Top Metrics Used for Contact & Distribution Center Incentives

In yesterday's post, I featured a set of incentive principles which came from a study of best practices in contact and distribution center incentives, and featured in the article "Best Practice Incentives for Contact Centers and Distribution Centers:  Driving Customer Satisfaction" (WorldatWork Journal, third quarter 2006) by Patricia Zingheim and Jay Schuster.  The article and study results also feature the most common metrics used in incentives covering these two functional areas, which I thought might be interesting to share here.  (This comes, of course, with the standard caveat that, when designing incentives, you should always elect metrics that reflect your business strategy, goals and environment - not just mimic what is prevalent in industry.  That having been said, though, data on industry practices can provide helpful context.)

Most Common Contact Center Metrics (listed in order of prevalence)

• Speed of answering calls (X percent of calls answered within Y seconds)
• Dropped calls as a percent of total calls
• Percent call time or call time as a percent of time available on the phone
• Call volume (e.g., number of calls answered compared to available time, number of orders logged and confirmed)
• Customer satisfaction based on after-call customer input
• Average call time or average call-handle time

It is interesting to note that none of the surveyed organizations used an internal measurement of call quality as an incentive plan metric; rather, call quality is viewed as a performance element best addressed through proactive training, coaching and performance management.

Most Common Distribution Center Metrics (listed in order of prevalence)

• Timeliness of shipment to customer
• Accuracy of orders
• Volume of orders shipped
• Cycle time from order receipt to shipping
• Customer complaints or returns
• Safety

Another interesting note regarding distribution center metrics:  while some organizations include safety as an incentive plan metric, others are reluctant to do so (probably in response to the common concern that incenting a reduction in safety violations will only result in a reduction in the reporting of safety violations) and prefer to use recognition practices to encourage and reinforce safety.