RIGHTNOW MULTI-CHANNEL CONTACT CENTER BENCHMARK REPORT

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1 RIGHTNOW MULTI-CHANNEL CONTACT CENTER BENCHMARK REPORT Improving the Customer Experience While Reducing Operating Costs RightNow Technologies. All rights reserved. RightNow and RightNow logo are trademarks of RightNow Technologies Inc. All other trademarks are the property of their respective owners. 8011

2 E X E C U T I V E S U M M A R Y An important measure of the health and efficiency of your contact center is how your center performs in comparison to other organizations. Simply measuring and tracking KPIs internally is not enough. In order to gauge the success of your contact center you must be able to benchmark your metrics and KPIs against others both in your industry and across all industries. The RightNow Multi-channel Contact Center Survey consists of 42 unique data points across multiple channels. Over 300 companies participated in this survey across a number of industries including: Software, Finance, Education, Manufacturing, Telecom, Customer Goods, Retail, Customer Electronics, Media Government, Travel, Entertainment and more. Some high level findings include the following: Over half of respondents to this survey state that their average cost per call is $6 or less. Over half of the respondents to this survey state that their average response time is 12 hours or less The majority of respondents to this survey state that their chat agents handle 1 to 3 chats at one time Surprises in the survey: - For a majority of respondents, less than 10% of contacts to their center represent an upsell/cross-sell opportunity. We believe that when customers are reaching out to companies, it s a great opportunity to reinforce brand and offer relevant and helpful products. - 44% of companies do not have a formal mechanism of collecting feedback. We believe that this piece is critical to meeting customer expectations. - Most companies only have 1 person working on content. The amount of self-service and IVR deflection can increase dramatically with great content available. Trends we re seeing: As RightNow works with companies around the globe, we are seeing a few trends that are not reflected in the data of this survey: - response time goals of less than 2 hours. In today s market, where people expect faster turnaround times, we have many retail customers who are close to meeting that goal. - Chat replacing . In high-tech industries that provide support on complex or trouble shooting problems, is being phased out in favor of chat. Chat is immediate and the agent can make sure the customer s problem is resolved more quickly. Chat helps to avoid lengthy and multiple exchanges. - Agents tied to customer satisfaction. When unhappy customers can blog, tweet, and easily communicate their displeasure with a company, thought leading organizations are tying a growing percentage of an agent s compensation to customer satisfaction. 2

3 T A B L E O F C O N T E N T S Table of Contents Support Options on Website... 4 Agent Information... 5 Contact Center KPIS... 8 Agent Compensation Phone Channel Channel Web Self-Service Channel. 36 Knowledge Management. 37 Chat Channel Customer Feedback

4 S U P P O R T O P T I O N S O N W E B S I T E Features Offered on Your Website or Ask a Question 98% A Number m 93% Web Self- Service(FAQs) 87% Chat 26% Other 18% Click to Call Back 13% Which features do you currently offer on your organization s website? The most common features offered on an organization s website are found to be an option, their 800 number, and a web selfservice or FAQ option. Interpretation: Only 26% of the organizations that responded to this survey stated that they have a chat option on their website. Over the next couple of years we expect see this number continue to grow as chat is fast becoming a popular channel in Retail and Customer Electronics industries. 4

5 AGE N T I N F O R M A T I O N Agent Breakdown % % % Full Time Part-Time % 11.52% Of your total number of agents how many are full-time? Part-time? The majority of the respondents from this survey staff between % of their agents in full-time positions in the contact center. Interpretation: Part-time and work-at-home agents represent a small percentage of the overall staff of the contact centers that responded to this survey. Part-time and work-at-home agents are primarily used to staff during peak periods to supplement the existing full-time agent staff. 5

6 A G E N T I N F O R M A T I O N Agent Breakdown % % % % Outsourced In-house 1 <10% Of your total number of agents, how many are in-sourced? Outsourced? Of the total responses to this survey, it is found that a majority of the contact center's staff is staffed by in-house agents. An Outsourced Agent is an agent that works for an outside organization whose services are contracted to work for your organization. Outsourced agents are typically located at an outsourcer s facility and not in the organization s contact center. 6

7 A G E N T I N F O R M A T I O N Agent Breakdown % % 44.47% % Offshore Onshore 1 Of your total part-time agents how many work onshore? Offshore? Nearly 70%of the respondents to this survey currently do not staff any of their agents offshore. Onshore is defined as agents that work in the same country as the organization headquarters. Offshore agent is defined as an agent that works in a country other than where the organization is headquartered. In the past couple years there has been a shift in the outsourcing model. We are seeing a trend in organizations moving their phone agents back onshore and out-sourcing their chat and agents. 7

8 C O N T A C T C E N T E R K P I S Occupancy Rate % 26.07% 14.66% 15.07% % 1.63% 2.85% 2.44% 4.07% 5.50% What is your current agent occupancy rate? The majority of respondents to this survey have an agent occupancy rate greater than 70%. Having a high agent occupancy rate typically means that a contact center is operating efficiently. Occupancy is sometimes referred to as agent utilization or percent utilization. Occupancy is the percentage of time that agents are actually taking calls versus waiting for an inbound call. 8

9 C O N T A C T C E N T E R K P I S Adherence to Schedule % % % % 4.48% 4.90% 3.20% 2.35% 2.56% 1.07% <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What is your current adherence to schedule? The majority of respondents to this survey have an agent occupancy rate greater than 80%. Adherence to Schedule typically refers to how well an agent follows and adheres to their scheduled work time. This KPI is generally measured by logged on time including time spent waiting for calls or transactions to arrive. Adherence to Schedule is a good KPI to use to measure how efficiently and effectively agents are using their time while on shift. 9

10 C O N T A C T C E N T E R K P I S Agent Turnover Rate % % 14.16% % 4.72% 3.22% 0.86% 1.50% 0.86% 1.29% <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What is your current Agent Turnover Rate? Two-thirds of the respondents to this survey have an agent turnover rate that is less than 20%. Agent Turnover is costly to an organization. Organizations today are putting more focus and effort on retaining their skilled agents. Offering competitive salaries is a good start, but it is also important to begin to look at programs and incentives that make your agents feel like part of the organization, culture and community. Finding the right balance of work, social interaction and recognition can go along way on the retention front. Turnover Rate is the percentage of agents that leave the call center whether voluntarily or involuntarily. It is typically calculated by dividing the number of agents leaving the call center divided by total agents during the period times twelve divided by the number of months in this period. 10

11 C O N T A C T C E N T E R K P I S Cost to Hire % 30.96% % % 6.01% 4.68% <$1000 $1000- $3000 $ $5000 $5001-$7000 $7001-$9000 >$9000 What is your current cost to hire a new agent? A majority of the respondents to this survey stated that their average cost to hire was less than $3000. The Cost to Hire an agent is the cost to acquire a new agent including recruiting and training costs. 11

12 C O N T A C T C E N T E R K P I S Cost to Train % 33.70% % % 2.61% 5.43% <$1000 $1000-$3000 $3001-$5000 $5001-$7000 $7001-$9000 >$9000 What is your current cost to train a new agent? Greater than 60% of the respondents to this survey have an average cost of $3000 or less to train an agent. The Cost to Train an agent is the cost to train an agent to perform their job functions. This number does not include costs associated with recruitment. Today s contact center agents are required to perform a multitude of skills from cross-selling to handling customer complaints to taking orders or even trouble shooting technical issues. Mastering these skills requires extensive training programs that are costly to the organization. 12

13 C O N T A C T C E N T E R K P I S Training Time % 31.07% % % 3.50% 1.03% 3.70% <10% < >181 On average how many days does it take to train an agent? Approximately two-thirds of the respondents to this survey state that their average ramp up time for an agent is 60 days or less. Training Time is the time that it takes a new agent to fully ramp up and perform at an average level, and includes in class training time plus ramp up time. Many contact centers handle a variety of complex issues and questions from their customers. A lot of information is tribal knowledge that is not easily accessible or available to newer agents. It is important to put in place a method to collect and share information across all agents. Having access to this type of tribal knowledge typically enables new hires to ramp up more quickly. 13

14 A G E N T I N F O R M A T I O N Compensation % 46.63% % 6.75% Base Salary Average Hourly Wage Per Contact Handled Other How do you compensate your agents? While the majority of contact centers responded that they pay their agents based on an average hourly wage, compensation based on a base salary was a close second. Interpretation: Compensation is comprised of three components: base pay, incentives or rewards and benefits. 14

15 P H O N E C H A N N E L Inbound Call Breakdown % % % Agents IVR % 9.54% Of your total inbound call volume, what percentage are handled by agents? By an IVR? A majority of the respondents to this survey use full-time agents to handle incoming calls. An area of opportunity exists for organizations to turn on an IVR or voice self-service to direct a percentage of incoming callers to a lower cost IVR channel. Interpretation: Inbound Call is a call in to a contact center that is initiated by a customer. Most inbound calls into a contact center are for customer service, technical support or billing questions. 15

16 P H O N E C H A N N E L Inbound Call Breakdown % % % 1.52% 2.13% 1.83% 2.13% 2.13% 4.88% 8.84% 11.28% 4.57% Of your total inbound call volume what percent are handled by fulltime agents? Respondents from this survey have an average of % of fulltime agents staffed in their contact center today. These full-time agents are handling between % of all inbound calls into the contact center. A Full-time Agent is defined as someone who works a full workweek of 40 hours. 16

17 P H O N E C H A N N E L Inbound Call Breakdown 40% 37.58% 35% 30% B2B <10% 25% 20% 15% 22% 18.93% B2B B2C 10% 9.63% 5% 0% <10% Of your total inbound call volume what percent are business to business? Business to Customer? The majority of respondents to the survey service their customers in a B2C environment. B2B is defined as a call that takes place between two organizations. B2C is defined as a call that takes place between a customer and a organization. 17

18 P H O N E C H A N N E L Up-sell/Cross-Sell % B2B <10% % <10% % 7.95% 4.30% 4.64% 2.32% 2.98% 0.99% 1.66% <10% 10-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What percentage of your total inbound call volume represents a cross-sell/up-sell opportunity? It was found that on average less than 10% of calls into the contact center present an opportunity for an agent to up-sell or cross-sell. Up-sell or Cross-Sell is a selling technique of offering additional or more expensive products or services to a customer during an interaction with the contact center. 18

19 P H O N E C H A N N E L Up-Sell/Cross-Sell % % % % Handled by Same Agent No Process Exists Transferred to Different Group Other What is the process of handling up-sell/cross-sell opportunities? Nearly half of the respondents to this survey have their agents handle both inquiries into the contact center as well as up-sell and cross-sell opportunities, while a little over 20% of the respondents transfer these opportunities to a dedicated group. Up-sell or Cross-Sell is a selling technique of offering additional or more expensive products or services to a customer during an interaction with the contact center. 19

20 P H O N E C H A N N E L Up-Sell/Cross-Sell % % 9.60% 4.80% 3.20% 0.80% 0.40% 1.20% <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What is your average up-sell/cross-sell rate? Of the total number of opportunities that existing within the contact center to up-sell or cross-sell a service, less than 10% of these offers are accepted by the customer in a majority of the respondent's contact centers. The Up-sell/Cross-sell Rate or Ratio is defined as the percentage of attempts to up-sell or cross-sell that are successfully accepted by the customer. It is calculating by dividing the number of successful attempts by total attempts multiplied by 100%. 20

21 P H O N E C H A N N E L Calls Handled % % 16.23% 15.91% % 6.17% >15 What is the average number of phone calls an agent handles per hour? Nearly 70% of the respondents to this survey state that their contact center agents typically handle 9 or less calls per hour. In a traditional call center, agents typically handle calls one after another with little down time or after call work. This number represents the average number of calls that an agent works to completion in one hour. 21

22 P H O N E C H A N N E L Cost per Channel % 29.09% % 12.00% % 3.27% 3.64% 1.82% $1 - $3 $4 - $6 $7 - $9 $10 - $12 $13 - $15 $16 - $18 $19 - $21 > $21 What is your average cost per inbound call? Over half of respondents to this survey state that their average cost per call is $6 or less. Cost Per Call is calculating by taking total costs (fixed and variable) and dividing them by total interactions. 22

23 P H O N E C H A N N E L Cost per Channel % % 12.97% 14.64% % 1.67% 3.35% 1.67% 3.35% <$1 $1-$3 $4-$6 $7-$9 $10-$12 $13-$15 $16-$18 $19-$21 >$21 What is your average cost per outbound call? Nearly half of the respondents to the survey state that their average cost per outbound call is less than $6. Cost Per Call is calculating by taking total costs (fixed and variable) and dividing them by total interactions. 23

24 P H O N E C H A N N E L Average Handle Time % % 14.80% 12.08% % <1 minute 1-3 minutes 4-6 minutes 7-9 minutes ca minutes 2.72% minutes minutes 1.21% minutes 4.23% >21 minutes What is your average handle time for calls? Nearly 60% of the respondents to this survey have an average handle time between 4 and 9 minutes per call. Average Handle Time is defined as the sum of average talk time plus average after-call work time. Today AHT is increasing in some call centers as more of the routine calls are being handled by customer self-service options requiring agents to work more complex issues more often. 24

25 P H O N E C H A N N E L Average Talk Time % % 17.68% % <1 minute 1-3 minutes 4-6 minutes 7-9 minutes 6.11% minutes 1.29% 0.96% minutes minutes 0.96% minutes 2.89% >21 minutes What is your average talk time for inbound calls? Two-thirds of the respondents to this survey report an average talk time of less than 6 minutes per call. Talk Time is defined as the total time that an agent is on the phone with a customer. Talk time begins when the agent picks up the phone and ends when the call is terminated. 25

26 P H O N E C H A N N E L First Contact Resolution % % 18.03% % 10.20% <30% 31-50% 51-70% 71-90% % What is your First Contact Resolution (FCR) rate for inbound calls? Nearly 60% of all respondents to this survey state that they have an average First Contact Resolution rate of 71% or greater. First Contact Resolution is defined as the percentage of calls whose reason for calling was addressed and solved on the first contact into the contact center. FCR can be used by management to improve operational efficiency and find methods to drive down costs. In the past, FCR was defined by what organizations perceive to be an adequate resolution. Today, organizations are beginning to define FCR based on whether or not the customer feels their issue has been resolved. 26

27 P H O N E C H A N N E L Average Speed of Answer % % % 13.03% 11.07% <20 seconds % 3.26% 1.95% 1.30% 1.63% 2.93% <20 seconds seconds seconds seconds seconds seconds seconds seconds seconds >181 seconds What is your Average Speed of Answer (ASA) for inbound calls? The majority of respondents to the survey state that they have an Average Speed of Answer of 40 seconds or less. The Average Speed of Answers is defined as the total time that all calls have waited in the queue divided by the total number of answered calls. 27

28 P H O N E C H A N N E L After Call Work Time % % 9.81% 10.88% seconds 7.43% 12.47% 3.98% 4.77% 1.59% 5.04% 4.77% <10 sec sec sec sec sec sec sec sec sec sec >101 sec What is your average after call work time for inbound calls? The majority of respondents to this survey have an average after call work time of 40 seconds or less. After Call Work is any work that must be completed following the close of a call prior to another call being taken. 28

29 P H O N E C H A N N E L Average Call Abandon Rate % % % 13.14% 7.05% 4.17% 1.28% 1.28% 0.96% <1% 1-3% 4-6% 7-9% 10-12% 13-15% 16-18% 22-25% >25% What is your average call abandon rate? The majority of respondents to this survey have an average abandon rate less than 6%. Call Abandon Rate is defined as the number of calls that do not reach an agent. The caller either hangs up or the call is lost or disconnected. It is calculated by taking to total number of calls abandoned and dividing them by the total number of calls abandoned plus the total number of calls answered. 29

30 P H O N E C H A N N E L Transfer Rate % % % % 3.03% 2.69% 0.34% 0.34% 1.35% 0.67% <10% 10-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What is your current transfer rate? Average transfer rate is found to be less than 10%. Having a high transfer rate can result in low agent efficiency and high customer wait times. Transfer Rate is the percentage of calls that must be transferred to a new agent or group to be resolved. It is defined as the total number of calls transferred divided by the total number of calls. 30

31 E M A I L C H A N N E L Cost per Channel % % % 8.90% 6.16% 1.37% 2.05% 0.68% 1.37% <$1 $1-3 $4-6 $7-9 $10-12 $13-15 $16-18 $19-21 >$21 What is your average cost per ? What is your average cost per ? Over half of the respondents to this survey have an average cost per call between $1-3. Cost Per is calculating by taking total costs (fixed and variable) and dividing them by total interactions. 31

32 E M A I L C H A N N E L s Handled % 28.17% 17.61% 14.44% % 4.23% 3.52% 0.70% >21 What is the average number of s and agent handles per hour? Over half of all respondents to this survey state that their agents typically handle 6 or less s per hour. s Handled represents the average number of s that an agent works to completion in one hour. More complex questions that require research or data to be pulled from multiple systems greatly decreases this number. Integrating disparate systems into a single agent desktop can help to increase this number. 32

33 E M A I L C H A N N E L Average Response Time % % 16.19% 19.06% 1-6 hours hours 7-12 hours 7.19% hours hours 4.68% hours 2.16% hours 0.72% hours 4.32% 5.04% hours >48 hours What is the average response time for interactions? Over 80% of respondents to this survey state that their average response time is less than 24 hours. Interpretation: Average Response Time is defined as the average time it takes for a customer to receive a response from your contact center via the channel. More and more customers are beginning to expect response time to s to be similar to what they would receive in the phone channel. Customers expect their s to be answered quickly. If your response time is too long you risk deflecting the customer to higher cost channel such as phone. 33

34 E M A I L C H A N N E L First Contact Resolution % % 18.25% 19.01% 12.17% 1 <30% 31-50% 51-70% 71-90% % What is the First Contact Resolution (FCR) rate for your channel? First Contact Resolution rates vary greatly among respondents to the survey. The majority of respondents to this survey have an FCR greater than 71%. First Contact Resolution is defined as the percentage of calls whose reason for calling was addressed and solved on the first contact into the contact center. 34

35 E M A I L C H A N N E L Deflection Rate % % % 13.50% <10% % 7.17% 4.22% 2.11% 2.53% 1.27% 3.80% 2.11% <10% 10-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What percent of callers are deflected to your channel? 60% of the respondents to this survey state that they have an deflection rate of 20% or less. Deflection Rate is defined as the total number of customers who chose to contact you via the channel instead of placing a phone call. Organizations with high response times will typically find that they have a lower than average Deflection rate. 35

36 W E B S E L F - S E R V I C E C H A N N E L Web Self-Service Deflection Rate % % 13.51% % 5.41% 2.70% 6.08% 4.05% 2.03% 2.70% <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % What percent of callers are deflected to your web self-service channel? The majority of respondents to this survey deflect less than 20% of all calls to their web self-service channel. Defined Web Self-Service Deflection Rate is defined as the total number of customers who chose to answer their question on their own using your web-self service solution instead of placing a phone call. Web self-service is typically one of the lowest cot channels in the contact center. By deflecting calls from a higher cost phone channel to a less expensive WSS channel, organizations can see a sizable return on investment 36

37 K N O W L E D G E M A N A G E M E N T Knowledge Contributors % % people % 5.44% 8.16% 3.40% 3.40% One Two Three Four Five Six Seven How many people contribute knowledge to your knowledgebase? The majority of organizations that responded to this survey have between 1-2 employees contributing knowledge to their knowledgebase. A knowledge contributor is someone who is responsible for creating knowledge that can be used consistently across the organization.. 37

38 C H A T C H A N N E L Chat Volume Breakdown % % % % B2B B2C 1 <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % Of your total chat volume what percent are B2B? B2C? The majority of respondents to this survey interact via the chat channel in a B2C environment. Interpretation: B2B is defined as a call that takes place between two organizations. B2C is defined as a call that takes place between a customer and a organization. 38

39 C H A T C H A N N E L Chat Volume Breakdown Full-time Part-time 1 <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % Of your total chat volume what percent are handled by full time agents? The majority of respondents to this survey staff their contact centers with full-time agents. As a result of this, the majority of all chat interactions into the contact center are handled by full-time agents. A full-time agent is defined as an agent that works a full workweek of 40 hours. 39

40 C H A T C H A N N E L Number Chats Handled % % 24.19% % 1.61% 3.23% 3.23% Unknown What is the average number of chats an agent handles at one time? Agents typically handle up to three chats at one time. Number of Chats Handled is the number of chats that an agent can handle simultaneously at one time. 40

41 C H A T C H A N N E L Chat Abandon Rate % % B2B <10% % 18.03% % 1.64% <1% 1-3% 4-6% 7-9% 10-12% >25 What is your average chat abandon rate? The majority of respondents to this survey state a chat abandon rate of less than 3%. Chat Abandon Rate is defined as the number of chats that are abandoned, lost, or disconnected before reaching an agent. It is calculated by taking the total number of abandoned chats and dividing by the total number of abandoned chats plus the total number of answered chats times 100%. 41

42 C H A T C H A N N E L Chat Deflection Rate % % % 4.08% 4.08% 2.04% 2.04% 2.04% <10% 11-20% 21-30% 31-40% 41-50% 61-70% 71-80% 81-90% What percent of callers are deflected to your chat channel? On average, less than 10% of contacts into the contact center are deflected to the chat channel. Chat Deflection Rate is defined as the total number of customers who chose to contact you via the chat channel instead of placing a phone call. 42

43 F E E D B A C K Collect Feedback Yes 55.62% No 44.38% Yes No Does your call center currently have a mechanism to collect feedback? A little over 50% of the respondents to this survey currently have mechanism to gather feedback and insight from their customers. Collecting feedback helps organizations understand the voice of their customer to improve customer experience and increase customer loyalty. 43

44 F E E D B A C K Collect Feedback % % 16.73% % 2.45% Follow-up Mailed Survey Other Outbound Agent Call IVR Survey Text/SMS What mechanism do your currently use to collect customer feedback? Of the organizations that currently have a mechanism for collecting feedback approximately 35% of these organizations collect feedback through a follow up survey. Enabling multi-channel feedback is as important to the customer experience as enabling multi-channel choice for customer contact. Customers want choice in the way they communicate with an organization and they want the same choice in the way they provide feedback to your organization. Twitter and other social media sites are fast becoming popular venues for customers to provide feedback to organizations. 44

45 F E E D B A C K Net Promoter Score 1 Yes No, but on Roadmap Not at this time 7 Do you currently use Net Promoter Score? Only 30%of organizations use Net Promoter Score today to measure customer satisfaction. Net Promoter Score is calculated by taking your total number of promoters minus your total number of detractors times 100%. Promoters are typically customers who give you a score of 9 to 10, Passives 7 to 8 and detractors typically give you a score of 6 or less. The single question asked is How likely are you to recommend to a colleague or friend? 45

46 A B O U T R I G H T N O W T E C H N O L O G I E S RightNow (NASDAQ: RNOW) delivers the high-impact technology solutions and services organizations need to cost-efficiently deliver a consistently superior customer experience across their frontline service, sales and marketing touch-points. Approximately 1,800 corporations and government agencies worldwide depend on RightNow to achieve their strategic objectives and better meet the needs of those they serve. RightNow is headquartered in Bozeman, Montana. For more information, please visit. RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of the NASDAQ Stock Market. 46

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