Customer service metrics are the key performance indicators (KPIs) that provide reliable tracking and analytics data on customer service.
Once upon a time, it may have been difficult for businesses to acquire enough relevant and reliable data relating to customer service performance. That is no longer the case. With advanced data-collection technologies becoming ever-more available, modern businesses have the power to bring together information from a variety of sources, tracking customer behavior, soliciting feedback, and placing the entire customer journey under a microscope.
However, to optimize their customer service offerings and improve the overall customer experience, organizations need to do more than simply gather data; they need to be able to refine that data into actionable insights. To do that, they have to know which customer service metrics are the most relevant.
With abundant data, focusing on certain key performance indicators (KPIs) over others can be a challenge. This is why it’s so important to remain focused on why certain metrics are being tracked, and how to employ action after insights are created. By tracking and managing the right KPIs, customer service departments can improve their performance while also positively impacting the business as a whole.
Generally speaking, happy customers mean successful business. By quantifying the costs and benefits of customer acquisition, loss, and maintenance, organizations gain greater insight into the core of their service-oriented tasks and processes.
This provides essential insights into customer expectations, allowing the business to better serve their needs and more effectively address and resolve potential issues that may arise. At the same time, customer service employees gain a clearer understanding of how their work directly affects the business.
In business, there is a cost associated with every action. Reducing the cost of providing customer service without negatively impacting the quality of the service is a primary goal of most service teams.
To cut costs without sacrificing the customer experience, businesses focus on improving operational efficiency. Using the right KPIs, organizations can review and evaluate the effectiveness of their customer service efficiency strategies, making necessary course corrections and ensuring that the company’s success remains top of mind.
Customers aren’t the only ones whose satisfaction can have a major
impact on business success; employees who interact with customers have
the power to pass that excitement on, and are also more likely to
provide higher quality work and be more productive.
Happy, engaged employees are vital to customer service success. The right customer service metrics can help ensure that staffing concerns are being proactively addressed. This encourages improved employee engagement, and naturally leads to a range of other business advantages.
Although customer satisfaction is a complex entity that may depend on a variety of factors, sometimes understanding the customer experience is as simple as asking the right questions. Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) are two survey-based metrics designed to solicit actionable customer insights directly from the source.
NPS is a metric that calculates the likeliness of a customer generating positive word of mouth for a business, showcasing the percentage difference of customers that are brand promoters vs. those who are detractors. Alternatively, CSAT is a rating of user satisfaction with a particular product or service, calculating the average response. Using both of these metrics in conjunction is important to understand a more-complete picture of customer satisfaction.
Almost without exception, customers are happier when they don’t have to put in as much work. The customer effort score (CES) takes a closer look at customers who are attempting to have an issue resolved, and how much effort they need to invest to see it through to completion. CES is often used in conjunction or even interchangeably with NPS and CSAT.
In essence, CES measures how easy it is for customers to do business with a company. Organizations can apply insights gained from CES surveys to reduce friction in the user experience, better tailor self-service options, pinpoint areas that demand improvement, and develop a clearer understanding of their customer service landscape.
It’s natural to lose some customers, but if a large percentage of
customers are falling away, that may be symptomatic of larger issues.
Customer churn is an extremely important metric in customer service, in
that it allows businesses to measure retention levels among their
It does this by taking a look at the percentage of customers that leave during a given time period. This provides an accurate assessment of how many customers are being lost during the customer journey. This insight is vital to the overall health of a business, and customer service needs to understand what service- and non-service related issues might be impacting it.
Customers don’t appear ex nihilo; they are attracted to do business with an organization based on the products or services it provides. Product adoption is a metric that takes this truth into account, tracking the rates at which customers learn about new products, and decide to purchase and use them.
It’s worth recognizing that purchase rates may not always coincide with adoption rates—a customer may choose to purchase a product, but never actually implement it, resulting in low adoption. Low adoption can easily lead to reduced customer loyalty and increased customer churn.
For subscription-based companies (such as SaaS vendors), tracking renewal rates is absolutely essential. As key revenue drivers, renewals must be at the forefront of goal-setting for product, sales, and service teams.
Increasing customer satisfaction will lead to higher renewal rates, and good end-to-end customer service can drive renewals long term.
Simply put, happy, engaged agents provide better customer service. As such, tracking agent satisfaction is vital to quantifying and improving customer service in any organization. These metrics provide deep insight into agent effectiveness.
ServiceNow provides customer-facing businesses with the tools and
processes to identify, track, and improve vital customer service
ServiceNow Workforce Optimization offers real-time visibility into
vital KPIs by channel, allowing organizations to monitor interaction,
load balance, and view relevant work items. Virtual Agent and the
Service Catalog improve customer self-service options, making it
possible for more issues to be resolved quickly and with minimal effort.
Process Optimization empowers companies to tie customer service
workflows to key KPIs and gain visibility into end-to-end process flows,
identifying inefficiencies and bottlenecks and improving KPI
performance. Field Service Management facilitates faster, more-effective
first-time resolutions. Omnichannel integration helps ensure relevant
metrics are available to track, no matter where or how customers choose
to interact. Agent Workspace helps increase agent effectiveness and
satisfaction, using an AI-powered desktop to streamline workloads.
And, with a range of out-of-the-box dashboards, ServiceNow Performance Analytics helps customer service leaders manage and optimize their team performance and KPIs. And these are only the beginning.
With ServiceNow, put the most vital KPIs to the best possible use, and provide your customers with the high levels of service they deserve.
Results-driven solutions to help your company reach its full potential.