call handling costs

Average Handling Time – What goes up, must come down!

Average Handling Time (AHT) is frequently the most important KPI a contact center can monitor. It is very closely related to the cost of a call. Staff wages are the main variable cost of a contact center, they make up 70% of contact center expenses. If the call is longer, it costs the organization more to provide it.

So what drives AHT up and how can we bring it down? Here are the “drivers” of AHT:

  • Script adherence. When an agent follows a script, the call has a “road map” that enables him/her to complete the transaction in a quick, pre planned way ensuring that all requirements are covered as quickly as possible. When agents don’t follow the script, AHT will increase.
  • Product knowledge. It doesn’t matter whether the agent handles customer enquiries or sells outbound, s/he needs to know what s/he is talking about. In this way, s/he is more likely to complete the transaction successfully and quickly.
  • Application/System use. Inbound customer service programs often use complex CRM systems which take considerable skill and experience to handle quickly and effectively. An agent who is “all fingers and thumbs” can slow the call down considerably because he will not be able to process the customers transaction as quickly as possible.
  • Call handling skills. We talked about agents following scripts. The other participant in the conversation, the customer, never follows the script! An agent who is skilled in handling diffcult or upset customers can solve their problems more quickly and get the required result, because s/he knows the techniques to deal with him quickly effectively and politely.
  • Escalation. There are 2 ways this can increase call length. An agent can escalate a call he could have handled himself. This can increase the call costs not only because of the extra time the customer has to spend talking to the higher level agent, but also because that agent may well be paid at a higher rate. On the other hand, if the agent does not escalate when he needs to, he may spend a lot longer trying to solve a problem he doesn’t have the knowledge and skills for than a higher level agent who is better qualified and more experienced.

So how can we bring AHT down? The way that works is to set up a quality improvement project along 6 sigma lines, including the 5 phases of Define, Measure, Analyze, Design and Verify (DMADV).

AHT reduction project process diagram

Having defined the issue as the need to reduce AHT, a specially written questionnaire can be used to measure the influence of each of the drivers on the overall situation. The statistics are then analyzed to identify which of the drivers above are pushing AHT up. Once the numbers are in and the drivers have been revealed, further questionnaires are designed to form the backbone of a cyclical improvement program where agents are evaluated and receive feedback on their performance in this area. The effect of the project is verified by monitoring both the AHT statistics from the CRM system, and also the scores from repeated administrations of both questionnaires.

Such programs usually prove to be hard work. Changing habits is not always easy, but the rewards for even a modest reduction in AHT can be quite substantial.

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Hot Contact Center Issues… Are they keeping you up at night? Let’s talk.

I have been reading a lot about the most common issues that contact centers face. Id like to ask you, our readers, partners and customers how YOU handle these commonly recurring issues.

We know contact centers face many challenges. We believe these are the core.  Do you agree that the issues shown below really are the most important?  Help me to improve this list. Let me know if you feel there are additional challenges or more pressing ones than these listed.

From my reading, agent attrition is one of the most challenging issues to overcome. Many companies address this through various incentives, training programs and an active corporate culture. Is agent attrition really an issue or are contact centers able to cope with a healthy churn? Can they absorb the recurring costs of recruitment and training? What can they do to minimize recruitment and training costs? How does this affect contact center quality? What do they do to lengthen the agent life cycle and achieve effective retention?

Customer satisfaction and Customer experience is at the top of the list for some, and maybe a step behind call handling costs for others.  Is there a cultural divide between East and West on which is considered to be the most important? While the West strives for the highest level of customer service, focusing their KPIs on net promoter and CSAT scores, the East seems to be focused on reducing costs and increasing operational efficiency. I Imagine all of you would agree there has to be a fine balance between the two.  Help us to understand which of these is of a higher priority for you and your organization. Don’t forget to let us know where you are based so that we can test how real this cultural divide really is.

Managing Risk and Compliance is a combination of training, script adherence, call recording and most importantly quality monitoring.  What technologies do you rely on to protect you?  Do you find that there is a tough balance between maintaining compliance and maintaining performance? Are you recording 100% of your calls and pushing your QM team to monitor for any infringements? Are you doing anything innovative or cutting edge? We’d like to hear about it!

Many books have been written about leadership and performance. Let’s narrow the discussion down to Performance versus Motivation.  This is also a key component to employee attrition.  How do you motivate your staff to produce a better performance?  How does this affect how long they stay with you?

ZOOM is very much interested in hearing your thoughts on these topics.  Add your thoughts and comments below and let’s talk…

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