A 2006 research report from Inova Solutions shows that while nine out of ten call center managers find that call center KPIs better their centers’ performance, less than half of them have a keen understanding of how to choose KPIs to measure. Is service level (ASA) king? What about abandonment rate; isn’t that a key indicator of customer satisfaction? Throw in oldest call waiting, average handle time, and calls waiting for good measure (no pun intended). Before you know it, your KPIs are managing you, rather than the other way around.
What’s the disconnect? A typical call center is awash in data. A single automatic call distributor (ACD) is capable of generating enough raw call center data to fill a typical telephone book in a matter of months. As more technology products and databases flood the center, more data becomes available. Before you know it, information overload arrives. Is the problem merely a matter of data overload? It’s imperative for call center supervisors (and their bosses) to understand the difference between call center metrics and call center KPIs.
Metrics are broad measurements. A metric that translates process improvement into dollar impact is the financial metric, just as a number that defines service level is an indicator of call center operational effectiveness. Although call center metrics may in fact be of interest, they’re of less importance than call center KPIs.
A key performance indicator (KPI) is a metric that gives an indication of performance and can be used as a driver for improvement. It’s a metric that is related to a target value. KPIs show the ratio between actual and targeted values. All KPIs are metrics, but not all metrics are KPIs.
Defining KPIs for contact centers involves weeding through the raw data – the metrics – and identifying the actual indicators that are tied to corporate goals. This top-down approach ensures that contact center KPIs are directly related to pre-established goals and objectives. The next critical step is to set performance targets for each KPI. Performance expectations should be expected to fluctuate over time; this is not a set-it-and-forget-it exercise. Adjusting internal targets as time progresses is critical, as market, economic, and performance conditions can drastically affect call volumes, caller expectations, and customer experience. Call center KPIs are not to be considered moving targets, but rather validated metrics that represent where focus is required on an ongoing basis.
With more than a quarter of a decade in optimization strategies for contact centers benefiting from real-time visual reporting, Inova Solutions maintains an industry-leading team of technical professionals that can help your contact center identify, define, and implement key performance indicators. Give us a call at 866.686.8774 to learn how our professional services team can help.
 Tom is Director of Product Marketing and Product Management at Inova. When not promoting current products or planning the future of Inova LightLink™, Tom is immersed in the local Charlottesville, VA music and arts scene. He welcomes feedback at tom@insideinova.com.
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