8 Key Metrics Telemarketing Companies Need To Evaluate Performance

Being able to measure performance is more important than the campaign itself.

By Melissa Hinrichs, Director of Client Service

One of the key factors for telemarketing companies to manage an outbound telemarketing campaign is being able to measure how the program is going. Is it succeeding? Is it failing? Are there issues with the script, the leads, or the agents? These are questions we need to ask each and every day.

Many factors go in to making a program successful. For telemarketing companies and the world of reporting, it is important that we supply the team with all of the information they need to evaluate the program from top to bottom in an easy to read report. This way they have the data and can make the necessary adjustments to ensure a successful program for both the call center and the client.

Here are 8 Key Performance Indicators (KPI’s) that should be included in reports for telemarketing companies. These KPI’s are used to measure, evaluate and assess program performance.

1.Sales Per Hour (SPH): This metric is defined as the number of sales made divided by the number of hours and is common for telemarketing companies to use to measure success. The number of sales in an hour is a common question that we hear multiple times throughout the day. This is an important KPI because we strive to get the most sales each hour so we can be successful.

Although the SPH is very significant it is just as important to know that it’s not the only metric that matters. There are other KPI’s such as Contacts Per Hour, Talk Time and Conversion Rate to name a few. These are all essentials for a team to be evaluate as they all play a role to help increase the SPH.

2. Contacts Per Hour (CPH): This is simply how many contacts we are able to make in each hour (total contacts divided by total hours). This is important because if we are not contacting customers, we certainly cannot sell to them.

CPH can be evaluated many ways. Be sure to look to see if there are certain hours throughout the day that peak for reaching contacts or simply evaluate if it’s a particular day. When you are able to identify the best time for contacting customers, it most certainly provides an advantage on setting the team up for generating more sales.

If the CPH is low, dig into the data and ask why. Consider if the list is good or if there are potentially a lot of bad numbers. These are important questions that telemarketing companies should not forget!

3. Conversion Rate – This calculation is made up of the number of opportunities we spoke with that turned into a sale (total contacts divided by total sales). So regardless of how many hours are spent on a campaign, this helps evaluate how the team is doing when they reach a decision maker. This is important to know on many levels.

If the conversion rate is low, again it’s important to evaluate why. Questions to ask: is the script good or could it use some fine tuning, are the agents using appropriate rebuttals, are we calling into the right market? On the flipside, although we all desire the highest conversion rate possible, we have to be conscientious of the quality of sales generated. It’s important that we always make good and high-quality sales!

4. Average Talk Time (ATT): This is the average time that an agent is talking on the phone to the customer. This metric is important to telemarketing companies because this can be helpful because it helps identify areas of opportunity, too. If the Average Talk Time is high, the script may weigh the calls down or there could be an opportunity to do some coaching with the agent. Perhaps a reminder is needed to make sure the agents are being as clear as possible when speaking with the customer. If it’s the script bogging down the calls maybe, it’s time to re-evaluate the script and adjust as needed.

5. Average Wrap Time (AWT): This is the average time it takes an agent to wrap up a call. Some sales campaigns don’t have much wrap time because most of the information is done while talking with the customer. At times there is extra information that needs to be recorded from the call before it’s completely done.

This metric is important to evaluate as it’s good to understand how long it takes for agents to wrap up a call. Are there some agents that are not being efficient after the call to get to the next one? Is the task of wrapping the call or record cumbersome and needs to be re-assessed? Is there a way to streamline the wrap up to improve the AWT? The more time the agents are actually talking on the phones, the better chance of improving the SPH.

telemarketing company6. Dials Per Hours (DPH): Total dials divided by the number of total hours is the definition of this metric. It is vital that we make sure that the dialer is dialing as efficiently as possible. If we aren’t dialing as efficiently as possible, this can hurt all other metrics. Less contacts made means less sales per hour.

7. Finalized Per Hour (FPH): The metric is calculated by the number of finalized leads divided by the total number of hours. The reason that it is important to watch this KPI is, so we know if we have enough leads to support the dialing strategy in place or if we’ll need to supplement with additional leads.

If we are finalizing more records in an hour than what we originally anticipated, it is important to see if there’s a potential issue. Something to consider if there are bad numbers that we’re cycling through. It’s good to evaluate all possibilities.

And finally, it’s important to know the Return on Investment for the client.

8. Return on Investment (ROI): This is such a crucial KPI, especially for clients. The basic way ROI is defined is the total sales revenue generated by the campaign divided by the actual cost of the campaign. This is a way that clients can ensure the investment that they are making is worth it.

Being able to get sales is great but if it costs more than the sale itself is actually worth, it may not be prudent for the client. In order to get the best ROI for our clients, we need to consider all the metrics we’ve just reviewed. It’s important to be efficient in our dialing and in working each and every lead while representing our clients with excellence.

There are so many factors in making a sales program successful. Knowing what to look for during the course of calling a program is vital to each client and every telemarketing companies’ success. Let’s make a pact to strive each day to ensure we are looking at opportunities to maximize the effectiveness of each program.

Interested in exploring the metrics and definitions a little further? Take a look at our Outbound and Inbound Glossary of Terms.

Melissa Hinrichs is Director of Client Services for Quality Contact Solutions, a leading outsourced telemarketing organization. Melissa leads a talented team that ensures client data and reports are delivered on-time and without errors. With more than 20 years of database management and reporting experience, Melissa loves helping her clients make better business decisions by providing them with relevant data and reports on a daily basis. Melissa can be reached at [email protected] or 516-656-5125.


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