In an environment where most organizations attempt to differentiate themselves based on a superior customer experience, a call center's performance can be a pivotal factor in retaining satisfied customers or losing them to competitors.
While we can all appreciate that investing in call center quality assurance (QA) and coaching makes sense, the concrete return on investment (ROI) is often challenging to quantify. In today's climate of stringent cost control, accurately measuring the ROI of your Quality Assurance and Coaching investments is crucial.
In today's climate of stringent cost control, accurately measuring the ROI of your Quality Assurance and Coaching investments is crucial.
Monitoring and Maintaining Service Quality
Quality assurance in call centers involves systematic monitoring and evaluation of both voice and digital customer interactions. This process ensures that all agents meet the set standards of customer service. For example, one mid-sized organization revamped its QA process to include more frequent and detailed agent assessments. This initiative resulted in a 15% increase in compliance with service standards and a noticeable improvement in customer service ratings across various platforms.
Although quality assurance for compliance and performance management is vital, it is also a powerful tool for continuous improvement. Organizations can continuously refine their service strategies, policies/procedures, delivery channels and more based on the reason for the call, outcomes, etc. This can be essential to maintaining customer loyalty and controlling costs.
Enhancing Agent Performance + Reducing Turnover
Effective call center coaching equips agents with the necessary skills to handle customer interactions efficiently. When organizations implement a comprehensive coaching system focusing on personalized coaching sessions, they can quickly realize a 30% improvement in customer handling time and a significant increase in customer satisfaction ratings, demonstrating the direct impact of skill enhancement on performance.
High employee turnover is a significant challenge in call centers. Organizations that commit to regular feedback and career development can reduce turnover by up to 25% in one year. This not only retains skilled workers but also saves substantial costs in recruitment and training.
Calculating the ROI of Coaching and QA in Call Centers
To understand the ROI of investing in QA and Coaching, we will include four (4) key performance indicators (KPIs). There may be many more in your organization.
Customer Satisfaction Scores (CSAT)
Average Handle Time (AHT)
First Contact Resolution (FCR)
Employee Turnover Rates
Case Study Example: ROI Calculation
Consider a medium-sized call center that invested in a quality assurance and coaching program focusing on communication skills, customer engagement, product knowledge, and first contact resolution techniques. After six months, they observed:
CSAT increased by 20%
AHT reduced by 15%
FCR increased from 60% to 75% (15%)
Agent turnover decreased by 10%
Cost Savings from Increased FCR:
Previous FCR = 60%, meaning 40% of issues required follow-up
New FCR = 75%, meaning 25% of issues required follow-up
Reduced follow-ups = 15% of 100,000 calls = 15,000 fewer follow-ups
Cost per follow-up = $15
Annual saving from increased FCR = 15,000 calls x $15 = $225,000
Cost Savings from Reduced Turnover:
Previous annual turnover rate: 30%, with 100 agents (30 agents leaving per year)
Average cost of hiring and training one agent: $4,000
Cost before intervention: 30 agents x $4,000 = $120,000
New turnover rate: 20% (20 agents leaving per year)
Cost after intervention: 20 agents x $4,000 = $80,000
Annual saving from reduced turnover = $120,000 - $80,000 = $40,000
Increased Revenue from Improved CSAT:
Assume each 1% increase in CSAT equals a 0.5% increase in customer retention.
Additional retained customers = 0.5% x 20% x 10,000 customers = 100 customers
Average profit per customer per year = $200
Increased profit = 100 customers x $200 = $20,000
Cost Savings from Reduced AHT:
Previous AHT = 10 minutes, cost per call = $1 per minute
New AHT = 8.5 minutes, cost per call = $0.85 per minute
Calls per year = 100,000
Annual saving = ($1 - $0.85) x 100,000 = $15,000
Total ROI = Total benefits - Total costs
Total benefits = $225,000 (FCR) + $40,000 (turnover) + $20,000 (CSAT) + $15,000 (AHT) = $300,000
Cost of the coaching program = $50,000
ROI = ($300,000 - $50,000) / $50,000 = 500%
Are you considering a Coaching program for your center? Are your agents buying-into the coaching they receive and delivering more? Check out VereQuest's Coaching Self-Managed Teams, designed specifically for frontline managers/supervisors and team leads.
Human and Technology-Supported QA + Coaching
Combining human QA reviewers with speech analytics in call center operations brings a synergy that leverages the strengths of both approaches. Human reviewers excel in understanding complex customer emotions, nuances, and subtleties in conversations that automated systems might miss, ensuring a personalized and empathetic customer interaction is maintained. On the other hand, speech analytics can process vast amounts of data at a high speed, identifying patterns and trends that might not be evident to human observers.
This dual approach improves accuracy in evaluating agent performance and compliance and enriches Coaching by pinpointing specific areas for improvement based on comprehensive data insights. Together, they ensure a thorough quality assurance process that enhances customer satisfaction and operational efficiency.
Don't have the internal resources for timely and frequent quality assurance. See VereQuest's Outsourced Quality Assurance Program.
A culture of continuous feedback is vital. Don't wait for a quarterly or year-end review. Best practice organizations emphasize regular, constructive feedback, which helps maintain high performance and team morale.
Conclusion
Investing in call center coaching and QA significantly enhances service quality, improves agent performance, and reduces operational costs. With tailored Coaching, advanced QA tools, and a culture of continuous improvement, call centers can see a substantial improvement in ROI, benefiting both the organization and its customers. By strategically aligning these investments with overall business goals, companies bolster their customer service operations and enhance their competitive edge in the marketplace.
VEREQUEST is dedicated to helping organizations keep the promises they make to customers and employees alike. Our third-party, quality monitoring service pairs VereQuest’s highly skilled Coaches with our proprietary quality monitoring software VQ Online™. This system provides detailed insights into customer interactions across all communication channels — including calls, email, chat, video, etc. The outcome? Precise, actionable coaching insights that elevate and maintain agent performance. For teams preferring to manage contact center QA internally, VQ Online™ is also available in a hosted SaaS model.
Additionally, our Check-Up™ e-learning program is customizable for service, sales, and chat/email agents, as well as the coaches who support them. These SCORM-compliant e-learning modules can be hosted on your own LMS or ours, with the advantage of no per-learner fees.
Get in touch with us today for a no-obligation demonstration and to experience our top-rated quality monitoring and e-learning firsthand. Reach out at info@verequest.com for more details.
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