Customer service KPIs , for example, provide cocos isiands keeling email list unbiased numbers to measure the success of your strategy, while sales KPIs calculate acquisition costs and business profitability.
Monitoring customer metrics is essential to know what you excel at and what you need to improve.
Although there are dozens of customer metrics , some are essential for business. In this post we show you 4 customer indicators with their respective formulas:
Delayed response times have a significant effect on customer satisfaction and impact their purchasing decisions. In fact, 59% of customers are more likely to purchase when brands respond to their queries in less than a minute.
First Response Time (FRT) is one of the customer metrics that calculates the amount of time it takes from when a support ticket is created until the agent provides the first response to the user.
Connecting to an agent quickly and efficiently helps improve the customer experience . In fact, according to Zendesk’s 2020 Trends Report , 51% of respondents expect a response in less than five minutes over the phone, and 28% expect the same for live chat.
Benefits of calculating this customer service and support KPI :
Show customers that their problems are a priority.
This customer metric indicates the promptness of issue addressing in your business.
With this KPI you can know if your team is meeting demands or if you need to add more resources.
How to calculate first response time?
To calculate this customer metric, simply divide the total number of minutes your team spent sending first responses by the total number of customer contacts.
For example, imagine your company received 450 customer contacts in a month and your team spent 2300 minutes sending the first responses. The first response time is 5 minutes.
FTR = 2300 minutes / 450 contacts = 5 minutes.
Please note that this customer metric can be calculated by day, week, month, or year.
2. Customer Retention Rate (CRR)
Acquiring new customers is important for business and improves your brand image. However, retaining them shows that you have built trust and loyalty through your customer retention strategy .
Customer retention rate (CRR) determines the number of loyal customers and helps analyze churn over a specific period . This is one of the key customer indicators for planning and reviewing retention and loyalty strategies .
Business leaders need to be aware of customer metrics that focus on measuring retention rates, as the average global value of a lost customer is $243 .
A high retention rate is the result of a quality customer service experience, and as we saw, it can also save you a lot of money!
How to measure this customer service KPI?
Customer retention rate = ((number of customers at the end of the period – number of new customers during the period) / customers at the beginning of the period) * 100%
Example:
If you start the month with 230 customers, you acquired 45 new ones in that time, but lost 20, you end the month with 255 customers.
CRR = ((255 – 45) / 230) * 100% = 91.30%
3. Conversion rate
Conversion rate is the business KPI that calculates the number of visitors who completed a purchase on your website. The higher the conversion rate, the more successful your business growth campaigns are.
A Forrester Research study found that 44% of consumers say that answering their questions in the middle of an online purchase is one of the most important resources a website can offer.
Communicating with your customer throughout the purchasing journey and answering their questions is the difference between a sale and a bounce.
Sales indicators are essential for monitoring processes, creating strategies to attract customers correctly and improving conversion.
Formula to calculate this customer metric :
Conversion Rate = (Conversions / Total Visitors) * 100%
For example, if your website had 128,000 visitors and 13,200 conversions last month, your conversion rate is 10.3%.
4. Customer Effort Score (CES)
Customer Effort Score (CES) is one of the customer indicators that requires a survey to understand how easy it is for a user to do business with your company.
Customers will rate on a scale of 1 to 5 the level of effort it takes to complete a transaction, resolve a support issue, or otherwise interact with your business.
This customer metric measures the ease of interaction with your company and not the satisfaction rate. A high CES does not indicate that a customer is satisfied, but a low CES represents a bad experience and the need to optimize communication processes with users.
To ask customers to rate their experience with your products or services, you can ask the following question:
How easy was it to resolve your problem with our company?
For example, if 342 customers responded to the survey, 87 said it was very easy, and 169 said it was easy, the Customer Effort Score is 72%.
CES = ((87 + 169) / 342) * 100% = 72%
Like other customer service KPIs such as NPS, CES is also associated with satisfied customers and business growth.
You may be interested in reading: How to measure customer satisfaction with CSAT, NPS and CES .
Now that you know which customer metrics will give you a complete picture of the quality of your customer service, we show you which technological tools you can implement to facilitate your team's tasks and analyze the data obtained through customer metrics.
