19 Customer Service KPIs You Should Be Tracking Now (With Examples)

Customer service is the lifeblood of service-based businesses. How do you know if you’re offering the right level of customer service? Enter key performance indicators (KPIs).

What are KPIs?

Key Performance Indicators (KPIs) provide insights into a company’s progress toward attaining goals. These benchmarks provide a picture of a company’s position at any given point. Reviewing these data points can give business leaders visibility into how to get the most opportunity, growth, and improvement in the interrelated areas of customer experience (CX) and customer retention.

What are customer service KPIs?

Customer service KPIs provide a look under the hood of an organization’s customer service vehicle. They indicate the extent to which a company is fulfilling customer needs, tackling problem-solving, and delivering a top-tier CX experience.

The Importance of Great Customer Service

Customer service is the engine that powers any thriving enterprise. There’s a strong connection and link between customer satisfaction, loyalty, and its stature in the marketplace. Business owners and leaders should prioritize customer service metrics to:

Generate and Maintain Customer Loyalty

Happy customers tend to be repeat ones. It’s more cost-effective to keep a customer than to attract a new one.

Bolster Brand Reputation

News travels fast about good customer service. Happy customers might tell their friends and family about your brand, and you might gain referral business as a result.

Boost Customer Lifetime Value

Repeat customers tend to increase their transaction amount over time. Repeat business is an effective way to drive up customer lifetime value.

Drive Sales And Revenue

Making a positive impression can lead to better sales numbers and revenue by way of referrals and glowing reviews.

Minimize Customer Churn

Delivering a great customer experience reduces the likelihood someone will leave your company for a competitor. You won’t have to invest as much money in attracting new customers when consistency and quality are in the mix in your customer retention strategy.

Why You Should Always Measure KPIs

No matter the specifics, every business owner should pay attention to KPIs to get an idea of where things stand and where they might invest time and resources. You can use KPIs to gain insight into various aspects of your business and make an impact. Here are a few real-world examples of how you might use KPIs to inform operational moves:

Enhance Employee Morale

The goalpost should be within plain view. KPIs can motivate and inspire staff to work harder because they have a clear idea of how their everyday actions contribute to the bigger picture. It’s a good idea to recognize and reward staff for meeting or exceeding KPI metrics.

Support Business Objectives

KPIs should lay out the roadmap for how success is defined and how to get there. Customer service KPIs shouldn’t be evaluated in a vacuum. They can mean the difference between a banner year or negative growth in terms of your customer retention rate.

Encourage Company Growth

KPIs provide objective data about where business leaders should devote the most resources to unlock the next stage of growth. For instance, KPIs can inspire business builders to make changes that can improve customer service, promote efficiency, and supercharge overall performance.

Manage Company Performance

KPIs offer an objective lens through which to measure and manage company performance. They can inspire company leaders to capture industry trends, evaluate ROI, and invest resources in areas that can produce tangible results.

Measure Progress

A goal without a plan is just a wish. In contrast, by relying on KPIs and metrics throughout their growth journey, business leaders can adjust course in a way that makes the most business sense.

Analyze Trends

KPIs can shed light on customer behavior and performance. The data can bring granularity around customer needs, preferences, and pain points to the forefront.

Crucial Customer Service KPIs

Consider these KPI examples that are especially relevant to customer retention in service-based businesses:

Average Resolution Time

Average resolution time reflects the average time it takes to address a customer’s issue. Add the total time spent on support tickets and divide it by the number of tickets at hand. A lower average resolution time suggests better efficiency and likely a higher rate of customer satisfaction.

Occupancy

Occupancy is fairly simple. It’s the amount of time agents spend engaging with customers at the service desk. Calculate the total time spent handling calls, emails, or chats divided by the total available agent hours to come to this number. A high occupancy rate means agents are staying busy with a higher number of support tickets, while a low occupancy rate can point to idleness or underperformance issues.

First Response Time

First response time (FRT) represents the average time it takes for an agent to engage with a customer. Calculate the total time between a customer’s first outreach and the first agent response. A quick first response time shows you value the customer’s time and will leave them with a favorable impression.

First Contact Resolution

It’s smart to track the number of customer issues resolved on the first contact. You can come to this number by taking the total number of issues resolved during the first contact and dividing it by the total number of issues. A high first contact resolution rate means your team acts swiftly—and that leads to a better customer experience.

Tickets Handled Per Hour

This service desk performance indicator is self-evident. Calculate the total number of tickets handled and divide by the total hours logged. A high ticket-handled-per-hour rate means agents are staying on top of customer requests and inquiries.

Tickets Solved Per Hour

Tickets solved per hour reflects the face value. Use the total number of tickets resolved as a starting place. Then divide the number by the total hours worked. A high rate means agents are helping a lot of customers in a short time.

Customer Satisfaction Score (CSAT)

This is tied to customer satisfaction. You can get a better feel for the overall sentiment by surveying customers about their experience with your brand.  A high customer satisfaction score (CSAT) is usually a recipe for high customer satisfaction and repeat business.

Customer Effort Score (CES)

This KPI helps you understand how hard customers have to work to resolve their issues. Customer experience surveys can reveal trends and patterns around customer interactions. In contrast to a high CSAT, a low customer effort score (CES) means customers can get answers quickly and relatively painlessly. Both bode well on the customer satisfaction front.

Net Promoter Score (NPS)

This KPI is tied to how likely it is that a customer will recommend your company to people in their network. Develop a customer support survey instrument in which you ask customers to rate their likelihood of making a recommendation on a scale of 0 to 10. A high NPS score means your customers know and trust your brand enough to encourage friends and family to do the same.

Cost Per Resolution

You can determine the average cost associated with resolving a customer issue by taking the total cost of resolving issues divided by the total number of issues resolved. A low cost per resolution means your customer service team is using resources effectively to get customer satisfaction results.

Abandon Rate

You can quantify the percentage of customers who abandon their interaction before reaching an agent by using the number of abandoned interactions and dividing by the total number of initiated interactions. A high abandon rate can spell trouble. It usually means your processes, procedures, or wait times are too much for a customer to handle. They give up before your agents can help.

Customer Churn Rate

This one carries a lot of weight in the CX world. Churn rate tells you the percentage of customers who’ve stopped making purchases. Calculate the number of customers lost divided by the total number of customers. A high customer churn rate usually means there’s an underlying problem you need to address to prevent more customers from leaving.

Ticket Reopens

This KPI is associated with the number of times a resolved ticket is reopened due to unresolved issues. Use the number of reopened tickets and divide by the total number of resolved tickets. A high ticket reopen rate might mean your agents aren’t thorough enough or need additional training to bring the number of tickets down.

Agent Touches

Agent touches reflect the number of times the employee interacts with a customer to resolve an issue. To capture this KPI, simply look at the total number of agent interactions per ticket. A high number might mean you have complex customer service issues on your hands or agents lack analytical skills.

Number of Replies

To determine the average number of replies required to resolve a customer issue, capture the total number of replies per ticket. A high number of replies can suggest agents don’t know how to communicate efficiently or there may be a more foundational customer service issue to review. You want to aim for a first contact resolution as quickly as possible.

Requester Wait Time

This number represents the average time a customer waits for a response after the initial ticket. Take the total wait time for all support tickets and divide it by the number of tickets. A long response time can be a turnoff and lead to customer churn in the long run.

Next Issue Avoidance

Next issue avoidance is defined by the percentage of customers who avoid future interaction after getting their initial query or complaint resolved. You can gain relevant insights by asking customers if their initial issue was fully resolved and/or if they encountered subsequent frustrations. A high next issue avoidance rate means agents are confidently doing their jobs and meet or exceed customer expectations on the first try.

Customer Retention Rate

A telling metric, this one communicates the percentage of customers who remain loyal to your company over a specific period. Calculate the number of retained customers and divide by the total number of customers. Companies with a high customer retention rate tend to stand the test of time because they don’t spend as much on gaining new customers. Keeping happy customers around is the best strategy for longevity.

Agent feedback

As a business leader, you should be concerned with how agents feel about their jobs. Surveys and interviews can help you understand the agent experience from all angles. Customer service teams that feel valued and engaged are more likely to do their best work and will contribute to a high customer retention rate.

Automate Customer Service with Podium

Data is king in today’s business world. Metrics and KPIs can help companies understand strengths, weaknesses, opportunities, and threats, so they can make decisions grounded in objectivity, not emotion. This important (and ongoing exercise) can help you achieve your goals faster. These customer service metrics and KPI examples might not fit your business, but what matters is that you take the time to measure performance.

Speaking of goals, make this the year you hit new heights with sky-high CSAT scores and an industry-leading customer retention rate. Podium’s automated tools mean your company can cater to customer needs 24/7. It’s time to make a lasting impression with faster response time and consistent customer support and service. Watch a demo today.