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CALCULATING CONTACT
CENTER PROFITABILITY
Nixxis in a nutshell
• Founded in 2006 by call center experts with 100+ year experience
• Headquarters in Brussels, Belgiu...
NIXXIS WILL HELP YOU LIVE UP TO YOUR
CUSTOMER INTERACTION CHALLENGES
© Nixxis. All rights reserved.
Some References
MY CONTACT CENTER PROFITABILITY?
© Nixxis. All rights reserved.
Key Profitability Components:
C.O.S.S. & Gross Profit
Services Revenues
Gross Profit
-
Labo...
© Nixxis. All rights reserved.
Key Profitability Components:
Operating Expenses and Operating Profit
Cost Of Services Sold...
© Nixxis. All rights reserved.
Key Profitability Components:
Profit Before Tax
-
Operating Profit
Interest Expenses
Other ...
© Nixxis. All rights reserved.
Key Profitability Components:
Net Profit
-
Operating Profit
Interest Expenses
Other Financi...
© Nixxis. All rights reserved.
Main Profitability Ratios
Gross Margin (%) = Gross Profit
Sales
Operating Margin (%) = Oper...
© Nixxis. All rights reserved.
Your Sales/Revenues Components
Agents/Seat based
Your own infra/somebody else’s
Volume base...
© Nixxis. All rights reserved.
Your Cost/Expenses Components
Human
Resources
Telecom
70%
Developed
Regions
Technology
Misc...
© Nixxis. All rights reserved.
Your Total Costs are Agents dependent
Volume (Agents)
Cost$
0
Fixed
Costs
Variable
Costs
To...
© Nixxis. All rights reserved.
How do you dimension your Agent pool?
Time
Traffic(Calls)
8:00AM 8:00PM
Mon Fri Jan Dec
Inb...
© Nixxis. All rights reserved.
3 Choices to make
Traffic(Calls)
Overcapacity =
Loose money
Competitive?
Right capacity =
L...
© Nixxis. All rights reserved.
Typical SLA Components
Average Speed of Answer: Measures the average speed in which
agents ...
© Nixxis. All rights reserved.
Agner Krarup Erlang (1878-1929)
The ERLANG is a dimensionless unit that was originally used...
© Nixxis. All rights reserved.
CAN I DO MORE WITH THE SAME
OR LESS AMOUNT OF AGENTS?
YES
you can!
© Nixxis. All rights reserved.
Save commuting time: Home-working
Startup interface NCS
• ID
• Password
• Extension
© Nixxis. All rights reserved.
Shorter handling time: Ergonomic screen
Agent toolbar Telephony
toolbar
Campaign/activities...
© Nixxis. All rights reserved.
Shorter handling time: Use of Scripts
© Nixxis. All rights reserved.
Shorter handling time: Real-time Help
Request for Help from the
Agent
Notification of the r...
© Nixxis. All rights reserved.
Shorter handling time: History review
During a Call – Request of the Contact History
Record...
© Nixxis. All rights reserved.
Shorter handling time: Callback proposal
Call Qualification (forced or not)
Proposal of a C...
© Nixxis. All rights reserved.
Shorter handling time: Action Calendar
Appointment calendar management
Many various actions...
© Nixxis. All rights reserved.
Better routing: IVR assistant (Interactive Voice Response)
Chosing
Languages
and Menu
Promp...
© Nixxis. All rights reserved.
Better routing: Planning Management
© Nixxis. All rights reserved.
Better routing: Preferred Agent control
Preferred Agents:
Routing callers to
speak to the s...
© Nixxis. All rights reserved.
Blending on various Inbound
Traffic(Calls)
Inbound Activity 1
Inbound Activity 2
Agent Capa...
Campaign 1
Database
Team X
Team Y
Agent A
Agent B
100%
100%Activity 1
Queue 1
Activity 2
Campaign 1
Database
Team X
Team Y
Agent A
Agent B
100%
100%Activity 1
Queue 1
Activity 2
TEAMOVERFLOW
TEAM OVERFLOW
© Nixxis. All rights reserved.
Blending on Inbound & Outbound
Traffic(Calls)
Inbound Activity 1
Agent Capacity Used
+
=
Ou...
Campaign 1
Database
Team X
Team Y
Agent A
Agent B
100%
100%Activity 1
Queue 1
Activity N
Queue 2
Activity 2
© Nixxis. All rights reserved.
Blending on Multiple Channels
Email Traffic Chat Traffic Social Media
Traffic
© Nixxis. All rights reserved.
Better dialing: 8 different dialing modes
•Ready for new legislation & government directive...
© Nixxis. All rights reserved.
Better dialing: Predictive vs Progressive
Progressive dialing
Predictive dialing
Dial
Waiti...
Campaign N
Database
Activity 1
Activity 2
Activity N
Campaign 1
Database
Team X
Team Y
Agent A
Agent B
100%
100%Activity 1...
Campaign N
Database
Activity 1
Activity 2
Activity N
Campaign 1
Database
Team X
Team Y
Agent A
Agent B
100%
100%Activity 1...
MULTIWAVE CAMPAIGNS
© Nixxis. All rights reserved.
Better routing: Profit Based Routing
Dynamic Profit profile can be
associated to Queues
Cos...
Campaign N
Database
Activity 1
Activity 2
Activity N
Campaign 1
Database
Team X
Team Y
Agent A
Agent B
100%
100%Activity 1...
PROFIT BASED ROUTING
SO DON’T GET CAUGHT IN THE WEB
OF CHANNELS
SIMPLY RELY ON NIXXIS TO HELP!
© Nixxis. All rights reserved.
More informations:
sales@nixxis.com
+32 2 307 00 00
How to calculate and improve the profitability of your Contact Centre?
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How to calculate and improve the profitability of your Contact Centre?

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This short webcasts explains how you can dimension and calculate the profitability of your Contact Centre and also find ways to improve it by getting more from your pool of agents.

Published in: Technology, Business
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How to calculate and improve the profitability of your Contact Centre?

  1. 1. >> CALCULATING CONTACT CENTER PROFITABILITY
  2. 2. Nixxis in a nutshell • Founded in 2006 by call center experts with 100+ year experience • Headquarters in Brussels, Belgium • Good logistic coverage in Europe (9 offices, 30 countries) • Focus on software development • Target: customer contact & interaction centers (10 to 500 agents) • On-site installation and cloud-based deployment • Go-to-market model / major channels (integrators, outsourcers, telco providers, end customers)
  3. 3. NIXXIS WILL HELP YOU LIVE UP TO YOUR CUSTOMER INTERACTION CHALLENGES
  4. 4. © Nixxis. All rights reserved. Some References
  5. 5. MY CONTACT CENTER PROFITABILITY?
  6. 6. © Nixxis. All rights reserved. Key Profitability Components: C.O.S.S. & Gross Profit Services Revenues Gross Profit - Labor consumed Overhead consumed - Energy - Depreciation - Management - Maintenance - etc. +Materials consumed CostOfServicesSold + +
  7. 7. © Nixxis. All rights reserved. Key Profitability Components: Operating Expenses and Operating Profit Cost Of Services Sold Sales of Services Gross Profit - Research & Development Sales & Marketing General & Administrative Expenses - Operating Expenses (non-mfg overhead) Operating Profit
  8. 8. © Nixxis. All rights reserved. Key Profitability Components: Profit Before Tax - Operating Profit Interest Expenses Other Financial Gains & Losses Profit before Tax
  9. 9. © Nixxis. All rights reserved. Key Profitability Components: Net Profit - Operating Profit Interest Expenses Other Financial Gains & Losses Profit before Tax Income Tax on Current Income - Net Profit
  10. 10. © Nixxis. All rights reserved. Main Profitability Ratios Gross Margin (%) = Gross Profit Sales Operating Margin (%) = Operating Profit Sales Return on Sales (ROS) (%) = Net Income Sales
  11. 11. © Nixxis. All rights reserved. Your Sales/Revenues Components Agents/Seat based Your own infra/somebody else’s Volume based Calls received/given, cases handled Performance based SLA based Commission based Revenue sharing based MoreRisks
  12. 12. © Nixxis. All rights reserved. Your Cost/Expenses Components Human Resources Telecom 70% Developed Regions Technology Misc. 9% 11% 10% 50% (-29%) Developing Regions 17% (+89%) 15% (+36%) 18% (+80%) Typical Agent Salary: 30,000 $/year 9,000 $/year Total Costs : 20-22 $/hour 7-9 $/hour
  13. 13. © Nixxis. All rights reserved. Your Total Costs are Agents dependent Volume (Agents) Cost$ 0 Fixed Costs Variable Costs Total CostsTotal Costs = Variable Costs + Fixed Costs
  14. 14. © Nixxis. All rights reserved. How do you dimension your Agent pool? Time Traffic(Calls) 8:00AM 8:00PM Mon Fri Jan Dec Inbound Traffic
  15. 15. © Nixxis. All rights reserved. 3 Choices to make Traffic(Calls) Overcapacity = Loose money Competitive? Right capacity = Loose money How to Predict? Under capacity = Make money SLA? Agent Capacity Agent Capacity Agent Capacity Time8:00AM 8:00PM
  16. 16. © Nixxis. All rights reserved. Typical SLA Components Average Speed of Answer: Measures the average speed in which agents first answer calls. Expressed in seconds for %age of calls received i.e. 80/20 means 80% of calls answered in 20 seconds. Often, “abandoned” calls are excluded. Percentage of Calls Answered: Percentage of inbound calls agents answer i.e. 95% of calls answered. Hold Time: Total amount of time a customer spends on hold. Handle Time: Total amount of time it takes an agent to handle a call. Occupancy: Amount of time agents spend handling calls. Relevant in deals where the fees paid are related to the number of Agents employed.
  17. 17. © Nixxis. All rights reserved. Agner Krarup Erlang (1878-1929) The ERLANG is a dimensionless unit that was originally used in telephony as a measure of load on telephone circuits. E=h  is the average Call Arrival Rate h is the average Call Holding Time (Handle time for Call centers) So, if the Call Arrival Rate is 2,7 calls/minutes and that the Handle time is 3,5 minutes, you will need a load capacity of 9,45 ERLANGS. Roughly, we can say that you will have 10 calls simultaneously. The ERLANG B Formula calculates the probability of Blocking for Telecommunication TRUNKS. The ERLANG C Formula calculates the probability of Queuing for incoming calls.
  18. 18. © Nixxis. All rights reserved. CAN I DO MORE WITH THE SAME OR LESS AMOUNT OF AGENTS?
  19. 19. YES you can!
  20. 20. © Nixxis. All rights reserved. Save commuting time: Home-working Startup interface NCS • ID • Password • Extension
  21. 21. © Nixxis. All rights reserved. Shorter handling time: Ergonomic screen Agent toolbar Telephony toolbar Campaign/activities informations Priority queues & calls informations
  22. 22. © Nixxis. All rights reserved. Shorter handling time: Use of Scripts
  23. 23. © Nixxis. All rights reserved. Shorter handling time: Real-time Help Request for Help from the Agent Notification of the request to the Supervisor Managing the Help request Chat/Message to the Agent
  24. 24. © Nixxis. All rights reserved. Shorter handling time: History review During a Call – Request of the Contact History Recording history available Listening previous conversations (also during a call)
  25. 25. © Nixxis. All rights reserved. Shorter handling time: Callback proposal Call Qualification (forced or not) Proposal of a Callback Programming Callback (for me, a colleague or my team) Insertion in the Callback Calendar
  26. 26. © Nixxis. All rights reserved. Shorter handling time: Action Calendar Appointment calendar management Many various actions possible (Script configurable) Management of several calendars Appointment confirmed
  27. 27. © Nixxis. All rights reserved. Better routing: IVR assistant (Interactive Voice Response) Chosing Languages and Menu Prompts definition Chosing keys concerned Ready for production
  28. 28. © Nixxis. All rights reserved. Better routing: Planning Management
  29. 29. © Nixxis. All rights reserved. Better routing: Preferred Agent control Preferred Agents: Routing callers to speak to the same agent they had XX days ago Allow Supervisor conversation listening Activity by Activity
  30. 30. © Nixxis. All rights reserved. Blending on various Inbound Traffic(Calls) Inbound Activity 1 Inbound Activity 2 Agent Capacity + =
  31. 31. Campaign 1 Database Team X Team Y Agent A Agent B 100% 100%Activity 1 Queue 1 Activity 2
  32. 32. Campaign 1 Database Team X Team Y Agent A Agent B 100% 100%Activity 1 Queue 1 Activity 2 TEAMOVERFLOW
  33. 33. TEAM OVERFLOW
  34. 34. © Nixxis. All rights reserved. Blending on Inbound & Outbound Traffic(Calls) Inbound Activity 1 Agent Capacity Used + = Outbound Activity 2
  35. 35. Campaign 1 Database Team X Team Y Agent A Agent B 100% 100%Activity 1 Queue 1 Activity N Queue 2 Activity 2
  36. 36. © Nixxis. All rights reserved. Blending on Multiple Channels Email Traffic Chat Traffic Social Media Traffic
  37. 37. © Nixxis. All rights reserved. Better dialing: 8 different dialing modes •Ready for new legislation & government directives • More results out of the same amount of records • Improving agent performance • Reduce campaign cost Extensive parameters settings can be defined Activity by Activity (planning, conditional, qualification based)
  38. 38. © Nixxis. All rights reserved. Better dialing: Predictive vs Progressive Progressive dialing Predictive dialing Dial Waiting Online Online Dial Dial Dial Online Wrapup Waiting Online Wrapup Wait Online Wrapup Dial Online Wait Online Dial Dial Dial Predictive offers 30-50% more productivity but abandoned rate must be managed
  39. 39. Campaign N Database Activity 1 Activity 2 Activity N Campaign 1 Database Team X Team Y Agent A Agent B 100% 100%Activity 1 Queue 1 Team Z Agent C 100% Queue 3 Activity N Queue 2 Team V Agent D 100% Queue 4 Activity 2
  40. 40. Campaign N Database Activity 1 Activity 2 Activity N Campaign 1 Database Team X Team Y Agent A Agent B 100% 100%Activity 1 Queue 1 Team Z Agent C 100% Queue 3 Activity N Queue 2 Team V Agent D 100% Queue 4 Activity 2 MultiwaveCampagnis
  41. 41. MULTIWAVE CAMPAIGNS
  42. 42. © Nixxis. All rights reserved. Better routing: Profit Based Routing Dynamic Profit profile can be associated to Queues Costs can be associated to teams Profit base value can be associated to activities
  43. 43. Campaign N Database Activity 1 Activity 2 Activity N Campaign 1 Database Team X Team Y Agent A Agent B 100% 100%Activity 1 Activity 2 Queue 1 Team Z Agent C 100% Queue 3 Activity N Queue 2 Team V Agent D 100% Queue 4 $$$ $$ $$ $
  44. 44. PROFIT BASED ROUTING
  45. 45. SO DON’T GET CAUGHT IN THE WEB OF CHANNELS
  46. 46. SIMPLY RELY ON NIXXIS TO HELP!
  47. 47. © Nixxis. All rights reserved. More informations: sales@nixxis.com +32 2 307 00 00

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