In this video Forrester's Kate Leggett discusses balancing customer service metrics like handle time versus hold time, mapping key performance indicators to corporate goals and how customer satisfaction is linked to loyalty and share of wallet. She also shares her thoughts on how contact center technology buyers need to consider metrics as part of their purchasing decisions.
Kate shares some more thoughts on KPIs, Balanced Scorecards and customer service metrics on her blog.
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Kate Leggett on AHT, FCR, customer satisfaction and loyalty
Interviewer: Are there some metrics out there that you think
are maybe too granular, that you see people tracking maybe a
little unnecessarily or paying too much attention to them?
Kate Leggett: Contact centers are always focused on say, for example,
average handle time. Average handle time may not paint the whole
picture of how satisfied the customer is with their service. Handle time
in your organization may be very good but what's the hold time? And
unless you look at the entire customer experience in interacting with you,
focusing on just a single metric, in this case handle time, without thinking
about hold time, may give you the wrong picture.
The other thing you need to do is look at the metrics of hold time and handle
time as it varies over the course of the day. Your overall metric might be
good but if you drill into smaller time intervals, it may paint a different picture.
However, handle time or looking at handle time and hold time combined
may be very important, for example, for a cost driven service center. But
are your customers really happy with the service that they get? You might
want to look at, for example, first contact resolution. The ability to answer
customers problems the first time they interact with you. To me, that's a
much more important metric, even in a cost drive business because it
means that your customers have got the answer that they were looking for.
And maybe your hold times or maybe your handle times are a little longer
than they need to but your customer leaves the interaction satisfied.
Interviewer: There is a direct correlation between customer satisfaction,
loyalty, wallet share?
Kate Leggett: So Forrester sees that customer satisfaction correlates to
loyalty over and over again, in all the industries that we survey. And the
way that we define loyalty is the willingness to repurchase another
product from the company, the unwillingness to shift away from the brand
and the willingness to recommend the company's product and service to
their friends and colleges. So again we see this correlation and it's a very
strong correlation of a happy customer, satisfied customer being equating
to a loyal customer and a loyal customer wanting to buy products and
services from you and not switch away from you and we see again this trend
over and over again in all.
Interviewer: And when it comes to making technology purchases, should
the companies be keeping metrics in mind as sort of evaluating products?
Kate Leggett: So, every single product will come with a set of reports, canned
reports and a set of analytics out of the box.
What you need to look at is do those reports, do those analytics give you the
metrics that are important for your business? Every tool today will also have
the ability for you to set up customer ports, customer analytics to give you
the custom metrics that you need.
So in terms of making a technology decision, you have to look at the
metrics that are currently tracked or are generated by the reporting
capabilities of the technology. But two things, don't limit yourself to the
out of the box metrics that come with your technology purchase and
secondly ask yourself the question, do I need to be measuring 100
different metrics? What are your key ones that are important to move
the needle on my business and again, I urge you to start at the top.
Look at your company's strategy; look at the high level business objectives
and as you make the technology purchase, get more granular and look
at the metrics that will directly match to you business drivers and then
ask your vendor whether those metrics are supported by the technology
purchase that you're making.
Interviewer: Great. Thank you very much, Kate.
Kate Leggett: You're welcome.