of calls he deals with during a one-hour period. In order to do that, you’ll have to look at the number of calls he makes during an average day, and divide that number by the number of hours he works each day.

Let’s do some math! Let’s say that John handles 40 calls a day and works an 8-hour shift.

Once you have John’s number of average calls per hour, you can determine John’s cost per call. To do that, divide John’s wage by the average number of calls he handles during an hour, and the result will be the cost per call for John.

So if John gets 15 dollars an hour, then, as you can see in the calculation below, John’s cost per call will be 3 dollars.

In order to calculate the average cost per call of your call center, divide the result by the total number of agents working in your team. For instance, let’s say that you work with a team of 10 agents. After doing the calculation below, the result will be $0,30, telling you what each call is costing your business.

 

Of course, though, the method above only takes into consideration your agents’ wages as costs. But don’t forget that a call center has other costs, such as operational, software and office space costs.

Therefore, another (and perhaps more accurate) way of calculating your cost per call is to calculate your call center’s total costs for a specific period of time (including salaries, operational costs and costs associated with any call center software used), and divide the total cost by the total number of calls handled during that time period. The result will be the total cost per call of your call center.

For example, let’s say that your call center costs $100,000 per year and handles 200,000 calls during that time. In this case, as you can see in the calculation below, your call center’s total cost per call will be $0,50.

cost per call vcc live blog

Speaking of calculations, there’s a bunch of another important metrics you should definitely keep track of, including your cost optimization, sales optimization and margin optimization. So check out our calculators, and let them do the math instead of you!

 

How to reduce cost per call

Not surprisingly, one thing all call center managers crave is to reduce their cost per call, while also providing a continual high level of customer service for their clients. Fortunately, with careful planning and implementation, this balance is more than achievable.  

Amongst other things, well-trained agents, with an excellent knowledge of the processes at your call center, are a must, as they can more effectively assist customers, and so reduce call times and improve first-call resolution. Although training does cost a substantial amount of money for any call center, it is worth making sure you provide high-quality training sessions for your call center agents. You’ll see how much difference a well-trained agent can do.

Maintaining high call quality is another way to reduce cost per call. In order to do this, it’s essential to implement live call monitoring. By doing this, call center managers and supervisors can offer constructive feedback to agents, thus helping them improve the overall quality of their calls. As a result, efficiency will increase, and cost per call at your call center will decrease.

In addition to focusing on improving your customer service, when scheduling agent shifts, always make sure you consider peak call times and agents’ adherence level. Effective scheduling is another way of helping you increase efficiency and reduce call center costs.

Last but not least, since you’ll definitely need accurate statistics to calculate your cost per call, make sure to utilize comprehensive call center software. In fact, a call center without proper call center software is like a car without engine. In a previous article, we discussed what you have to consider when choosing a call center software, so make sure to check it out! If you expect your agent team to excel at their job, then you’ll need to empower them with proper tools. VCC Live®’s software, for instance, offers powerful features, such as a predictive dialer, that will help you further your aim of maximizing efficiency.

 

Sum up

In order to get the most out of your calls, you’ll need to keep cost per call as low as possible, while ensuring that your call center continues to provide exceptional customer service to your customers. The balance between efficiency and effectiveness will make all the difference here. Follow our tips and you too will be able to turn your call center into a profit center!