2021 Talkdesk Global Contact Center KPI Benchmarking Report

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TALKDESK REPORT2021 Talkdeskglobal contactcenter KPIbenchmarkingreport

Foreword2020 was a more demanding year than we evercould have expected. The global repercussions ofCOVID-19 permanently changed the way we behave,work, and think about the future. And the dust hasn’tsettled yet: countries are still healing from the director indirect socioeconomic effects of pandemiccontrol measures.But turbulence is also transformative. And together,we did our best to adapt.To adapt means making something suitable for a newuse or purpose and adjusting to new conditions. Forbusinesses, adapting means transforming customerexperience (CX) strategies and optimizing operationswhile dealing with countless competing priorities andtrade-offs.In the wake of the pandemic, increasing digitaladoption and growing competition are fuelingcustomer emancipation. There’s an opportunityto embrace the power of data to face these newcomplexities.To be better in an ever-changing economic climate,Talkdesk believes in benchmarking as a priority ofcontact center strategy. Leveraging benchmarkingand data hubs to enhance performance andproductivity is crucial to deliver a better wayto great customer experience.Are decision-makers more prone to embrace thevalue of data in this new context? Is your contactcenter retrieving the right answers? Are you askingthe right questions? If you are not sure, start small.Use this report as a starting point.This report presents benchmarks for five handpickedcontact center performance metrics applied toa wide range of industries, company sizes, andlocations to inform critical business decisions,helping you use data as a tool for transformation—not as a byproduct of turbulence.Sincerely,FILIPA FERNANDES DA SILVAProduct marketing manager,AI and insightsTalkdesk2

MethodologyHandpicked metrics for operation leadersThe data presented in this report is proprietaryto Talkdesk. It represents the average performanceof a sample size of over 2,200 clients from a widerange of industries and across six continents: Africa,Asia, Europe, North America, Oceania, and SouthAmerica.This data was collected from the Talkdesk platformbetween January 1, 2019, and December 31, 2020.3

Table of contentsIntroduction 05I.The importance of benchmarking06The benefits of benchmarking07Key findings and metrics102020 Overview11III.Metrics deep dive14IV.Metrics by:II.Industry 24Location 26Company size31Contact center size32Conclusion 33

IntroductionThe 2020 Talkdesk contact center KPI andbenchmarking report unveiled insights into thechallenges that COVID-19 caused in the first halfof the year. Little did we know then that a year laterwe would still be facing new challenges, nor did werealize how well contact centers could weather them.As we look back at contact center performanceunder a full year of pandemic restrictions,we haveseen two significant impacts on business operations:work from home (WFH) and the acceleration oftechnology adoption and digitization, making thevalue of cloud technology more prominent andessential for business continuity.This abrupt shift has fundamentally reshuffledbusiness priorities. However, we are not going backto the old order of operations. So, as companiescontinue to adapt to ongoing uncertainty and setnew goals and priorities, tracking the most criticalKPIs against those goals is paramount. But, witha radically different landscape in 2021, how cancontact centers know the right moves to make?Navigating this change starts with learning moreabout peer performance in 2020 and comparingagainst it.This report analyzes the call data of morethan 2,200 Talkdesk customers in differentlocations and industries, from SMBs toenterprise organizations.The 2021 Talkdesk global contact center KPIbenchmarking report measures and examines theimpact felt by contact centers in metrics such asaverage talk time and service level, analyzing the calldata of a sample size of more than 2,200 Talkdeskcustomers in different locations and industries, fromsmall and midsize businesses (SMBs) to multinationalenterprise. This resulting report contains a firstlook at these metrics, providing a snapshot of theimpact of the pandemic on contact centers.5

I. The importanceof benchmarkingLong before the COVID-19 crisisemerged, advances in technologyhad already sparked a shift in thetraditional contact center model.Rather than a straight cost center,contact center agents establishedthemselves as a bridge between abrand and its customers. This tie grewstronger as shelter-in-place and otherrestrictions forced companiesto abandon their physical operations—from retail stores to bankbranches—and quickly pivot to aremote-work model. With customersunable to engage with brandsin person, customer relationshipmanagement fell to the contact centeragent, rather than a store clerk oroffice associate.Given the differences in workingconditions during the pandemic, is iteven still worth benchmarking contactcenter KPIs from such an outlier ofa year? In one word, yes. Once newremote working protocols were inplace, many organizations found thatthis new way of working, worked. Andworked even better in some areas.Benchmarking helps all organizationsunderstand how and where thesechanges helped, or impeded, theircontact center operations.“I think oftentimes you have the system in place but you don’tnecessarily have the bandwidth or the capabilities to really measure.And so leaning into the experts. you’ve invested in the softwaresolution, but really leaning on that team to look at the numbers froman outsider’s point of view and just kind of make recommendations,kind of talk you through, and want to help you improve. I think that’sreally valuable.”— DIRECTOR, E-COMMERCE & DIGITAL MARKETING - ONLINE CLOTHING RETAILERContact center benchmarking is a structured, systematic process of continuallyidentifying, examining, deploying, and reviewing best practices to gain andmaintain competitive advantage. It’s easy to understand why it is even moreimportant as parts of the world slowly begin to re-emerge from pandemicconditions.Benchmarking allows center managers to determine best practicesand to critically evaluate their business and implement changes whennecessary.6

The benefits of benchmarking1. Identifies urgent areasof improvement2. Uncovers areas for improvedefficiencyBenchmarking can identify ineffective practicesto help establish priorities by highlighting areas inwhich you are underperforming compared to peers.Comparing your operational costs to industrymeasures allows you to understand if your costs areabove, below, or average, and if you are more, less,or equally affected by them.When focusing on contact center effectiveness,it can be helpful to compare some of the followingmetrics: Customer satisfaction (CSAT) First call resolution (FCR) Average revenue per contact (including percentageof upsell or cross-sell opportunities)When assessing contact center efficiency, it can behelpful to compare the following metrics: Average speed of answer (ASA) Average talk time (ATT) Average after-call work time (ACW) Average abandonment rate (AAR) Average time to abandon Average waiting time (AWT) Average handle time (AHT) Volume of inbound and outbound calls7

3. Supports testingof improvement initiativesContact center benchmarking allows you to assessthe effectiveness of initiatives deployed during thepandemic. This can strengthen the contact center’scompetitive advantage by supporting and improvingefficient practices and fosters innovation.By evaluating successful - and unsuccessful - actionsin your industry, you can leverage the experiencesof others: New ideas that have proven successful inother companies can be adopted in your organizationto accelerate growth and adaptability.Benchmark your contact center KPIsto see where you stand against yourpeers. Compare key metrics to recognizemarket trends, fix pitfalls, and uncoveropportunities to improve customerexperience.8

The statistics for 2020are inextricably linked to thepandemic and the implicationsthis has had for businessesglobally. Over the last year,we have seen: The number of permanent remote workers surged to 86% by June2020 the (Talkdesk Business Continuity Survey). Accounts where inbound calls were not managed through TalkdeskCloud before 2020, experienced an average call abandonment rateof 7.86% (accounting for 25% of total inbound call volume of 2020). Average talk time increased 13% for an average of 3m 35 secsin 2020. Average hold time increased 71% in 2020 to an averageof 3.13 seconds. Average speed of answer decreased slightly, down 1.6% to lessthan 8.5 seconds.Over 2020, these KPI benchmarks have offered an informative insight intothe performance, pitfalls, and opportunities for success for contact centers.9

II. Key findingsand metricsIn 2020, contact centers that used data to their advantage were able toremain responsive and deliver effortless customer journeys to outperformtheir competitors. Adapting to a situation for which there was no playbook,however, also meant dealing with competing priorities and making trade-offsas contact centers looked to maintain an exceptional customer experiencewhile also optimizing technology and operations for cost reduction.KPIKPIAs mentioned earlier, benchmarking can and should be your first step.Exceeding at core contact center competencies implies a high-functioningcontact center with streamlined interaction handling, agent efficiency andreduced attrition, and resource optimization.You should: Understand relevant KPIs for your business goals. Compare performance against your competitors. Establish benchmarks with best ways to improve your KPIs.10

2020 Overview86%According to contact center analyst firm Contact Babel, just 13% of agents werepermanent remote workers before March 2020. However by June last year, withlockdown requirements around the world, that number surged to 86%, accordingto the Talkdesk Business Continuity Survey, with over ¼ of Talkdesk customers(27%) indicating they shifted to a work from home setting and intend to remainremote for the foreseeable future. Most companies were understandably illequipped to support a remote contact center environment long-term, and theyquickly realized the need for extraordinary adjustments and operational reformsto keep work-from-home agents effective and efficient. In a matter of a fewmonths technology adoption leapfrogged years of development.“I think COVID really accelerated our digital presence by about fiveyears. The pace that we were going to get more of a digital presenceout there got turned on its head during COVID.”— CHIEF INFORMATION OFFICER, REGIONAL HOSPITAL NETWORKof agents werepermanent remoteworkers in Junelast year27%of Talkdesk customersindicating they shifted to awork from home setting andintend to remain remote forthe foreseeable future11

76%According to a recent Talkdesk survey, 76% of customersvalue the ability to engage with companies on theirpreferred channel, such as email, phone and social media.(Talkdesk Digital Customer Survey, Talkdesk Research,October 2020).of customers value the abilityto engage with companies ontheir preferred channel, suchas email, phone and socialmediaThese factors prompted many contact centers to turn tothe adaptability of cloud-based technology solutions, andmany report they are likely to continue to rely on them longterm. According to a 2020 survey, 72% of CX professionalsprioritize leading the digital transformation of their contactcenter. (Talkdesk CX Professional Digital Priorities Survey,Talkdesk Research, October 2020). Going back to “businessas usual” is not an option.72%of CX professionalsprioritize leading the digitaltransformation of theircontact center12

MetricsMetricsAverageabandonment rateAverage talk timeAverage hold timeAverage speedof answerService level20194.21%3m 09s1.83s8.6s85.6%2020% Var YoY2021 so farJanuary to April5.91% 0.30pp6.44%3m 35s 26s4m 09s3.13s 5%70.8%1.6%2.5%13

III. Metrics deep diveAverage abandonment rateABANDONMENTRATE# ABANDONED CALLS IN QUEUETOTAL # INBOUND CALLS - # ABANDONED CALLS NOT IN QUEUETalkdesk defines abandonment rate as the percentage of calls terminatedby callers after being added to a queue. This KPI gives an insight into howmany calls were terminated before they had the opportunityof being connected with an agent.Data point: For all Talkdesk customers in 2020, the averageabandonment rate was 5.91%.Due to the impact of the pandemic onstaffing and call volumes, contact centersstruggled to keep up with call volume.Even though callers were willing to spendan increased average of 4.22 minuteswaiting for an agent (a 69% increaseover 2019 wait times), the averageabandonment rate in 2020 rosea whopping 40% (from 4.21% to 5.91%).Much of this change can be attributed tonew accounts, which prior to 2020 did notmanage inbound calls through Talkdeskcloud; this group experienced an averageabandonment rate of 7.86%, or 25% of totalinbound call volume.Average of 4.22 minuteswaiting for an agent69%Increase over 2019wait timesAverage abandonmentrate of 7.86%25%of total inbound callvolume14

Not surprisingly, abandoned calls increased during thefirst COVID-19 surge (in March, April, and May) as wellas during the fall and winter surge, with Decemberreaching the highest variation from a year prior. This canbe attributed not only to lockdowns pushing previouslyin-person interactions to the contact center, but also thegreater pressure placed on agents, adjusting to remotework, new technologies, and workflows.To optimize average abandonment rate:Employ workforce management tools and improvecall peak forecasting.Automate repetitive tasks so agents can focuson delighting customers.Deflect calls with an omnichannel strategy.Key takeaway: 63% of customers saythat a single poor customer serviceexperience will negatively impact theirbrand loyalty (Talkdesk Digital CustomerSurvey, Talkdesk Research, October 2020).Despite an increase in customer patience,contact centers weren’t able to keep upwith the surge in interactions, leavingcustomer concerns unattended and salesopportunities untapped.Implement a call-back option:70% of customers place importance on the abilityto select a call-back versus waiting on the phone.(Talkdesk Digital Customer Survey, Talkdesk Research,October 2020)Use in-queue time to deliver important information.15

Average talk timeAVERAGE TALKTIMETOTAL TALK TIME# HANDLED INBOUND CALLSORAVERAGE TALKTIMETOTAL HANDLING TIME - TOTAL HOLD TIME - TOTAL WRAP-UP TIMEIn 2020, customers needed to talk. According to the Talkdesk DigitalCustomer Survey from October 2020, 82% of customers believe itis important that a company is able to solve their inquiry/problemaccurately. Average talk time (ATT) at Talkdesk customer contactcenters increased in 2020, up 13.5% from the year prior to an averageof 3.09 minutes. While nearly half (47%) of calls lasted three minutesor less, the single time tier with the highest percentage of calls was sixminutes or longer.# OF CALLS HANDLEDTalkdesk defines average talk time (ATT) as the amount of time an agent spendstalking with customers, excluding other activities an agent might need to completean interaction.Data point: For Talkdesk customers, theaverage talk time was 3:35 minutes in 2020.82%of customers believeit is important that acompany is able to solvetheir inquiry/problemaccurately16

Some of this increase can be attributed to agents fielding complexissues, as a significant portion of simpler calls are now beinghandled via self-service digital tools such as chatbots.On its own, ATT doesn’t provide a complete picture of quality ofservice. For example, when an agent spends more time speakingwith a customer, the negative impact to ATT is often outweighedby increased customer satisfaction (CSAT), if that time is spentfully resolving an issue or otherwise leaving the call with a positiveexperience. If the end goal is to improve customer experience,the negative hit to ATT is a worthwhile investment.To optimize average talk time:Drive training improvement insightsby listening to calls.Leverage faster responseswith intelligent call routing.Simplify agent effort withagent assistance technology.Key takeaway: Having a higher or lower average talktime is not inherently good nor bad; it’s importancelies in the impact on average handle time (AHT)and customer-facing metrics (CSAT, NPS, etc.).17

Average hold timeAVERAGE HOLDTIMETOTAL TIME INBOUND CALLS WERE ON HOLD# TOTAL INBOUND ANSWERED CALLSTalkdesk defines average hold time as the measure of time customers were puton hold when on a call with an agent. Hold time should not be confused withwait time, which is defined as the time a customer had to wait before an agentanswered the call.Data point: The average hold time for Talkdeskcustomers was 3.13 seconds, in 2020.Leaving callers on hold hurts the customerexperience. 81% of Talkdesk customersplace importance on a company’s abilityto solve their inquiry/problem quickly,according to the Talkdesk Digital CustomerSurvey. Given the higher call volumesprompted by the pandemic, average holdtime increased alongside other metrics in2020, rising to an average of 3.13 seconds,71% higher than 2019 hold times (1.83seconds). Longer average hold timescorresponded with an increase in calllength (when compared to 2019 data).81%of Talkdesk customersplace importance on acompany’s ability to solvetheir inquiry/problemquicklyThis increase in average hold time maybe the result of callers with more complexissues, requiring the agent to researcha solution or transfer the call. As statedearlier, many contact centers havedeployed self-service digital support tohandle simple, frontline issues, which freesagents to resolve more complex calls.18

To optimize average hold time:Key takeaway: Decreasing AHT will reduce contact centers’cost per contact driven by the ability to handle more callswith the same number of agents. To drive down AHT withouthurting the customer experience, first analyze current AHTas well as total wrap up time.Together, average hold time and average talk time impact averagehandle time (AHT). A high average hold time negatively affects AHT aswell as overall contact center efficiency. Common causes for putting acustomer on hold are searching for additional information or transferringa call to a more suitable agent or department. Agent training andoptimized call routing workflows can reduce average hold time withouta negative impact on the customer experience.Assist agents with AI-powered tools:80% of CX professionals believe AI will providea better overall contact center experiencefor customers(Talkdesk CX Professional AI Predictions Survey,Talkdesk Research, March 2021)Leverage faster response with intelligent call routing.Identify the root causes of long hold times by listeningto every interaction.Help agents and customers help themselves with anintelligent knowledge base.“Putting more information out there for the customer is justgoing to make their whole experience better.Of course,it’s [also] going to lower the amount of users that you havecalling or accessing the chat lines as well.”— DIRECTOR OF OPERATIONS & BUSINESS DEVELOPMENT - ONLINE LISTINGS SERVICE19

Average speed of answerAVERAGE SPEEDOF ANSWERTOTAL TIME CALLS SPENT RINGING# ANSWERED CALLS (IN SECONDS)Talkdesk defines average speed of answer (ASA) as the amount of time it takesagents to answer an inbound call, including time when the agent’s phone rings,but excludes the time the caller spent in IVR or queuing.Even though contact centers experienced significantlyhigher call volumes in 2020, average speed of answerimproved slightly, with the average call getting pickedup by an agent in just 8.47 seconds (a 1.6% decreasefrom 8.6 seconds in 2019). This reduction may be anindicator of the pressures contact center agents wereunder to clear queues and quickly answer their next call.Data point: On average, the average speed of answerfor Talkdesk customers was 8.47 seconds, in 2020.20

When contact centers improve ASA, there is less time betweenthe moment when the phone rings and the moment when theagent answers the call. While this improves agent productivity,it has less impact on CSAT since the caller’s journey startedwhen the number was dialed and routed through the systemand queued until an agent was available.Key takeaway: Rather than looking at average speedof answer as a stand-alone metric, contact centermanagers should tie it together with average waittime to determine the total time a caller spendsbefore reaching an agent.According to a recent Talkdesk Research study, self-serviceis the #1 priority for contact center automation.84%of CX professionalsbelieve customersexpect 24/7 self-serviceoptions69%To optimize average speed of answerand average wait time:Streamline staffing and scheduling whilereducing admin tasks.Decrease agent attrition by examining commoncauses for turnover.Simplify your IVR and routing strategy.Evaluate different customer requirementson waiting time and diversion strategies.Use self-service to drive more productiveconversations.of organizations haveinvested in AI/automationfor customer self-servicefeatures21

Service levelSERVICELEVEL# ANSWERED CALLS # MISSED INBOUND CALLS WITHIN THE THRESHOLD# ANSWERED CALLS #TOTAL MISSED INBOUND CALLSTalkdesk defines service level (SL) as the percentage of calls answeredand missed within a predefined threshold, e.g., 20 seconds. SL measuresthe availability of a company to its customers.Service level is the holy grail of contact center performance andcustomer service quality management. While overall average servicelevel dropped slightly — down 2.5% from 2019 numbers to 82.5% amajority (62.5%) of Talkdesk customers maintained service levels abovethe industry standard of 80%. More than one-third (38.5%) of Talkdeskcustomers achieved service levels above 90%, quite an achievementamid a global pandemic.Data point: The average service level forTalkdesk customers was 82.5% in 2020.62.5%of Talkdesk customers maintainedservice levels above the industrystandard of 80%38.5%of Talkdesk customers achievedservice levels above 90%22

In an attempt to shore up service levels as call volumes rose and the pandemicspread, contact centers adjusted service level thresholds up by an average of35% from 2019 levels. But that proved not to be enough to maintain the previousyear’s performance amid rising call volumes and other external pressures contactcenters faced in 2020.Service level should be taken in context with the other KPIs presented in thisreport, as well as in connection with customer-facing metrics. Accommodatingdifferent thresholds across these KPIs can have a positive impact on servicelevels.Key takeaway: Service level can provide a high-leveloverview of contact center performance. Customermetrics and other KPIs provide more detail into whereagent productivity and efficiency can be improved.23

IV. Metrics byMetrics by industryAverageabandonment rate(%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level cial Services& Insurance6.85%4.01m4.13s7.91s80.69%Government & 26s79.70%Industry24

Metrics by industryAverageabandonment rate(%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level (%)Manufacturing5.41%4.15m4.17s8.92s81.08%Media & Communications5.36%3.45m2.56s8.31s84.89%Mining, Oil & s85.42%Retail, Ecommerce& Consumer .28%2.56m1.87s8.04s81.14%Transportation & Logistics7.40%4.03m5.52s7.68s77.94%Industry25

Metrics by locationAverageabandonment rate (%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level 33%0.36m-12.88s-Location countryColombia26

Metrics by locationAverageabandonment rate (%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level 41s94.77%Czech ation countryCosta Rica27

Metrics by locationAverageabandonment rate (%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level s8.44s76.84%Location countryMoroccoNetherlands28

Metrics by locationAverageabandonment rate (%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level (%)New 5m3.3s9.37s74.99%Puerto s81.14%-3.39m1.66s9.12s88.61%Location countryPeruRomaniaSingapore29

Metrics by locationAverageabandonment rate (%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level United ArabEmirates1.44%3.54m0.17s6.11s95.94%United Kingdom7.51%3.32m3.51s8.25s80.35%United States 1m3.4s8s61.54%Location countrySpain30

Metrics by company sizeCompany size(# employees)Averageabandonment rate (%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level 1000 6.92%4.36m3.09s8.03s80.94%1-531

Metrics by contact center sizeAverageabandonment rate(%)Average talk time(minutes)Average hold time(seconds)Average speedof answer (seconds)Service level (%) 50 seats4.65%1.10m0.92s7.54s89.62%50 - 100 seats0.66%0.38m0.04s7.37s83.10%101 - 500 seats4.83%1.50m0.39s8.34s91.00%501 - 1000 seats4.56%1.36m1.07s6.83s88.67% 1000 seats6.06%4.58m4.8s9.18s79.78%Contact center size - # Seats32

ConclusionWe have seen that 2020 was a year like no other;contact centers were impacted in unpredictableways and have had to adapt to the ever-changingcircumstances. While organizations have differentstructures, strategies, and objectives, KPIbenchmarks have been able to provide us with aninformative view into contact center performanceand enabled us to discover trends, avoid pitfalls,and uncover opportunities for improvement.Going forward, we must learn from our collectiveexperience. With the increase and abundance ofCX digitization, companies need to ensure that theymeet the customer’s ever-evolving expectationsto deliver continuous, high-quality customerexperiences.As we enter a time of reimagining many systems,establishing contact center KPIs and discoveringhow your organization ranks amid peers can greatlyinform the decision-making process. It is moreimportant than ever to use this business intelligenceas the competitive advantage that drives yourbusiness to reach its goals on the journey towardstransformation.We hope this year’s report has provided perspectiveand insight into leveraging your organization’sresources to define, track, and act on KPIs to prepareyour contact center to deliver a better way toexcellent customer experience.33

An end-to-end solution for deliveringgreat customer experiencesTalkdesk is a global customer experience leader for customer-obsessed companies. Our contact center solution provides a better way for businesses and customersto engage with one another. Our speed of innovation and global footprint reflect our commitment to ensure businesses everywhere can deliver better customer 1 (888) 743-3044www.talkdesk.comexperiences through any channel, resulting in higher customer satisfaction, cost savings and profitability. Talkdesk CX CloudTM is an end-to-end customer experiencesolution that combines enterprise scale with consumer simplicity. Over 1,800 innovative companies around the world, including IBM, Acxiom, Trivago, and Fujitsu partnerwith Talkdesk to deliver a better way to great customer experience. Learn more and request a demo at www.talkdesk.com 2021 Talkdesk, Inc. All Rights Reserved Worldwide. Unauthorized use, duplication, or modification of this document in whole or in part without the written consent of Talkdesk, Inc. is strictly prohibited.

Contact center benchmarking is a structured, systematic process of continually identifying, examining, deploying, and reviewing best practices to gain and . Cloud before 2020, experienced an average call abandonment rate of 7.86% (accounting for 25% of total inbound call volume of 2020). Average talk time increased 13% for an average of .

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