December 9, 2024
Contact Center Performance

10 Key Contact Center Metrics and KPIs to Improve Performance

Sarthak Ladhani
7 Minutes

Let’s say thousands of customer interactions take place in your enterprises’ contact center daily. You notice that some of the calls and chats are able to resolve the customer issues, while some calls stretch way over time than they should, and then there are some issues that end up with frustrated customers and overburdened agents.  

Now you know that something needs to change, but how to figure out what’s working and what’s not?

This is where contact center metrics come in handy. They’re the guiding light, helping you measure performance, understand your team’s efficiency, and fine-tune operations to deliver great customer experiences.  

In this blog, we’ll break down the essential metrics, why they matter, how they measure success, and what you can do to improve them. Let’s get in then.

What Are Contact Center Metrics and KPIs?

Contact center metrics are like a measuring scale for your performance data. They provide raw numbers like how long it takes to handle a call or how many issues are resolved in one go.  

Key Performance Indicators or KPIs take this data a step further—they are more aligned to your business goals, like improving customer satisfaction or reducing churn.

For example, metrics like First Call Resolution (FCR) or Average Handle Time (AHT) tell you how well your team is operating. But when you turn these into KPIs, they directly link to your objectives, showing whether your contact center is improving efficiency, enhancing customer experience, or achieving a solid return on investment (ROI).

Why Do You Need Contact Center Metrics?

Without call center metrics, running a contact center would be like flying without a nav system. Here’s why they’re critical:

Contact center metrics benefits
  • Customer Experience: Metrics help you understand what makes your customers happy and what drives dissatisfaction.
  • Operational Efficiency: They identify bottlenecks, allowing you to streamline processes and improve response times.
  • Strategic Decisions: Data-backed insights empower you to make informed decisions about staffing, training, or tech investments.
  • ROI Tracking: Metrics help you prove the value of your contact center to leadership by linking performance to business outcomes.
Key contact center metrics and KPIs

Customer Experience Metrics

Customer Satisfaction (CSAT)

A quick survey post-interaction helps you gauge how customers feel about your service. Higher scores? Great! Lower ones? Time to dig into what went wrong.

When a customer calls your contact center for an issue and at the end you ask them how satisfied they are with the support provided. That’s how you measure CSAT. It directly tells you how happy customers are with a specific interaction, or your products and service.

CSAT is calculated with the following formula:  

(Number of Satisfied Customers / Total Number of Survey Respondents) x 100

Customer satisfaction (CSAT) formula

A high CSAT means your team is doing something right—whether it’s quick issue resolution, friendly service, or clear communication. On the flip side, a low score is a red flag. It helps you pinpoint areas where your service might be falling short, like long wait times or unclear processes.

Net Promoter Score (NPS)

This measures customer loyalty by directly asking customers how likely they are to recommend your brand. You can think of it as a long-term derivative of satisfaction.

Typically, it is measured by asking the customers the following question:

“On a scale of 1 to 10, how likely are you to recommend our products or services to your friends, family and peers? 1 being the least likely and 10 being the most likely”

Based on the responses of the customers, they can be categorized into the following three categories:

How to calculate NPS

Promoters (who score 9 or 10) - these are the most enthusiastic and loyal ambassadors who will definitely recommend your product or service.

Passives (who score 7 or 8)  -  these are satisfied with the product or service but aren’t satisfied enough to become your promoters

Detractors (who score 0 to 6) - these customers are unhappy with your product or service and can even discourage others from buying from you

NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters.

Formula: (Number of Promoters ÷ Total Number of Surveyed Customers) − (Number of Detractors ÷ Total Number of Surveyed Customers)

First Call Resolution (FCR)

Companies must understand that no customer wants to call twice. FCR is your key driver of satisfaction, it tells you how often issues are resolved in the first interaction across email, phone and chat.

Higher the FCR, better is the contact center at understanding customer issues and addressing them with the right resolution. When issues are resolved at the first interaction, it makes the whole support process a very seamless and smooth experience for the customer with minimal effort.  

how to calculate first call resolution

FCR can be calculated by the formula: FCR = (Total Issues Resolved on First Contact ÷ Total Number of First Contacts) x 100

Looking into cases where customers had to reach out multiple times to get an issue resolved helps businesses pinpoint the root causes and figure out how to fix them.

When your FCR rate goes up, it’s a clear sign that things are moving in the right direction—for both your customers’ experience and your call center’s efficiency.

Most call centers aim for an FCR rate between 70% and 85%, but the best of the best are hitting over 90%, which is a great benchmark to strive for.

Operational Efficiency Metrics

Average Handle Time (AHT)

The AHT tracks the average time spent by contact center agents in resolving an issue, including hold times and post-call tasks.

Average Handle Time (AHT) formula

Formula: AHT = (Total Talk Time + Total Hold Time + Total After Call Work Time) / Total Calls Handled

Keeping an eye on handle time trends—like the difference between the shortest, longest, and average calls—gives you valuable insights to improve customer service, boost agent productivity, and resolve calls more effectively.

The goal is to strike the right balance between an ideal AHT and first-call resolution, making sure issues are fully resolved without rushing through the conversation.

If AHT is too low, it could mean agents are wrapping up calls too quickly and not fully solving the problem. On the flip side, a high AHT might point to inefficiencies in your processes or areas where agents need more training.

Continuously improving AHT helps ensure your customers get the fast, thorough support they deserve.

Suggested read: What is Average Handle Time and how to reduce it

Service Level and Response Time

Measures how quickly your team answers calls or chats, ensuring you meet customer expectations for timeliness.

Service Level is one of the most important KPIs for measuring how well a call center keeps up with inbound demand. It shows the percentage of calls answered by agents within a set amount of time—like 20 seconds.

A common target is 80% of calls answered in 20 seconds or less, but each company sets its goal based on customer expectations, cost efficiency, and overall service quality objectives.

Here’s the formula:

Service Level (%) = (Calls Answered in X seconds or less / Total Inbound Calls) × 100

Tracking Service Level over time and comparing it to internal goals helps assess efficiency, plan capacity, and ensure you’re meeting customer service standards.

If your Service Level consistently falls short, it’s a sign that adjustments are needed—whether that’s reallocating resources, revising agent schedules, or managing inbound demand differently.

A strong Service Level is critical for reducing customer wait times, minimizing call abandonment, and maintaining high service standards. Strategies like skills-based routing, cross-training agents, and staffing up during peak times can help you balance cost efficiency with hitting your Service Level targets.

Top-performing call centers typically aim for 80–90% or higher to ensure customers are getting prompt, reliable support.

Occupancy Rate

This tells you how much time agents spend actively helping customers versus waiting for tasks. High rates signal efficiency but be wary of burnout.

Occupancy Rate shows how much of their logged-in time agents spend actively helping customers versus waiting for the next call or task.

Here’s the formula:

Occupancy Rate (%) = (Total Handling Time / Total Logged-In Time) × 100

A good target is usually between 75% and 85%. If the rate drops below 70%, it might mean agents are spending too much time idle between calls, which can hurt both productivity and revenue opportunities.

Striking the right balance is key—keeping agents engaged without overloading them ensures both efficiency and quality in customer service.

Agent Utilization Rate

Agent Utilization Rate tracks how much of their logged-in time agents spend actively handling customer interactions within a specific period.

The formula is:

Agent Utilization Rate (%) = (Total Handled Call Time / Total Logged-In Time) × 100

Handled call time includes everything from talk time to hold time and after-call work, while logged-in time covers the total hours agents are on the clock and ready to handle calls.

A good utilization rate typically falls between 75% and 90%. This range ensures agents have enough time between calls to take breaks, handle personal needs, and complete administrative tasks without feeling overburdened.

Balancing utilization is key to maintaining both agent productivity and overall well-being.

Cost per Contact

Tracks how much each customer interaction costs your business. Lower costs with high-quality service show efficiency.

Cost Per Call (CPC) is a key metric that reveals how much it costs, on average, for a call center to handle each call. It’s a great way to track the financial efficiency of your operations and guide capacity planning and budgeting decisions.

Here’s the formula:

CPC = Total Cost of Call Center Operations / Total Calls Handled

A lower CPC means your contact center is running more efficiently and productively. Many companies set a target CPC and regularly check their performance against it—monthly or quarterly—to keep budgets on track.

Keeping CPC low while maintaining high service quality is the ultimate goal, helping to maximize both efficiency and customer satisfaction.  

How Metrics Measure the Success and ROI of a Contact Center

Metrics are more than numbers—they’re your success indicators. For example:

  • Higher FCR means fewer repeat calls, happier customers, and lower operational costs.
  • Improved CSAT and NPS boost brand loyalty, increasing customer lifetime value.
  • Lower AHT reduces operational costs while keeping service levels intact.

When you link these metrics to business outcomes, they demonstrate ROI. For instance, reducing churn by improving customer retention directly impacts revenue, proving your contact center isn’t just a cost center—it’s a value driver.

What Can Enterprises Do to Improve Contact Center Metrics?

Improving metrics isn’t just about tracking them—it’s about action. Here’s how:

Leverage Technology

  • Deploy AI-powered chatbots to handle common queries, freeing agents for complex issues.
  • Use analytics platforms for real-time insights into customer trends and agent performance.

Train and Empower Agents

  • Regularly train agents on customer handling skills and product knowledge.
  • Empower them to make decisions, resolving issues faster without escalations.

Focus on the Customer

  • Gather feedback through surveys and act on it.
  • Optimize your contact channels—phone, chat, email—based on what customers prefer.

Monitor and Adapt

  • Use dashboards to track KPIs and make data-driven adjustments.
  • Run periodic audits to refine processes and adopt best practices.

Conclusion

Metrics are the heartbeat of your contact center. They tell you how well your team performs, highlight areas for improvement, and link your operations to business success. By understanding and acting on these metrics, you can transform your contact center into a powerhouse of efficiency and customer satisfaction.

Now, it’s your turn—take a closer look at your metrics. Where are you excelling, and where’s the opportunity for growth?

Let’s start the conversation about how you can turn insights into action. Ready to take your contact center to the next level?

Frequently Asked Questions

  1. What is the difference between KPI and Metrics?
    Metrics are raw data points or numbers that tell you about the performance of a specific process while KPIs, which means Key Performance Indicators tell you how aligned your metrics are to the business objectives and goals are.  

  2. What is contact center automation?
    Contact center automation is the use of advanced technologies and systems with the goal of improving the overall performance and efficiency of the call center by streamlining the customer service processes.
  3. How to calculate SLA in a call center?
    SLA can be calculated by dividing the total number of calls answered in a specific time frame (say 20 seconds) by the total number of inbound calls received. This can be multiplied by 100 to get the percentage.

Frequently Asked Questions (FAQs)

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