A professional Knowledge Base is usually an investment into a new software product that aims to improve processes for a certain department. This article will outline a possible impact that a professional knowledge base can make in a contact center environment.
When it comes to the term “investment”, companies usually evaluate if an investment makes sense or not. These assessments help them to get the most out of their decisions in order to have a positive impact on revenue and income.
An investment doesn’t always have to be a certain amount of money. It can be money, time or resources that companies are willing to invest for a certain project or change. No matter what the investment is, it is only worth it if the outcome is higher than the invested effort.
Why invest in a Professional Knowledge Base
To setup a Professional Knowledge Base, companies have to invest money, time and resources.
The amount of money a company must invest depends on the current situation and is based on one basic question: Does the company already use an existing solution or not?
If the existing solution fits to the contact center requirements, the initial investment has been done before and will not be considered. Additional investments could include professional services from a provider or support and maintenance costs.
In cases where a company needs a new professional Knowledge Base, the financial investment usually consists of:
- License Fees
- Maintenance and Support costs
- Professional Services
Besides money, time and resources are two important investments that need to be taken into account. A Professional Knowledge Base needs time to be built. The main reason for this is that even if companies implement highly sophisticated software, a Knowledge Base is only as good as the content in it. If the content doesn’t provide the right knowledge, agents won’t use it. If the content is not up to date, agents won’t use it. Especially in the initial project stage, companies need to make sure that they provide resources who will create and edit content and that they block enough time slots to support the creation process of all relevant knowledge.
What are the Benefits of a professional Knowledge Base
There are different benefits to a professional Knowledge Base. The most important benefit is, that a Knowledge Base supports your contact center to generate more revenue. Instead of being a “cost center” professional solutions turn contact centers into profit centers.
One example how they do this is by supporting outbound campaigns and potential up sell opportunities for existing customers. Or they support your agents to provide better customer service which will influence your Net Promoter Score which leads to more customers and referrals.
Knowledge Base Metrics
A Knowledge Base will improve a number of key performance indicators in your organization:
- Overall amount of calls goes down
- Average Handling Time goes down
- First Contact Resolution Rate goes up
- On-Boarding time for new employees goes down
With the reduction of the overall amount of calls, contact centers save money. To estimate the costs of one call, companies usually divide the cost of their contact center with the number of calls.
An average agent in the US earns around $ 25,000.00 per year. This makes costs of at least $ 7,500,00.00 per year for an average contact center. Let’s assume these agents handle approximately 3 Mio. calls per year which makes costs of $ 2.50 per call.
An averaged number for a Professional Knowledge Base is to reduce the overall amount of calls by 10%. This makes a reduction of 300,000 calls per year with cost savings of $ 750,000.00.
Even if these numbers vary, they give a first indication of the huge impact a Knowledge Base can have on existing costs without considering the other KPIs such as on-boarding time for new employees.
Time and resources are investments that are hard to measure. In the beginning of a Professional Knowledge Base, a human resource has to invest an average time of 30 minutes for one knowledge article. Depending on the number of articles, this number goes up. In a second year or once the Knowledge Base is ready the effort usually goes down to one quarter of the initial effort.
Interested in getting a ROI calculation for your Knowledge Base plans? Contact us today!