If you want to increase client happiness you need to measure customer support metrics. Choosing the most useful key metric among many is a difficult task. When you use customer service metrics and key performance indicators, helpdesk reporting can help you address gaps and make better data-driven decisions. Unbiased data about your success can be obtained by measuring customer service success. Only through measurement can you identify your strengths and areas for improvement.
You may achieve the highest level of customer satisfaction and promote the growth of your business by regularly evaluating and enhancing the performance of your customer care team. Listed below are the impactful strategies to measure customer support metrics:
1. Customer Retention Rate (CRR)
The number of clients a company has retained over a specific period is exactly is called customer retention rate (CRR). Knowing your CRR is essential since selling to an existing customer has a 60-70 % chance of success compared to 5-20 % for selling to a new one. 20% of your current consumers will also contribute to 80% of your future income. By considering this, you should concentrate on evaluating your CRR and making an effort to raise it.
You can use this simple formula to calculate your current CRR:
Customer retention rate = ((E-N/S) *100
E – The number of buyers at the end of a period.
N – The number of new customers gained during the period.
S – The number of buyers at the start of the period.
2. Customer Effort Score (CES)
Another key customer service metric to monitor is CES. It effectively determines how much effort your consumers believe must be demonstrated by your staff to resolve a problem. When support experience becomes more frustrating, it means that more work is necessary achieve customer satisfaction. After a customer service transaction, you can use a scale inquiry to collect this data.
Customer Effort Score = Total Sum of replies/ Number of replies
3. Net Promoter Score (NPS)
The NPS measures customer loyalty and the probability that they will recommend your business to others. Consumers are asked one simple question: Would you suggest our brand to a friend? Customers then rate items on a scale of 0 to 10. The customer will go into one of the following groups depending on their response:
– Promoters: Those who rated a response 9 or 10. These customers are particularly devoted to your company and are inclined to spread the word about it.
– Passives: Those who gave a rating of 7 or 8 are considered passives. Most of the time, these customers are satisfied with your service but unhappy enough to promote your company actively.
– Detractors: respondents who provided ratings between 0 and 6. These are often seen as dissatisfied customers who are unlikely to recommend your business and make another purchase.
NPS = (Number of promoters- Number of detractors/ Total respondents) *100
4. Customer Satisfaction Score (CSAT)
How customers feel about your business determines what strategies will help you improve in the future. Customer satisfaction, also known as the happy customer key performance indicator, is a technique for measuring a customer’s level of happiness with your business, goods, or services.
You can directly ask your consumers to score their satisfaction with various communication channels as part of a CSAT survey. The average of each customer feedback is calculated.
The equation to measure CSAT is:
CSAT = (# of client with highest satisfaction/ # of total client survey) x 100
A higher value denotes higher customer support. Therefore, value will increase as value increases.
The way to increase CSAT
Customer satisfaction is highly linked with a good CSAT score. Identify qualitative and quantitative feedback techniques that will enable you to determine the areas that are operating effectively and require improvement.
5. Customer Churn
The opposite of customer churn is the customer retention rate. To determine churn, you should count the number of customers lost against the number of customers gained. Customer attrition—another name for customer churn—seriously affects the long-term expansion of your business. Once a customer defects to a competitor, it is a severe challenge to win them back and they may advise others to avoid your company.
In the past, businesses would respond reactively to customer retention and churn. To do this, they would attempt to persuade a customer to stay only after they were certain they wanted to leave. However, businesses are now proactive about CRR and customer churn because of the digital world’s powerful analytical tools.
By utilizing the following calculation, you may determine your customer churn rate:
CCR = (Customers start of the month – Customers end of the month) / Customers starting of the month.
6. First Response Time
Responding to your customer as quickly as you can is vital. 59% of customers choose companies who respond to their questions in under a minute. Accurate FRT measurement can help you better understand how much attention is given to customer problems and how effectively your team provides customer assistance. In order to judge your customer’s initial reaction time, use the metrics equation below:
First respond time = Time of first response – Time of customer request
The way to increase FRT:
You need to scale your customer service team or use virtual assistance to decrease response times. Virtual assistants can address basic questions 24/7 if your employees are busy and unavailable, minimizing the need for support requests and human engagement.
7. First call resolution rate (FCR)
FCR is a useful indicator of both customer satisfaction and the effectiveness of your customer service desk reports because this report will resolve issues without the need for follow-ups. The contact center’s performance in addressing customer issues on the first call is judged by the first call resolution rate.
According to one study, 60% of businesses that tracked their FCR for more than a year said that doing so had improved their performance by up to 30%.
FCR = (Total Fixed Issues / Total Number of Issues) x 100%
The way to increase FCR:
Every company needs to make a strong first impression. By enhancing the communication abilities of your customer service team and assuring high-quality customer service, FCR may be maximized. The initial interaction can be improved using customer surveys and live chat scripts.
8. Average Resolution Time
Customers expect reliable, quick, and effective customer service. Real-time responses to consumer questions are necessary if you want to prevent them from placing you in danger. A quick resolution will always affect customer satisfaction.
When a support issue is resolved after being evaluated, the amount of time required is referred to as the average resolution time (ART). Customer satisfaction is higher when resolution times are lower.
This customer service metrics equation to calculate your average resolution time is as follows:
Average Resolution time = Sum of times of resolution/ Total number of issues resolved.
The way to increase:
Customer satisfaction is high when the average time to resolve a problem is short. By consistently integrating a developer team with your customer support staff, you can maintain these customer service metrics at a low level. They can work together to find a solution to the problems quickly.
9. Abandoned Call Rates
Abandoned call rates are an important factor in measuring customer service satisfaction. One of the biggest reasons customers give up is the long wait time. It is frustrating for customers to wait a long time to speak with the representative.
By monitoring these metrics and customer service metrics, the appropriate strategies may be put into place to provide clients with proactive support in real-time and enhance their experience. By including the service measure in your scorecard, you can detect if this is the case and determine what is slowing down your agents. So, this is the formula for measuring your ticket backlog in metrics.
Abandoned call rate = ((Number of calls offered – Number of calls handled)/number of the calls provided) * 100
The way to increase:
Higher customer satisfaction translates into lower call abandonment rates. Customer happiness will increase when you know your consumers’ expectations and give them the help they require.
10. Cost per conversation (CPC)
One of the most important customer service metrics is determining what proportion of your income goes into customer service. Comparing the support charges to your revenue is easier to assess how much your service efforts contribute to your overall revenue. The metrics equation to calculate your cost per conversion is as follows:
CPC = Sum of total support costs/ Total number of issues
The way to increase:
Hiring personnel with the right skills and modifying employee schedules to suit your company’s requirements can effectively handle support charges. Suppose this metric for customer service is unusually high. In that case, take steps to identify the main causes and create a strategy of action because you can track its development over time and determine its pattern.
By monitoring the measures, you can maximize your data’s potential and ensure that you consistently provide your customer with quality services. The above listed are the ten impactful strategies to measure customer support metrics.
Author bio: Mr. Maulik Shah is the founder of DeskXpand, A full-fledged ticket management system that comes with the right tools to provide a seamless and cost-efficient customer experience. Maulik is a tech enthusiast and writes about the various aspects of the customer support metrics.