Call Center Metrics

Imagine that your company sells high quality products or services, has an excellent IT and human resource department, your products are well known in the market, but there is one problem – you cannot handle all calls from customers or your customer support service lacks professional call center operators.  In course of time people will refuse to buy your products and services of not because they don’t like them but because they know you will not offer any support to them.  As a result, sales growth will slow down and gradually decrease.  So, despite having professional managerial staff and the best strategy, you won’t be able to achieve positive sales results.

Call center tracks customers from intention to buy to purchase and post sale service

Call center is an important business unit in any company that offers products and services to potential customers.  Once a customer has purchased a product he may have some questions or problems with it, and a call center operator seems to be the only person who can resolve such problems.  Very often customers form their judgment and image of the company based on their communication experience with call center tech specialists.

If you’re calling your web-hosting company or Internet Service provider and you failed to get answers to your questions you will probably think about changing your web-host or ISP.  The same concerns producers of laptops, cell phones etc.

That’s why it is extremely important to measure efficiency of a call center.  Moreover, it is imperative to align call center goals and measures with the company strategy.  In other words, and ordinary call center operator should look at a strategy map and understand how improvements and his performance will contribute to implementation of strategic goals.  If everyone in a call center has a clear understanding of the company strategy, the personnel will be motivated to use balanced scorecard.

This is how callcenter works

One of the most common mistakes in balance scorecard implementation in call centers and customer support services is the focus on number of calls handled by a single operator.  Of the problem is that a call center operator may handle 200 calls a day but solve only 10 problems.  The goal of customer support service is to solve customer problems but not just answer phone and say “Yes, we understand your problem and we’re looking for solutions.”

That’s why, it is imperative to choose the right indicators that will measure progress in implementation of call centers strategic goals.  To achieve that BSC team leaders should attract ordinary personnel to strategy development.

It is important for every company to employed and retain professional personnel.  Indeed, human resources play the most important role and become the most critical success factor in any business area.  Let’s not forget that it is people who make decisions and it is top managers who help businesses overcome crisis.  Ordinary employees generate income through attraction and retention of customers.  This especially concerns call centers and customer support services.  The peculiar feature of a call center and a help desk is that very often customers form their judgment about the company by the experience they have in conversation with the call center operator.  For example, you have purchased brand new laptop but you’ve got some problems and questions about it.  If you pick up the phone and dial a number of a call center.  Naturally, you expect to have your questions answered and problems solved.  But the conversation fails to live up to your expectations.  Your attitude two was the brand become somewhat negative, of although you like the laptop itself, its functions, features and price.  But from now on, you are unlikely to buy left of this brand ever again.

Call center tasks

This example vividly demonstrates how a call center operator performance may result in loss of customers.  For this reason, it is imperative to evaluate performance of a call center (both groups and individual) and introduce amendments if necessary.  In other words it is important to solve problems even before they occurred.  Also, measures and goals of a call center should be integrated into the system of mission, values and strategic goals of the company itself.

How poor call center performance leads to loss of customers

In order to accomplish all the above tasks, a reliable and effective performance evaluation tool is needed.  Balanced scorecard is such a tool that communicates operational and strategic management.  Having looked at the strategy map that balanced scorecard software can create, it is possible to see cause and effect ties between actions and attitudes of call center operators and implementation of the company strategic goals.  The above example shows that certain mistakes or lack of competence may result in loss of customer.  Keep in mind that lost customer will surely go to competitors which is a direct loss of competitive advantage.

Balanced scorecard makes it possible to set goals and measures in the four perspectives: financial, customer, internal business processes, learning and growth.  Each category of indicators characterizes certain side of the business, a call center or a customer support service in our case.

The choice of key performance indicators in implementation of balanced scorecard is one of the most important and critical stages of the entire implementation and maintenance process.  Indeed, it is very important to choose winning key performance indicators (KPIs) in order to operate correct figures and data.  It can be compared with building a house without a foundation or with a poorly build foundation.  Such a house will not last for long.  That’s why, creation of KPIs requires knowledge and experience.  By the way, the wrong choice of key performance indicators is one of the most common mistakes in implementation of balanced scorecard system which was created in early 1990s by Norton and Kaplan.

BSC perspectives

What is the difference between balanced scorecard and others similar systems of business strategic management?  Balanced scorecard was the first system to include nonfinancial indicators to evaluate intangible assets of the company.  There is no problem with financial indicators as such.  But their key disadvantage is that they tell us about past events, while strategic management implies forecasting.  The strategy must include possible problems and obstacles on the company’s way to implementation of strategic goals.  This is where nonfinancial indicators come into play.

Less view several examples applied to call center metrics.  As known, call centers and help desks are those business units that are directly contacted by existing and potential customers.  That’s why, call centers and customer support service is a pretty much responsible for retainment and attraction of customers.

KPIs for sales call center and support service

How nonfinancial indicators can improve financial results?  For example, top management of the company requested that call center improve customer satisfaction by 50%.  What does it mean in practice?  It means that satisfied customers are more likely to make another purchase with the company, while potential customers will be predisposed to make their first purchase.  As a result, the company gets increases revenue and a greater market share.

What about employee satisfaction?  Statistics show that most satisfied employees have most satisfied customers.  We can see here clear cause and effect ties between customer and employee satisfaction, and company financial results.

Through introduction of nonfinancial indicators to the balanced scorecard it is possible to plan future and communicate all four categories in BSC.  All goals and measures in balance scorecard are interrelated, so in order to achieve financial results the company should fulfill goals in customer, internal processes, learning and growth categories.

Implementation of balanced scorecard is sometimes a lengthy and complex process.  The key problem is that balanced scorecard is often viewed as a universal tool which solves all problems in business.  Very often top managers and business owners confuse Balanced Scorecard, as a strategic management tool, with the strategy itself.  No program and no business management solution can offer a strategy.  Balanced Scorecard can only help communicate strategic and operational management and transfer strategy into action.  But without a valid strategy Balanced Scorecard becomes a pile of useless charts, graphs and tables.  Development of a strategy is the most important initial step in BSC implementation.  Balanced scorecard without a strategy is like the house without foundation.

What is more important? Handled calls quantity or number of problems solved?

When we’re talking about implementation of balanced scorecard in call centers and customer support services it is imperative to take into account peculiarities in the work of these business units.  Most often call centers and customer support services operators are those front line employees who directly contact with customers.  So, these people are aware of customer needs and problems.  When a customer calls support service he forms his judgment of the company based on conversation with the operator.  The goal of any company is to turn customers into regular customers.  So, if a person has some questions about purchased a product or service he talks with the call center operator.  After successful conversation (first resolution call) such a customer is more likely to become loyal to the company.

How call center contributes to company profitability

At the same time, in order to make work of a call center effective it is imperative to set the right goals and each and use the right measures.  Who is an efficient operator and who is not?  Is it the kind of operator who can handle the maximum amount of calls per hour?  Or is it the one who manage to solve the greatest number of problems per certain period of time?  Well, everything depends on the strategy.  But as a rule, the second measure is the most important.  Call center operators should answer questions and solve problems.  There is no sense in a conversation if customer fails to achieve desired result.  That’s why, when implementing balanced scorecard it is necessary to introduce special bonus system for high performing operators who manage to solve customers’ problems using their knowledge and experience.  For example, in sales call centers operators should make as many sales attempts as possible and be rewarded for that.

One of the most common mistakes and BSC implementation is failure to set the right goals and objectives.  At a first glance goal setting seems quite easy. “I want my company to earn a lot of money” or “I want to earn a million.” Well, if the goal is formulated in such a way there is very little probability that it will be reached.  Goal setting is not only about deciding what you want but also about identification of implementation means.  How will I earn this million?  How will my company earned a lot of money?  Do I have necessary tools and intellectual potential to implement these objectives?  These are very important questions which need to be answered.

Goals setting, KPI choice, counter actions

Balanced scorecard is sometimes mistakenly viewed a substitution for strategy.  This is a very common myth.  Balanced scorecard is just a tool which may be useless unless it is properly applied.  So, why is goal setting is such an important thing?

If top management sets the wrong goals or goals that cannot be objectively achieved the entire scorecard will be built in an inappropriate way.  The wrong goals will cause selection of the wrong measures and key performance indicators.  Top management will have to react on changes in the internal and external environment and undertake counter measures.  As a result, the company will simply go in the wrong direction.

How customer satisfaction influences business performance

Goal setting in call centers and customer support services is very important as these are customer oriented services.  Earning a lot of money is a good goal, but at the same time company management should define the ways this money will be earned.  So, it would be good to include such goals as “the improvement of customer satisfaction”, “increasing the number of first resolution calls”, “increasing the number of sales attempts per employee” etc.

In course of time employees in company management will see cause and effect ties between these indicators and financial goals.  Customer satisfaction will result in growth of sales as satisfied customers are more likely to buy from the company.  The increased number of first resolution calls will improve customer loyalty, and existing customers are more likely to convert into regular customers.  Increasing the number of sales attempts per employee will increase sales volumes as a result to which the company benefits and employees will get increased bonuses.

Thus, as you can see, goal setting in implementation of balanced scorecard is not all about financial figures.

Read more on goal setting here

Evaluation of human resource performance is especially important in those business areas were human factor plays the most important role.  For example, if we’re talking about call centers and customer support services it is imperative to employed and educate highly qualified personnel.  Let’s explain why.  When a customer purchases products/services he might have questions or problems with the products and services he has recently bought.  Of course such a customer will contact customer support service or company call center.  A customer is not familiar with the company structure, management system, approaches to of customer relations etc.  He or she will for his/her judgment based on his communication experience with call center operator.  In other words, if he has a nice chat and has all his questions answered and problems solved he will probably think: “Hay, that’s a nice company.  Perhaps, I will buy from them again.” There is nothing better for any business than a satisfied and loyal customer who is thinking of buying more.  Regular customers are regular sources of income.

What makes excellent call center operator?

Under what conditions will the customer have positive communication experience when talking to call center operator?

1. Communication etiquette.  Call center operators should be polite and use proper language.
2. Professionalism and competence. Customers are calling not to have a chat but to have their problems solved and questions answered. Call center operators must be 100% competent in all issues related to products and services they are company sells.
3. Readiness for unusual situation. Sometimes customers have very unusual questions and not typical problems which should be nevertheless solved.

The ultimate goal of human resource department is to recruit, employ, educate and retain personnel that will meet the above three criteria.  As known, human resource department does not produce anything and it doesn’t earn money.  That’s why if human resource department is working in efficiently this will cause losses for the company.

How improvement of HR performance can benefit the company

HR performance of call centers and customer support services should be constantly evaluated with the help of balanced scorecard system.  This will not only help optimize HR performance but also align HR goals, objectives and measures with the company strategy, mission and values.

It is important to create a positive organization climate and suitable working conditions for call center operators.  These employees can earn money for the company (for example, sales via phone) and create a positive company public image (by solving customers problems in answering their questions).

Implementation of balanced scorecard seems like an easy process.  Indeed, all you have to do is to choose the right indicators in the four categories: financial, customer, internal processes, of learning and growth.  It goes without saying that the company that wishes to implement balanced scorecard needs to have a comprehensive strategy.  The greatest advantage of balanced scorecard is its ability to put strategy into action.  However, with the wrong choice of key performance indicators balance scorecard will surely fail to bring any positive results.

How first resolution calls help company obtain financial results

In case of a call center a variety of aspects needs to be taking into account.  First and foremost, it is necessary to identified goals of a call center.  If this is a customer support service its key goal is to resolve customer Problems and answer their questions to keep customer satisfied.  If a call center sells the key goal would be increase of revenue from sales.  Only having established comprehensive strategic goals it is possible to move forward in implementation of BSC.

Let’s analyze the work of the customer support service.  As already set above its key goal is to keep customer satisfied by resolving their problems in answering their questions on products, services, technical issues etc.

What are success drivers in call center?

Often, managers all of call centers make a fatal mistake of introducing such an indicator as number of customers served during 1 hour.  Of course, this indicator is OK, since the more customers are served, the better.  But the goal of customer support service is resolve problems of customers.  A call center operator may handle 20 calls per hour but all those 20 customers would and conversation without their problems solved and questions answered.  In such a case the work of a call center would seem just great and calls handling capacity will increase.  But that will have nothing to do with the company strategic goals, like improving customer satisfaction.  Satisfied customer is more likely to buy again from the company and become a regular customer, i.e. regular source of income.

Thus, it is necessary to balance such indicator with another one – number of problems resolved per hour.  This indicator would certainly show progress of the company towards strategic goals of improving customer satisfaction.  Number of first resolution calls should be always increasing.  Any call center should have the separate group of expert to resolve problem calls with complex problems.

As known, balanced scorecard works in four perspectives: financial, customer, internal processes, learning and growth.  Each perspective covers particular issues related to functioning of company, its internal or external environment.  It is very difficult to say which perspective is the most important one.  In fact, they are all interrelated and goals and measures in these perspectives are identified one by one.  Usually, the company sets financial goals and identifies relevant measures.  Objectives and measures in the three other perspectives are subordinated to financial goals.

Call center functions

However, much depends on strategic goals of the company, its vision, values and mission.  It matters a lot which department a business unit uses balanced scorecard.  In case of a call center customer perspective plays the most important role.  Why is it so?

Well, a call center is a forefront of the company.  When a customer or a potential customer calls a company is first talking with a call center or tech support operator.  Very often his judgment about the company is formed based on his purchasing or communicating experience.  Relations with customers are all important.  To regular customers provide any business with regular income.  Making money is what any company aims at.

Customer relations management

Customer satisfaction is something that improves loyalty of existing customers and win favor of potential ones.  A real customer, i.e. the one who buys from the company from time to time can become a regular custom.  But in order to achieve that company management should make sure they stay in touch with such a customer and keep him informed on new products, services, offers, special rates and prices etc.

If we’re talking about customer support service or tech support, customer satisfaction is a must in this case.  If the customer calls tech support he certainly questions or problems which she wants to resolve.  If the call center operator manages to solve this problem right away it means that the customer will not have to make the repeated call.  Number of such “one and done calls” is a great indicator of how efficient a call center works.

In addition, even if customers are not asking for some new offers call center operators are to inform customers on new products and services.  Number of sales per 100 calls is another great indicator to be measured.  Stats shows that the more often call center operators attempt to sell products the more purchases customers make.

A call center plays an important rule in the work of any company that sells products or services.  It is but the work of a call center or a customer support service that real and potential customers for their judgment about the company.  What do you usually do when you have questions or concerns about purchased products or services?  Of course, you call customer support service with the hope to get your questions answered and problems solved.  Call centers may have different goals and purposes in different companies.  Some businesses use call centers to sell products and services while others employ the phone operators to provide customers with ongoing support and guidance.  If you called customer support service and your questions were not answered you would probably think that it was not worth to deal with such a company.  The thus, you are a lost customer for such a business.  Of the innards of economy it is very unwise to lose customers because of poor quality services.

A call center, as in any aspect and elemental business structure, needs to be measured and evaluated.  Business up performance measurement is used to help company reach strategic goals.  In this sense, balanced scorecard is a number one tool that communicates operational management with the company strategic vision.  Of the balanced scorecard evaluates key performance indicators, also known as KPI.  Call center has own set of KPIs that represents its performance.

Call center metrics has own specific character as the process of calling involves two parties: the caller and the operator.  The caller has to be satisfied with his call while the operator needs to do everything to resolve problems as soon as possible.

Major call center kpi

So, what are major KPIs for call center?

1. Revenue per successful call.  If the call center has commercial goals it needs to sell as much as possible.  By increasing this KPI top management of the company increases revenue.
2. Cost per call. Logically, the less money a company spends to answer one call, the more efficiently it works. However, here one should be reasonable, and excessive economy and saving may result in poor quality service.
3. Conversion rate. This is % of call that ended up with successful sales.
4. Average call handling time. The less time an operator needs to answer one call, the better for the company and callers.
5. First resolutions calls rate. This is % of calls during which the problems were solved at once (customer do not have to call again).

How a call center contributes to success of the company

Evaluation of business performance is all important, especially in the post crisis economy.  Markets are becoming increasingly competitive, and tough competition has its advantages and drawbacks.  To drawbacks we refer constant desire of competitors to gain an increased market share and wipe out other companies.  That’s why it is so important to automate business management and be able to respond to changes in internal or external environment.

Almost all companies that sell products or services have contact centers, also called help desks or customer support service/call centers.  What would you do if you have some questions about purchased product or a service?  Of course you will look for a toll free number published on the company web site.  And this is by conversation with a context center operator that you will make your judgment about the company, quality of its services and its business reputation.

Use BSC system to improve perofrmance of a call center

Evaluation of call center performance will give you answers to many questions, as well as help you set and reach strategic goals related to development and enhancement of a customer support service.

For this reason use of balanced scorecard system is highly recommended.  This tool created in early1990s is now the most popular automation tool for business management.  In case of a call center balanced scorecard system will evaluate special KPIs relevant to specific character of a call center work.  They keep the eye is a key performance indicator which shows a certain aspect in the work of a company or its department.

The traditional approach tends to view financial KPI as the most important.  Well, this is partially true and logical as the goal of any business is making profits and gaining competitive advantage in the market.  But at the same time balanced scorecard system also fought uses on operational aspects which are called nonfinancial.

Do not financial KPIs we refer such indicators as customer satisfaction, number of one and done calls (first resolutions calls), time on hold, abandoned calls rate, blockage, employee satisfaction, organization climate, training effectiveness and efficiency. Financial KPI include cost per call and revenue per successful call (if the company sells something via phone).

With balanced scorecard system you will be able to set long-term goals and improve performance of a call center.  A well performing call center creates at perfect business image for a company which in its turn is attraction for new customers.  More customers means competitive advantage which is the ultimate goal of any business.

Evaluate most important call center kpi