{"id":6737,"date":"2017-06-28T15:44:21","date_gmt":"2017-06-28T13:44:21","guid":{"rendered":"https:\/\/icr-evolution.com\/?p=6737"},"modified":"2021-10-15T14:52:02","modified_gmt":"2021-10-15T12:52:02","slug":"top-6-customer-service-metrics-for-your-business","status":"publish","type":"post","link":"https:\/\/www.icr-evolution.com\/en\/blog\/top-6-customer-service-metrics-for-your-business\/","title":{"rendered":"Key customer service metrics for your business"},"content":{"rendered":"\r\n<p>To keep providing great service to your customers, and in turn <strong>keep your business profitabl<\/strong>e, it is essential to know (with certain customer service metrics) how your customers as well as your leads evaluate the quality of your current customer services. Beyond their satisfaction of your brand, understanding their behavior as users and buyers will support your retention strategy.<\/p>\r\n\r\n\r\n\r\n<p>A loyal customer is not just of value because of the repeat business they generate, or the guarantee of a regular income from them, but also because they are likely to tell others about their experience, especially with the advent of social media and influencers, so an ideal situation would be for users to become brand advocates and product ambassadors. It\u2019s no longer about building a customer base, you should be looking to build a fan base!<\/p>\r\n\r\n\r\n\r\n<p>As such, tracking the relevant customer service<a href=\"https:\/\/kpi.org\/KPI-Basics\" target=\"_blank\" rel=\"noopener\"> KPIs<\/a> will be key to <strong>make the best decisions for your business<\/strong>. It is no secret that in the age of <a href=\"https:\/\/icr-evolution.com\/en\/blog\/digital-customer-experience\/\" target=\"_blank\" rel=\"noopener\">digital transformation<\/a>, customer analytics are absolutely vital to a more profitable business. We\u2019ve listed the most fundamental indicators beyond customer satisfaction (CSAT).<\/p>\r\n<h2>6 fundamental customer service metrics:<\/h2>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>\r\n<h3><strong>Customer Effort Score (CES)<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>How easy is it to do business with you?<\/strong> This is what this metric determines. Usually measured through a typical customer satisfaction survey, users will evaluate their experience using a seven-point scale ranging from very difficult to very easy. This KPI should serve as evidence of <strong>how frictionless the<a href=\"https:\/\/icr-evolution.com\/en\/blog\/customer-journey-map-what-is-it-and-how-to-use-it\/\" target=\"_blank\" rel=\"noopener\"> customer journey<\/a> is perceived to be<\/strong>, and you should obviously be aiming for a \u201cVery easy\u201d score. Ease of service is not just about your product, it\u2019s about every interaction the customer has with your company, including contact center and e-commerce channels.<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>\r\n<h3><strong>First Contact Resolution (FCR)<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Usually calculated as the rate of contacts where the customer didn\u2019t need to reach out to more than once to solve their issue, <strong>FCR is generally considered good when it\u2019s at least 85%<\/strong>. In the age of <a href=\"https:\/\/icr-evolution.com\/en\/omnichannel\/\" target=\"_blank\" rel=\"noopener\">omnichannel contact<\/a> centers, it can be difficult to measure as there will usually be multiple contacts in a <strong>social media environment<\/strong> as the conversation will flow naturally. You could also be facing issues to have a single view of the customer if your <a href=\"https:\/\/icr-evolution.com\/en\/\" target=\"_blank\" rel=\"noopener\">contact center software<\/a> doesn\u2019t fully integrate all your channels. FCR usually goes hand in hand with Cost to Serve as the more contacts per customer, the more expensive they are. You may also wish to consider tracking the average number of contacts it takes for a customer issue to be solved which gives you a slightly different view of ease of service in your contact center.<\/p>\r\n<p><a href=\"https:\/\/icr-evolution.com\/en\/resource\/ebook-kpi-engagement%e2%80%8b\/\" target=\"_blank\" rel=\"noopener\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-large wp-image-11356\" src=\"https:\/\/icr-evolution.com\/wp-content\/uploads\/2019\/07\/BANNER-KPI-EN-1024x240.png\" alt=\"\" width=\"800\" height=\"188\" srcset=\"https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2019\/07\/BANNER-KPI-EN-1024x240.png 1024w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2019\/07\/BANNER-KPI-EN-300x70.png 300w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2019\/07\/BANNER-KPI-EN-768x180.png 768w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2019\/07\/BANNER-KPI-EN-1536x360.png 1536w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2019\/07\/BANNER-KPI-EN-2048x480.png 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>\r\n<h3><strong>Life Time Value (LTV)<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>This metric allows you to understand the<strong> profitability of a customer spanning across their entire lifecycle<\/strong>. A single buyer may generate lots of revenue in a single purchase, but then never repeat again, whereas some customers buy more regularly and end up spending more. Measuring LTV is a powerful tool to adjust your marketing strategies as you can identify high-value customers and determine dedicated loyalty programs for them. In fact, LTV is just as important a retention indicator as churn.<\/p>\r\n\r\n\r\n\r\n<p><strong>Calculation is fairly straightforward: average spend x purchase recurrence x lifespan<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>\r\n<h3><strong>Net Promoter Score (NPS)<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>We mentioned building a fan base earlier and that is exactly what the NPS tells you. It is based on a simple question that you usually ask during a satisfaction survey and goes along the lines of<strong> \u201cHow likely are you to recommend us to a friend or relative?\u201d<\/strong>, which the user can then evaluate on a scale ranging from 0 (not at all likely) to 10 (very likely).<\/p>\r\n\r\n\r\n\r\n<p>NPS is not expressed as a percentage, it\u2019s actually an absolute value between -100 and +100. To work out NPS, you will first need to split collected scores from the survey in 3 groups:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Promoters: scored you 9 or 10<\/li>\r\n<li>Passives: scored you 7 or 8<\/li>\r\n<li>Detractors: scored you 6 or below<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Then, deduct the percentage of detractors to the percentage of promoters, leaving the passives out. As an example, if you have 40% of promoters, 25% of passives and 35% of detractors, your Net Promoter Score will be +5.<\/p>\r\n\r\n\r\n\r\n<p><strong>As a rule of thumb, an NPS above 0 is considered good and a score above 50 is excellent.<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>\r\n<h3><strong>Average Revenue Per User (ARPU)<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>A different way to measure the value of a customer, ARPU is a common KPI to <strong>understand how much customers are spending with you<\/strong> and is particularly popular with subscription-based organizations such as telecommunications companies.<\/p>\r\n\r\n\r\n\r\n<p>To calculate ARPU, first define a set period of time, which can be a billing cycle or a total subscription period. Next determine the total revenue generated by all users and divide it by the total number of users.<\/p>\r\n\r\n\r\n\r\n<p>Of course, tracking ARPU won\u2019t tell you why customer spend varies but it\u2019s a start to explaining <strong>variations in EBITDA<\/strong>.<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>\r\n<h3><strong>Churn<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Also known attrition rate, <strong>churn is an absolutely essential figure to track when customers have the option to stop using your business<\/strong>. Again, this is a particularly common metric in subscription-based businesses. Churn rate is the evaporation of your customer base, meaning it is the difference between clients you\u2019ve acquired and clients who have left. As a business, you\u2019re looking for growth and a high churn rate means that you are acquiring fewer customers than you are losing. Churn is also closely related to average life time and the concept of survival rate. Remember, it\u2019s more expensive to acquire a new customer than to keep an existing one so even if you\u2019re a start-up, make sure you are giving your customer service the attention it deserves!<\/p>\r\n\r\n\r\n\r\n<p>Of course these are not the only important KPIs you should be tracking. Depending on the type of business you run, you also may wish to consider others, for example if you are an e-commerce company, analyzing drop out rates at each stage of the conversion funnel will give you essential behavioral insights.<\/p>\r\n\r\n\r\n\r\n<p>Let us close this article with a reminder that a good <a href=\"https:\/\/icr-evolution.com\/en\/\" target=\"_blank\" rel=\"noopener\">contact center software<\/a> should keep you informed about KPIs in real time. Our clients love the <a href=\"https:\/\/icr-evolution.com\/\" target=\"_blank\" rel=\"noopener\">EVOLUTION monitoring and reporting features<\/a> and we\u2019d be delighted to show them what they can do!<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><a href=\"https:\/\/info.icr-evolution.com\/demo\/?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=%20-%20general%20-%20demo\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-large wp-image-11317\" src=\"https:\/\/icr-evolution.com\/wp-content\/uploads\/2021\/09\/BANNER-CORPORATIVO-2-EN-1024x293.png\" alt=\"software contact center\" width=\"800\" height=\"229\" srcset=\"https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2021\/09\/BANNER-CORPORATIVO-2-EN-1024x293.png 1024w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2021\/09\/BANNER-CORPORATIVO-2-EN-300x86.png 300w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2021\/09\/BANNER-CORPORATIVO-2-EN-768x220.png 768w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2021\/09\/BANNER-CORPORATIVO-2-EN-1536x440.png 1536w, https:\/\/www.icr-evolution.com\/wp-content\/uploads\/2021\/09\/BANNER-CORPORATIVO-2-EN-2048x587.png 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>To keep providing great service to your customers, and in turn keep your business profitable, it is essential to know (with certain customer service metrics) how your customers as well as your leads evaluate the quality of your current customer services. Beyond their satisfaction of your brand, understanding their behavior as users and buyers will [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11936,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[96],"tags":[],"class_list":["post-6737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-service-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Key customer service metrics for your business - ICR Evolution<\/title>\n<meta name=\"description\" content=\"It&#039;s no secret that in the age of digital transformation customer service metrics are vital to a more profitable business. 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Mi experiencia profesional en la industria de las tecnolog\u00edas de la informaci\u00f3n incluyen la direcci\u00f3n de equipos de ventas, la consultor\u00eda, la direcci\u00f3n general en multinacionales y el emprendimiento. En la actualidad estoy al frente de ICR evolution.\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Key customer service metrics for your business - ICR Evolution","description":"It's no secret that in the age of digital transformation customer service metrics are vital to a more profitable business. 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