How to Calculate Individual Contribution (ICon) in Your Contact
By Scott Bryant, principal, Dirigo Partners LLC
If you've ever wished for a single, comprehensive metric to evaluate the performance of your customer contact center, or if you've ever been asked by a call center rep (CCR), "Do you want me to be fast or to provide good service?" this article is for you.
Probably no single measure is so comprehensive as to replace all others, but a contribution approach — which I call Individual Contribution, or ICon — can provide great one-stop insight into overall performance, and can help quantify the balance between time and service.
The following calculation illustrates how the concept of contribution to profit and overhead might be applied at the individual CCR level. Start with:
Sales from orders taken by the CCR
+ other revenue (e.g., commissions from affinity programs)
- wages (including benefits)
- phone usage charges
- cost of rework
- customer service wages associated with resolving problem orders
- cost of returns/exchanges
- cost of appeasement (e.g., coupons, shipping reimbursement, discounts)
- incentives (e.g., bonuses, commissions)
- cost of deviation from standards
- occupancy (the amount of time a rep is on a call or available to take one)
= individual contribution to profit and overhead
Once the ICon calculation is made, it's easy to roll up the evaluation to the team and department levels.
There may be a tendency to try to make the contribution components unnecessarily precise. Don't do it. As long as the input is reasonable, accurate and consistent, it doesn't need to be taken out to 10 decimal places. For example, instead of trying to identify and evaluate the detail of each contact after the sale, it probably makes more sense to apply a standard cost per minute or per transaction when addressing the expense of problem resolution.