PERFORMANCE METRICS IN BPO

INDUSTRY Anujesh Nazia Pushpit Rahul Sanjan

BPO classification

Front office

• Customer related contact center• Sal

es call centers

• Post sales support

Back Office

• HR functions

• Finance

• Accounting

Prerequisites for a Performance Based Contract

Financial

• How our company makes money ?• Expenses include telecom equipment, internet,

wages.• Cost/call, revenue generated/call

Internal

• How we can control and improve internal process?

• Averages time to handle a call, number of problems solved, time to answer call

Customer

• How we can measure Customer satisfaction?• number of first resolution calls, abandoned calls

rate

Training

• How to develop and improve quality of service of our staff?

• learning hours per employee, number of coaching techniques

Balance Score Card

Metrics Alignment

KPIs which matter – discussed in the following slides

Process measures

Result –Financial gains, Customer satisfaction

KPIs linked to Finance

Average Call value (ACV)

• Used in case of Sales call centers• ACV = Total revenue generated / Number of calls

Abandon Rate

• The number of calls that hang-up before connecting to an agent• Abandon Rate = No: of Abandoned Calls / Total Incoming calls• Historically 1-2% of total calls are abandoned• The faster a call is answered, the lower the abandon rate• Lost sales opportunities

Service Level

• High level measure of how fast callers get through to reps• Eg: 80% of calls answered in 20 seconds

Customer satisfaction KPIs

First Call Resolution (FCR)

• Percentage of customer issued calls that are resolved the first time• Number of FCR calls / Total Number of Calls

Average Handling Time

• Talk time and after call work (wrap up)• Talk time is everything between "hello" and "good-bye."• After call work is that work that must immediately follow the inbound call.• Handling time = Talk time + Wrap up time

Longest Delay in Queue

• How long the oldest call in queue has been waiting• indicate the “worst case” experience of a customer over a period of time.

How to implement PBAs

• Development of KPIs• Development of Weighted KPIs

BSC implementation

Thank You!!!