Category Archives: Call Center Calculations

Various calculations that might come in handy.

Call center NPS, Definition and calculation

Call center NPS or Net Promoter Score has emerged as one of the key measure of customer satisfaction in service industry. Before going in details lets understand what NPS is. While calling up a helpline you might have come across a feedback survey asking you to rate your experience on a scale of 1 to 10 or a similar scale. This survey is known as NPS survey. Based on the score provided in this survey companies determine how likely is the customer to recommend their services or product to his or her friends and family. Generally for a scale of 1 to 10 where 1 is the lowest score and 10 the highest, interpretation of scores is as follows:
Score of 9 and 10 is considered to be promoters i.e. these customers will recommend the services or product to their friends
Score of 7 and 8 are considered to be Passive, i.e. these customers are fence sitters and might not promote the product and services
Score of 6 and less are considered to be detractors i.e. these customers will tell their friends and family not to use the product
How to calculate call center NPS score
Now let’s see how to calculate NPS score. The formula for this is
NPS score= (count of promoters – Count of detractors)/ Total survey responders * 100

Let’s take an example. Say for a service a total of 10 customers responded to NPS survey. The breakup of responders basis the above criteria is as follows:
Promoters : 5
Passive : 2
Detractors : 3
Now as per the formula the NPS score will be calculated as follows:
NPS score = (5-3)/10 *100 = 30

Keep in mind the NPS score can vary between -100 and +100
A score closer to +100 is considered to be good whereas a negative score means more customers will tell their friends not to use the product or service.
This is an important satisfaction measurement tool and knowledge of NPS is critical to your success in advancing your call center career.
Another article you might find useful
Tips to handle difficult bosses: Easy, practical & fun

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Call center FCR First Call Resolution explained

First Call Resolution or FCR as it is commonly known in call centers has evolved as a key parameter to measure the efficiency of a process.
Some companies call it FTR or First Time Resolution
Let me first give you the basic definition and calculation of First Call Resolution.
FCR is defined as the number of calls answered by an executive which were not escalated or the customer did not have to callback the helpline for the same concern for a specific interval of time. That is customers concern was resolved in the first call itself.

Calculation of FCR
FCR = Total number of calls received only once during an interval / total number of calls received during that interval
I know this is a little confusing so let’s understand it with an example
Suppose during a specific day 3 customers Tom, John and betty call up the helpline of their mobile operator.
Tom calls and enquires about his monthly bill and is given complete details.
John calls and complains that his mobile is not working. The executive tells him to wait for an hour and his concern will be resolved.
After waiting for an hour John again calls back and informs that his mobile is still not working. This time the executive tells him to change some settings on his handset and it starts working.
Betty calls to get some service activated on her phone and the executive helps her with that.

Now in the above example Tom’s and Betty’s call will be considered as FCR but John’s calls will not be considered as first call resolution as he had to call twice for the same concern.
So FCR in this case = 2/4= 50%
Let me change the scenario a little, suppose the executive handling John’s first call had got the settings done and his mobile started working. In this case John would not have called back after one hour and so the FCR would be 3/3= 100%
Keep in mind that FCR is a subjective parameter and different companies calculate it differently. For example some companies do not consider the nature of inquiry while considering the repeat call. Say if John had called twice for two different inquiries unrelated to each other still his calls will be taken as repeat calls. That is because according to some companies the executive should have probed and anticipated the next call. Whereas some companies consider only calls related to the same concern as repeat calls and not unrelated calls even if they are from same customer.
Another variable is the time difference between two calls from the same customer. For considering a call to be repeat or non FCR some companies consider 24 hours from the first call to be the ideal threshold whereas it may vary from industry to industry.

Another critical parameter that you would want to know is Call Center Service Level : Definition and Calculation

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Call Center Service Level : Definition and Calculation

Call center service level is defined as the percentage of calls being answered in a specified time. Service level or SL as it is commonly known is the most basic and essential parameter to track a callcenter’s performance.
Most times you will get a service level target like 80-20 or 90-60 or any similar value which is a combination of two figures. Let’s understand what this means. When you get a SL target of 80-20 this means you are expected to answer 80% calls within 20 seconds, that is 80% calls offered on your callcenter should have a queue time of less than 20 seconds.
Similarly a service level of 90-60 would mean that 90% calls should be answered within 60 seconds.
Now that you understand the meaning of the term, let’s move to the calculation part of it.
Suppose you have been given a SL target of 85-15, that is answering 85% calls in 15 seconds. You will require the following values:
1. Total calls offered during the interval for which SL has to be calculated
2. Calls answered within 15 seconds (You will get this value from ACD report, that is the software you use to distribute calls across callcenter)

Now that you have these 2 values it is fairly simple to calculate SL. The formula is”
Call center Service Level = (Calls answered within said duration / Total calls offered_ * 100

For example in above case if the total calls offered were 1000 and the total calls answered within 15 seconds were 900 then the Service level would be:
Service Level = 900/1000 * 100 = 90%

Since the target given to us was 85-15 that is to answer 85% calls in 15 seconds and we have answered 90% calls in 15 seconds, hence the SL target is considered met.
Suppose we had answered 800 calls in 15 seconds then the service level would have been 800/1000*100= 80%, so the SL target was missed.
Hope this clarifies your doubts about this topic, if not just leave a comment below and I will get back to you with the solution.

Get your free excel template of daily performance report pre-loaded with Service level, AHT and other formulae in your mail by registering here

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Most common callcenter interview questions and recommended answers

Here are the top 5 most common callcenter interview questions asked by recruiters

Q.1 Tell me about yourself?


This is a typical question that is asked in every call centre interview. Never start the answer with myself. Always start with “I am XYZ”. You have to speak for 2-3 minutes about your family background, about your qualification and experience, about your hobbies. You have to show your confidence and fluency while speaking.

Q.2 why do you want to join the call centre when you can go for any other job?


You should be prepared for this question as to why exactly you want to join a call centre. You can say that you see a great scope for this growing industry or it is best suited for your skills like team work or interpersonal skills. You have to show your intent regarding it.

Q.3 how would you handle a typical problem?


This will test your skills and knowledge about your field of expertise. You have to answer to the point about the particular issue. Never give lengthy answers unless and until you are asked to do so. Just be brief and to the point.

Q.4 The next question can be to test your skills regarding handling of pressure. The interviewer may give you a question where you have to fulfill a particular deadline e.g. How would you deal with some urgent issue?


You should be calm while answering this question. Never lose your sense while answering this one. It would add to an advantage if you keep a smile on your face. This will show your calm mind.

Q.5 What if some customer irritates you or misbehaves with you? How would you handle him/her?


Answer to this can be that you will first request that person to be polite and then warn him/her regarding his behavior and then you will cancel his call.

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How to build a connect with customer over phone call

Building a connect with customer over phone call is very necessary in providing a good customer service. It becomes even more significant in call centre where you are tested for it every minute. To build a good connect with the customer following things must be looked into:
1. Listen: Listen to your customer carefully and try to understand their problem that what exactly do they want. Be a good listener. Avoid assuming things.
2. Voice modulation: Customer should not feel that he/she is being ignored. For this you have to modulate your voice to show the concern that you are listening to him/her. You shouldn’t be too loud or too slow.
3. Repeat important details: Repeat the important details that customers give you about them. This will show that you are listening to them carefully.
4. Apology: When customer expresses some problem, be prepared to apologize. This is very necessary when you listening to customer grievances.
5. Be calm: Never rush out for things and listen to your customers very calmly. This calmness creates a big impact on building a good customer rapport.
6. Respectful: Show respect towards the customers even if they are irritating you. Every customers wants and deserves respect. This is by far the most important aspect of customer dealing.
7. Empathize: Empathize with your customers. Let them feel that you are with them regarding their problem.
8. Never make them wait for long: Never hold your customer for too long. This irritates them the most. Act swiftly.
9. Focus: Never divert the attention of the customers. Be focused on the issue in hand while solving it.
10. Positive: Always be positive towards the issue. This will help in easing the trouble of your customers who call you.

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Pros and Cons of outsourcing customer service/BPO

Before we come to Pros and Cons of outsourcing let’s first try to understand what actually is outsourcing? Outsourcing means sharing some of your work with the outside parties. It is mainly through separating a particular unit of the organization or hiring third party organization for that job. Now let’s look at its advantages or disadvantages.

Pros

:
1. Risk reduction: Outsourcing helps the organization in shifting responsibility towards the third party. In a customer service risk of data loss is very high which when shared with the third party is reduced to a significant extent.
2. Cost Control: The operational and recruitment costs are reduced to a large extent.
3. Focus on other issues: When customer service is outsourced the management can focus more on other major issues in hand.
4. Swiftness: The work can be carried on more swiftly when it is outsourced as expertise is present in that particular organization regarding that work.

Cons

:
1. Choice of right party: If the work is outsourced to a party which is not an expert in that particular field then it can affect the image of the organization in a big way. So the outsourcing partner should be chosen with care.
2. Sharing of confidential data: When the work is outsourced, some of the confidential data of the organization is also shared with the third party which may prove to be risky for the organization.
3. Customer focus: The customer focus of the outsourcing partner may not be that high if that particular work is carried on by the organization it-self.
4. Other issues: There are other problems concerned with outsourcing which include the lack of securing levels in the outsourcing level or untrained staff or legal costs in an agreement.

But all these cons can become pros if outsourcing partner is selected with utmost care.

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Tips to handle difficult bosses: Easy, practical & fun

“Boss is always right”
Some bosses take this phrase too seriously. Many of you would have handled or must be handling such difficult bosses at our workplace. How many of you actually thought of quitting that job? Quitting a job is not always the solution. Things may go worse at other job you take.
Let’s find out some of the tips to handle such difficult bosses:
1. Keep quiet and listen: Difficult bosses often like Yes MAN. So in front of them only this you should do is to keep quiet. Let them speak what they want to and always reply in affirmative. Let them speak as much as they want to. Be a good listener.
2. Patience: This is the most important tool to handle the difficult bosses. You have to be patient all the time. They may use harsh words, unnecessarily taunt you but then take a deep breath and calm down.
3. Crack a joke: You won’t believe it but this makes a huge difference. You can bank on my experience for this. To keep an office atmosphere healthy you need to be jolly. But take care if threes any serious issue in hand. I mean you can’t joke when your boss is making a serious presentation.
4. Talk at his back: Yes it works and works big time. Take everything out of your heart. Talk to your close friends about him at his back. This will take out your stress. You will certainly feel better. Although talking at back is not considered ethical but every one of us does this. Don’t we?
5. Quit: I am sorry if the above tips can’t help you then quit the job. You are surely at a bad place then.
Better luck next time!!!

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Work Force Management Part 2: Calculate required manpower in a month

In this post, we will learn how to calculate required manpower you would need to hire in a given month. Accurate required manpower projection form a crucial part of Work Force Management. So, let’s get going.

Calculate required manpower in a specific month:

The parameters you will require in order to calculate this value are as follows:

  1. Forecasted Calls (FC)
  2. Average Call Handling Time (ACHT)
  3. Average Staffing Time for each executive
  4. Required Occupancy Levels
  5. Planned Shrinkage
  6. Unplanned Shrinkage

Now go through the following steps to calculate required manpower.

Step 1:
Based on your average daily call forecast, calculate required present manpower for a particular day.

Step 2:
Calculate required manpower count you require to cater to the planned and unplanned shrinkage. For example, if your daily planned shrinkage is 15% and daily unplanned shrinkage is 10% then you need to roster approximately 33% more manpower.
Why 33% and not 25%?.
We will understand this with an example
Let us suppose that my average daily required present manpower is 100 executives
With a shrinkage of 25 executives the present headcount will be 100-25= 75
To make up for this shortfall we need to roster 25 extra executives i.e. 25/75 *100= 33%

 

Keep in mind

  1. Planned Shrinkage includes weekly off and any planned leaves/attrition.
  2. Unplanned Shrinkage includes absenteeism and unplanned attrition

 

In case you want to calculate required present manpower, you may check out another one of our articles about Work Force Management.

Also, you may check the extensive definition about WorkForce Management on Wikipedia.

Get your free excel template of daily performance report pre-loaded with Service level, AHT and other formulae in your mail by registering here

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Work Force Management Part 1: Calculate required present manpower in two easy steps

Have you always thought Work Force Management (WFM) to be a complicated task? I will try and break this myth in this and subsequent posts.

Calculate required present headcount on a specific day

First thing in Work Force Management is knowing the count of executives which you need on floor on any given day. The input parameters you will require for this calculation are as follows:

Now go through the following steps to calculate the manpower:

Step1:
Calculate the call handling capacity of an executive (CHC)
CHC= (Staffing time * Occupancy%) / ACHT
For example if you have to calculate CHC of an executive with staffing time of 400 minutes/day and ACHT of 10 minutes, working at an occupancy of 80% then
CHC = (400 * 80%) / 10 = 32

So, an executive will be able to handle 32 calls in a day. Keep in mind, both Staffing Time and ACHT have to be in same time unit i.e. minutes or seconds.

Step 2:
Calculate required manpower in a day(RMP)
RMP= FC / CHC
For example if the daily forecast is 3200 calls and CHC is 32 calls then
RMP= 3200 / 32 = 100
So you will need 100 executives present to take calls to cater to this call volume.

This is a linear calculation which can be used for both inbound and outbound call centers.

 

If you are looking for way to calculate the required manpower in a month, check it up in another work force management article here.

Get your free excel template of daily performance report pre-loaded with Service level, AHT and other formulae in your mail by registering here

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Average Handle Time : Definition and Calculation

In call center language Average Handle Time is also known as AHT. Some organizations also use the term ACHT which stands for Average Call Handling Time. So Average Handle Time is the time that a call center executive takes to complete an interaction with a customer. In simpler terms AHT is the time from where the call center executive answers the call to the point where he finishes the call and fills the relevant documentation for that customer and is ready to attend the next call.

Formula to calculate Average Handle Time for a single call:

Handling Time = Talk Time + Hold Time + After Call Work Time

So Handling Time is the sum of Talk Time, Hold Time and After Call Work Time.

Let me explain the above mentioned terms:

Average Talk Time also known as ATT is the total time a call center executive is talking to a customer.

Average Hold Time is the time for which a call center executive puts the customer on hold by pressing the Hold key on his phone. Keep in mind that blank or dead air does not count as hold time, it is added to the talk time or ATT.

After Call Work Time also known as ACW is the time the call center executive spends to complete customer documentation or tagging into the CRM tool.
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How to calculate AHT

The formula shared above holds good for a single call or interaction. Now if you have to calculate the Average Handle Time for an executive for a whole day the formula will be the sum of Handling time of all the calls of that executive for the day divided by the total calls answered by that executive. For example if Charles answered three calls in a day with the following durations:

Call 1 = 100 second

Call 2: 150 seconds

Call 3: 200 Seconds

Then AHT for Charles for the day will be (100+150+200)/3 which is 150 seconds

Another way to calculate the AHT is that you calculate Average Talk Time ATT of all calls that is sum of Talk Time of all calls divided by total answered calls,

Average Hold Time of all Calls and Average ACW of all calls and then add the three.

Another critical parameter that you would want to know is Call Center Service Level : Definition and Calculation

Grab your free excel template of daily performance report pre-loaded with Service level, AHT and other formulae in your mail by registering here

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