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What is customer service KPI?

Definition: Customer service KPI (key performance indicator) is measurable metric organizations use to evaluate the overall performance of customer service operations. 

KPIs help organizations track progress toward customer service goals, identify areas for improvement, and ensure they deliver a high-quality customer experience

The most important customer service KPIs

  1. Customer Satisfaction Score (CSAT) – A measure of how satisfied customers are with a company's products, services, or support interactions, typically assessed through surveys.
  2. Employee Satisfaction Score (ESAT) – Gauges the happiness and satisfaction of employees in the workplace, often assessed through regular surveys. A higher ESAT indicates a more engaged and motivated workforce.
  3. Net Promoter Score (NPS) – measures customer loyalty by asking customers how likely they are to recommend the company to others. Responses are divided into promoters, passives, and detractors, with NPS calculated as the percentage of promoters minus the percentage of detractors.
  4. Customer Retention – Indicates the percentage of customers who continue to do business with a company over a given period, reflecting customer loyalty and satisfaction.
  5. Customer Churn Rate – The percentage of customers who stop doing business with a company within a given period, indicating potential issues with customer satisfaction or retention.
  6. Customer Effort Score (CES) – Assesses the ease of interaction with a company, measuring the amount of effort customers exert to resolve their issues, make a purchase, or access information.
  7. First Response Time (FRT) – Average time it takes for customer service agents to provide an initial response to customer inquiries. Faster response times contribute to higher customer satisfaction.
  8. Average Handle Time (AHT) – Total time spent by agents on customer interactions, including talk time, hold time, and after-call work. Lower AHTs indicate efficient support operations.
  9. Average Response Time (ART) – The average time a customer service representative takes to respond to a customer inquiry, impacting customer satisfaction.
  10.  First Contact Resolution – Percentage of customer issues resolved during the first interaction, showcasing the effectiveness of the customer support team.
  11.  Cost Per Resolution – Average cost incurred to resolve a customer issue, considering factors such as labor, infrastructure, and technology costs.
  12.  Employee Turnover Rate (ETR) – Percentage of employees who leave the company within a given period, indicating the stability of the workforce and the effectiveness of employee retention efforts.
  13.  Top Topics –  Identifies the most common subjects or issues raised in customer inquiries, providing insights into potential areas for improvement.
  14.  Number of Resolved Tickets – Tracks the total number of customer support tickets closed or resolved within a given period, reflecting the support team's productivity.
  15.  Agent Utilization – The percentage of time agents spend actively working on customer inquiries, compared to idle or non-productive time.
  16.  Cost per ticket – Average cost incurred for handling a customer support ticket, considering factors such as labor, infrastructure, and technology costs.
  17.  Escalation Rate – Percentage of customer support tickets that require escalation to higher levels of support or management, reflecting the complexity of issues and the skill level of the support team.
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Article FAQs

Why are KPIs important for customer service?
KPIs are crucial for customer service because they provide measurable insights into performance, enabling organizations to identify areas for improvement, set targets, and track progress. By optimizing customer service KPIs, businesses can enhance customer satisfaction, loyalty, and overall experience, leading to increased growth and success.
What are the most important customer service KPIs to track?
The importance of specific KPIs varies depending on your business goals and industry, but key KPIs to always track are CSAT, NPS, First Contact Resolution, AHT, and FRT. 
How do I set targets for customer service KPIs?
Set targets by considering industry benchmarks, your company's historical performance, and your overall business goals. Targets should be realistic, achievable, and aligned with your organization's strategic objectives.‍

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