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BPO Vendor Management Part One: Top 5 Tips for Better KPI Performance

BPO Vendor Management Part One: Top 5 Tips for Better KPI PerformancePartnering with a BPO vendor is a great way to unlock better experiences for your customer. But not all outsource call center partnerships are created equal — and they all require management.

Quite frankly: if you’re not challenging the status quo with your call center partnership, then you’re not doing enough.

Here are five top tips for setting better KPIs and crushing your goals:

Call Center Tip #1 — Don’t Choose Too Many KPIs

Targeting too many KPIs only adds confusion.

Working with your BPO partner, you should be able to add clarity to the KPIs that take priority.

Is sales revenue your sole focus in 2021? If so, then your KPIs should reflect that.

Don’t just unload a laundry list of goals rather than selecting the core KPIs that make the most sense for your brand.

The best way to add clarity is to be concise.

If you want to reduce costs AND boost customer experience, you don’t need dozens of KPIs fighting for your attention, especially when a few will do.

Call Center Tip #2 — Set Realistic KPIs

We all want to crush goals (and call center agents are no different), but setting the bar too high or too rigid creates frustration.

You can’t expect BPO agents dealing directly with customer complaints to maintain the same CSAT scores as those handling account upgrades, for example.

It’s important that your call center can understand and articulate the methodology behind your KPIs and why they matter. Otherwise, you’re fighting for metrics that don’t drive business results for your brand.

KPIs that are set too high will cause agents to fall short and lose morale; Too low, now you’re missing out on revenue and customer service improvements.

Call Center Tip #3 — Avoid KPI Cannibalization

While it might sound like a morbid concept, KPI cannibalization is an important pitfall to avoid. Sometimes one KPI will inevitably lower another, and KPI cannibalization is the act of setting success metrics that pull in opposite directions.

Don’t waste time pairing conflicting KPIs, such as setting a lower agent AHT goal with increased upsell targets. By nature, upselling requires time for agents to explain the benefits of your brand’s products.

Make sure your BPO call center is monitoring KPIs that align harmoniously and target meaningful business goals.

Call Center Tip #4 — Keep Consistent to Boost Performance

KPIs shouldn’t be viewed as quick wins, but rather as appreciating investments. Don’t limit your success by abandoning course or shifting primary KPIs too quickly.

If you want to make first call resolution a top priority — but only commit to the goal for a week — it’s highly unlikely to have a meaningful impact on your business. It typically takes at least 2-4 weeks for a KPI change to show improvement.

Keep regular conversations with your BPO call center about KPI performance and build a strategy for hitting your targets.

Most agent initiatives will fail if the window of opportunity is too short —so don’t draw hasty conclusions that stifle the compounding effects of consistency.  Build a strategy with your BPO vendor AND STICK TO IT.

Call Center Tip #5 — Collaborate and Calibrate

Lastly, make sure you’re leveraging your BPO’s expertise in real-time. The KPIs most important to your brand will constantly be evolving. So make sure to offer your BPO vendor opportunities to provide feedback and suggestions.

While no one knows your brand better than you, no call center should know how to help you better than your BPO vendor.

Work with your BPO partner to align your KPI goals with this six-step process:

  1. Identify your target KPIs — “We want to reduce our average handle time.”
  2. Agree on success measures — “Reduce your hold time by 30%.”
  3. Set your KPI timeline — “By the end of month 1 it should be X, month 2, Y, and by end of the quarter it should be Z.”
  4. Run experiments — “We’re going to segment agent performance between daytime and evening.”
  5. Review/Reward — “We’ve identified training opportunities as well as top performers.”
  6. Adjust KPIs as needed — “Let’s discuss which goals make sense now.”

Managing BPO Vendor Best Practices

These five tips will help you hone your KPI targets and get better results. It will also help you manage a stronger vendor relationship.

But if you still haven’t found the right BPO partner for your industry (one that is committed to driving huge KPI success), contact our call center experts for a free no-risk, no-cost consultation today!