Article week 11 – 2024

From Cost to Profit Center: Performance Measurement – Part III

Today we conclude our series on the transformation from cost to profit centers. We have already discussed strategy, organization, and training, and today we focus on performance measurement. This is a crucial aspect of the transformation process, as it provides insights into the performance of our company and helps us identify effective measures to maximize success.

In a sales-oriented contact center handling both inbound and outbound calls, selecting the right Key Performance Indicators (KPIs) is crucial for measuring success, optimizing performance, and increasing efficiency. Generally, KPIs serve as metrics for various aspects of operations, enabling managers to assess employee performance and adjust as needed.

The key KPIs for a sales-oriented contact center include:

Call Conversion Rate or Conversion rate: Measures the percentage of calls resulting in actual sales or desired actions.
Average Handling Time (AHT): Duration a representative takes to complete a call. AHT varies and should differ depending on whether the call’s objective is to solve a customer problem or provide product advice.
Closing Rates: Percentage of customer calls successfully leading to a sales closure.
Average Revenue per Call: Measures the average revenue generated per call.
Customer Retention Rate: Evaluates long-term customer relationship and satisfaction (e.g., through CSAT surveys). Identifying the right product and thus determining customer needs increases the likelihood that the customer will not only stay but also recommend us.

Finally, it is important to acknowledge that telephone sales serve as a support unit for e-commerce. Products requiring more explanations, such as technical products and devices, often require the support of product specialists or customer service representatives better equipped to address inquiries and provide personal advice. This means that the transformation of our service center does not only entail opting for outbound operations but that the intermediary step of consultation, cross-selling, and upselling is the right approach to align our employees with the right mindset.

I would like to sincerely thank you for your time and interest in this series. My hope is that you have gained valuable insights and insights to help optimize your contact center’s performance and achieve your sales goals. If you have any further questions or need additional support, please do not hesitate to contact us.

Carme Pratts – Senior Consultant

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