Dialog

The issue you are describing is often called "adherence to schedule." What you call "ready mode" would include time on calls, wrap-up, waiting for calls, and any outbound follow-up required. Most call centers will define a target percentage that allows some cushion, as you are indicating by allowing an extra half hour beyond the known scheduled lunch and breaks – which is fairly typical (93% adherence to schedule). The other factors you might need to consider are things like team meetings and any training, which may increase the off-phone time. Some call centers will go further with their schedule tracking and consider "compliance" – measuring whether people were unavailable for those breaks and lunches not just the right amount of time, but at the scheduled times.

Average handle time (AHT)

Average handle time (AHT) can be impacted by many factors such as system response time, processes, training and incentives. As a call center manager, remember that reps' awareness of and focus on average handle time can also be influenced in many ways.

Average handle time (AHT) is typically addressed as a call center-wide initiative if there are general opportunities -- for example, through process changes, new technology, script changes or training. An individual call center agent seeking to lower average handle time should first look at how they compare to any targets the call center has set, and to benchmarks or peers.

Unfortunately, there is no easy formula for lowering AHT in the call center. You can start with some analysis of call center trends, comparisons between performance of top call center agents and others, and time and motion studies.

You should analyze both the talk time and the wrap time in this process. Once you analyze the details of the current state, you can look for potential areas of improvement.

Work with your quality monitoring team, training staff, process designers and systems staff to review opportunities for improvement. Then you can set a target for how much you can lower AHT, based on the types of changes you can make. Sometimes process changes and coaching is all you need to gain some noticeable improvements. In other cases, the AHT is fairly well-optimized and more significant investments in call center software are required to gain noticeable improvements.

• Analyze call center agent performance to lower average handle time (AHT)
• Call center management tips for coaching on average handle time (AHT)
• How do I lower the average handle time?

Average speed of answer

The right average speed of answer (ASA) and abandon rate for your company depends on many factors. Having said that, there are resources to benchmark your call center against others. Three sources I suggest you look into:

• Prosci's call center benchmarking study
• Purdue's Benchmark Portal
• Industry standards for average speed of answer (ASA) and abandon rate

Call abandon rate

There are no average call abandon rates, although you can certainly find benchmarking data from places like Prosci. Their best practices report (operations edition) provides call abandon rates for a variety of industries.

For more information on abandon rate calculation in the call center, read advice from Lori Bocklund:

• Call center benchmarking using call abandon rates

Cost per call

Cost per call is calculated in a number of different ways depending on allocated costs, information available and other factors. There is no one way to calculate cost per call. Some companies will just divide loaded costs for the call center by call volumes. Getting into more detailed calculations for a specific contact requires prorated calculations based on handle times and volume distributions. The key is to determine how best to calculate cost per call in your environment based on the information and tools available, then consistently monitor it and make comparisons.

In an operating environment where resources are equally allocated to all transaction types, it's easy to use this approach to calculate cost per call:

(Operating budget/minutes) * Average handle time

If all calls/transactions are not treated and billed equally -- which happens when transactions include different types (customer service, help desk, sales, etc.), and media (calls, emails, collaboration sessions, etc.), then it will be more accurate to use this approach:

(Direct costs + indirect costs)/transactions

There are two challenges with this formula. The first is that you have to identify and quantify all direct cost categories that are not the same on a per-minute basis for your various transition types. (All other direct costs can be distributed equally on a per-minute basis.) The second challenge is to have visibility on indirect costs. It then becomes primarily a question of which indirect costs to include -- only those directly attributable to your department's activities or also those that are corporate overhead. Occupancy and utilization charges are always included in total cost per call.

Cost per call is one of several key performance indicators (KPIs) call centers use today. Cost per call is certainly a measurement of efficiency, but can reflect other things as well. It can't be viewed in a vacuum. Rather, you need to consider it in the context of your business goals, and your initiatives based on those goals. For example, a company with a big push to grow revenue per customer may happily see cost per call increase if corresponding measures of revenue per call or per customer are increasing at a greater rate. Using CRM tools and processes, the customer service reps (CSRs) may be spending more time with customers to up-sell, cross-sell and optimize the relationship.

• Measuring cost per call
• Determining cost per call for the transportation industry
• How do separate billing models affect cost per call?

First call resolution (FCR)

First call resolution (FCR) is a measure that reflects customer satisfaction (or dissatisfaction), as well as efficiency. FCR is something that must be calculated for the entire center through a defined process -- it is not something you can unilaterally calculate for one call center agent.

The value of first call resolution measurement is that by analyzing this metric, you can figure out what can be done to improve first call resolution. If you are not meeting your goals, start with a careful analysis of why contacts are not closing. You can do this through some call observations, focus groups with staff and data analysis. Once you have a sense for why calls are not being resolved, you can begin to address the problems -- whether they reside in the center itself, or with some other part of the business that the center relies on. You may also need to dig into how the target was set. It may be that you have an unrealistic target and need to make the case for that.

If a caller has to be transferred, that is not typically considered part of the true definition of first call resolution. Customers don't like to be transferred, and it is not efficient to have to transfer calls.

• First call resolution (FCR) -- what does it really mean?
• FCR for an individual call center agent?
• Improving first call resolution (FCR) percentage in an offshore call center

Shrinkage

Shrinkage rates can run from 15% to 35%. For a given center, shrinkage could include breaks (including meals), absenteeism (holidays, vacations, sick days, etc.), training, meetings, etc. The key thing is to clearly define what is included, and ensure a thorough workforce planning process to account for the various elements that may require you to ramp up staffing -- whether accounted for in shrinkage or other mechanisms.

For more information about call center benchmarks for shrinkage, read advice from Lori Bocklund:

• Industry standards for shrinkage

Utilization and occupancy

Utilization is the percentage of time call center agents are on calls or in after-call work, divided by the time they are logged in. Most automatic call distributors (ACDs) and workforce management systems will give you this number in reports. You should use this metric in workforce planning and in assessing efficiency of the center. Keep in mind some of the key principles of call center operations that impact utilization: • Since customer service representatives (CSRs) cannot fully control their own occupancy, this metric is a "big picture" metric which provides a high-level snapshot of how resources are being used. Inversely, it reflects how much time CSRs on average are "waiting" for a call. When calculating occupancy, an 85% occupancy rate means that 15% of the CSR time is available and waiting for a call.

ccupancy is a key factor looked at in workforce management and planning. The workforce planner and managers/supervisors should be accountable for occupancy. They should also model it and the targets should be realistically set based on the volumes, handle times, and size and staffing level of the center. • Occupancy will be lower for smaller groups and higher for larger groups. If occupancy runs too high, too often, it can lead to "burn out" and turnover.

For more information, read advice from Lori Bocklund:

• How is call center agent utilization calculated?