Free Desktop Support Training Series | Cost vs. Quality in IT Support | MetricNet Certified

Uploaded on

MetricNet provides Benchmarks & Key Performance Indicators for Service Desks, Call Centers, & Desktop Support. Download our Whitepapers and Case Studies today.

MetricNet provides Benchmarks & Key Performance Indicators for Service Desks, Call Centers, & Desktop Support. Download our Whitepapers and Case Studies today.

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Striking the Right Balance:Cost vs. Quality in IT Support
  • 2. 1© MetricNet, LLC, www.metricnet.com20 Years of Help Desk DataMore than 1,300 Help Desk BenchmarksGlobal Database30 Key Performance IndicatorsNearly 80 Industry Best Practices
  • 3. 2© MetricNet, LLC, www.metricnet.comThen and Now: 20 Years of Benchmarking MetricsKey PerformanceIndicatorIndustry Average Performance1988 2008Monthly Contacts perEnd-User0.79 1.81Cost per Contact $9.57 $21.52Average Handle Time 6:27 12:20Resolved on FirstContact35% 68%Resolved at Level 1 39% 84%Starting Agent Salaries(2008 dollars)$27,280 $36,340Help Desk Cost perEnd-User per Year$97 $574
  • 4. 3© MetricNet, LLC, www.metricnet.comThe 20 Year Trend in Help Desk BudgetsHelp Desk budgets have grown from 0.7% to 4.3% of corporate IT spending over the last 20 years.0.0%1.0%2.0%3.0%4.0%5.0%6.0%HelpDeskBudgetasa%ofTotalITSpend1988 1996 2000 2004 200819920.7%1.4%1.8%3.3%4.0% 4.3%A 6 Fold Increase in Help Desk Budgets!
  • 5. 4© MetricNet, LLC, Newer help desks andless evolved help desksare in this category Help desks in this stageare unable to anticipateor prepare for problems A reactive “fire-fighting”mentality prevails at thisstage Call volume continuallyincreases at this stage Customer satisfaction isthe goal The primary goal of astrategic help desk is to makeend users more productive Help desk anticipatesproblems and takes action toprevent occurrence A proactive mentality prevails Users are given tools to solvetheir own problems Call volume sometimesdeclines at this stage Problem complexity increases Customer enthusiasmand value creation is thegoal! Heavy investments intraining and technologycharacterize this stage An expert network ofproblem solvers isestablished outside thehelp desk Automation begins ACD, VRU, reportgeneration, etc. Knowledge baseestablished Call volume oftentimeslevels offSupport Stage Transitional Stage Strategic StageThe Help Desk Evolution
  • 6. 5© MetricNet, LLC, www.metricnet.com61%31%8%Support Stage Transitional Stage Strategic StageTraditional customersupport paradigmThe help desk makes a shiftfrom following the customer toleading the customerThe help desk operates in anon-traditional customersupport paradigm – everytransaction adds value!How Far Has Your Help Desk Evolved?
  • 7. 6© MetricNet, LLC, www.metricnet.comThree of the Most Important Industry MegaTrends1. The Holistic Use of KPI’s: The Hidden Value ofKPI Correlations Yesterday2. Striking the Right Balance: Cost vs. Quality in ITSupport This Session!3. Image Management: Successfully Marketing YourHelp Desk Today at 2:45 pm
  • 8. 7© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherBEST-IN-CLASSPERFORMANCE CURVEAVERAGEPERFORMANCE CURVEThe Cost vs. Quality Tradeoff
  • 9. 8© MetricNet, LLC, www.metricnet.comCharacteristics of a World-Class Help Desk Help desk consistently exceeds customer expectations Result is high levels of customer satisfaction Call quality is consistently high Costs are managed at or below industry average levels Cost per contact below average First Level Resolution is high (minimizes TCO) Every transaction adds value A positive customer experience Drives a positive view of IT overall
  • 10. 9© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherFour Cost/Quality Scenarios1. Lowest Cost, Lowest Quality4. Highest Cost, Highest Quality2. Lower Cost, Lower Quality3. Higher Cost, Higher Quality
  • 11. 10© MetricNet, LLC, www.metricnet.comKey Performance Indicators: Four ScenariosKey PerformanceIndicatorsFour ScenariosScenario 1(Lowest Cost/LowestQuality)Scenario 2(Lower Cost/Lower Quality)Scenario 3(Higher Cost/Higher Quality)Scenario 4(HighestCost/HighestQuality)Cost/Contact $9 $12 $18 $30Customer Satisfaction 70% 82% 90% 95%Agent Utilization 65% 60% 55% 50%First Contact Resolution 60% 72% 78% 82%Average Speed of Answer 90 sec 60 sec 30 sec 20 secFirst Level Resolution 75% 85% 90% 95%
  • 12. 11© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherThe Ideal Operating Range1234Costs too High!(only rarely)Quality too Low!(only rarely)Ideal OperatingRange
  • 13. 12© MetricNet, LLC, www.metricnet.comKPI’s in The Ideal Operating RangeKey Performance IndicatorsPerformance in theIdeal Operating RangeScenario 2(Lower Cost/Lower Quality)Scenario 3(Higher Cost/Higher Quality)Cost/Contact $12 $18Customer Satisfaction 82% 90%Agent Utilization 60% 55%First Contact Resolution 72% 78%Average Speed of Answer 60 sec 30 secFirst Level Resolution 85% 90%
  • 14. 13© MetricNet, LLC, www.metricnet.comOptimizing the Cost/Quality TradeoffGetting there is a Two-Step process1. Benchmark your Help Deskto maximize Efficiency and Effectiveness2. Fine Tune your Help Desk performance toachieve the ideal operating point
  • 15. 14© MetricNet, LLC, www.metricnet.comYour Help DeskPerformancePerformance ofBenchmarking PeerGroupDetermine HowBest in ClassAchieve SuperiorityAdopt SelectedPractices ofBest in ClassBuild a SustainableCompetitiveAdvantageThe ultimateobjective ofbenchmarkingCOMPAREThe Benchmarking MethodologyRequest a copy of MetricNet’s whitepaper on Help Desk Benchmarking.
  • 17. 16© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherStep 2: Fine TuningIdeal OperatingRangeMoving To Lower CostMoving To Higher Quality
  • 18. 17© MetricNet, LLC, www.metricnet.comMoving to Higher Quality: Key DriversQuality(Customer Satisfaction)First Contact Resolution(The Most Important Driver)Training HoursCall QualityTechnology KBase RemoteDiagnostic ToolsThe Bottom LineEvery 1% Increase in First Contact Resolution Improves Customer Satisfaction by Approximately 1%!
  • 19. 18© MetricNet, LLC, www.metricnet.comFirst Contact Resolution Drives Customer Satisfaction20%40%60%80%100%20% 40% 60% 80% 100%First Contact ResolutionCustomerSatisfaction
  • 20. 19© MetricNet, LLC, www.metricnet.comNew Agent Training Hours vs. First Contact Resolution0%10%20%30%40%50%60%70%80%90%100%0 50 100 150 200 250 300 350New Agent Training HoursFirstContactResolutionRate
  • 21. 20© MetricNet, LLC, www.metricnet.comVeteran Agent Training vs. First Contact Resolution0%10%20%30%40%50%60%70%80%90%100%0 20 40 60 80 100 120 140Veteran Agent Training HoursFirstContactResolutionRate
  • 22. 21© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherStep 2: Fine TuningIdeal OperatingRangeMoving To Lower CostMoving To Higher Quality
  • 23. 22© MetricNet, LLC, www.metricnet.comMoving to Lower Cost: Key DriversThe Bottom LineEvery 2% Increase in Agent Utilization Reduces Cost per Contact by Approximately 1%!Cost(Cost/Contact)Agent Utilization(The Most Important Driver)TrainingHoursFirst LevelResolutionHandleTimeService Levels:ASA and ARSchedulingEfficiencyTechnologyTools
  • 24. 23© MetricNet, LLC, www.metricnet.comAgent Utilization Drives Cost per Contact$0$5$10$15$20$25$30$35$40$4520% 30% 40% 50% 60% 70% 80%Agent UtilizationCostperContact
  • 25. 24© MetricNet, LLC, www.metricnet.comThe Agent Utilization FormulaAgentUtilization(Average number of contacts handled per agent per month) X (Average handle time in minutes)(Average number of days worked in a month) X (Number of work hours in a day) X (60 minutes/hr)=ExampleAgentUtilization(500 contacts/month) X (10 minutes/contact)(21 working days per month) X (7.5 work hours per day) X (60 minutes/hr)= 52.9%=
  • 26. 25© MetricNet, LLC, 25© MetricNet, LLC, www.metricnet.comAgent Utilization: Benchmarking Results20%30%40%50%60%70%80%TechUtilizationHigh 74.3%Average ----- 53.1%Median 55.3%Low 32.9%Your Score 58.0%Tech Utilization
  • 27. 26© MetricNet, LLC, www.metricnet.comASA Drives Cost per Contact$0.00$5.00$10.00$15.00$20.00$25.00$30.00$35.00$40.000 50 100 150 200 250Average Speed of Answer (sec)CostperContact
  • 28. 27© MetricNet, LLC, www.metricnet.comASA vs. Customer Satisfaction0.0%20.0%40.0%60.0%80.0%100.0%0 5% 10% 15% 20%ASA as a % of Total Handle TimeCustomerSatisfaction
  • 29. 28© MetricNet, LLC, www.metricnet.comCall Abandonment Rate Also Drives Cost per Contact$0.00$5.00$10.00$15.00$20.00$25.00$30.00$35.00$40.00$45.000.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%Call Abandonment RateCostperContact
  • 30. 29© MetricNet, LLC, www.metricnet.comCall Abandonment Rate vs. Customer Sat0.0%20.0%40.0%60.0%80.0%100.0%0.0% 5.0% 10.0% 15.0% 20.0% 25.0%Call Abandonment RateCustomerSatisfaction
  • 31. 30© MetricNet, LLC, www.metricnet.comCost of First Level vs. n-Level ResolutionSupport LevelCost per IncidentResolvedVendorDesktop SupportField Support(inside company)Level 2(outside help desk)Help Desk$466$138$62$41$22
  • 32. 31© MetricNet, LLC, As the Level 1 resolution rate increases, the cost per contact for Level 1 increases But the total cost per contact, including Level n costs, declines The cost of resolution at level n is typically 2X to 10X greater than at level 1LOWERHIGHERCOST HIGHERTotal Cost per ContactFIRST LEVELRESOLUTION RATEFirst Level Resolution Drives Total Cost of Ownership (TCO)Level 1 Cost per ContactTotal Level n CostCOSTPERCONTACT
  • 33. 32© MetricNet, LLC, 32Cost and Quality: Where Does Your Help Desk Land?Lower CostCost (Efficiency)Quality(Effectiveness)Top QuartileEfficient and EffectiveLower QuartileMiddle QuartilesEffective but not EfficientMiddle QuartilesEfficient but not EffectiveYour HelpDeskPeer GroupHigher CostLowerQualityHigherQuality© MetricNet, LLC,
  • 34. 33© MetricNet, LLC, www.metricnet.comSome Final Thoughts Optimizing the Cost/Quality Tradeoff is a two-step process1. Benchmark your Help Desk to maximize Efficiency and Effectiveness2. Fine Tune your Help Desk performance to achieve the ideal operatingpoint Benchmarking will move your Help Desk to the Best-in-Classperformance curve From there, you can optimize cost and quality Improve First Contact Resolution to improve Customer Satisfaction Don’t “buy” too much Quality! Improve Agent Utilization to reduce Cost per Contact Don’t sacrifice quality for the sake of reducing costs!
  • 35. 34© MetricNet, LLC, www.metricnet.comUpcoming MetricNet WebcastsRegister at www.metricnet.comUnleashing the Enormous Power of ServiceDesk KPI’s Wednesday, April 15th, 2009 at 2:00 pm EDTIT Customer Satisfaction Measurement Tuesday April 21st, 2009 at 2:00 pm - 3:30pmEDTFor more information on Industry Best Practices, please register forMetricNet’s free upcoming webcasts