A customer of ours once shared, “Reps that have years of experience found it hard to trust AI-suggested answers at first—they just didn’t believe the right answer could be acquired that easily.”
Having trust issues with new technology is normal, but letting it halt the progression of your business is a mistake that can push you out of the market. We could tell you endless stories about companies that failed due to an inability to innovate, but we know that there is something even more persuasive than stories. Numbers.
Innovation should be profitable.
All business initiatives should have a measurable ROI and knowledge management is no exception. Especially in the contact center environment, where numbers run the show, demonstrating clear business benefits is essential to get continuous commitment to the project.
The average interaction worker spends an estimated 28 percent of the workweek managing email and nearly 20 percent looking for internal information or tracking down colleagues who can help with specific tasks. But a searchable record of knowledge can reduce, by as much as 35 percent, the time employees spend searching for company information”.
All knowledge management companies love quoting this report and we love it too! Because it shows just how beneficial a smart KM initiative can be. The question is – how beneficial can it be for YOUR business?
Measuring ROI of a KM initiative
First things first, what should you measure and how?
Knowledge management affects your internal processes that can directly impact your usual KPIs, which all eventually contribute to customer satisfaction (CSAT). How?
- Average handle time – Agents spend less time searching for information and can respond to customer inquiries faster than usual. And with a streamlined process (e.g. decision trees) agents can simply follow clear steps, instead of scanning lengthy documents on the go.
- First contact resolution – With a reliable source of information agents are confident in their answers, they don’t need to “find out and call back” or give “blurry” answers that lead to repeated inquiries.
- Average hold time – Again, there is no need to keep customers on hold if researching relevant information only takes a second. Moreover, the necessary knowledge can be presented to the agents before the customer even says “hello”.
- After call work time –Random clicks, cheat sheets and “hey man, what do I do now?” are no longer needed, when after call work is a guided process.
- Calls Handled – When your average handle time is 30% lower what else is there to do apart from taking more calls, right?
To track real ROI make sure to measure causation, not correlation
Even when you know which KPIs to track, there are still blind spots that make it a correlation not a causation. What if your team is simply not using the tool? Or worse, everyone’s using it, but the content isn’t helpful? That’s why your knowledge management tool should provide you with the following data:
- Team usage – Make sure your team is on the right track. If not, analyze the data to fix things that are stopping them.
- Individual usage – These usage metrics can give you a clear picture how the tool affects the performance of each team member and see if that’s what is stopping you from reaching your final goals.
- Content performance – Content doesn’t mean knowledge. Analyze what agents are looking for, their qualitative and quantitative feedback, what searches don’t return results, etc.
These and many more metrics can help you connect the dots and see a clear picture if your KM initiative is failing, needs adjustment or is super effective from day one.
Is there a formula to calculate ROI of a knowledge management investment?
While every company’s needs and priorities are different—there are specific metrics that can be easily measured and translated into tangible ROI. Download our short guide to calculate yours.