Defining Customer Service KPIs

Key metrics in Customer Service and how to design alignment between business objectives and performance.

Public Customer Service kpi business goals performance kpis

by TheDrill_Team

KPI definition process

Key performance indicators - or KPIs - are measurements used to indicate how well your team is doing in relation to their set goals. “Performance” here is not just about quality or speed of work; it is specifically tied to the pursuit of a goal.

To start crafting the appropriate KPIs, make sure you take into consideration the following steps:

Adopt the KPIs that are right for your small business (check the most used one below).

Set realistic goals, achievable, measurable and time bound.

Document all the above in a Customer Service Manual.

Clearly communicate your KPIs with internal stakeholders.

Balance KPIs with your other business goals.

Use reliable data to build (and monitor) your KPIs.

Automate reporting for customer service KPIs.

Review your KPIs on a regular basis.

Reward and support your customer service team.

Most important KPIs in Customer Service

Some of the most used and relevant metrics to track are:

  • Customer satisfaction (CSAT) is the level at which your customers are happy with the products and services you provide. Check our guide to implementing CSAT.
  • Net Promoter Score. See our guide on how to implement NPS.
  • Customer retention rate is the average length of time that someone stays your customer.
  • First call resolution (FCR) rate shows the number of customers you can help within their first interaction, whether it is on the phone or via email, social media.
  • Unresolved issues or backlog, represents the number of active or open issues your service team has in your customer contact system at any given moment.
  • Average response time is a measure of how long it takes for a customer to have their issue solved.
  • Employee satisfaction is the degree to which your team is happy to work for you. Check out this article for more on ES.