By Adriano Mesina
It takes years of hard work for a company to build its brand. However, all it takes is a single post, tweet, or a rant in an online forum to destroy it. While marketing brings in new customers, the hardships of keeping them lies on the able hands of Customer Service.
We cannot stress enough the value of customer service. Like a gardener to plants, customer service cultivates and nourishes clients over time. Customer service, therefore, directly affects a company’s bottom line. Measuring customer service performance helps raise the quality of customer care, which in turn helps keep customers happy.
Importance of measuring customer service KPI’s
One research shows that 96% of customers say they will remain loyal to a brand with exceptional customer service. There are two sides of a coin in customer service. On one side, the business thinks they are delivering exceptional service to its customers. Customers, on the other hand, may see it differently. This is where performance KPIs come in.
KPIs and performance metrics provide you unbiased data that you can measure your customer service’s success with. It would be virtually impossible to find out where you are doing well and where you are not without these measurements. Using the information you have gathered, you can make informed decisions as to which direction your company will take.
KPI and performance metrics to track
When measuring KPIs and performance metrics, you should avoid overthinking, as it would only prevent you from moving forward and would not achieve anything. Here is a list of the key metrics you can focus on to produce optimal results.
- Customer Satisfaction Score (CSAT)
While customer satisfaction is the ultimate objective, measuring it is not easy. You ask the customers directly if they are happy or not, and it is harder to understand than objective facts.
Most businesses use CSAT to measure customer satisfaction. Here, you ask customers to rate their satisfaction with your products, services, and the business in general. You get the average of all responses and the result is your final score.
Here is how you can calculate CSAT:
# of satisfied customers / Total # of surveyed customers X 100% = Percentage of satisfied customers
- First Response Time (FRT)
Customers are more expected to buy when businesses answer the phone within one minute. FRT measures the time it took for your company’s agents to respond to a phone call or chat. High scores mean your agents are ready to respond and that they are enthusiastic about serving. To calculate:
Time of first response – Time of customer request = FRT
- Customer Retention Rate (CRR)
Getting new customers is only half the battle; retaining them is the other half. However, it costs less to keep a customer rather than getting new ones. CRR is the key metric to keep an eye on with regards to customer retention. Here is how to measure this accurately.
((CE – CN) / CS)) X 100 = CRR
- First Contact Resolution (FCR)
First contact resolution (FCR) helps determine consumer delight. A high FCR rate means you have satisfied consumers. The aim is to get as high as possible ratings. Satisfaction is a key element that drives customer loyalty. FCR also measures your agents’ ability to deal with an issue on the initial interaction.
The FCR performance indicator shows you insights on how well the agents are at understanding and addressing a problem without requiring numerous interactions.
- Average Resolution Time (ART)
It is safe to say that customers love quick resolutions to their problems. ART measures the total amount of time taken by the agents to resolve an issue once it is assigned to them. It is measured in online hours or days.
Here is how it is calculated.
Total of all times resolved / Total number of cases resolved = ART
Conclusion
Measuring customer service performance is a crucial factor in providing a superior customer experience. By paying attention to data and using it the right way, your company can boost its brand and improve revenue generation.