Figuring out what to manage and measure in the contact center can feel like unpacking the formula in Good Will Hunting. However, this isn’t a riddle for the janitor, so we will make it really easy for you when it comes to the metric everyone should have their eye on: Abandoned Call Rate.
It is the silent killer siphoning millions of revenue every day, worldwide. The benchmark is between 5% and 8% depending on the industry. However, it is not uncommon to see that rate creep into the double digits and even 20% or higher. Reducing that number by even 2-3% can recoup millions of dollars.
How To Calculate The Cost Of An Abandoned Call
Calculating the cost of an abandoned call is simple. Take your average sale price when a sale is made and multiply that by your close rate. In this example, a sale is valued at $250. You can imagine how high the lifetime value of a client can be in the subscription age, so setting this at $250 is a conservative figure.
Cost Per Abandon Example
|Average Selling Price||$250|
|Cost of Abandoned Call||$10|
In our example, each abandoned call is worth about $10 dollars. If you have even a 25% reduction this can bring big savings to your bottom line.
It’s Not An “Abandoned Call” It Is Abandoned Revenue
“Abandoned Call” is really just a nice way of saying lost revenue. Because that is what we are talking about. Think about it this way, if you are at Starbucks and you see people standing in line for 2 minutes and then leaving, you KNOW they had every intention of purchasing coffee. Yet they left, and that is lost revenue.
Your customer was waiting in line and just left. The only difference is you have a “ticker” or screens showing the abandoned calls, not a face. So maybe that is easier to stomach, or ignore? With all of the options to reduce lost revenue, it is a problem that can bring visible ROI in a short period of time.
Using Automation To Reduce Lost Revenue In The Contact Center
Automation, simple automation for the contact center, can reduce abandoned calls. Which reduces lost revenue, or should we say helps you realize revenue that was always there. Let’s be clear, “abandoned call” is actually “abandoned conversations” which include social, chat, email, SMS, and so much more. Because a “contact” can be made in so many channels.
IVR For Abandon Rate: Depending on the industry, 15-20% of calls can be deflected or handled with IVR. This helps twofold in handling calls so they are addressed and freeing up agents to handle those Tier 2 and above calls.
Call Back Option: This seems so simple & straightforward however not all contact centers have adopted this option. Between 30-60% of customers will wait for a callback. This can bring a huge abandonment rate reduction.
Omni Channel Automation: If you could capitalize on even half of the abandoned conversations annually, the ROI on any automation adds up quickly. That is why Omni Channel Automation in the Contact Center is a critical improvement.
Calculate Your Savings
|Number of Calls (interactions) Annually||300,000|
|Abandon Rate Reduction||25%|
|Abandoned Calls Eliminated||11,250|
|Savings @$10 Per Call||$112,250|
One Call Changes Everything For Your Contact Center
We have only touched on a few of the many automation tools in the contact center. So where should you start? A conversation brings clarity, and no two companies are the same. Having a contact center consultation is where all of our success stories are born. We would welcome a conversation with you or your team.