At TELUS International, we’re often asked by both clients and prospects to report on our contact center attrition levels. Kudos to us, because our attrition rates are some of the lowest in the BPO industry.
While it’s something we’re truly proud of, these low attrition rates often lead to some interesting conversations around the following questions:
- “How do attrition rates directly correlate to operational costs and the business outcomes delivered?”
And just as important…
- “How do attrition rates specifically impact your ability to create positive customer experiences?”
These are tough questions. But, given that attrition is often a clear indicator of contact center success – perhaps even viewed as a “canary in a coal mine” – they are also incredibly important questions.
Analyzing the impacts of contact center attrition
After gathering information from our own contact center outsourcing programs and sharing insights with analyst firm Everest Group, we’ve put together a solid analysis on the business impacts of attrition. Not surprising, attrition costs money – and potentially a lot of money.
From our analysis, did you know?
- A typical U.S.-based 500-person contact center could spend roughly US$0.5–1.3 million a year on attrition related costs, while experiencing revenue leakage of US$0.4–0.6 million in a year.
- Put together, this results in a potential loss of US$1–2 million in business value over a period of one year directly attributable to attrition.
High attrition causes a one-two punch to the bottom line by driving up key operational costs (hiring, training, etc.), while depriving the business of additional revenue opportunities, whereas highly tenured agents tend to delight customers, increasing their lifetime value.
It’s clear that the impact of attrition rates on business outcomes is a growing priority for business leaders looking to utilize the contact center to drive new business growth.
Grab the detailed analysis. We welcome your thoughts!