In the rapidly evolving world of customer service, understanding key performance indicators (KPIs) is paramount to your call center’s success. 

The right KPIs can provide a clear, objective measure of your performance, helping to identify areas of strength (while also highlighting opportunities for improvement). By monitoring these indicators closely, you can ensure that your organization remains focused on its goals, operates efficiently, and continually strives to enhance the customer experience.

So, what are these critical KPIs for call centers? 

In this blog, we will delve into 11 of the most critical metrics impacting call center efficiency and profitability, including:

• Average Talk Time
• Average Hold Time
• Average Wait Time
• Average Speed of Answer
• Average Handle Time
• Average Abandonment Rate
• First Call Resolution
• Service Level
• Net Promoter Score (NPS)
• Customer Satisfaction (CSAT)
• Attrition/Turnover Rates. 

Before we delve any deeper, it’s crucial to remember that benchmarks for these KPIs will vary depending on the industry. As such, it’s essential to interpret these metrics within the context of your own sector, using them as a guide to assess performance against industry peers, and setting realistic goals for improvement.

Let’s dive into the metrics that matter most for your call center.

Average Talk Time

Average Talk Time (ATT) is the measure of how long, on average, agents spend on a call with customers. This does not include time spent on hold (or post-call wrap-up tasks). It is an essential key performance indicator for contact centers as it directly relates to efficiency and customer satisfaction.

Why is Average Talk Time Important?

Average Talk Time is crucial for call centers because it offers insights into the performance of agents and the efficiency of their interactions. 

A very high Average Talk Time could imply that agents are struggling with procedures or lacking the necessary tools to resolve issues promptly. Conversely, a low Average Talk Time may suggest rushed conversations and potentially unresolved customer issues. Finding the right balance is key.

Average Talk Time Formula

The Average Talk Time is calculated by dividing the total talk time (excluding hold times and after-call work) by the total number of calls handled.

Total Talk Time / Total Number of Calls = Average Talk Time

Average Talk Time Benchmark

Benchmarks for Average Talk Time differ across industries. 

• Mining, Oil, and Gas industry: 6 minutes +
• Manufacturing: 4 minutes and 15 seconds
• Public Sector: 4 minutes and 13 seconds

How to Improve Average Talk Time

Improving Average Talk Time involves striking the perfect balance between efficiency and quality. Here are some effective strategies:

• Thoroughly train your agents: Ensuring your team has a comprehensive understanding of your product or service can significantly reduce the amount of time spent explaining basic concepts to customers.
• Use visual engagement tools: Visual engagement tools like Grypp can drastically decrease Average Talk Time. Because it is much quicker to show a customer than explain it via voice, talk times can be reduced significantly.
• Continually monitor and provide feedback: Regularly reviewing call recordings can help identify areas for improvement. Constructive feedback and coaching sessions can aid in enhancing agent communication and problem-solving skills, leading to decreased talk time.
• Streamline workflows: Ensuring your agents have easy access to relevant information at their fingertips, and that the process of handling calls is as efficient as possible can also lead to a decrease in Average Talk Time.

Remember, reducing Average Talk Time isn’t just about speeding up calls—it’s about equipping agents with the right tools and training to solve customer issues efficiently and improve overall customer satisfaction.

Average Hold Time

Average Hold Time (AHT) refers to the average duration a customer is put on hold during a call. This is a distinct metric from Average Wait Time, as it specifically focuses on the length of time a customer spends on hold after being connected to an agent.

Why is Average Hold Time Important?

Understanding and optimizing Average Hold Time is crucial because it significantly impacts customer satisfaction. Excessive hold times can frustrate customers, potentially leading to call abandonment, negative reviews, and ultimately, loss of business. 

Efficiently managing hold times indicates a well-organized call center with agents who have the necessary tools and resources to address customer queries promptly.

Average Hold Time Formula

The Average Hold Time is calculated by dividing the total hold time by the total number of calls held.

Total Hold Time / Calls Held = Average Hold Time

Average Hold Time Benchmark

The benchmark for Average Hold Time varies across industries. On average, it ranges from 4 to 6 seconds per call. 

• In the transportation sector, it is approximately 5.5 seconds
• In healthcare, it’s closer to 4.6 seconds
• The Travel & Hospitality industry averages around 4.3 seconds per call

How to Improve Average Hold Time

Improving your Average Hold Time requires a strategic approach. Here are some strategies you could employ:

• Invest in Agent Training: Ensure your agents have the necessary knowledge and resources to handle calls efficiently. The less time an agent spends searching for information or navigating clunky software, the less time the customer spends on hold.
• Implement Call-Back Technology: If a customer’s wait time exceeds a certain threshold, offer them a call-back option. This reduces hold time and improves the customer experience.
• Streamline Processes: Review your call center processes and identify any bottlenecks. Simplifying existing procedures can lead to reduced hold times.
• Use Call Routing: Implement an effective call routing strategy to ensure that calls are directed to the most appropriate agent or department. This helps in reducing hold times and resolving issues faster.
• Monitor Metrics Regularly: Regularly monitor your hold time metrics to identify any trends or issues. Early identification allows you to address problems before they impact customer satisfaction.

Average Wait Time

Average Wait Time (AWT) refers to the average amount of time that a customer has to wait before they are connected to an agent. It is a critical KPI because it directly impacts a customer’s initial experience with your call center.

Why is Average Wait Time Important?

Average Wait Time is a vital measure of customer experience. Long wait times can lead to customer frustration and dissatisfaction, while quick connections are likely to make a positive first impression. 

As such, managing AWT effectively is crucial in maintaining high customer satisfaction levels and ensuring a seamless customer journey.

Average Wait Time Formula

The Average Wait Time is calculated by dividing the total wait time by the total number of calls answered.

Total Wait Time / Total Calls = Average Wait Time

Average Wait Time Benchmark

The average wait time across industries is 4 minutes and 15 seconds.

How to Improve Average Wait Time

There are several ways to improve Average Wait Time:

• Staffing: Adequate staffing during peak hours is one of the most effective ways to reduce AWT.
• Call routing: Intelligent call routing can ensure that calls are directed to the right agent quickly.
• Training: Well-trained agents can handle calls more efficiently, reducing wait times for other customers in the queue.
• Self-service options: IVR (Interactive Voice Response) systems and chatbots can handle simple queries and reduce the load on agents.
• Improving other metrics: By reducing metrics like average handle time and improving first call resolution rates, the same number of agents will be able to handle more customer calls – reducing wait times.

Average Speed of Answer

The Average Speed of Answer (ASA) refers to the average time it takes for an agent to pick up an inbound call, excluding the time the caller spent in the queue. 

Why is Average Speed of Answer Important?

Average Speed of Answer directly impacts customer satisfaction. Long wait times can lead to customer frustration, while quick responses can leave the impression of competence and care. Monitoring and optimizing ASA is essential for improving overall customer experience and satisfaction.

Average Speed of Answer Formula

The Average Speed of Answer is calculated by dividing the total wait time for answered calls (from when the call is routed to an agent until the agent answers) by the total number answered calls.

Wait time of answered calls / Number of answered calls = Average Speed of Answer

Average Speed of Answer Benchmark

The industry average for the Average Speed of Answer lies between 8 to 10 seconds.

• Service sector: 9.2 seconds
• Manufacturing: 8.9 seconds
• Public sector: 8.8 seconds.

How to Improve Average Speed of Answer

• Effective staffing: Having the right number of agents during peak call times can significantly reduce ASA.
• Skill-based routing: Directing calls to the most suitable agent based on their skills and expertise can help reduce ASA by increasing the chances of first-call resolution.
• Agent training: Continuous training and support can help agents handle calls more efficiently and answer them more quickly.

Average Handle Time

Average Handle Time (AHT) refers to the total duration it takes an agent to handle a call — from the moment the customer initiates the call until the agent completes all post-call tasks, such as logging the call and updating the customer’s record. This can include hold times, call transfers, and other related activities.

Why is Average Handle Time Important?

AHT is a crucial KPI for assessing call center productivity, effectiveness, and customer satisfaction. While it’s crucial to handle calls as quickly as possible to cater to more customers, it’s equally important not to rush calls to ensure that each customer’s needs are met adequately.

Average Handle Time Formula

AHT is calculated by adding the total talk time, total hold time, and total after-call work time, and then dividing it by the total number of calls handled.

Total Talk Time + Total Hold Time + Total Post-Call Work Time / Total Calls = Average Handle Time

Average Handle Time Benchmark

The Average Handle Time across industries is 6:10 minutes – although this number varies greatly depending on your sector.

• Telecom: 8 minutes 30 seconds
• Banking: 4 minutes 45 seconds

How to Improve Average Handle Time

• Provide continuous training: Regularly training your agents to equip them with the necessary skills and knowledge can help them handle calls more effectively and efficiently.
• Utilize scripts: While each call is unique, having a script can provide a structure to follow, speeding up the call handling process.
• Leverage efficient software: Visual engagement tools can reduce the average handle time considerably – by reducing total talk time, streamlining processes like ID verification and signature collection, and much more.

Average Abandonment Rate

The Average Abandonment Rate is a measure of the percentage of calls abandoned by the customer while they’re in queue to speak to an agent. 

Why is the Average Abandonment Rate Important?

The average abandonment rate can indicate the level of customer frustration and dissatisfaction with your call center’s service. High rates suggest that callers are waiting too long or finding the process inconvenient. It can directly impact customer retention, satisfaction, and your company’s overall reputation.

Average Abandonment Rate Formula

The average abandonment rate is calculated by dividing the number of abandoned calls by the total number of inbound calls (answered calls plus abandoned calls), then multiplying the result by 100 to get a percentage.

(Abandoned Calls / Total Number of Inbound Calls) x 100 = Average Abandonment Rate

Average Abandonment Rate Benchmark

While the benchmark can vary, an average abandonment rate between 5% – 8% is commonly seen across industries. Yet, striving for lower rates can considerably enhance your call center’s customer service experience.

How to Improve Average Abandonment Rate

• Reduce Hold Times: Customers abandon calls when they have to wait for too long. You can achieve this by improving agent efficiency or increasing staffing during peak times.
• Improve Call Routing: Make sure that calls are being routed to the correct department or agent to reduce transfers and wait times.
• Utilize Callback Options: If all agents are occupied, providing an option for a callback when an agent becomes available can prevent a customer from abandoning the call.
• Improve Agent Efficiency: By improving agent efficiency and equipping agents with the tools they need to improve service, the same volume of calls can be handled more quickly – shortening wait times and improving outcomes. 

First Call Resolution

First Call Resolution (FCR) is a critical KPI that calculates the percentage of customer queries that are resolved in the first interaction, without requiring any follow-up. 

Why is First Call Resolution Important?

High FCR rates correlate with high customer satisfaction. Customers value efficient and effective solutions, and resolving issues during the first interaction reduces their effort and increases their satisfaction. Also, high FCR rates indicate optimal use of resources, leading to reduced operational costs.

Conversely, when FCR rates are low, customers are much more likely to be dissatisfied and churn.

First Call Resolution Formula

FCR is calculated by dividing the number of tickets resolved on the first contact by the total number of touchpoints, then multiplying the result by 100 to get a percentage.

(Number of Tickets Resolved on First Contact / Total Number of Contact Touch Points) x 100 = First Call Resolution Rate

First Call Resolution Benchmark

An average FCR across various industries falls between 70% – 75%. However, this is one of the most critical levers call centers have to improving customer satisfaction, and organizations should strive to hit as close to 100% as possible.

How to Improve First Call Resolution

• Train Agents Thoroughly: Ensure that your agents have comprehensive product knowledge and customer handling skills.
• Implement Knowledge Management: A central repository of information aids agents in finding quick solutions.
• Empower Agents: Give your agents the authority to solve complex issues, which may otherwise require several interactions.
• Leverage Visual Engagement: Make communication crystal clear with visuals, eliminate miscommunication, help customers troubleshoot issues faster, and equip agents with the ability to show customers the solution.

Service Level

A call center’s Service Level is the measure of its availability and responsiveness to inbound customer calls. Simply put, it looks at the percentage of calls that are answered within a specified frame. For example: 70% of calls answered within 15 seconds. 

Keep in mind, Service Level is going to be highly dependent on the wait time threshold your organization uses. While a 60% service level may seem worse than a 90% service level – this comparison is meaningless without knowing the wait time thresholds. It is not at all impressive to answer 90% of your calls within 45 seconds, while it is commendable if you can answer 60% of your calls in 5 seconds or less.

Why is Service Level Important?

Service level is vital as it indicates how accessible your call center is to your customers. A high service level means your customers can reach you easily and quickly, leading to enhanced customer satisfaction and loyalty.

Service Level Formula

Service Level is calculated by dividing the number of calls answered within the threshold by the total number of calls received, then multiplying the result by 100 to obtain a percentage.

(Calls Answered Below Wait Time Threshold / Total Number of Calls) x 100 = Service Level

Service Level Benchmark

The service level varies across industries, with an average falling between 70 – 80%. However, once again, these numbers are meaningless without knowing the threshold – which is highly industry and organization specific. 

It’s crucial to set a realistic threshold, considering your call center’s capacity and customer expectations.

How to Improve Service Level

• Workforce Management: Ensure appropriate staffing levels according to the volume of calls at different times of the day and days of the week.
• Training and Development: Equip your agents with the skills and knowledge to handle calls efficiently.
• Improving Agent Performance: By improving agent performance with training and modern customer service tools, you can shorten calls and reduce the total volume of calls (by increasing FCR), improving the availability of your agents.

Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a valuable KPI that measures customer loyalty and satisfaction based on their willingness to recommend your products or services to others. Traditionally, the NPS score is collected with a one-question survey: “On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?”

Why is NPS Important?

NPS is essential because it provides insights into customer satisfaction and loyalty. A higher NPS signifies that your customers are happy with your service, are likely to stay, and recommend your products or services to others, facilitating organic growth.

Conversely, a low NPS score indicates not only that the customer may churn, but that they might also be damaging to your brand by sharing their subpar experience with others.

NPS Formula

The NPS score is calculated by subtracting the percentage of Detractors (customers who rate you 0-6) from the percentage of Promoters (customers who rate you 9-10). This leaves you with a score ranging from -100 (if all customers are Detractors) to 100 (if all customers are Promoters).

Percentage of Promoters – Percentage of Detractors = Net Promoter Score

NPS Benchmark

NPS benchmarks can vary significantly across industries, but for call centers, a good NPS is typically 60 or above.

• Retail: 50
• Education: 42
• IT: 39
• Consumer Goods: 39
• Financial Services: 37
• Software: 36
• Fashion: 40
• Consumer Packaged Goods: 41
• Utilities: 58
• Hotels: 44

How to Improve NPS

• Improve Customer Interaction: Ensure that every customer interaction is positive. This means focusing not only on resolving issues but also on creating a pleasant and efficient experience for the customer.
• Gather and Act on Feedback: Regularly ask your customers for feedback and act on their suggestions. This shows customers that you value their opinions, leading to increased satisfaction and loyalty.
• Leverage Customer Engagement Tools: Use tools like co-browsing, video chat, and visualization to provide a more personalized, efficient, and interactive service to your customers, thereby enhancing customer satisfaction and improving your NPS.

Customer Satisfaction (CSAT)

Customer Satisfaction Score (CSAT) is a KPI used by businesses to measure a customer’s satisfaction with a particular interaction or transaction. This is usually expressed as a percentage, with 100% being complete customer satisfaction.

Why is CSAT Important?

Customer satisfaction directly correlates to customer loyalty and word-of-mouth promotion. A satisfied customer is likely to stay, buy more, and spread positive word about your company. 

This makes CSAT a crucial indicator of whether your call center is meeting customer needs and expectations.

CSAT Formula

The CSAT score is typically calculated using a survey that asks customers to rate their satisfaction with the service they received. The score is then calculated by dividing the number of respondents who were “satisfied” (those who responded 4 or 5 on a 5-point scale) by the total number of respondents, then multiplying by 100 to get a percentage.

(Number of Satisfied Customers / Total Number of Customers) x 100 = CSAT

CSAT Benchmark

While CSAT can vary by industry, a CSAT score of 75% – 85% is typically considered good in most industries.

• Airlines: 73
• Education: 77
• IT: 78
• Consumer Goods: 79
• Financial Services: 81
• Software: 82
• Fashion: 79
• Consumer Packaged Goods: 85
• Utilities: 74
• Hotels: 76

How to Improve CSAT

• Employee Training: Make sure your agents have the necessary skills and knowledge to handle customer queries effectively.
• Improve First Call Resolution: Strive to resolve customer issues during the first call. This significantly impacts customer satisfaction as customers prefer their issues to be resolved quickly.
• Leverage Visual Engagement: Using visual engagement tools can help agents understand the customer’s issue better, provide a solution more efficiently, streamline frustrating and tedious interactions (ID verification, T&Cs, signature collection, document sharing, etc.) which enhances customer satisfaction.

Attrition / Turnover Rates

Attrition rate, also known as turnover rate, is a key performance indicator for call centers that measures the percentage of agents that leave a company over a certain period. A high attrition rate can indicate dissatisfaction among agents and can be costly for a company in terms of recruitment and training.

Why are Attrition / Turnover Rates Important?

High attrition rates can negatively impact customer satisfaction and the overall productivity of a call center. When agents leave, they take their knowledge and experience with them, potentially leaving less experienced agents to handle customer interactions. This can lead to lower service quality, longer wait times, and higher operational costs.

Attrition / Turnover Rate Formula

The attrition or turnover rate can be calculated by dividing the number of agents that left during a specific period by the average number of agents during that period (usually a year), then multiplying by 100 to get a percentage.

(Number of Agents Leaving / Average Number of Agents on Payroll) x 100 = Attrition Rate

Attrition / Turnover Rate Benchmark

Attrition rates can vary greatly depending on the industry and the size of the call center. While an average rate across industries is roughly 15%, some organizations can have nearly 0 attrition rates, while others can go above 100% (as more agents turnover per year than there are on payroll at any given time).

• Federal government:  1.3%
• State and local government:: 1.4%
• Finance and insurance: 1.7%
• Staffing: 352%
• Hotels: 60-300%
• Supermarkets: 100%
• Retail: 59%
• Fast food: 100%

How to Improve Attrition / Turnover Rates

• Improve Working Conditions: Create a positive work environment to make your call center a more appealing place to work. This could include anything from ergonomic furniture to a friendly company culture.
• Invest in Agent Training and Development: Give your agents the opportunity to learn new skills and advance in their careers.
• Equip Agents to Succeed: Agents equipped with the right tools (customer service software, visual engagement, etc.) perform better and feel more empowered, leading to better job satisfaction.

Conclusion

In the fast-paced, competitive world of call centers, keeping a close eye on key performance indicators (KPIs) is crucial for the success of your call center. 

While each of these KPIs are critical by themselves – you should view them as a series of interconnected levers. They are all related, and often, when one moves, so do many others. That’s why it’s important to view these KPIs in a more holistic way – leveraging strategies that help you move the needle across the board. 

For example, if you were to implement a visual engagement solution like Grypp, equipping your agents with tools like co-browsing, video chat, visualization, virtual show-rooms, etc. – you would be able to improve all of your KPIs at once.

• Allowing your agents to show customers the solution rather than clumsily trying to explain it via voice would cut down on talk time, reduce handle time, and improve first call resolution
• By reducing the total amount of time your agents have to spend on each interaction (and the total volume of interactions), your wait time, speed of answer, abandonment rates, and service levels would all improve
• By reducing points of friction for the customer, like eliminating drawn out ID verification, simplifying form fills, streamlining T&Cs, and implementing e-signatures – your NPS and CSAT scores will increase
• And last but not least, by equipping your agents with modern tools that eliminate frustration and improve their abilities – you will decrease your turnover rate

And remember, success in today’s competitive environment isn’t just about having the most advanced technology or the largest team; it’s about understanding your performance, continuously improving, and providing outstanding customer service.