Whether a call is made to your internal call center or your call center partner, there is a cost associated with it. Knowing the cost of each call determines the resources required to run a call center as well as its effectiveness. Two useful metrics to measure cost are Call Handle Time and Cost per Contact.
Call Handle Time is more than just the amount of time an agent spends on the phone. It is calculated by combining total talk time with total wrap-up time, which includes any follow-up e-mails, paper work, or calls. It is important to measure this because for many call centers, the administrative and follow-up can account for more than 50 percent of an agent’s time.
Cost Per Contact is one of the most accurate ways to measure efficiency. The metric is determined by dividing the total cost of the contact center by the number of calls completed. For example, if it costs you $50,000 to run your call center for a month, and you took 10,000 calls in that month, then your cost per contact would be $5.00.
Metrics Explained
Cost per contact and call handle time can vary greatly. Most credit unions aim for a cost per contact between $3.18 and $5.30 per call. However, maintaining a higher cost per contact ratio may be worth it if it means higher service levels. There is a real danger if questions are answered too quickly, and revenue and loyalty-building opportunities are lost.
Call handle time should also be compared to the types of calls an agent is taking. Complex issues, such as a new loan application, are going to take more time than a call to get directions to the nearest branch.
Measuring all these metrics can help credit unions make the changes needed to maximize the efficiency of their call center. I recently worked with a small New England credit union to improve efficiencies throughout the call center, including expanding their hours of service to 24 hours a day.
The credit union experienced a dramatic 71 percent improvement in cost per contact and 9 percent savings ($40,000) in annual contact center expenses even though they experienced a three-fold increase in call volume demonstrating the major scale advantage outsourcing brings. Additionally, the call abandonment rate dropped from 15 percent to three percent.
All of the metrics discussed to date have touched on efficiency. However, credit unions must be careful not to sacrifice quality for efficiency. Next week, we’ll look at more qualitative measures and how credit unions can ensure an efficient call center is also delivering the high quality demanded by its members.
Thursday, June 18, 2009
Monday, June 8, 2009
Don’t Think Basic, Think NECESSARY Call Center Metrics
Previously, we introduced seven metrics credit unions must be measuring to ensure their call centers are driving revenue and member retention. Today, we’re looking at two of the most basic measurements for a call center – Average Speed of Answer (ASA) and Call Abandonment Rate.
Do not let the word “basic” discourage or distract you from reading further. These basics are necessary. While they are often measured, they are not always reviewed or analyzed. Blindly sticking to metrics, not digging deeper to understand the numbers means you are missing great opportunities.
ASA measures the time it takes for an agent to answer a member’s call. It gives credit unions an idea of how easily they are meeting service level goal or how much additional labor may be required to achieve a service level goal. The industry standard is 80/30, which means that 80 percent of calls into the call center should be answered within 30 seconds.
Call Abandonment Rate is the rate at which calls go unanswered. For credit unions meeting the 80/30 ASA, the abandonment rate should consistently be around three percent. Remember, the longer a member is on hold, the more frustrated they will be. Eventually, even the most patient caller will hang up, costing your credit union the opportunity to enhance that member’s loyalty.
Metrics Explained
A common misconception after hearing these metrics is credit unions should do whatever it takes to ensure every call is answered immediately, right? No!
I’ve met with two $1 billion credit unions during the past three weeks that employ a policy that all calls will get routed to the first available employee, even if it is the CEO. Sounds good on paper – theoretically, no phone rings more than twice. But what is the point of answering the call quickly if the member has to be transferred? The IT department is not suited to field requests for loan applications. The best use of the loan department is not to reset passwords. Even though the phone has been picked up, the member’s issue may still be unresolved. They’ve been put on hold or been required to repeat information with each new person who answers the phone. They will hang up frustrated and considering trying out the bank around the corner.
An ASA or Call Abandonment Rate that is high is also very expensive. If a credit union call center is staffed to provide a 90/10, they are paying exponentially higher costs due to agents sitting around waiting on calls. Most callers do not differentiate between a wait time of ten seconds and 30 seconds, so the key is to answer phones quickly enough to satisfy the majority of callers without wasting resources.
ASA and Call Abandonment Rate should be reviewed in balance with the rest of the key metrics. It is important that the call center be staffed well enough to answer the vast majority of calls in a short time. This reduces the lost revenue potential of calls being abandoned.
However, speed for the sake of speed will not ensure that your members’ needs are being met. To do that, you have to look at different metrics, which we will explore in depth next week.
Do not let the word “basic” discourage or distract you from reading further. These basics are necessary. While they are often measured, they are not always reviewed or analyzed. Blindly sticking to metrics, not digging deeper to understand the numbers means you are missing great opportunities.
ASA measures the time it takes for an agent to answer a member’s call. It gives credit unions an idea of how easily they are meeting service level goal or how much additional labor may be required to achieve a service level goal. The industry standard is 80/30, which means that 80 percent of calls into the call center should be answered within 30 seconds.
Call Abandonment Rate is the rate at which calls go unanswered. For credit unions meeting the 80/30 ASA, the abandonment rate should consistently be around three percent. Remember, the longer a member is on hold, the more frustrated they will be. Eventually, even the most patient caller will hang up, costing your credit union the opportunity to enhance that member’s loyalty.
Metrics Explained
A common misconception after hearing these metrics is credit unions should do whatever it takes to ensure every call is answered immediately, right? No!
I’ve met with two $1 billion credit unions during the past three weeks that employ a policy that all calls will get routed to the first available employee, even if it is the CEO. Sounds good on paper – theoretically, no phone rings more than twice. But what is the point of answering the call quickly if the member has to be transferred? The IT department is not suited to field requests for loan applications. The best use of the loan department is not to reset passwords. Even though the phone has been picked up, the member’s issue may still be unresolved. They’ve been put on hold or been required to repeat information with each new person who answers the phone. They will hang up frustrated and considering trying out the bank around the corner.
An ASA or Call Abandonment Rate that is high is also very expensive. If a credit union call center is staffed to provide a 90/10, they are paying exponentially higher costs due to agents sitting around waiting on calls. Most callers do not differentiate between a wait time of ten seconds and 30 seconds, so the key is to answer phones quickly enough to satisfy the majority of callers without wasting resources.
ASA and Call Abandonment Rate should be reviewed in balance with the rest of the key metrics. It is important that the call center be staffed well enough to answer the vast majority of calls in a short time. This reduces the lost revenue potential of calls being abandoned.
However, speed for the sake of speed will not ensure that your members’ needs are being met. To do that, you have to look at different metrics, which we will explore in depth next week.
Thursday, May 21, 2009
Mac Has a Message for Credit Unions
Mac has built a very catchy ad campaign around its “Mac” and “PC” characters. The most recent ad really hits home the idea that Apple and its customers understand, appreciate and value excellent care and support.
http://www.youtube.com/watch?v=yZoGwZ9yiM0
Does your credit union have financial geniuses that are easy to reach? If a member called your credit union, would they get the department they need on the first call? Or would they be stuck, like our friend “PC,” yelling that they don’t want to talk to tech support, they want information about a mortgage?
Make sure you are there for your members. Make it easy for your members to get the information and help they need on the first call, without relying on transfers. Make sure your call center drives loyalty and revenue by exceeding your members’ expectations when they call.
http://www.youtube.com/watch?v=yZoGwZ9yiM0
Does your credit union have financial geniuses that are easy to reach? If a member called your credit union, would they get the department they need on the first call? Or would they be stuck, like our friend “PC,” yelling that they don’t want to talk to tech support, they want information about a mortgage?
Make sure you are there for your members. Make it easy for your members to get the information and help they need on the first call, without relying on transfers. Make sure your call center drives loyalty and revenue by exceeding your members’ expectations when they call.
Thursday, May 14, 2009
Is Your Call Center Solving Issues? Or Just Answering the Phones?
A credit union’s call center is its busiest and largest branch, the primary channel current and prospective members will use to ask questions or resolve issues.
How can a credit union optimize its call center to be both effective in handling member concerns and efficient in its use of resources? There are many metrics to consider when running a call center, but there are seven I feel are the best. The first group is the basics – these measure efficiency. The second group is even more important – these measure quality and effectiveness. Effectiveness means that when you answer the phone, you actually meet and exceed the needs of your members.
The Basics
1. Average Speed of Answer (ASA): This measures the time it takes for an agent to answer a member’s call. This is an important measure, but do not focus too much here. You can answer the phone quickly and still fail your members.
2. Call Abandonment Rate: This is simply the rate at which calls are unanswered. The higher the rate, the more missed opportunities a credit union has for serving members. An ideal abandonment rate should be around 3 percent.
3. Call Handle Time: This is the amount of time an agent spends talking to members plus time spent following up on calls, emails or voicemails. This is a better measure than just call times. They will be spending time taking action on member calls, too.
4. Cost Per Contact: This is a measure of how efficient the call center is operating from a pure cost standpoint. Your credit union’s cost per contact should be between $3.18 and $5.30 per call.
Advanced Metrics
1. First Call Resolution Rate (FCRR): The best predictor of member satisfaction, FCRR is the percentage of calls resolved on the first call without being transferred to another agent. Credit unions should aim for an FCRR of 90 percent or higher.
2. Call Quality: This is the measure of an agent’s ability to do their job. A high call quality drives member loyalty and helps credit unions not just stay in business, but grow and thrive.
3. Agent Utilization: How productive is your call center staff? This is determined by looking a how much of an agent’s paid time is spent on member service. While few credit unions currently measure this, the ideal utilization is around 80 percent.
My next few blogs will explore each of these in more detail with real world credit union examples. Let me know if you have other ways of measuring your call center not listed here.
How can a credit union optimize its call center to be both effective in handling member concerns and efficient in its use of resources? There are many metrics to consider when running a call center, but there are seven I feel are the best. The first group is the basics – these measure efficiency. The second group is even more important – these measure quality and effectiveness. Effectiveness means that when you answer the phone, you actually meet and exceed the needs of your members.
The Basics
1. Average Speed of Answer (ASA): This measures the time it takes for an agent to answer a member’s call. This is an important measure, but do not focus too much here. You can answer the phone quickly and still fail your members.
2. Call Abandonment Rate: This is simply the rate at which calls are unanswered. The higher the rate, the more missed opportunities a credit union has for serving members. An ideal abandonment rate should be around 3 percent.
3. Call Handle Time: This is the amount of time an agent spends talking to members plus time spent following up on calls, emails or voicemails. This is a better measure than just call times. They will be spending time taking action on member calls, too.
4. Cost Per Contact: This is a measure of how efficient the call center is operating from a pure cost standpoint. Your credit union’s cost per contact should be between $3.18 and $5.30 per call.
Advanced Metrics
1. First Call Resolution Rate (FCRR): The best predictor of member satisfaction, FCRR is the percentage of calls resolved on the first call without being transferred to another agent. Credit unions should aim for an FCRR of 90 percent or higher.
2. Call Quality: This is the measure of an agent’s ability to do their job. A high call quality drives member loyalty and helps credit unions not just stay in business, but grow and thrive.
3. Agent Utilization: How productive is your call center staff? This is determined by looking a how much of an agent’s paid time is spent on member service. While few credit unions currently measure this, the ideal utilization is around 80 percent.
My next few blogs will explore each of these in more detail with real world credit union examples. Let me know if you have other ways of measuring your call center not listed here.
Thursday, May 7, 2009
Are You “Hanging Up” on Your Members?
Have you ever arrived at a retail store just before closing? You beg silently – or not so silently – through the already locked glass door for admittance. There is just one thing you need. It isn’t even a “want,” it is a “need,” and it will take less than five minutes of the store’s time. You do a great deal of business at this store and would appreciate them acknowledging that by helping you now. Instead, the last employee in the store turns their back on you and walks away.
Above is a story of customer care gone wrong. Credit unions pride themselves on exemplary member service, but are you guilty of the same thing? Is your credit union turning its back on members that need help? I am sure you let last-minute stragglers pass by the closing doors at 4:59 p.m., but what if that member reaches out at 2:00 a.m. on Saturday or noon on Sunday? Below are three quick stories of credit unions that underestimated the number of members who try to reach them after hours.
1. A Northern California credit union with a worldwide membership expanded its contact center services to accept calls after hours (6PM – 6AM Monday through Friday). During call center testing, the credit union opened the phone lines, but did not advertise the expanded service to members. That month, the credit union received more than 1,500 calls.
2. We worked with a New England community-based credit union ($1.5 billion in assets) to break down the hours members were calling most for service. In one month, 28 percent of member calls came to the credit union outside normal business hours.
3. A small Las Vegas-based credit union realized after expanding its call center to 24/7 that the second highest spike in call volume typically came between 6:00 and 8:00 p.m., an hour after the call center closed prior to expansion.
Member service starts with a phone call. Credit unions that do not have 24/7 capabilities are losing business, because they have chosen to limit the hours they will interact with members. Instead of making sure they meet the members’ needs, they dictate the hours a member must do business with them. And those members will find other sources to meet their financial needs.
Above is a story of customer care gone wrong. Credit unions pride themselves on exemplary member service, but are you guilty of the same thing? Is your credit union turning its back on members that need help? I am sure you let last-minute stragglers pass by the closing doors at 4:59 p.m., but what if that member reaches out at 2:00 a.m. on Saturday or noon on Sunday? Below are three quick stories of credit unions that underestimated the number of members who try to reach them after hours.
1. A Northern California credit union with a worldwide membership expanded its contact center services to accept calls after hours (6PM – 6AM Monday through Friday). During call center testing, the credit union opened the phone lines, but did not advertise the expanded service to members. That month, the credit union received more than 1,500 calls.
2. We worked with a New England community-based credit union ($1.5 billion in assets) to break down the hours members were calling most for service. In one month, 28 percent of member calls came to the credit union outside normal business hours.
3. A small Las Vegas-based credit union realized after expanding its call center to 24/7 that the second highest spike in call volume typically came between 6:00 and 8:00 p.m., an hour after the call center closed prior to expansion.
Member service starts with a phone call. Credit unions that do not have 24/7 capabilities are losing business, because they have chosen to limit the hours they will interact with members. Instead of making sure they meet the members’ needs, they dictate the hours a member must do business with them. And those members will find other sources to meet their financial needs.
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