What is Pareto Analysis in Call Center

What is Pareto Analysis in Call Center

Pareto Analysis one of the most important tools used in a call center to analyze the major and frequent defects in call quality. Pareto analysis is also known as the 80/20 principle. This tool is primarily used in the call center to gauge the call quality of the process.

What is Pareto Analysis in Call Center

Intro of Pareto Principle:

Pareto analysis was coined by an Italian economist Vilfredo Pareto in 1896. He did this analysis on the Italian economy and concluded that 80 % of the country's wealth is with 20% of rich people that's where the 80/20 rule originated.

What is Pareto Analysis in Call Center?

This tool was introduced in the Call center to analyze and improve the call quality and overall process 

health. 

The 80/20 ( Pareto) rules states that:

80%  of the dent to process comest from 20% of causes in the process. If we dedicatedly work on these 20% defects we can easily improve the overall  process health

This question is often asked by the interviewer in the call center if you apply for the Quality Manager role.

Let's understand how this works :

In a call center, every single call is evaluated on different parameters. Some of the major parameters are mentioned below:

For Example:.

I have done a monthly analysis in the above grid and taken few parameters and their defect count in the entire month. In the grid, CF stands for Cumulative frequency which is a measure to calculate the frequency of defects

The formula to get the cumulative frequency (in % ) is to divide a single quality parameter by the sum of total defects or if you want to calculate the CF cumulative frequency (in numbers) add the 1st Cumulative Frequency % (CF% ) by following one i.e add Apology CF% + Offering assistance on call and show on till the end of all the parameters

You can see the calculation in the below grid

To verify the formula  you need to cross-check at the end cumulative frequency should end up with 100% else the formula is not correct

Post the calculation of cumulative frequency now you can draw a chart and identify the top 20% defects in it to identify the top defects contributor for the process

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Below is the Pareto analysis chart for the overall defects with the cumulative frequency. ORANGE bars are the indicators that a team need to work on these defects to improve the quality score

Pareto Analysis

As per the above Pareto analysis, Top 5 parameters with 20% of defects in call quality are mentioned below 

1. Apology
2. Offering Assistance on call
3. Correct Tagging
4. Calling Company name
5. Empathy

If the team will work on these 5 parameters (20% Contributors) we can improve the rest 80% easily.

This way we can use Pareto analysis to improve the performance and call quality In the call center 

Benefits of Pareto Analysis :

• To Identify and prioritize problems and tasks
  
  
• To Organize their prioritize problems and tasks

• To improve productivity

• To Improve Profitability and revenue

 

Key points

• This analysis is not only effective for the call center but also in manufacturing and other industries 

• 80/20 principle is not "set in stone" rather it depends on the industry nature, sometimes the defects % may vary from 20% to 25% so you need to working  these 25% defects to improve the rest 75% 

• For better execution of Pareto Analysis, you first need to identify and prepare the list and root cause of these problems

So Readers,

This is all about Pareto Analysis and its benefits in the call center 

Will post my next article soon.

Till then STAY SAFE and STAY HEALTHY

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