Customer Service Metrics And How To Measure Them

They say the customer is always right. But sometimes, it feels like the customer is speaking a different language, and it can be hard to understand what they really want.

If you're running a business, you should be constantly worried about whether your customer service is up to snuff. After all, research shows that 96% of customers say customer service is essential in their choice of loyalty to a brand.

That's where customer service metrics come in. These measurements quantify whether your support interactions are satisfying your customers. In this post, we'll introduce you to the most essential metrics to track and how our survey software can help collect and analyse this data.

Key customer service metrics to track

There are many metrics that provide valuable insights. We can divide them into three main categories:

• Transactional metrics: these measure how well you're doing in specific interactions with customers. Think of them as snapshots of a single moment in your customer's journey.
• Relational metrics: these look at the bigger picture of your relationship with customers over time.
• Operational metrics: these focus on how efficiently your customer service team is running. They're the behind-the-scenes stats that keep your service humming along smoothly.

Remember, you don't need to track every single metric under the sun. It's about finding the ones that fit your business. Think about what matters most to your company and your customers and start there.

With SmartSurvey, you can track and analyse all the following metrics in one place.

Customer satisfaction score (CSAT)

This simple metric measures how happy customers felt after a specific customer service interaction. It measures how satisfied they are with a specific interaction or experience with your company. Maybe they just chatted with your support team, or perhaps they've just unboxed your latest product. CSAT helps you gauge their immediate reaction. It shows if it met their needs and left them satisfied.

How to calculate CSAT using surveys

The most common approach is to send a short survey after interactions and ask: "How satisfied were you with the recent service you received?" with a scale from 1 to 5 or 1 to 10.

The percentage of positive scores indicates overall satisfaction. Benchmark scores depend on your industry, but scores above 80% are generally good.

5 best practices for increasing response rates and accuracy

1. Brevity: Keep the survey brief with just a few simple questions
2. Timing: Send immediately after the interaction when it's still fresh
3. Motivation: Offer an incentive for participating, like a discount code
4. Branding: Ensure customers know it's from your brand by naming your business
5. Follow-up: negative responses should not go unacknowledged; if someone's unhappy, reach out and try to make it right

Net Promoter Score (NPS)

This popular metric reveals how your customer service affects loyalty and referrals. NPS measures customer loyalty based on their likelihood to recommend you to friends or colleagues. It indicates if you are delighting them and earning their ongoing business.

How to collect NPS data

The standard NPS survey simply asks, "On a scale of 0-10, how likely are you to recommend Company X to a friend or colleague?"

You can send this after transactions or interactions. Some companies also survey annually or quarterly to gauge relationship health.

Interpreting NPS

Based on the scores, customers fall into three categories:

• Promoters (9-10) are loyal enthusiasts who will keep buying and referring others.
• Passives (7-8) are vulnerable to switching if a competitor offers better service.
• Detractors (0-6) are unhappy and likely to churn. A negative experience could cause them to lose their business for good.

Look at the percentage of detractors and promoters to evaluate loyalty. Then, dig deeper into feedback to address pain points and enhance experiences that delight.

Customer effort score (CES)

While CSAT shows satisfaction with a transaction, CES reveals how hard customers had to work to get their needs met.

As such, this metric quantifies the overall ease or difficulty of customer interactions. It highlights areas where seamless service keeps customers coming back versus points of friction that may frustrate them.

Measuring CES through customer surveys

To measure CES, you typically ask a question like, "On a scale of 1 to 7, how easy was it to get your issue resolved?" The lower the score, the better – it means customers didn't have to work too hard.

You can use CES surveys after specific interactions, like a support call or a purchase. It's a great way to pinpoint areas where you might be making things unnecessarily complicated for your customers.

First response time (FRT)

In our fast-paced world, nobody likes to be kept waiting. First Response Time is all about speed. It measures how quickly your team responds to customer inquiries. Whether it's an email, a phone call, or a social media message, FRT tracks how long it takes for a customer to get that first human touch.

Balancing speed with quality is also crucial. Rushing can result in sloppy, ineffective responses. The goal is timely service without sacrificing personalised care.

Average resolution time (ART)

While the first response marks the start of an inquiry, average resolution time measures how long it takes to actually resolve the case.

For example, a customer emails about an order gone wrong. It takes 10 minutes to respond, acknowledging the problem, but then 5 days to investigate, ship a replacement item and close the request. The full resolution time is 5 days and 10 minutes.

If resolution times stretch too long across too many requests, backlogs form. This frustrates customers and bogs down service teams. The goal is to keep average resolution times as low as possible without sacrificing quality.

Customer retention rate

This metric calculates the percentage of customers who continue using your products or services over a given time period.

How to measure retention rate

Look at the number of repeat customers across monthly, quarterly or annual periods compared to new acquisitions. You can also measure the number of defections compared to your existing client base.

Benchmarks vary widely by industry, but you mainly want to track performance over time against your own baselines.

The role of customer service in improving retention

Customer support plays a huge role in retention and preventing churn. When service problems arise, how well you respond directly affects whether customers feel valued enough to stay loyal. Customer service surveys can uncover weak spots causing attrition, like long hold times or unresolved complaints. You can then target improvements to recovery processes and agent training.

Customer churn rate

On the flip side of retention, the rate of customer churn shows how many customers stop doing business with you over a given period. This reflects severe cracks in the customer experience. There are two main ways to measure churn:

• Revenue churn: this tracks the recurring revenue lost from customers who cancelled services or stopped purchasing over time.
• Customer churn: this calculates the percentage of overall customers lost in a given timeframe.

Both should be measured monthly, quarterly, and annually.

How surveys can identify early churn indicators

Before customers defect, there are usually warning signs of dissatisfaction. Surveys help detect these red flags so you can improve experiences and rebuild loyalty before it's too late.

Score trends, feedback themes, and churn predictors highlight areas to target. Common reasons for churn include:

• Long wait times
• Unresolved issues
• Billing problems
• Lack of personalisation

Strategies for reducing churn

Improving customer service is one of the best ways to reduce churn. Here are a few ideas:

• Proactive outreach: Don't wait for problems to come to you. Reach out to customers regularly to check-in.
• Personalised service: Treat your customers like individuals, not numbers.
• Quick problem resolution: The faster you solve issues, the happier your customers will be.
• Continuous improvement: Use feedback to constantly refine your products and services.

Resolution rate

The resolution rate measures the percentage of customer issues that your team successfully resolves. It's a clear indicator of how effective your customer service is at actually solving problems, not just responding to them.

A high-resolution rate is a sign of a well-trained, efficient customer service operation.

How to measure and improve resolution rates

To measure the resolution rate, divide the number of resolved tickets by the total number of tickets received. Multiply by 100, and you've got your resolution rate percentage.

Improving your resolution rate often comes down to two main factors: efficient processes and employee training. Make sure your team has the tools and knowledge they need to solve problems quickly and effectively.

Ticket volume and backlog

Last but not least, let's chat about ticket volume and backlog. These metrics are like your customer service team's to-do list.

Ticket volume is simply the number of customer service requests you receive over a given period. It can help you understand your team's workload and spot trends in customer needs.

Backlog, on the other hand, is the number of unresolved tickets piling up. A growing backlog can be a sign that your team is overwhelmed or that there are systemic issues causing repeated problems.

How to use survey software to measure customer service metrics

Now that you know which metrics to track, consistent measurement can be challenging without the right tools. This is where tools like SmartSurvey really shine.

Good survey software integrates seamlessly with your customer service processes. It can automatically send out surveys after interactions, compile results in real time, and even alert you to urgent issues.

Some of the best features to look for include:

• Automation: Set up triggers to send surveys at the right moments
• Customisable reporting: Slice and dice your data to get the insights you need
• Integration capabilities: Connect your survey data with your other business tools

Setting up surveys to measure specific metrics is usually straightforward. Most survey tools offer templates and guides to get you started.

Wrapping up

The main thing to consider from everything we've looked at is this: measuring and improving your customer service metrics isn't just about numbers. It's about understanding your customers better and finding ways to make their lives easier.

With an ever-increasing number of companies competing for consumer attention, customer retention is vital for sustainable growth. The SmartSurvey survey platform makes it easy to capture metrics through automated post-transaction surveys across channels.

Key takeaways

Customer service metrics provide valuable insights: Customer service metrics help businesses understand their support performance by going beyond guesswork. These metrics reveal if customers are happy with service interactions and whether the service operations are running efficiently. Choosing the right metrics that align with your business goals is essential.

Customer satisfaction score (CSAT) measures immediate satisfaction: CSAT gauges how satisfied customers are after a specific interaction. By asking a simple question like “How satisfied were you with the recent service?” businesses can quantify immediate customer feelings. Maintaining scores above 80% generally indicates good service quality.

Net Promoter Score (NPS) predicts customer loyalty: NPS measures customer loyalty by asking how likely they are to recommend your company. It categorises customers into promoters, passives, and detractors, helping businesses understand their loyal base versus those at risk of leaving.

Customer effort score (CES) highlights areas of friction: CES quantifies how easy it was for customers to resolve their issues. By identifying interactions where customers struggled, businesses can target and reduce pain points to make customer experiences smoother and more enjoyable.

Average resolution time (ART) impacts customer experience: ART measures the total time taken to resolve customer issues. High ART can lead to frustration and backlog, highlighting the importance of resolving queries swiftly while maintaining quality responses.

Customer retention and churn rates indicate service effectiveness: Retention and churn rates reveal how many customers continue using your services versus those who leave. By identifying reasons for churn through surveys, businesses can proactively address issues, improve retention, and reduce attrition.

Effective survey software streamlines data collection: Good survey software like SmartSurvey integrates with customer service processes to automate survey distribution, compile real-time results, and provide customisable reporting. This makes tracking and analysing customer service metrics more efficient and insightful.