Customer Service KPIs – best practices
What is a customer service KPI?
Customer service is the backbone of every business, as its relationship with its customers directly affects its success. Those metrics can be very valuable as they provide a look behind the scenes at how your businesses and your team interact with customers. You might think that your delivered service is the best of the best, but your customers might perceive things differently. Using and tracking those metrics can have a great impact on customer satisfaction and customer retention.
Customer satisfaction
How happy are your customers?
A customer satisfaction KPI is a metric used by companies to score and track how happy their customers are with their service, product, and/or experience. The end goal is to determine factors affecting customer satisfaction and to pinpoint areas for improvement.
Customer Retention
How many of your customers are coming back?
A customer satisfaction KPI is a metric used by companies to score and track how happy their customers are with their service, product, and/or experience. The end goal is to determine factors affecting customer satisfaction and to pinpoint areas for improvement.
Average Response Time
How long does it take to answer your customers?
It simply measures the time elapsed between a customer messaging support and an agent replying to it. In comparison, First Response Time, Average Reply Time includes any time a customer has to wait for a reply. It is not limited to First Touch. ART is usually a major source of dissatisfaction among customers. If you decide to track this metric, it can help you to make sure that customers aren’t kept waiting for long periods of time.
Cost-per-Ticket
How much does processing of a ticket cost you?
Cost per Ticket is the total monthly operating expense of a service desk divided by the monthly ticket volume.
Answered Requests %
How many requests are answered?
The measure simply indicates what amount of all requests have been answered and if the work for their resolving has been started.
Customer churn
How many of your customers left?
It indicates the phenomenon where customers of a business no longer purchase or interact with the business. Customer churn is one of the most important metrics for a growing business to evaluate. While it’s not the happiest measure, it’s a number that can give your company the hard truth about its customer retention. This metric is used to understand the profitability garnered from each paying customer and the company’s revenue-generating capabilities.
Revenue churn
How much did you lose from an existing customer that left?
Revenue churn is a must-know key performance indicator for the SaaS business model. Revenue churn is the percentage of subscription dollars up for renewal that a company loses over a given period, or the ability to keep the contract value of existing customers.
First Call Resolution
First Call Resolution (FCR) is a metric that measures a call center’s performance for resolving customer interactions on the first call or contact, eliminating the need for follow-up contacts. The FCR metric is essential for monitoring a call center’s operating cost efficiency and customer service delivery effectiveness.
Support Costs vs Revenue
Comparing the support costs in relation with your revenue will help you to evaluate how much your customer service represents compared to your total revenue. One goal of every business is to provide the highest quality at the lowest possible costs, so it is normal to have it tracked.Top Support Agents
Find out who is your star agent in the team, make sure to motivate top level support behavior, by for example incentivizing it.
Number of issues
Always make sure to have up-to-date report and overview of the number and kind of issues over time.
Customer effort score
A general Customer Effort Score definition describes it as being a type of customer survey that measures how easy it was for a client to interact with your business (solving an issue with customer support, making a purchase, signing up for a trial, etc.).
Net promoter score
Net Promoter Score (NPS) is a customer loyalty and satisfaction measurement taken from asking customers how likely they are to recommend your product or service to others on a scale of 0-10—but there’s a lot more to the story than that.
Net retention rate
Net Revenue Retention (NRR) is the percentage of revenue retained from existing customers at the start of a period after accounting for expansion revenue and churn.
Service Level
Are you delivering the services as you committed to?
MRR Growth Rate
Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which MRR is being added to the business, expressed as a percentage.