7 customer service KPIs your business needs to measure

The quality of your customer service can make the difference between losing a sale and gaining a loyal customer.

That’s why measuring the quality of your customer service operations is essential. When you start tracking customer service Key Performance Indicators (KPIs), you’ll be able to understand how well your business is meeting customer expectations and identify areas for improvement.

At Bizik, we track these KPIs daily to help us optimise our telephone answering and live chat performance. We also proudly share them with our clients to demonstrate the value of our quality service.

Check out our recommendations for the seven most helpful customer service KPIs all businesses should measure and learn strategies to improve these metrics over time below.

1. First Response Time (FRT)

First Response Time (FRT) refers to how long a customer service agent takes to respond to a customer’s initial inquiry. A similar metric you could measure is Call Wait Time, the amount of time it takes for an agent to answer a customer’s phone call.

This metric is critical because customers increasingly expect fast responses. Nobody likes waiting on hold or feeling ignored on live chat.

A quick response time can set the tone for the entire customer interaction, as it shows you value the customer’s time.

• See also: The benefits of an out of hours answering service
• See also: Turbocharge your customer services through managed live chat
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According to a recent survey of 750 online shoppers by Aircall, 96% of respondents said they expect a response within five minutes of initiating a chat conversation, and 90% said they would wait no longer than five minutes to speak to an agent on the phone.

So, optimising your FRT to fit within these limits can enhance customer satisfaction and reduce the chance of losing sales, either by the customer leaving your website or hanging up the phone.

How to improve your FRT

You could start by raising awareness of the importance of fast response times to motivate staff to work efficiently. Ultimately, the best way to improve your FRT is to have enough agents available to answer enquiries.

You could hire more agents or optimise shift schedules to have more agents working when lines are busier and fewer during quieter hours. Or you can save time and money on hiring and training costs by outsourcing your customer operations to a trusted, professional provider like Bizik.

2. Average Resolution Time (ART)

Average Resolution Time measures the total time it takes to resolve a customer’s issue. Unlike FRT, which tracks the initial response, ART includes all follow-up responses and internal processes necessary to reach a solution and close the case.

Long resolution times can lead to customer frustration and dissatisfaction.

How to improve your ART

A robust CRM system can give agents the information they need to close tickets faster. Additionally, regular training sessions will improve agents’ product knowledge so they can answer questions quickly.

It also helps to have clear escalation processes when an agent cannot handle an enquiry and a manager is needed. Managers must also know the importance of acting fast to ensure customer satisfaction.

3. One Touch Resolution Rate (OTRR)

Also known as First Contact Resolution, OTRR measures the percentage of customer inquiries resolved in a single interaction without requiring follow-up. It indicates the efficiency of the customer service team in handling issues quickly and accurately on the first touch.

A high OTRR signals that customer service agents effectively handle issues, increasing your chances for high customer satisfaction. It also indicates you have a highly productive team.

The quicker agents handle issues, the more they can handle during their shifts.

How to improve your OTRR

Again, train your team on common issues and ensure a clear escalation path for more complex cases. Additionally, having automated responses to common customer queries can help streamline the resolution process.

4. Customer Satisfaction (CSAT)

CSAT is a metric that directly measures customer satisfaction by asking customers to rate their service experience, typically on a scale from 1 to 5.

Tracking this metric can let you know whether your service meets standards and provides value to customers.

Qualitative written feedback alongside CSAT scores can tell you where your customer service is excelling and where it’s falling short.

How to improve your CSAT

To improve CSAT scores, analyse your data to help identify recurring issues. For example, if you frequently receive lower scores at certain times of the day, it could mean those times are understaffed.

However, knowing what influences your score without written feedback alongside scores is impossible.

So, encourage feedback and take it on board. This will help you know which areas you are doing well in and which you can improve.

Sharing this feedback with agents can help them understand customer expectations and improve their performance over time.

5. Net Promoter Score (NPS)

Your NPS is also a measure of customer satisfaction, but it’s more specific. It’s a measure of how likely customers are to recommend your services to others.

On a scale of 1 to 10, those who score high are considered promoters, while those scoring low are considered detractors. Your score is measured as the percentage of promoters minus the percentage of detractors.

NPS is valuable for identifying brand advocates. A high NPS indicates high customer confidence in the brand, which can translate into referrals, positive reviews and customer loyalty.

How to improve your NPS score

It’s important to actively seek and respond to customer feedback.

When customers see that their feedback is listened to and acted upon, it builds trust and confidence in the brand. This sense of partnership will increase the likelihood that your customers will become promoters.

For those who rate your service highly, follow up with a personalised thank you email or text to show them you appreciate their business to further their likelihood of promoting your business to others.

6. Transfer Rate

Your Transfer Rate measures how many customer inquiries are transferred from one agent to another.

High transfer rates indicate that agents lack the necessary skills or information to resolve queries effectively. Low transfer rates reflect a well-trained and knowledgeable team capable of resolving issues without passing them along.

How to improve your transfer rate

Offer training to ensure agents have the knowledge and tools to handle various queries. Also, ensure your CRM system provides customer profiles to aid agents with relevant information to help them resolve issues themselves.

7. Agent Turnover Rate

The Agent Turnover Rate measures the rate at which agents leave your business. While this isn’t a direct customer-facing metric, it contributes to the quality of service your business can offer.

High turnover can disrupt service continuity and lead to inexperienced and underqualified agents handling high-stakes problems.

Maintaining a stable team with years of experience ensures that clients receive consistent, high-quality service. Agents who have worked for you for years and years also have the opportunity to build relationships with customers and increase brand loyalty.

How to improve your agent turnover rate

Foster a positive work environment focused on employee wellbeing. When your agents are happy and have a good time at work, they are more likely to stay and work hard.

It also helps to promote a culture of growth. Provide career development opportunities to retain talented agents and reward staff who improve your service.

You can also incentivize high-performance levels by rewarding people who exceed their targets.

Start tracking your customer service KPIs with Bizik

Does your customer service operation need a boost? Let us handle it.

At Bizik, we measure and report these KPIs daily across our telephone answering, live chat, and diary management services to show our clients the value we provide.

By constantly striving to exceed our clients’ expectations, we help them foster loyalty and drive growth.

Whether you aim to improve response times, increase satisfaction, gain more promoters, or all of the above, get in touch to start your seven-day free trial.