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Customer Contact Council®

Benchmarking Results • 2007 Data

High-Tech Contact Center


Benchmarking Results
Cost, Productivity, and Quality Metrics
Table of Contents

Definitions • 1
Cost Benchmarks
Staff Compensation • 5
Spending and Channel Usage • 6
Call and E-Mail Metrics • 7
Costs per Call • 8
Productivity Benchmarks
Staffing Metrics • 10
Quality Benchmarks
First Contact Resolution • 13
Customer Satisfaction • 14
Information on CCC’s Custom Benchmarking Service • 15
Definitions
Compensation
Frontline Staff
The first component of the Cost per Call calculation is labor costs. The largest percentage of contact center labor
costs are frontline staff wages, benefits, and incentives.
• Frontline Staff: Customer-facing employees responsible for answering inquiries, resolving complaints, and
processing requests/sales orders from customers; frontline staff interaction with customers either through the
telephone, e-mail, Internet chat, or by correspondence via fax or mail
• Wages: Frontline staff compensation expressed as hourly salary
• Benefit Rate: Includes all non-wage employee benefits, expressed as a percentage of total salary
• Incentives: Average amount paid for performance and/or sales incentives on an annual basis
Support Staff
Support Staff includes the following functions:
• Quality Assurance FTEs: Responsible for listening to customer calls and monitoring overall frontline
staff quality
• Workforce Management FTEs: Responsible for contact center call forecasting and frontline staff scheduling
• Escalation FTEs: Responsible for second-level call escalations from frontline staff before they reach the
supervisor or contact center manager
• Administrative FTEs: Responsible for any administrative tasks that support and serve the contact center
• Information Technology FTEs: Responsible for all IT projects or tasks that exclusively support and serve the
contact center
Trainers
Responsible for the development, implementation, and management of new hire and continuous training activities
for contact center frontline staff, including supervisor and leadership curriculum development and training.
Supervisors
Manage and oversee customer-facing frontline staff. Supervisors are responsible for managing day-to-day contact
center activities, monitoring frontline staff productivity, assisting with frontline staff training and development,
and responding to the highest level of call escalation.
Managers
Responsible for overseeing frontline supervisors and work closely with the management team to implement
contact center strategies; additional responsibilities include managing projects, establishing timelines, delegating
tasks, analyzing, and managing contact center productivity.
Call Metrics
• Phone Talk Time: Average number of seconds frontline staff spends on the phone per call
• Phone Wrap Time: Also called After-Call work, it is the average number of seconds an frontline staff spends
doing work that is necessitated by and immediately follows an inbound transaction and often includes entering
data, filling out forms, and making outbound calls necessary to complete the transaction; frontline staff are
unavailable to receive another inbound call while in this mode
• Phone Handle Time: The sum of Average Talk Time and Average Wrap Time work per call
• Average Speed of Answer: The average delay, in seconds, to answer all live phone calls and is calculated as total
time delay divided by total number of frontline staff–handled calls
• Abandonment Rate: The average percentage of calls that are dropped while the callers wait in queue and is
expressed as a percentage of total calls offered

Source: Customer Contact Council research.

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E-Mail Metrics
• E-Mail Handle Time: Average number of seconds it takes to respond to a customer’s e-mail request and includes
the time it takes to research, type, and send the response
• E-Mail Turnaround Time: Average amount of total hours from the receipt of a customer’s e-mail to the time a
response is sent, irrespective of working hours
Costs Per Call
Total Cost per Call
Total cost per call is calculated by adding the labor, capital/IT, overhead, and telecom cost per call.
• Telecom Costs: Multiplies the telecommunications usage rate for company’s platform for incoming calls by the
average phone talk time plus average speed to answer
Labor Cost per Call
Labor cost per call takes into account the wages, incentives, and benefits for each labor FTE. The per call
calculation takes into account the fully-loaded hourly cost per FTE divided by the average handle time of incoming
phone calls. (See prior page for definitions of staff categories.)
Capital/IT Cost per Call
Capital/IT cost per call consists of the following cost components: desktops, workstations, capital equipment/
systems, and maintenance costs. Capital/IT cost per call makes up, on average, about 21% of the total cost per call.
• Desktop Costs: Typical cost per desktop for a new employee position, and includes the annual depreciated cost
for computer hardware, monitor, network cards, software, etc.
• Workstation Costs: Typical cost per computer workstation for the frontline staff, and includes the annual
depreciated cost of workspace/cubicle; to calculate, include the components required to create a new workspace
for a new staff member
• Capital Equipment/Systems Costs: The cost of all contact center capital/IT equipment and systems purchased
during the survey period or still being depreciated during the survey period, including telephone systems (e.g.,
ACD and IVR) and computer system hardware or software, such as CRM or KM
• Maintenance Costs: Annual maintenance costs for software and equipment, and includes IVR, QA recording
equipment, and switch and workforce management licenses
Overhead Cost per Call
Overhead cost per call consists of facilities costs and other direct overhead costs.
• Facilities Costs: Contact center rent/facility costs, including training facilities, bathrooms, workstations, and
management office
• Direct Overhead Costs: Other non-labor office costs that are charged back to your organization and include
office supplies such as copiers, pagers, paper, etc.
Labor Cost Efficiency—Phone Contacts
The analysis illustrates the marginal cost per transaction plus the additional cost of frontline staff and/or
scheduling inefficiencies. The metrics included in the analysis are shrinkage, schedule adherence, occupancy, and
turnover (Note: Turnover costs account only for initial training hours and do not address separation costs, hiring
costs, or lost productivity).
• Marginal Labor Cost per Contact: The incremental cost for a company to answer one additional live contact given
the average handle time of the phone call or e-mail and average hourly wage per FTE
• Shrinkage Cost per Contact: The additional cost associated with frontline staff absenteeism, and includes the cost
for agent vacation, illness, unplanned absence, project work, or ongoing training
• Adherence Cost per Contact: The additional cost associated with frontline staff not adhering to their schedule;
the increased time frontline staff are paid but not logged into the system and therefore not available to answer
phone calls or respond to e-mails
• Occupancy Cost per Contact: The additional cost associated with frontline staff’s idle time; accounts for the
increased time frontline staff spend waiting for the next phone call or e-mail contact
• Turnover Cost per Contact: The additional cost associated with frontline staff turnover, including the cost for initial
training hours for each new frontline staff given the survey period (please note, cost does not include separation
costs of departing frontline staff, recruiting costs, or lost productivity due to inexperienced frontline staff)
CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 2 Source: Customer Contact Council research.
Staffing Metrics
Span of Control
The bar charts illustrate the ratio of one set of employees to another within the contact center.*
Staff Distribution
The charts illustrate the percentage of contact center FTEs working in each listed position. There are two sets of
charts: the right side shows the ratios without frontline staff included. Positions include frontline staff, support
staff (quality assurance, workforce management, escalation, information technology, administrative), frontline
supervisors, managers, and trainers. (See page 1 of definitions section for more information on each position.)
Hours of Operation
The charts include the average hours of operation for contact centers.
Setting of Contact Centers
The charts include the setting of the contact centers.
Labor Efficiency Metrics
The following metrics capture labor efficiency:
• Shrinkage Factor: A numerical factor that indicates the minimum staff that needs to be scheduled, over and
above base staff required, to achieve your service level and response time objectives (for example, a factor of
1.05 means you schedule 5% more FTEs than you need to meet your goals). Shrinkage includes the following
reasons for a frontline staff’s inability to answer phone calls or respond to e-mails: vacation, illness, unplanned
absence, ongoing training, and project work.
• Adherence Rate: Percentage of payroll time a frontline staff is logged onto the telephone and is available to
handle phone calls (also known as frontline staff availability); calculated using the following equation: (shift
time–lunch break + overtime)/(logged-in or phone time)
• Occupancy Rate: Percentage of available time a frontline staff is logged onto the telephone and actively handling
customer contacts and not sitting idle (also known as frontline staff utilization); calculated using the following
equation: (total workload hours including after-call time)/(total available time)
• Absenteeism Rate: The percentage of unplanned absent FTEs during an average 24-hour period
Part-Time and Union Percentages
• Part-Time Staff Mix: Percentage of agents who are typically part time (frontline staff should be considered part
time if they work fewer than 40 hours per week)
• Union Percentage: Percentage of frontline staff who are unionized
Frontline Turnover Metrics
• Turnover Rate: Average annual frontline staff turnover rate; this metric includes all employees (full and
part time) leaving the frontline staff position regardless of reason or cause. To calculate, count one for every
termination in your organization during the fiscal year. Use the effective date of the termination to determine
the period in which it occurs. The total for terminations should equal the sum of voluntary terminations and
involuntary terminations, which is divided by average number of FTEs across the survey period.
• Voluntary Turnover Rate: Annual frontline staff turnover that is due to voluntary terminations; voluntary
terminations include frontline staff getting promoted into new positions within the contact center, transferring
to another department within the organization, or voluntarily leaving the organization.
• Internal Turnover Rate: Annual frontline staff turnover that is due to frontline staff moving into other roles
within your organization; this includes frontline staff moving into new roles within the contact center or into
different departments outside the contact center but within the company.

* Note: These costs do not directly map to the cost per call calculation. The data comes directly Source: Customer Contact Council research.
from survey participants —actual contact center spending figures for the given time period.
CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 3
Frontline Staff Training
Frontline staff training includes initial training as well as continued training throughout the frontline staff’s tenure.
• New Hire Training: Number of hours required for new hire training, including time spent with other frontline
staff until new employees begin taking their own calls
• Ongoing Training: Number of annual hours per average FTE for ongoing training; this includes training to
review of basic training as well as second-stage training on advanced call types
• Ongoing Coaching: Number of annual hours per average FTE for ongoing coaching; this includes formal
coaching sessions from QA staff member, direct supervisor, or experienced peer
• Cross-Trained Frontline Staff: Percentage of frontline staff who are trained to handle service and sales
customer contacts
Measuring First Call Resolution and Issue Resolution
First Call Resolution
The percentage of customer contacts resolved the first time a customer calls the contact center, regardless of
internal transfers; a call is not resolved if the customer must contact the firm a second time or receives an
outbound, follow-up call.
Issue Resolution
The average number of contacts to resolution and the total time to resolution.
• Number of Contacts to Resolution: The average total number of contacts required to completely resolve customer issue
• Total Time to Resolution: Average total time to resolve a customer issue and includes the time between contacts
(example: sent reply e-mail to customer at 9:00 a.m. and follow-up call at 3:00 p.m. would be a time to
resolution of six hours)
First Call Resolution Surveys
The charts illustrate customer participation with first call resolution surveys and the channels used to collect first
call resolution results.
• Survey Channels: The number of members using the following channels to survey customers on first call
resolution: frontline staff asks customers, post-call e-mail/Web, post-call IVR, and post-call live rep
• Survey Participation: The percentage of your customer base that receives first call resolution surveys and the
survey response rate
Customer Satisfaction
• Average Score: The average customer satisfaction score on a 100-point scale
• Target Score: The target customer satisfaction score on a 100-point scale
Customer Satisfaction Surveys
The charts illustrate customer participation with first call resolution surveys and the channels used to collect first
call resolution results.
• Survey Participation: The percentage of your customer base that receives first call resolution surveys and the
survey response rate
• Survey Channels: The number of members using the following channels to survey customers on first call
resolution: frontline staff asks customer, post-call e-mail/Web, post-call IVR, and post-call live rep
Contact Center Spending and Channel Usage
Contact Center Spending, 2005–2007
The charts illustrate spending for in-house, domestic contact centers for 2005, 2006, and projected spending for 2007.
The spending calculation includes the following cost components: labor, capital/IT, overhead, and telecom costs.
Channel Usage Percentages
The graph illustrates the percentage of inbound contacts handled by various customer channels.

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 4


High-Tech

Staff Compensation
Frontline Staff Fixed Salary and Benefit Rate
U.S. Dollars

26.5%
$20.85

Frontline Staff Hourly Wage Benefit Rate

Other Staff Compensation and Incentives


U.S. Dollars

$74,667

$56,797
$51,823

$22.30
Support Staff Trainer Supervisor Manager
Hourly Wage Annual Annual Annual Salary
Salary Salary

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 5


High-Tech

Spending and Channel Usage


Contact Center Spending
Indexed to 2005

106
100 97

2005 Spending 2006 Spending 2007 Spending


(Projected)

Customer Channel Usage Percentages

2.3% 2.3% 2.5%


20.7% 19.8% 24.2%
5.5% Fax/Mail
7.5% 7.6% E-Mail/Chat
IVR/EDI/Web

71.5% 70.4% 65.8% Phone

2005 2006 2007 (E)

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 6


High-Tech

Call and E-Mail Metrics

Phone Handle Time E-Mail Handle Time


Seconds
Total Phone
545 Handle Time:
12.0
849

303

565.0

Phone Phone E-Mail E-Mail


Talk Time Wrap Time Handle Time Turnaround
(Seconds) Time (Hours)

Average Speed of Answer (ASA)


and Average Handle Time (AHT) Abandonment Rate
Seconds Percentage of All Calls

849.0 12.7%

98.1

ASA AHT

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 7


High-Tech

Costs per Call


Total Cost per Call—Breakdown
U.S. Dollars

$8.05 $0.47 $25.11

$3.67
$12.92

Labor Capital/IT Overhead Telecom Total Cost


per Call

Labor Cost per Call—Breakdown


U.S. Dollars

$1.16 $0.05 $12.91


$0.64
$1.90
$9.16

Frontline Support Supervisor Manager Trainer Total Labor


Staff Cost per Call

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 8


High-Tech

Costs per Call (Continued)


Capital/IT Cost per Call—Breakdown
U.S. Dollars
$1.06 $3.68

$0.61
$0.93

$1.08

Desktop Workstation Capital Maintenance Total Capitol/


Equipment/ IT Cost
Systems per Call

Overhead Cost per Call—Breakdown


U.S. Dollars

$5.73 $8.06

$2.33

Facilities Direct Overhead Total Overhead


Cost per Call

Labor Cost Efficiency—Phone Breakdown


U.S. Dollars

$2.10 $0.08 $12.33


$2.01
$1.26
$6.88

Marginal Shrinkage Adherence Occupancy Turnover Total Labor


Labor Cost Cost Cost Cost Cost per Call
Cost per
Call Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 9


High-Tech

Staffing Metrics
Span of Control
65.6

23.0
17.7

1.9 2.3
Frontline Supervisor/ Frontline Support Frontline
Staff/ Manager Staff/ Staff/ Staff/
Supervisor Support Supervisor Trainer
Staff

Staff Distribution (All Staff) Staff Distribution (Excluding Frontline Staff)

Support Staff
Manager
Supervisor
4% Supervisor
12%
5% Manager 24.9% 23.2%
1% Trainer
4.8% Trainer
78%
47.1%
Frontline Staff
Support Staff

Hours of Operation Setting of Contact Centers


Annual Hours per FTE

312.6

Urban
42.1%
57.9%
Suburban

17.3 6.1
Hours Days Days 0.0% Rural
per Day per Week per Year
Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 10


High-Tech

Staffing Metrics (Continued)


Labor Efficiency Metrics

70.5%
66.6%

1.21% 2.4%
Shrinkage Adherence Occupancy Absenteeism
Factor Rate

Part-Time and Union Percentages

6.5%

0.0%
Part-Time Staff Mix Percentage of Members
with Unionized FTEs

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 11


High-Tech

Staffing Metrics (Continued)


Frontline Turnover Rates

32.7%

14.8%
12.3%

Agent Voluntary Internal


Turnover Rate

Frontline Training and Coaching Metrics Cross-Trained Frontline Staff


Annual Hours per FTE

176.4

Cross-Trained
Frontline Staff
89.1 41%

47.7

New Ongoing Ongoing


Hire Training Coaching
Training

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 12


High-Tech

First Contact Resolution


FCR Rates and Survey Methods

Average FCR Results Other Issue Resolution Metrics

1.8
48.4% 50.6%

0.0*
0.0
Phone E-Mail Number of Total Time
Contacts to Resolution to Resolution
(Hours)

FCR Survey Frequency FCR Survey Channels


Post-Call
Monthly Web
Weekly Quarterly
9% 6% Post-Call
27% 9% 0%
Live Rep
Annually 24%

70% 0% Post-Call IVR


55%
0% Post-Call Letter
Post-Call
E-Mail
Daily

Survey Participation

60%

23%

Percentage Survey
of Customer Response
Base Rate
* Not enough responses to calculate average. Surveyed Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 13


High-Tech

Customer Satisfaction
Average CSAT Score and Survey Methods

Results

85%
80%

Average Score Target Score

CSAT Survey Channels CSAT Survey Participation Rates

Post-Web 69%
Contact
Post-Call
Live Rep
18%
36%

39% 7% 15%

Post-E-Mail Post-IVR
Contact Contact
Percentage Survey
of Customer Response
Base Rate
Surveyed

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 14


Information on CCC’s
Custom Benchmarking Service
New Online Survey Captures Your Individual Data
and Compares Results with Your Peer Groups

w w w.ccc .e xe cu t ive b o ard .co m / M e m b e r s / B e nc hm ar k ing

Source: Customer Contact Council research.

CCC1ACYOW5  © 2008 Corporate Executive Board.  All Rights Reserved. 15