That\u2019s why setting the right customer support KPIs and metrics helps business owners and managers determine whether their support team is up to par during the whole customer journey. It\u2019s also one of the most effective methods to motivate employees and give them their well-earned rewards.<\/p>\n\n\n\n
So, what are the key customer service performance indicators? Swift responses and short resolution time are great. But here\u2019s something even better: not locking yourself into a single metric when evaluating the performance of your customer success team.<\/p>\n\n\n\n
Make your team better by introducing the following 14 customer service KPIs and metrics and setting a tangible reward system for achieving them.<\/p>\n\n\n
Note!<\/strong><\/p>\n\n\n\n KPIs measure progress toward specific goals, and metrics gauge the overall business health. But even though KPIs and metrics for customer service are different things, they do have a lot in common. So, you may notice how some concepts and quantities intersect.<\/p>\n\n\n<\/div>\n\n\n\n\n If you don\u2019t measure any KPIs and metrics in your company, you can never say how your business performs. Monitoring just the revenue won\u2019t give you the right insights to keep growing, either. <\/p>\n\n\n\n Instead, gauging every aspect of your company operations will allow you to make critical adjustments in the execution to achieve your strategic goals faster.<\/p>\n\n\n\n Benchmark:<\/strong> Depends on the industry\u2019s customer service standards and communication channels<\/a>.<\/p>\n\n\n\n The main task here is to not let your customers feel abandoned. Even if you can\u2019t solve the issue immediately, send something as simple as \u2018Our team is already looking into the issue, we\u2019ll keep you updated\u2019 and make users feel heard. <\/p>\n\n\n\n That\u2019s why the first response time is one of the most important KPIs for customer service. Keep an eye on how long people have to wait on hold before someone greets them. <\/p>\n\n\n\n If you see that messages pile up for hours without a reply, it\u2019s probably time to grow your team, review their performance, and improve some processes. Things like canned responses and knowledge base<\/a> integration can also help to speed up the process.<\/p>\n\n\n\n It\u2019s also important to note that auto-responders<\/a> don\u2019t have the same effect. Their sole role is to confirm that a message did land in your customer service inbox. The answer from a real human is what counts (so make sure it reads as such).<\/p>\n\n\n\n Benchmark:<\/strong> Depends on the size of your business. On average, companies fall between<\/a> 15% and 45% for year-over-year growth. Startups should target a 15%+ Net MRR Growth Rate<\/a> (month-over-month).<\/p>\n\n\n\n You can be the most customer-driven<\/a> company in the world, but every business should earn money. And being on the frontline of customer communications, support representatives should have a vested interest in bringing in more money and customers.<\/p>\n\n\n\n For instance, we at HelpCrunch think that monthly recurring revenue is one of the most important customer service KPIs. So, our customer service reps\u2019 biggest bonuses are tied to the MRR growth.<\/p>\n\n\n\n Yes, MRR as a customer support KPI makes perfect sense. Support specialists need to be tied to money stuff and stay on top of everything that\u2019s going on in your company. You\u2019ll instantly see the change in their attitude.<\/em> <\/em><\/p> Sometime after implementing MRR as a customer service KPI, our live chat agents told me they began to think differently and concentrate on more relevant stuff rather than just answering routine chats. As a result, they were getting more bonuses, which is a win-win situation for everyone \u2014 for the business, for CSMs, and our customers.<\/em><\/em><\/p>Pavel Pavlenko, Co-founder & CEO of HelpCrunch. It may sound counterintuitive to some people. What does technical support have to do with selling and growing revenue? Isn\u2019t it a sales department\u2019s job? Well, yes and no.<\/p>\n\n\n\n For one thing, sales and customer success teams should work together in close collaboration to achieve the best results. While the former can push the right buttons and razzle-dazzle, customer service agents can provide knowledgeable advice and put people in the right direction. And that\u2019s exactly what they should do \u2014 close deals on the go.<\/p>\n\n\n\n Benchmark:<\/strong> you can increase your profits by as much as 30%<\/a> with cross-selling. It\u2019s more cost-effective to cross-sell and upsell to existing customers than acquire new ones.<\/p>\n\n\n\n As I say, it\u2019s not your typical customer service experience to cross-sell or upsell<\/a>. But sometimes, the opportunity just presents itself, and it would be a total waste to miss it.<\/p>\n\n\n\n The main rule of a successful sale is to always think about the customers, not the business. You should genuinely try to help and resolve the issue with your product or service. Think about how the user will benefit from upgrading their subscription or buying additional stuff.<\/p>\n\n\n\n And who would know customers\u2019 pain points and objectives better than a customer service staff member who communicates with them every day? That\u2019s the reason upselling and cross-selling often happen in customer service. Agents could organically offer an upgrade as a solution to the user\u2019s issue \u2014 that\u2019s your upsell right there.<\/p>\n\n\n\n Benchmark: <\/strong>a conversion metric ranges from 4% to 26% for software products. Read how to improve the demo-to-conversion rate<\/a> with one question. Here is a quick bar chart demonstrating<\/a> a conversion rate metric by industry:<\/p>\n\n\n\n Customer support agents know all the ins and outs of your product and can show it in the best light. That\u2019s why it\u2019s always a good idea to delegate some of the demos to them and track their effectiveness. Are people interested in knowing more about your business? Are they more willing to convert after talking to your customer support team?<\/p>\n\n\n\n Product demos shouldn\u2019t take more than 20\u201330 minutes of their time, but their effect is much more powerful than that of any other channel. Once people see how your business can solve their problems in real time, making a buying decision is much easier.<\/p>\n\n\n\n That\u2019s why you should encourage your customer service team to provide more demos and webinars and track how many leads sign up for your product after them. Just remember that this part of the job is optional. Don\u2019t push too hard \u2014 and reward those who manage to achieve the monthly goal.<\/p>\n\n\n\n Benchmark:<\/strong> Having many positive reviews on platforms like G2 or Capterra increases the likelihood<\/a> of convincing customers to make a purchase.<\/p>\n\n\n\n Statistically speaking, people who had a negative experience with a company are more likely to leave a review. And you guessed it right \u2014 it\u2019s going to be a negative one. A satisfied customer, on the other hand, is unlikely to leave a good review. Long story short, people won\u2019t rate your business on designated websites without a nudge. <\/p>\n\n\n\n There are all kinds of marketing campaigns (like email or social media promotions) aimed at collecting reviews from customers. But no one can get positive feedback better than a customer service representative.<\/p>\n\n\n\n You should train your support team to spot satisfied customers who are likely to leave a positive review. If someone complimented your company on its products or customer service, react accordingly:<\/p>\n\n\n\n It might feel a bit awkward at first, but remember that satisfied customers rarely leave reviews unless you ask them to. That\u2019s why using the number of reviews as a customer KPI will motivate your team to push forward.<\/p>\n\n\n\n Benchmark:<\/strong> Knowledge base articles help prevent long wait times in a customer service queue as they address questions that would otherwise have to be answered by employees.<\/p>\n\n\n\n More than 80% of customers<\/a> use the company\u2019s FAQs and self-service portals, which makes it the most popular customer service channel. Creating a knowledge base<\/a> and updating it with fresh articles, information, and screenshots should also be a part of the support team\u2019s routine.<\/p>\n\n\n\n The goal is to answer as many questions as possible before people even ask. There are always lots of ideas to write about. Use common questions from your support experience, track niche communities, and Quora.<\/p>\n\n\n\n HelpCrunch also provides the \u2018failed searches\u2019 report, where you can instantly see the searches people did in your knowledge base but found nothing. This way, you\u2019ll always have fresh ideas for new articles.<\/p>\n\n\n\n Maintaining a knowledge base and keeping it fresh is a common-sense KPI for customer service representatives. Not only does it save a lot of time, but it also makes them more trained<\/a> to answer all kinds of tricky questions.<\/p>\n\n\n\n Let\u2019s walk through some of the most essential metrics to measure the quality of customer service. It just might open your eyes to the areas for improvement and show how satisfied your customers are.<\/p>\n\n\n\n Benchmark:<\/strong> varies depending on the industry and the specific type of customer interaction. However, a general rule is that AHT should be between 2 and 5 minutes.<\/p>\n\n\n\n Average handle time (AHT) is a customer service metric that measures the average amount of time it takes to resolve a customer’s inquiry or issue. This includes the time spent talking to the customer, the time spent on hold, and the time spent on any after-call work, such as writing up a report or following up with the customer.<\/p>\n\n\n\n The formula for calculating AHT is:<\/p>\n\n\n\n AHT = (Total talk time + Total hold time + Total after-call work time) \/ Total number of interactions with customers<\/strong><\/p>\n\n\n\n While all elements are clear, let me elaborate on the total after-talk work time. It is the time that agents spend on after-call work, such as writing up a report or following up with the customer.<\/p>\n\n\n\n It\u2019s essential to measure average handle time to improve customer service efficiency. Just imagine that by reducing this figure, companies can save money on cost per ticket and enhance satisfaction. <\/p>\n\n\n\n There are a few ways that can reduce AHT and improve the overall user experience: <\/p>\n\n\n\n Benchmark:<\/strong> a good CRR should be between 60% and 80%.<\/p>\n\n\n\n Contact resolution rate (CRR), also known as first-contact resolution (FCR rate), is a customer service critical metric that measures the percentage of customer issues resolved on the first contact. This means that the problem is resolved without the need for any further interaction with the support team.<\/p>\n\n\n\n The formula for calculating CRR is:<\/p>\n\n\n\n CRR = (Number of issues resolved on first contact) \/ (Total number of customer queries)<\/strong><\/p>\n\n\n\n A high CRR not only generates happy customers but also gives a lot of other benefits to businesses. It streamlines support operations, reduces costs for labor, and brings to light brand reputation, making you a brand leader.<\/p>\n\n\n\n To cultivate an exceptional CRR, you must continuously improve customer experience and follow strategies that put a client at the center of all decisions. <\/p>\n\n\n\n First and foremost, providing customers with self-service tools, such as FAQs, knowledge bases, and online tutorials, allows them to resolve common issues independently. Additionally, offering multiple communication channels, including phone, email, and live chat, ensures that customers can reach support promptly and through their preferred method.<\/p>\n\n\n\n Customer resolution rate has a direct connection to the level of customer satisfaction and, eventually, business success. <\/p>\n\n\n\n Benchmark:<\/strong> first response time (FRT) should be within 24 hours for email customer support tickets, within 1 minute for phone calls, and 47 seconds<\/a> for live chat. Average response time (ART) should be within 2 hours for email inquiries, within 5 minutes for phone calls, and 2 minutes for live chat.<\/p>\n\n\n\n Try to provide quick responses, it\u2019s an all-time reliable tactic. <\/p>\n\n\n\n Response times are a measure of how quickly a customer service team responds to user inquiries. There are two main types of response times:<\/p>\n\n\n\n The formula for calculating FRT is like the following:<\/p>\n\n\n\n FRT = (Total time to respond to first inquiry) \/ (Total number of inquiries)<\/strong><\/p>\n\n\n\n The formula for calculating ART is:<\/p>\n\n\n\n ART = (Total response time) \/ (Total number of inquiries)<\/strong><\/p>\n\n\n\n For example, a team received 25 requests in a live chat in one hour. The total time to respond to the first message is 30 minutes, and the total response time is 10 hours. The response times for the team would be:<\/p>\n\n\n\n FRT = 30 minutes \/ 25 = 1.2 minutes<\/p>\n\n\n\n ART = 10 hours \/ 20 = 24 minutes<\/p>\n\n\n\n You can improve your response times by providing reliable customer support tools<\/a> for communication. We strongly recommend omnichannel platforms, like HelpCrunch, that can handle any ticket volumes and keep all user inquiries in the same inbox for easy management. Choose a solution that offers automation options like a chatbot, saved responses, and a knowledge base to reduce response time metrics. <\/p>\n\n\n\n If your team is off on weekends, make sure they diligently address the ticket backlog first thing on Mondays to provide timely resolution of customer issues.<\/p>\n\n\n\n Also, remember to set realistic time goals for the agents and monitor their progress.<\/p>\n\n\n\n Benchmark:<\/strong> ATR for phone calls should be within 5 minutes, within 2 hours for email, and 10 minutes for live chat. <\/p>\n\n\n\n Average time to resolution (ATR) is a customer service metric that measures the average amount of time it takes to resolve a customer inquiry. <\/p>\n\n\n\n The formula for calculating ATR is:<\/p>\n\n\n\n ATR = (Total time to resolve all inquiries) \/ (Total number of inquiries)<\/strong><\/p>\n\n\n\n Let’s imagine that customer service managers received 100 unresolved tickets in a day. The total time to solve all the inquiries was 450 minutes. The ATR for the customer support staff would be:<\/p>\n\n\n\n ATR = (450 minutes) \/ (100 inquiries) = 4.5 minutes<\/p>\n\n\n\n No surprise here that customers are more likely to be satisfied if their issue is resolved quickly. So, by improving this metric, you can make users happier, reduce support costs (quicker resolutions = fewer escalations), and specify the areas for improvement. <\/p>\n\n\n\n How to boost the metric? You need to acknowledge the factors that contribute to prolonged resolution times. Often, lengthy interactions stem from a lack of self-service tools (never tired of highlighting<\/em> their importance!), insufficient agent training, or poor case management systems. Address these shortcomings to achieve a seamless resolution process.<\/p>\n\n\n\n Benchmark:<\/strong> the average score is 5 out of 7<\/a>. The average response rate for CES surveys is around 30%. Anything between 15 \u2013 25% is a good response rate and gives you plenty of data to dig into.<\/p>\n\n\n\n Customer Effort Score (CES) measures how easy it is for a customer to achieve the desired outcome (e.g., resolve their issue, make a purchase, upgrade).<\/p>\n\n\n\n To evaluate the amount of effort<\/a> people need to apply to contact your support, just send them a post-conversation customer survey with one question: \u201cOn a scale of 1-7, how easy was it to get your question answered?\u201d A vote of 5 and higher means that your support is fairly helpful and easy to contact. A score of 1 means that finding it was next to impossible. Basically, the higher your CES score, the better.<\/p>\n\n\n\n The CES score is calculated by finding the average of all responses. Here is the equation: <\/p>\n\n\n\n (Total sum of responses) \u00f7 (Number of responses) = CES score. <\/strong><\/p>\n\n\n\n The answers will give you a clear understanding of whether you should improve your UX and reevaluate your design decisions. <\/p>\n\n\n\n If a customer needs to search for your \u2018Contact us\u2019 button even for a minute, you\u2019ve failed your mission. Key actions like signing up or contacting support should take zero thought and effort. <\/p>\n\n\n\n The other negative example is when a person is being transferred from one customer service department to another. And no one can give them at least some sort of definitive answer.<\/p>\n\n\n\n Benchmark:<\/strong> depends on the size, structure, industry, and channel. Here is the average benchmark<\/a> CSAT per channel:<\/p>\n\n\n\n This KPI answers the question \u201cHow satisfied are your customers?\u201d There\u2019s no better way to measure it than by directly asking people whether they liked their experience with your business or not. <\/p>\n\n\n\n Just add a simple question at the end of customer conversations and 2-3 answer options to choose from. This will give you all the insight you need. <\/p>\n\n\n\n For instance, you can turn on the \u2018chat rating\u2019 option in HelpCrunch<\/a>. This way, every chat conversation will end with customer satisfaction surveys. For users, it takes just one click to choose one of the three options \u2014 poor, average, or great. Customer satisfaction will be measured from 0 to 100% based on these rates, and you will get a full overview of customer perception<\/a> and clients\u2019 thoughts about your service.<\/p>\n\n\n\n Benchmark:<\/strong> CRR should be between 60% and 80%. For example, for software companies, it\u2019s typically around 70%, while for retail companies, the indicator is around 65%.<\/p>\n\n\n\n Customer retention rate (CRR) measures the percentage of customers who continue to do business with a company over a specified time period. In other words, it\u2019s a customer lifetime metric. <\/p>\n\n\n\n By tracking this data, you can:<\/p>\n\n\n\n The formula for calculating CRR is:<\/p>\n\n\n\n CRR = [(End of period customers – New customers) \/ (Start of period customers)] x 100%<\/strong><\/p>\n\n\n\n For example, let’s say that a company had 250 customers at the specified period of time, like the beginning of the month, and 260 customers at the end of the month (giving us 10 new users). The CRR for the company would be:<\/p>\n\n\n\n CRR = [(260 customers – 10 new customers) \/ (250 customers)] x 100% = 100%<\/p>\n\n\n\n This would be considered a good CRR, as it is above the benchmark of 60%.<\/p>\n\n\n\n User retention rate isn\u2019t merely about preventing customer churn. Instead, it’s about inspiring strong relationships that result in long-term business growth and profitability. <\/p>\n\n\n\n Offering value-added benefits and incentives can help improve retention. Customer loyalty programs, exclusive discounts, early access to new products or services, and personalized recommendations to each individual customer can demonstrate your appreciation for the users’ loyalty.<\/p>\n\n\n\n Benchmark:<\/strong> Depends on the industry, but on average, above 0 \u2013 good, above 20 \u2013 favorable, above 50 \u2013 excellent, above 80 \u2013 world-class.<\/p>\n\n\n\n Let me introduce you to the key metric of every business track. <\/p>\n\n\n\n Net Promoter Score (NPS) is one of the most important customer service metrics that measure customer satisfaction and loyalty. It\u2019s based on users\u2019 willingness to recommend your business to other people on a scale of 0-10.<\/p>\n\n\n\n Based on people\u2019s answers, you can break your user base down into three groups:<\/p>\n\n\n\n Sounds simple, but it\u2019s an evergreen classic that can tell you more about your customers than you think. For one thing, people who are willing to recommend your brand to their friends and colleagues are one step closer to becoming your brand advocates and ambassadors.<\/p>\n\n\n\n On the other hand, dissatisfied customers can churn any minute, so your customer service strategy should be reviewed and adjusted ASAP.<\/p>\n\n\n\n Your Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters.<\/p>\n\n\n\n The formula for calculating NPS is:<\/p>\n\n\n\n NPS = Total % of promoters \u2013 total % of detractors <\/strong><\/p>\n\n\n\n Various discounts and loyalty programs are proven ways to retain people who stick with your brand for a prolonged time frame. Without a doubt, customer service plays a crucial role in building trusting relationships. However, it\u2019s virtually impossible to build an effective loyalty and retention strategy<\/a> without a solid, reliable, and viable product or service.<\/p>\n\n\n\n Being excellent at customer service is like the secret sauce for a company’s success. It’s not just about checking numbers but also building smart strategies that help businesses rock the customer-focused game. <\/p>\n\n\n\n Here are key points proving the importance of customer service metrics measuring:<\/p>\n\n\n\n Alright, think of customer service metrics like your business’s secret spy gadgets. They give you insights into how customers enjoy your service, how fast they get help, and if your support team is doing the best they can. It’s like having a crystal ball into what makes your customers happy.<\/p>\n\n\n\n Tracking customer service metrics allows companies to identify patterns and trends and address common issues to improve user experience. This knowledge helps in tailoring products, services, and support to better meet customer expectations and needs. It’s like having a tailor for your business!<\/p>\n\n\n\n Customer service performance metrics help evaluate individual and collective effectiveness. Response times, resolution rates, and customer satisfaction metrics reflect the efficiency of the support team. And what can possibly be more important for business success?<\/p>\n\n\n\n Keeping an ear to the ground helps companies get better. This way, you can focus the training on areas that need improvement. It’s like figuring out your team’s superpowers and where you can be even more effective. If some metrics don\u2019t show good results, having the complete picture helps to come up with a plan and make the whole team shine.<\/p>\n\n\n\nCustomer service KPIs<\/h2>\n\n\n\n
1. First response time<\/h3>\n\n\n\n
![\"First](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/First-response-time-per-Channel.png\")
<\/figure><\/div>\n\n\n\n2. Revenue growth<\/h3>\n\n\n\n
![\"Monthly](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2022\/02\/Monthlt-Recurring-Revenue-MRR.png\")
<\/figure><\/div>\n\n\n\n
<\/cite><\/blockquote>\n\n\n\n3. Upsells and cross-sells benefits<\/h3>\n\n\n\n
![\"Upsells](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Upsells-and-cross-sells-benefits.png\")
<\/figure><\/div>\n\n\n\n4. Demo-to-registration conversion rate<\/h3>\n\n\n\n
![\"Demo-to-registration](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Demo-to-registration-conversion-rate.png\")
<\/figure><\/div>\n\n\n\n5. Acquired reviews benefits<\/strong><\/h3>\n\n\n\n
![\"Acquired](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Acquired-reviews-benefits.png\")
<\/figure><\/div>\n\n\n\n6. Knowledge base benefits<\/h3>\n\n\n\n
![\"Knowledge](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Knowledge-base-benefits.png\")
<\/figure><\/div>\n\n\n\nTypes of customer service metrics<\/h2>\n\n\n\n
7. Average handle time (AHT)<\/h3>\n\n\n\n
![\"Average-Handling-Time-AHT\"](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2022\/02\/Average-Handling-Time-AHT.png\")
8. Contact resolution rate (CRR)<\/h3>\n\n\n\n
![\"First-contact-resolution-rate-by-industry\"](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2022\/02\/First-contact-resolution-rate-by-industry.png\")
9. Response times<\/h3>\n\n\n\n
![\"Table-response-times\"](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2022\/02\/Table-response-times.png\")
<\/figure><\/div>\n\n\n\n10. Average time to resolution (ATR)<\/h3>\n\n\n\n
![\"benchmark-for-average-resolution-time\"](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2022\/02\/benchmark-for-average-resolution-time.png\")
11. Customer Effort Score (CES) <\/strong><\/h3>\n\n\n\n
![\"Customer](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Customer-Effort-Score-CES.png\")
<\/figure><\/div>\n\n\n\n12. Customer satisfaction scores (CSAT)<\/h3>\n\n\n\n
![\"Customer](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Customer-satisfaction-score-CSAT.png\")
<\/figure><\/div>\n\n\n\n13. Customer retention rate (CRR)<\/h3>\n\n\n\n
![\"Retention-rate-formula\"](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2022\/02\/Retention-rate-formula.png\")
14. Net Promoter Score (NPS) <\/strong><\/h3>\n\n\n\n
![\"Net](\"https:\/\/helpcrunch.com\/blog\/wp-content\/uploads\/2021\/02\/Net-Promoter-Score-NPS.png\")
<\/figure><\/div>\n\n\n\nThe importance of measuring and tracking customer service metrics<\/h2>\n\n\n\n