How to Work with KPIs in a Contact Center: Practical Tips

Setting Key Performance Indicators (KPIs) correctly is paramount as they serve as guiding metrics, directing the efforts of individuals and teams towards overarching objectives. By establishing clear and relevant KPIs, organizations can align their resources and efforts effectively, ensuring that everyone is working towards the same goals. Meeting these objectives not only signifies operational success but also reflects the organization’s ability to adapt to market dynamics, satisfy customer needs, and maintain a competitive edge.

If you’re embarking on your leadership journey and seeking ways to achieve above-average results in projects, if previous methods haven’t yielded the intended effects, or if you need fresh ideas for revolutionizing your project – perhaps you’ll be interested in familiarizing yourself with the work methods of a Trainer specializing in achieving high KPIs in the contact center.

Efficiency

Efficiency key performance indicator in the context of customer service centers refers to the measurement of the volume of handled events, such as cases, interactions, inquiries, or tickets, within a specific time frame, typically per working hour. This metric serves as a quantifiable assessment of agent productivity and workload management.

However, it is essential to acknowledge that evaluating efficiency solely based on event quantity overlooks the significance of service quality. Therefore, a comprehensive evaluation of efficiency should incorporate both the quantity and quality of service rendered to provide a holistic understanding of agent performance and customer satisfaction levels.

Measurement Method of Efficiency KPI

Assessing the effectiveness of contact center agents involves measuring the volume of interactions managed within a given working hour. This evaluation can be conducted as follows:

Tracking the number of cases: Every inquiry, interaction, or ticket handled by an agent should be recorded. This can be done using dedicated ticket management software.
Tracking work hours: It’s also essential to track how much time agents spend on work. This may include time spent on customer service, as well as breaks, training, meetings, etc.
Calculating efficiency: Divide the number of interactions handled by the number of working hours. For example, if an agent handled 100 inquiries during an 8-hour workday, their efficiency would be 12.5 inquiries per working hour.

Actions for Efficiency Improvement in Telephone/Mail Handling

Implement call/email routing systems to direct inquiries to the most appropriate agents or departments, reducing handling time and improving response accuracy.
Provide comprehensive training programs to agents on effective communication techniques, problem-solving skills, and product knowledge, leading to quicker resolution of customer issues.
Utilize email templates, call scripts, and knowledge bases to streamline responses, ensure consistency, and reduce handling time.
Implement quality assurance measures such as call/email monitoring, feedback sessions, and performance evaluations to identify areas for improvement and maintain service standards.
Analyze call/email data and customer feedback to identify trends, pain points, and opportunities for process optimization.
Implement productivity tools and software solutions to automate repetitive tasks, manage workload distribution, and track agent performance.
Encourage collaboration and knowledge sharing among agents to leverage collective expertise and find innovative solutions to common challenges.
Regularly review and update operational procedures and workflows to adapt to changing customer needs and technological advancements.
Provide ongoing support and coaching to agents to address skill gaps, enhance performance, and foster a culture of continuous improvement.
Establish clear performance goals, metrics, and incentives to motivate agents and align their efforts with organizational objectives.

Quality-Focused Actions to Enhance Efficiency in Telephone/Email Area of Contact Center

If agent effectiveness falls below expectations, consider the following actions:

Monitor lengthy conversations to identify contributing factors and provide additional knowledge and guidance to advisors accordingly.
Ensure control and build trust by monitoring agents’ actions during conversations in real-time.
Verify if agents disconnect calls only when justified.
Analyze if call duration is affected by less obvious factors such as speech speed, and address any inconsistencies in work methods, particularly concerning statuses and HOLD, providing guidance for improvement and maintaining consistency.
Address reported technical issues promptly when consultants notify you.
Work with agents to enhance their knowledge, create knowledge bases, handouts, and encourage them to use support.

Answer Rate

The answer rate, or answerability rate, quantifies the percentage of incoming calls that are answered by contact center agents compared to the total number of incoming calls received.

In essence, the answer rate serves as a metric to evaluate the efficiency with which the team manages the influx of incoming calls. It aids in pinpointing areas necessitating improvement, such as optimizing staffing levels during peak call periods.

Measurement Method of Answer Rate KPI

The answer rate is determined by the formula: (Number of answered calls / Total number of incoming calls) x 100%. Ideally, contact centers strive for a near 100% answer rate, indicating that no calls are missed or overlooked.

This metric is tracked within the contact center system, with most popular systems offering real-time monitoring and reports detailing the indicator’s level for each hour of hotline operation.

Operational Actions for Upholding a High-Level Answer Rate

Call management tools: Utilize technologies like Interactive Voice Response (IVR) systems to direct customers to appropriate agents, speeding up call handling.
Investment in technology: Invest in advanced contact center systems including queue management, customer satisfaction monitoring, and call quality management software.
Hour profiling: Analyze call activity patterns to understand peak and off-peak hours, enabling better resource allocation through tailored scheduling.
Reducing wait time: Implement strategies to minimize wait times such as streamlining processes, automating responses to FAQs, or utilizing callback technology.
System reliability: Ensure IT and phone systems are reliable to avoid missed calls and maintain a high answer rate, investing in stable systems with reliable technical support.
Personnel training: Ensure staff are proficient in call handling techniques and customer service skills through comprehensive training programs.
Human resources allocation: Monitor performance metrics and adjust staffing levels based on call volume fluctuations, potentially increasing personnel during peak hours or hiring additional staff during high call traffic periods.

Quality-Focused Actions for Improvement of Answerability in Telephone Handling

If performance falls short of expectations, consider implementing the following actions:

Product and service training or re-training
Knowledge tests and continuous feedback mechanisms
Regular analysis of call length results and parameters
Soft skills training including stress management and conversation management, alongside coaching sessions, cross-coaching, and mentoring from experienced agents
Practical workshops focusing on conversation scenarios, and the establishment of daily, weekly, and monthly goals

Methods to Monitor Progress

Continuously analyze call answerability level results and reports.
Thoroughly plan staffing, adjusting to past call traffic analysis.
Analyze and flexibly manage employee hours and availability to estimate future call traffic demand.
Analyze call monitoring data to identify opportunities to shorten call duration and improve handling.
Continuously monitor current reports and systems for potential improvements, and communicate findings to the IT department.

Service Level

Service level, also referred to as the level of service, quantifies the contact center’s ability to assist customers within a designated time window. In a contact center, service level refers to the extent to which the center achieves its predetermined goals, usually concerning response time to customer inquiries.

Measurement Method for Service Level KPI

Specifically, this metric represents the percentage of customer interactions handled within a predetermined time frame. For instance, if a contact center aims to answer 80% of phone calls within 20 seconds and achieves an 85% success rate, its service level is 85%.

This indicator holds significant importance in monitoring and optimizing contact center efficiency. It facilitates the management of customer wait times, service velocity, and overall satisfaction. Regular calculation of service level enables timely identification and resolution of issues, fostering continuous enhancement of customer service standards.

Specifically, it is determined as follows:

Establish a standard, such as aiming to answer 80% of calls within 20 seconds.
Track actual performance by monitoring the percentage of calls answered within this timeframe.
This percentage represents the “service level” indicator.
In essence, service level denotes the proportion (or count) of customer interactions handled within a specified timeframe. Typically, it is calculated in real-time through continuous monitoring of incoming and outgoing calls, often facilitated by specialized contact center management software.

Operational Actions to Maintain Service Level at Desirable Degree

To maintain the Service Level as expected, ongoing monitoring, management, team training, and the utilization of suitable tools are imperative. Here are specific steps:

Data monitoring and analysis: Regularly analyze service level data to gauge responsiveness to customer inquiries. Employ monitoring software to track metrics like response time.
Team training and development: Provide consistent training to equip your team to efficiently address customer inquiries. Emphasize understanding customer issues thoroughly to offer appropriate solutions rather than focusing solely on speed.
Peak hour management: Strategically schedule team working hours to handle higher volumes of inquiries during peak periods.
Workflow management: Ensure inquiries are routed to team members with the requisite knowledge and skills to swiftly address specific requests.
Technology investment: Implement technology that automates tasks such as call routing or addressing standard inquiries, allowing staff to concentrate on more complex issues.
Proactive measures: Anticipate potential issues by monitoring trends and taking preemptive action. Investigate and rectify causes contributing to decreased service levels promptly.
Regular team communication: Keep the team informed about service level metrics and actively involve them in initiatives aimed at improvement.

Quality-Focused Actions Supporting the Improvement of Service Level

If the service level falls below expectations, we recommend the following actions:

Conduct weekly call monitoring, providing feedback, with a minimum of 5 randomly selected calls.
Schedule retraining sessions that include knowledge verification and results review, with a suggested interval of 1 week between sessions.
Engage in simulated conversations to practice time management during calls.
Perform continuous and regular analysis of the service level indicator.
Conduct briefings and ongoing reporting of results in meetings to enhance advisors’ awareness of the indicator.

Abandon Rate

The abandon rate, also referred to as the abandonment rate, quantifies the percentage of calls terminated by the customer before connecting with a call center agent.

This metric primarily stems from customer frustration triggered by prolonged wait times prior to reaching a consultant. Consequently, in commercial call centers, a high abandon rate is generally viewed unfavorably as it indicates customer dissatisfaction and missed opportunities for sales or service.

Measurement Method For Abandon Rate KPI

This indicator is calculated by dividing the number of abandoned calls by the total number of received calls, and then multiplying the result by 100% to obtain the percentage.

For example, if a contact center received 100 calls, and 5 of them were abandoned by customers, the abandon rate would be 5%.

Recommended Operational Actions for Improvement of Abandon Rate

Reducing the abandon rate entails implementing actions that enhance efficiency and customer satisfaction. Here are some examples:

Shortening wait times: Streamline processes to minimize wait times, as lengthy waits are a primary cause of abandoned calls.
Detailed staffing planning: Analyze historical data to determine peak times and adjust staffing levels accordingly to reduce wait times.
Staff training: Ensure your team is well-trained and equipped to efficiently handle customer inquiries.
IVR system enhancement: Improve Interactive Voice Response (IVR) systems to guide customers to the appropriate team or provide information without requiring direct interaction with a consultant.
Implementing callback functionality: Offer customers the option to receive a callback when a consultant is available instead of waiting on hold.
Providing alternative contact channels: Offer alternative contact methods such as email, live chat, or social media to accommodate customers who prefer non-phone communication, thereby reducing the number of abandoned calls.

Quality-Focused Actions to Improve Abandonment Rate KPI

The first step is to understand why the abandon rate is below target. This could be due to long wait times, inadequate number of available agents, or other issues. Analyzing the reasons will help identify areas that need improvement. Regular monitoring of agent calls can help identify weaknesses and provide specific feedback on where and how customer service can be improved.

It’s crucial for leaders to ensure that the team is adequately trained in customer service and satisfaction-building techniques.

To achieve this:

Utilize call recording and analysis systems to assess the quality of customer service.
Implement customer service management systems to aid in tracking and managing customer data, as well as monitoring customer service performance.
Take effective corrective actions, such as creating training materials like customer service guides, to address identified weaknesses.
Track the abandon rate indicator regularly, preferably on a daily or at least weekly basis.
Compare results with a defined target and establish specific improvement goals. This will help in setting clear objectives for the team to work towards improving the abandon rate and ensuring that progress is measured effectively.

Transfer Rate

Transfer rate, also known as transfer ratio, measures how frequently customers are redirected to other individuals or departments within a contact center. It evaluates the efficiency of call management processes and handling customer inquiries.

A high transfer rate may indicate issues such as inappropriate call routing or inadequate employee training. Consultants unable to address queries or resolve issues may resort to transferring customers elsewhere.

Measurement Method for Transfer Rate KPI

This rate is calculated by dividing the number of transferred calls by the total incoming calls and multiplying the result by 100 to derive a percentage.

For instance, if a call center receives 100 calls daily, with 20 transferred to other individuals or departments, the transfer rate would be 20%.

Contact centers often prioritize reducing the transfer rate as transfers can prolong service time and diminish customer satisfaction. This can be accomplished through enhanced employee training, improved IVR systems, or better call flow management.

Operational Strategies to Lower Transfer Rate

To lower the transfer rate, also known as the transfer ratio, consider the following strategies:

Improving employee training: Conduct regular training sessions and provide self-development support to boost employees’ confidence and knowledge, thereby reducing the need for transfers.
Enhancing the IVR (Interactive Voice Response) system: Update the IVR system with a clear selection tree to direct customers to the appropriate advisor or department effectively from the start.
Improving routing systems: Utilize Customer Relationship Management (CRM) software or other call management systems to automate call routing based on factors like customer history or service type.
Utilizing time-based analysis: Analyze peak transfer times to address staffing issues, ensuring adequate coverage during high-demand periods.
Minimizing specialized teams: Enhance team members’ competence to reduce transfers by assigning broader responsibilities rather than specialized roles.
Introducing single-point contact: Designate one person or team to handle most or all customer needs to minimize transfers.
Implementing first-level issue resolution: Train employees to resolve most issues at the initial level, minimizing the need for escalation.

Quality-Focused Actions if Transfer Rate Does Not Meet Your Expectations

If the transfer rate does not meet expectations, consider implementing the following quality-focused actions:

Call monitoring: Verify calls for the validity of transfers, especially focusing on calls where transfers occur more than once.
Knowledge verification: Conduct knowledge tests regarding topics and queue selection, as well as specific knowledge tests for each queue to ensure understanding of what is handled on it and what is not.
Preparation of materials: Prepare materials regarding queues along with their corresponding topics to reinforce team familiarization with the material and implementation into calls during monitoring/feedback sessions.
Error analysis: Gather topics erroneously transferred from other departments and provide feedback to the team through meetings.
Regular monitoring: Continuously monitor calls for the validity of transfers.
Simulated calls: Practice simulated calls with the team focused on executing transfers correctly and identifying incorrect procedures.
Material understandability: Verify whether the material and knowledge regarding transfers by the team are understandable and provide clarification where necessary.
Drawing conclusions: Draw conclusions from monitoring data, compile topics most frequently transferred incorrectly, and prepare workshops based on the findings.
Quality action plan: Prepare a quality action plan with set deadlines, assuming regular monitoring/job shadowing, individual coaching, check-ins, and group retraining/coaching.
Task analysis: Assign consultants the task of analyzing the number of completed transfers, reasons, and solutions, and provide conclusions from the task to the leader for planning accordingly.
Regular feedback: Provide regular feedback on statistics regarding transferred calls to keep the team informed of their performance.
Setting weekly goals: Set weekly goals to track progress and focus efforts on improving transfer rate.
Positive reinforcement: Motivate the team through positive reinforcement and recognition of improvements.
Weekly meetings: Hold weekly meetings to discuss team issues, successes, and goals for the upcoming week, fostering transparency and collaboration.

Occupancy Rate / Agent Utilization Rate

Occupancy rate, also known as agent utilization rate or productivity/utilization ratio, measures the level of engagement of contact center employees in customer service activities relative to their available time.

Measurement Method for Occupancy Rate KPI

This metric is calculated by dividing the total time spent by the agent on customer service activities (such as speaking with customers or entering data) by the total available work time, then multiplying by 100% to obtain a percentage.

For instance, if an agent spent 6 hours engaging with customers during an 8-hour shift, the utilization rate would be 75%.

Agent utilization rate is crucial for managing work efficiency, providing insights into whether staff is appropriately utilized and capable of handling current customer inquiry volumes.

However, it’s essential to maintain a balanced utilization rate. A rate that is too high may indicate staff overload, potentially leading to decreased service quality, increased stress, and burnout. Conversely, a rate that is too low may suggest underutilized resources.

Operational Actions for Occupancy Rate Improvement

Improving productivity/utilization rate may necessitate various strategies based on your contact center’s specifics and team dynamics. Here are several potential actions:

Employee training and development: Enhance employees’ skills and knowledge to boost efficiency, positively influencing productivity rates.
Effective work hour management: Plan work schedules around peak hours to optimize agent utilization. Historical data analysis aids in identifying patterns for resource allocation.
Automation of routine tasks: Implement technology to automate mundane tasks like data entry or call routing, enabling agents to focus on more valuable customer interactions.
Allocation of time to alternative tasks: If utilization rates are low, assign employees to additional queues or tasks like handling emails or chats. Alternatively, engage them in training, administrative work, or participation in projects.
Improved work time planning: Consider flexible working hours if tasks frequently extend beyond regular hours, enhancing agent time utilization.
Ensure availability of appropriate tools and resources: Regularly review and update systems and tools to address any usability issues hindering employee productivity.

Strategies to Monitor the Occupancy Rate Metric

The agent utilization rate metric should be regularly monitored and analyzed to ensure the efficiency of call center operations. Here are a few strategies that will help in monitoring this metric:

Utilizing call center software: Most call center management programs allow for real-time monitoring of agent utilization. This provides immediate insight into the performance of each agent’s work.
Defining standards: To effectively control agent utilization, you need to first establish the level of utilization you expect. It is advisable to set standards for different types of interactions – for example, expected utilization may vary between phone calls and online interactions.
Regular reporting: Reports presenting data on agent utilization over a specified period (e.g., daily, weekly, monthly) are extremely important. They allow for the analysis of trends and implementation of changes when the rate is too low or too high.
Setting goals and motivating agents: Establishing realistic goals for employees and promoting achievements can help increase productivity. Providing incentives or recognition for meeting or exceeding utilization targets can also boost motivation.

Quality-Focused Actions for Improvement of Occupancy Rate

Analysis of results
Drawing conclusions (identifying the origin of the result below the target)
Regular communication for the entire team
Monitoring of other employee actions (besides conducting conversations)
Establishment of the “shift leader” role – a person who assists the immediate supervisor in immediate team monitoring; their task also includes drawing conclusions and reporting to superiors
Training for the entire team in “work efficiency”, “self-management in time”, and “call control”
Regular coaching sessions with leaders
Call monitoring
If necessary, editing the conversation assessment sheet and including criteria for conversation time efficiency.

Improve the Performance in Contact Center with Effective KPIs Strategy

Properly set KPIs ensuring alignment of resources and efforts, facilitates operational success and competitiveness. With clear and relevant KPIs, organizations can adapt to market dynamics, satisfy customer needs, and maintain their edge. Contact center service providers must meticulously establish KPIs and diligently monitor performance to meet client expectations and uphold satisfactory levels of customer service.

Author: Sylwia Wiśniewska, Trainer at VCC

How to Effectively Work with KPIs in a Contact Center: Practical Tips [Part 1]