For many business owners, it’s not enough to see reports that inform them if they’re meeting service standards and customers’ expectations. Aside from that information, they also need to know why or how they’re measuring those standards.

One way to accurately measure the efficiency of your service team is by calculating your customer service metrics. These are key performance indicators (KPIs) that give you a clear picture of how your services department’s contribution is affecting the overall growth of the company.

What are those metrics? Whether you outsource your customer service or not, below are some critical customer service metrics that matter, as they indicate how well you are performing to satisfy your clients’ needs. You can modify them according to your business goals. Let’s proceed.

Customer Service KPIs: N Key Metrics and How to Improve Them

Customer Relationship Metrics

  • Customer Satisfaction Score (CSAT)

Customer support teams measure the success of their interactions with this rating through a customer satisfaction survey after a ticket resolution. A CSAT survey is a proven way to gauge customer sentiment, with an 80% score considered excellent in the customer service landscape. 

A customer will be asked to rate their support experience on a scale ranging from satisfactory to unsatisfactory. This survey is brief and usually consists of one or two questions. Monitoring CSAT will help you see if you’re meeting customer expectations or not. If not, then it can indicate where you can innovate and improve to increase your score. 

You can also increase your CSAT by improving your response time to customer queries and using automation tools that provide customers resources they can refer to for frequently asked questions to reduce your team’s effort on common queries. 

  • Customer Effort Score (CES)

CES is another survey-based metric answered on a scale (e.g., 1–5). The survey asks customers how much effort it took them to resolve their issues. CES is an indicator of customer loyalty. Customers who exert less effort are much more likely to stick with a brand. 

To increase your CES, ensure that your agents are trained well. Their ability to help customers lies in their knowledge about your products and services and how to handle escalations and other scenarios. Your training program should equip them with an understanding of your business model, customer pain points, and guidelines. This can prepare them when they face an impatient customer. 

  • Retention

Satisfied customers stay as customers longer. Improving your customer retention rate can boost your profits from roughly 25–95%. High retention rates imply that customers who continue to use your product or service will make more repeat purchases.

You can keep and increase your repeat customer base by rolling out a customer loyalty program. Offer exclusive discounts, use a reward system, and allow them to get first dibs on your latest content, products, and services. This builds trust and encourages them to continue supporting your brand. 

  • Churn

Customer churn is a crucial metric, especially for growth service, subscription-based, and start-up businesses. This data reveals the percentage of your customers that no longer use your product or service, or formally leave during a specific time frame. Some companies measure this by weeks, months, or quarters.

Increased churn percentage indicates low rates of customer satisfaction and decreased business growth.  You can reduce this by offering additional services apart from your typical business offering. This gives them more reasons to use your products and services and keep a relationship with your brand. 

You could provide them with how-to and tutorial videos to show how your products work or host free webinars that offer valuable information. 


READ THIS RELATED ARTICLE: 5 Churn Rate Optimization Tips to Reduce Customer Loss

  • Net Promoter Score (NPS)

NPS is a survey-based metric that shows the likelihood of a customer advocating your products or services to other people. It helps companies know if their customers are likely to repurchase, stay loyal, and recommend your brand. 

You can also use this data to gauge whether or not your products and services need improvement. The NPS survey can be presented to customers at any time once they purchase a product or service. 

You can improve your NPS by evaluating your products and services to explore what has room for improvement. To encourage your customers to spread the word about your brand, you can offer them incentives in exchange for leaving a review on social media. You can do this by holding contests and interacting with them regularly. 

Customer Support Efficiency Metrics

  • First Contact Resolution (FCR)

This metric is exactly what it sounds like. It calculates the percentage of inquiries your support agents resolve on their first response. FCR is a metric you should measure across all channels. When you solve an issue in one query you leave your customers happy. High FCR rates indicate that the right calls get to the right support agent at the right time. 

As you measure your first contact resolution rate over time and receive queries that require multiple interactions you’ll start noticing patterns. You can study them to streamline your processes and deal with similar inquiries accordingly. 

  • Time to Resolution

The Time to Resolution metric is also called Revolution Time or the Mean Time to Resolution/Resolve (MTTR). It measures the amount of time it took from the moment a support agent opens a customer’s email or inquiry to when they send out a final response marking the resolution of the query. 

A short resolution time generally implies that the support responses are effective and that the support agent is efficient. You can improve your time to resolution rate by differentiating which incidents are the most important that require urgent attention and which can wait. Using an accurate incident management system that relays issues to the correct team leads to more efficient management of incident reports. 


READ THIS RELATED ARTICLE: 7 Customer Service Skills to Screen For When Hiring Support Reps

  • Handle Time

Handle Time calculates the time an agent spends working on one support interaction—for instance, from the time an agent opens a customer’s email to the time they click send (or when they answer a phone call until they hang up). This can be measured using a time tracking app.

Handle Time is a valuable metric that analyzes the performance of your support agents and measures how long it takes them to work on a single query. If an agent is spending longer than the average handle time it might call for close examination. A reduced number of handle time means significant savings for companies. 

Make sure your support reps are adequately trained and empowered to handle cases more efficiently. They should be able to use your CRM database easily and know when it’s time to route customers to other agents. Provide quick access to customer history so they can give faster responses. Also keep the agents informed about company updates to decrease the average handling time. 

  • Requester Wait Time

Requester Wait Time is a metric that calculates how long a customer waits for their support problem to be resolved. It captures the time frame wherein a customer is waiting in queue to hear back from a support agent such as when they’re on hold. This is vital to the customer’s experience as they wouldn’t be pleased to be put on hold for long periods.

You can fine-tune your support management strategy so agents can better answer support inquiries. Analyze the most common reported issues and then create a detailed knowledge base where you can keep useful data that will benefit both customers and support agents. 

Build a Better Customer Experience 

Regardless if you’re working with a customer service outsourcing agency or employing your own support team, these metrics are essential in measuring every step of the customer journey to find out where your support agents need to improve. This way, you’ll be able to provide your customers with the outstanding service they deserve. 

Are you looking for a customer support solution for your business? SuperStaff’s Customer Support Outsourcing service can take care of your customers in a timely and efficient manner. Allow us to guide your customer support strategy. Contact SuperStaff to learn more.

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