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Call Center Performance Evaluation

Definition

What is Call Center Performance Evaluation?

The call center performance evaluation is a call center process that requires two items to be good; awareness and superior customer service skills. When these two entities get together, the customers receive what they have asked for on the call.

Proper call center performance evaluation includes a variety of call center roles. It’s more than about analyzing call times. A routine review of success metrics is needed to ensure that the call center stays competitive. Otherwise, a company could grow a reputation as inefficient.

Evaluating a call center also requires understanding every aspect of the agent’s expertise to customer loyalty. Both of these lead to the call center benchmarking and where the company wants to achieve its objectives.

Metrics used to evaluate call center performance

Many key metrics need to check continuously to determine the success of your call center.

  • First-call resolution. This significant metric is strongly connected to customer loyalty. Top-rated customer loyalty ratings usually have a first-call resolution rate of more than 85 percent.
  • Response time. Response time is the service level for contacts that do not have to be addressed once they arrive. This essential metric can be calculated by minutes, days or hours to calculate the number of resources available for successful field calls.
  • Customer satisfaction. It is an indicator of how happy the clients are with the three most critical elements of a good call center experience: rapid resolution, real-time service, and a professional agent.
  • Contact quality. By tracking and recording agent communications, the level of communication can be measured regularly to highlight what is working and what is not.

Forecasting accuracy. Each call center has peak hours and call volume lapses. Evaluating the expected caller load and the current caller load is a measure that is crucial to successfully staff a call center to reduce waits, maintain customer loyalty, and control staff levels.

 

What is Call Center Performance Evaluation
What is Call Center Performance Evaluation?
Outsourcing FAQ

What is Internal Metrics?

Definition of Internal Metrics

Internal metrics are methods introduced and applied to measure the success of inbound or outbound call centers. Usually, a call center works in a pressured atmosphere where administrators need to handle tasks, including the timely response to every call while maintaining a high degree of customer support, and customer loyalty and satisfaction.

Internal metrics are evaluation indicators used for the assessment, comparison, and monitoring of results or output. Usually, companies use a group of metrics to create a dashboard that managers or consultants analyze daily to maintain performance reviews, perceptions, and business objectives.

Call center internal metrics 

Average Handle Time (AHT). AHT is the approximate length of the entire customer service transaction, from the time the customer initiates the call until the completion of the conversation.

Blocking Rate. Blockage Metric lets the staff track the number of calls that could not be addressed due to business constraints or infrastructure problems. 

Cost per Contact. The Cost per Contact KPI calculates how much each contact costs your call center, which is a vital part of the cost-benefit study at the same time.

Customer Satisfaction (CSAT). Consumer Satisfaction (CSAT) is a sign of customer pleasure. CSAT is based on a brief survey that consumers fill out after a discussion.

Forecasted Calls vs. Actual Calls. It is a primary factor in deciding the actual amount of capital needed, calculated as a proportion of the difference between the number of calls predicted and the number of calls received.

Number of Calls Offered. It is the total number of calls sent to the call center, including abandoned calls or calls where the caller gets a busy signal.

What is Benchmarking?

What is Benchmarking?

Benchmarking is the process that call centers use to compare their efficiency to other leading companies in the same industry. The factors that need to be considered in benchmarking are the products, services, or procedures. 

Benchmarking is developing into a collective mechanism that lets BPO suppliers and customers set project boundaries and priorities together. It also helps ensure that everyone involved receives the best benefit from an outsourcing partnership.

Two types of call center benchmarking

Call center benchmarking evaluates the operations and metrics of one call center to those of related organizations. The point of benchmarking is to recognize internal prospects for change. Here are the two main types of benchmarking the BPO industry:

Competitive benchmarking. The competitive benchmarking tests the efficiency of one call center against its immediate rivals. It can be a clear indicator of whether or not the call center is up to scratch. You may have surpassed metrics in some categories, but you need a little help in others. The easiest way to figure out is to see how you line up with other related companies. Process benchmarking. The process benchmarking, meanwhile, tests the efficiency of the corporate practices of one call center across industries. Process benchmarking tells the company how it rates operating efficiency relative to rivals and market experts. Also, it identifies fields that have the most scope for near-and long-term process change.

What is Quality Assurance?

What Is Quality Assurance?

Quality Assurance (QA) is any structured method to avoid mistakes and errors in services or manufactured products. Quality assurance involves logistical and procedural tasks performed in the quality chain to ensure that the specifications and expectations for a product, service, or operation are followed.

Businesses and organizations use quality assurance to guarantee that the product is designed and delivered with proper procedures. QA is vital for manufacturers and companies to avoid problems when supplying products or services to the customer. It also provides oversight of the quality of raw materials, assemblies, products and components, manufacturing and maintenance facilities, processing and testing procedures.

Importance of Quality Assurance

Quality is an essential factor to consider in any product and service. That is why manufacturers and service providers are continually looking to improve their products or service quality. The primary purpose of a QA strategy is to establish customer trust and the reputation of the organization or company; while at the same time enhancing work processes and performance and allows the company to compete favorably with others. 

QA needs a large commitment in people and systems. Doing quality assurance can be time-consuming that may influence the arrival of products. With a few exceptions, the downside of QA is more a prerequisite for a necessary step to be taken to ship a quality product. Without quality assurance, there will be none to guarantee the legitimacy of the qualifications

What is What is business process outsourcing?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India.

Global market

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

What are the different types of BPO?

The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.