Measuring The Right Customer Service KPIs

Customer service is hard. Measuring the value of good customer service is even harder. Only if you have quantifiable data on how well your support team is doing, can you make improvements to existing processes, take better staffing decisions, and ensure customer happiness. Not surprisingly, there are key performance indicators (KPIs) that are of great importance in customer support. They focus on answering three important questions:

– How well is my support team handling customer problems?
– Are customers happy with the quality of service they’re getting?
– What impact does good customer service have on my business as a whole?

Using these KPIs, you’ll be able to set the right service benchmarks for your business and weed out the inefficiencies. Let’s analyze the different types of customer service KPIs in detail and look at the important support metrics to track under each category: 

Team Performance KPIs

As the name suggests, these KPIs give you deeper insights into your support team’s performance. You can use these metrics to increase accountability among your support agents, motivate them to perform better, and also evaluate the performance of new tools and processes, introduced to up your customer support game. Let’s use an example to understand how team performance KPIs play a crucial role in your support strategy:

Let’s say you notice a group of agents who have consistently not been able to resolve tickets within the promised service level agreement (SLA). Taking a deeper look at some of your metrics can indicate the cause of these consistent delays. For instance, a low average response time over a particular time period can point to deficiencies in your support setup, and the need for more knowledgeable and skilled agents. 

To solve this problem, you can equip them with better training and resources to handle complex customer issues. You can also revisit your SLA strategy, and ensure the set deadlines are achievable. 

In short, you can make better data-driven decisions based on team performance KPIs. Here are a few important metrics that fall under this category:

  • Average first response time – The average time it takes for your agents to send the first response to a customer.
  • First response SLA% – The percentage of tickets where the first agent reply was within the specified SLA.
  • Resolution SLA% – The percentage of tickets resolved before the specified SLA.
  • First contact resolution% – The percentage of tickets resolved within the first support interaction.
  • Number of resolved tickets/month – Total number of tickets resolved every month. 

Customer satisfaction KPIs

Customer satisfaction is a measure of how pleased your customers are with the quality of service provided. A common method that businesses use to determine this is by sending surveys to customers after every support interaction. By analyzing the responses on the surveys and gathering feedback, you can spot what’s working and what needs to be improved to provide better service experiences.

Here’s an instance where customer satisfaction KPIs come into the picture. Let’s say you take a look at all your satisfaction survey responses, and notice that the biggest problem your customers are facing is the long wait time on phone or email. To resolve this problem, you can introduce new communication channels like live chat, chatbots and social media where customers will get faster replies. 

The most popular customer satisfaction KPIs are as follows:

  • CSAT score – The percentage of customers who gave a positive response to the satisfaction survey sent to them.
  • Rating response rate – The percentage of customers who have responded(either positively or negatively) to your survey.
  • Average number of customer replies – The average number of customer replies on each support ticket.
  • Net promoter score (NPS) – A 10-point scale that measures your customer’s willingness to recommend your product or service to others. 

Business-level KPIs

Business-level KPIs tell you how customer service impacts the overall health of your business. You can use them to take strategic decisions that will not only improve the quality of service, but also impact revenue positively. For instance, consider a business metric like customer churn rate which measures how many customers you have lost over a period of time. If you identify customer service as one of the reasons for high churn, you will need to make big changes to your support setup. You may have to hire new managers with a diverse skill-set, invest in a full-fledged help desk system, and set better long-term goals.

These KPIs will also give you a good idea about how your product is being used by customers. For example, if you observe a continuous increase in the monthly ticket volume, it can be a sign of your product not being intuitive enough for hassle-free use.

Here are some business-level KPIs concerning customer service:

  • Customer churn analysis – The percentage of customers you’ve lost or retained over a specific time period.
  • Monthly ticket volume – Total tickets received by your company month-on-month.
  • Peak load analysis – The time of the day/week/month when the support tickets are at peak volume. It has a direct impact on staffing decisions for different shifts.
  • Regional information – Information on the size of your customer base in different geographies.
  • Customer effort score (CES) – The rating given by customers from 1-10 on the basis of product usability.  

Check out Freshdesk’s
ultimate guide to customer service metrics for a detailed list of all the important support metrics and how to go about measuring them.

If you’re just setting up your business, ensure you prioritize customer service KPIs that resonate the most with your industry. If your team is already up and running, revisit your KPIs today and check if they align with your long-term support targets. By setting realistic and focussed KPIs, you can extract the best from your support team and provide stellar customer service.

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