The importance of customer service indicators (KPIs)
The use of customer service indicators, also known as key performance indicators (KPIs), enables companies to identify potential and use it in a targeted manner. The ultimate goal is to optimize customer service using these KPIs. Instead of speculating about whether customers are satisfied with customer service, the opportunity should be used to ensure this through measurements.
This is where the ten most important customer service KPIs come in, which provide information about what customers really want.
What are key figures or KPIs?
Metrics, also known as key performance indicators (KPI), are quantifiable measures or indicators that are used to evaluate and monitor the performance, progress, or success of a company, project, organization, or specific activity.
Why are customer service metrics essential in customer service?
- Improving service quality: By tracking KPIs, companies can identify weaknesses in their service processes. For example, when the customer satisfaction is low, this may indicate customer service issues that need to be addressed. When companies Abandonment rate or the First resolution rate monitor, they can identify and optimize inefficient processes. In addition, companies often set goals such as responding to customer inquiries within a specific period of time. The corresponding KPIs show whether these goals are being achieved or not. KPIs thus serve as early warning systems for potential quality problems and enable companies to take targeted measures to improve quality.
- Focus on customer needs: Customer service KPIs are therefore more than just basic data — the use of customer service KPIs enables a continuous feedback loop between company and customer. With the help of key figures, the individual needs and preferences of customers can be determined, which offers companies the opportunity to customer experience to personalize. They can offer tailor-made solutions and make customers feel that their concerns are being taken seriously.
- Basis for companies to make decisions: Customer service KPIs also provide clear insights into the performance of Customer Support and thus provide the direction for future strategic steps. By analyzing relevant KPIs, companies gain valuable insights into the customer experience. This information helps to identify weak points and potential for improvement. For example, are important performance indicators such as First reaction, also First Response Time (FRT) or the Processing time below an acceptable level, this signals a need for action. The evaluation of KPIs enables companies to take targeted measures to increase customer satisfaction to seize. This may include training for the customer service team, process optimization, or the introduction of new communication channels. In addition, KPIs provide a way to measure the success of customer service strategies. They enable continuous monitoring of progress and help companies achieve their customer service goals.
The 10 most important customer service figures
1. First Response Time
What is that? Die initial response time is the time between a customer's request and the initial response from customer service. This concerns various communication channels such as email, live chat, telephone or social media.
What does that say? The key figure shows how quickly a company reacts to customer inquiries and problems. It measures the amount of time that a customer has to wait before they receive an initial response.
What is it good and important for?
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- The initial response time is crucial for customer satisfaction, as quick responses are appreciated by customers and create a positive customer experience
- It helps to avoid lost sales, as dissatisfied customers quickly switch to the competition if they have to wait a long time for an answer
Different channels and times create different customer expectations, so it's important to adjust the initial response time accordingly and communicate when necessary.
2. Average Handling Time
What is that? Die average processing time Customer support refers to the average time it takes a customer service representative to process a single customer request from receipt to final solution.
What does that say? This key figure measures the time efficiency of the customer service team when processing individual inquiries. It states how quickly and efficiently the team addresses customer concerns and resolves the case.
Why is it good and important?
- Customers are looking for quick solutions, so turnaround time from initial contact to final solution is just as important as initial response time
- A shorter average turnaround time indicates an efficient customer service team
- A low Average Handling Time This means quick processing, but the quality of the solutions must not be neglected.
How is the average processing time calculated?
The average handling time is calculated by adding the call time with the waiting time and post-processing time and then dividing the result by the number of total requests.
3. First resolution rate, also first time fix rate (FFR)
What is that? Die First resolution rate, also known as First Time Fix Rate, indicates how many orders or problems are successfully resolved upon initial customer contact.
What does that say? The key figure reflects the efficiency and quality of the company, in particular the ability to diagnose and solve problems upon initial contact. A high initial resolution rate indicates well-trained employees who can identify and solve customer problems quickly and competently.
Why is it good and important?
- It measures a company's ability to resolve customer issues immediately and satisfactorily without the need for further visits or corrections
- A high First resolution rate leads to higher customer satisfaction as customers have to spend less time and effort solving their problem
- It contributes to efficiency by saving resources such as time and costs for additional communication. The company can use its resources more effectively and focus on other tasks, increasing productivity and profitability
4. Customer satisfaction (CSAT)
What is that? The Customer satisfaction score, or even Customer Satisfaction Score (CSAT) is a KPI for measuring customer satisfaction and is expressed as a percentage.
What does that say? The CSAT measures customer satisfaction following interactions with the company and reflects their reviews and opinions.
What is it good and important for?
- The CSAT enables companies to quantify and monitor customer satisfaction in order to identify areas for improvement
- It serves as an important source of feedback to optimize the customer experience and ensure that customers are satisfied
- Companies can CSAT use to evaluate specific interactions, products, or services and initiate targeted improvement measures
How is the customer satisfaction score (CSAT) calculated?
You get the CSAT score by dividing the number of respondents who are satisfied by the total number of respondents. Then multiply the result by 100 to get a percentage.
For more information about CSAT, go here Article “Customer Satisfaction Score — What is the CSAT and how is it measured”.
5th Net Promoter Score (NPS)
What is that? The Net Promoter Score (NPS) is a key figure that measures the level of customer loyalty to a company by asking questions about the intent to act.
What does that say? The NPS focuses on whether customers are prepared to actively recommend the company to others. It provides information about how loyal and satisfied customers are with a company.
What is it good and important for?
- The NPS is often more important than internal customer satisfaction scores, as recommendations have strong positive effects on the company's success. Satisfied customers are more willing to actively support the company.
- It is an important KPI in customer support management as it is directly related to customer loyalty and business growth.
How is the Net Promoter Score calculated?
The calculation of NPS is based on a scale of 0 to 10, with customers divided into promoters (score 9-10), passives (score 7-8) and detractors (score 0-6). The NPS value is the percentage of promoters minus the percentage of detractors.
6. Abandonment rate
What is that? Die Abandonment rate, also known as the abandonment rate, is a key figure in customer service, particularly in call centers. It shows the percentage of incoming calls from customers that are canceled before they are answered by an agent.
What does that say? Die Abandonment rate shows how many customers are frustrated due to long wait times or other factors and end the call before they reach an agent.
Why is it good and important?
- Die Abandonment rate is an indicator of efficiency and customer satisfaction in customer support and can help optimize service processes.
- A low Abandonment rate is desirable as it is a sign of an efficient and customer-friendly queue.
- A high value for the Abandonment rate may indicate various issues, such as long waiting times, inadequate employee support, or inefficient processes.
- By reducing the Abandonment rates Can companies not only the customer satisfaction increase, but also use resources more effectively and reduce costs.
How is the abandonment rate calculated?
Die Call abandonment rate is calculated by first determining how many calls have been canceled (Incoming Calls — Calls processed) and then dividing this by the number of incoming calls. Multiply the result by 100.
Ideally, the abandonment rate should be less than 2%, while values above 5% are considered unfavorable as they may indicate dissatisfied customers and potential service problems.
7. Customer Effort Score (CES)
What is that? The Customer Effort Score (CES) is a customer service KPI to assess the amount of effort customers put in to solve their customer support issues.
What does that say? The CES measures how quickly and easily customers can solve their problems with customer service.
What is it good and important for?
- The CES enables companies to satisfy their customers with Customer Support to evaluate
- Companies can use the CES Find out specifically which aspects of customer service need to be optimized
- A lower CES signals that customers are having more positive experiences with customer support, which in turn customer loyalty can strengthen. Satisfied customers are more willing to buy from a company again and recommend it to others.
How is the Customer Effort Score calculated?
To the Customer Effort Score To calculate, the sum of the points awarded is divided by the number of answers from the customer.
8th First Call Resolution (FCR)
What is that? Die First Call Resolution (FCR) is a key figure in customer service that measures how often a customer problem is resolved directly upon initial contact with customer support.
What does that say? Die FCR provides information about how efficient customer support is in solving customer problems. It shows in how many cases no further contact or call back is required to resolve the customer's concern.
What is it good and important for?
- Die FCR influences customer satisfaction. Customers prefer to have their issues resolved quickly and effectively without having to contact them repeatedly.
- Companies can FCR use to assess the quality of their customer service team and improve processes to increase the number of first-time solutions.
How is First Call Resolution (FCR) calculated?
FCR is calculated by the number of queries resolved upon first contact divided by the total number of incidents multiplied by 100 to get the percentage.
9. Number of support requests
What is that? Die Number of support requests Is a KPI in Customer Support, which measures the total number of inquiries and concerns from customers addressed to the customer service be directed.
What does that say? An increase in support requests can indicate various factors, including product issues, user interface changes, or increased customer interest.
What is it good and important for?
- The number of Support Requests is important for evaluating the volume of work carried out by the customer service team and planning resources accordingly.
- It enables companies to identify changes in customer behavior and identify potential problems at an early stage.
- A sudden increase in requests to launch a new product or feature may indicate difficulty using it and may require measures such as updating support articles or adding customer service representatives
10. Escalating inquiries
What is that? Escalating requests are customer inquiries in customer support that are forwarded by service employees to supervisors or managers because they cannot solve the problem themselves or because the customer specifically asks for supervisors.
What does that say? Escalating requests indicate complex or challenging customer concerns that require special attention. They may reveal weaknesses in customer service when service agents regularly need to escalate inquiries.
What is it good and important for?
- Escalating requests enable demanding customer concerns to be dealt with appropriately and to ensure customer satisfaction
- Analyzing escalations can help identify weaknesses in customer support and optimize processes to prevent future escalations
- In connection with chatbots, the Human Takeover important to ensure seamless customer experiences and solve problems that automated systems cannot address
Chatbots in customer service — their positive effects on key figures
chatbots have a significant impact on customer service, and therefore naturally contribute to optimizing customer support indicators and improving the overall customer experience. There are also explicit key figures that show how well a chatbot is performing and whether it is achieving its goals. Chatbots primarily look at the following KPIs:
Conversion rate through chatbot
What is that? Die conversion rate of chatbots measures the percentage of customers who take a desired action after interacting with the chatbot, such as making a purchase, clicking on a link, or requesting information.
What does that say? This key figure shows how effective the chatbot is when it comes to getting customers to take the desired action.
Why is it good and important?
- A high chatbot conversion rate means that the chatbot not only answers inquiries but also helps to achieve business goals.
- This metric is important for evaluating the chatbot's ROI (return on investment) and business value.
2. Number of conversations
What is that? Die number of conversations is the number of conversations that the chatbot has. This key figure is comparable or is usually part of the above Number of support requests.
What does that say? This key figure shows how active the chatbot is in customer communication and how many users it supports.
What is it good and important for?
- A high number of conversations indicates that the chatbot is an important resource in customer communication and helps many users.
- The activity of the chatbot helps the AI to continuously develop and learn from users, which leads to an improvement in service quality.
3. Handover to a live agent (human takeover)
What is that? The handover to a live agent, also known as Human Takeover, measures the number of times the chatbot has been handed over to a human agent.
What does that say? The key figure shows which issues the chatbot is unable to solve the customer problem itself and requires human help.
Why is it good and important?
- The handover to a live agent shows where the limits of chatbot capabilities lie and where human expertise is required.
- Die Human Takeove Rate shows which topics the chatbot should be expanded to be able to answer more questions automatically in the future
- Companies can base their customer service team on the basis of this metric and ensure that more complex inquiries are handled appropriately.
4. Customer satisfaction with chatbot (CSAT score in chat)
What is that? Customer satisfaction with the chatbot, measured by CSAT-Score in chat, makes it possible to evaluate customer satisfaction with the chatbot interaction.
What does that say? The KPI shows how satisfied customers find the experience with the chatbot and whether they could be helped.
Why is it good and important?
- The CSAT-Value in chat helps companies evaluate the quality of their chatbot interactions and make improvements.
- A satisfied customer is more likely to return to the chatbot solution and speak positively about the company.
5. Self-resolution rate (automation rate)
What is that? Die Self-resolution rate, also known as automation rate, measures the percentage of customer inquiries that are successfully resolved by the chatbot without human intervention.
What does that say? The automation rate shows how effectively the chatbot answers customer concerns independently.
Why is it good and important?
- A high self-resolution rate reduces the workload of the customer service team and allows resources to be used more efficiently
- An effective chatbot that independently solves customer inquiries leads to faster processing and higher customer satisfaction
For more information on the most important chatbot KPIs, click here.
Conclusion: Customer service indicators are essential
Customer service metrics are essential to improve the quality and efficiency of your customer support. They provide clear insights into customer satisfaction, your team's efficiency, and the impact on your business. By choosing the right customer service KPIs, continuously measuring data, and taking targeted action, you can customer experience optimize, Strengthen customer relationships and ensure long-term business success.
Chatbot KPIs in practice
Are you also interested in the following key figures in practice? How important chatbot KPIs are used can be shown very nicely in a practical example with food bowl. With over 4000 conversations per month, an automation rate of 86%, a CSAT score of 75%, and a low human takeover rate — Fressnapf is a true example of best practice and is one of the top 5 most successful moinAI chatbots. click here to get a more detailed insight into the KPIs and the use case
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