The Key Performance Indicators Your Business Needs
As the world of business becomes increasingly competitive, delivering exceptional customer service is no longer an option- it’s a necessity. And, for most companies, their call center is where they make their first impression. To remain competitive, it’s essential that businesses keep a close eye on their customer service metrics and continuously work to improve them. The best way to do this is by using key performance indicators (KPIs).
KPIs are a set of performance measurements that help to track progress towards specific goals with a focus on what’s important. In this article, we’ll explore the key KPIs that every call center should prioritize for their customer service program.
Why Are KPIs Important in Customer Service?
Measuring your call center’s performance through these indicators is critical in understanding how your team is performing with your customers. KPIs provide insight into the effectiveness of your team, enabling you to identify interaction and experience shortcomings and develop plans to improve them. Without KPIs, you would be unable to measure the success or failures of your customer service performance.
KPIs provide a valuable overview of the performance of your call center agents, how well the call center is meeting client expectations, and whether the customer service strategies and tactics are effective. KPIs also help managers to measure the productivity of team members and understand which areas require more attention or improvement.
7 Key Performance Indicators for Customer Service Call Centers
The following are the KPIs that every customer service call center should implement for their service program.
1. First Contact Resolution (FCR)
The FCR KPI measures the percentage of calls that are resolved during the first interaction between the customer and the agent. This KPI is important because it reduces the likelihood of follow-up calls and increases the customer’s satisfaction level.
2. Average Handle Time (AHT)
The AHT KPI is the average time that an agent takes to handle a call. Companies should aim for a short and efficient AHT to reduce hold time, increase agent productivity, and improve overall customer satisfaction.
3. Abandonment Rate
The Abandonment Rate KPI measures the percentage of customers who hang up before getting connected with an agent. A high abandonment rate can damage customer relationships and may indicate that your call center has staffing issues or technical problems that need to be addressed.
4. Service Level
The Service Level KPI measures the percentage of calls that are answered within a certain period. Service Level is important because it ensures that customers don’t have to wait too long for assistance.
5. Occupancy Rate
The Occupancy Rate KPI measures the percentage of time that agents are engaged in customer service activities. Companies should aim to keep the occupancy rate high, but also give their agents enough breaks to avoid burnout.
6. Customer Satisfaction Score (CSAT)
The CSAT KPI measures the level of customer satisfaction with a company’s products or services. This important KPI tells you how well your team is satisfying your customers’ needs and expectations.
7. Net Promoter Score (NPS)
The NPS KPI measures the likelihood of a customer recommending your company’s products or services to friends or family. The NPS score correlates with customer loyalty and can help you identify areas where you need to invest more in customer service initiatives.
A Detailed Explanation of KPI for Customer Service
Let’s take a closer look at each of the KPIs that we have identified for customer service call centers:
1. First Contact Resolution (FCR)
First Contact Resolution (FCR) is the percentage of interactions that are resolved on the first contact. Resolving issues on the first contact is essential to reducing the number of repeat calls or chats, which can lead to unnecessary frustration for customers. Higher FCR scores indicate that agents are knowledgeable and efficient, which leads to higher customer satisfaction levels. Companies track FCR scores to understand how effective their customer service processes are and identify areas that need improvement.
2. Average Handle Time (AHT)
Average Handle Time (AHT) is the time that an agent takes to handle a call, including the time spent interacting with the customer and the after-call work. The goal of every customer service center is to handle calls as quickly and efficiently as possible. AHT is essential because it affects the number of calls that agents are able to handle, which, in turn, impacts customer satisfaction levels.
3. Abandonment Rate
The Abandonment Rate measures the percentage of calls that end before the customer speaks to an agent. A high abandonment rate is a red flag for call centers because it indicates that customers are experiencing long wait times or being put on hold for an extended period. A high abandonment rate is a warning that your call center may not be handling calls as efficiently as it should be.
4. Service Level
Service Level is a percentage of calls answered within a certain period, usually 30 seconds or less. The service level is an essential metric that determines the call center’s ability to handle customer inquiries promptly. If the service level is too low, customers may become impatient and frustrated, leading to a negative perception of your brand.
5. Occupancy Rate
Occupancy Rate is the percentage of time that agents are engaged in customer service activities. It is a measure of how much time your agents are spending helping customers versus how much time they spend in idle or break mode. It’s important to balance occupancy rates to ensure that agents are neither overworked nor given too much idle time, improving productivity.
6. Customer Satisfaction Score (CSAT)
The Customer Satisfaction Score (CSAT) measures the quality of customer service provided by your call center. The score is obtained after customers complete service satisfaction surveys, and the result is expressed as a percentage of satisfied customers. Companies with high CSAT consistently deliver high-quality customer service and are considered more reliable than those with low CSAT scores.
7. Net Promoter Score (NPS)
The Net Promoter Score measures the customer’s willingness to recommend your company’s products or services to others. The score ranges from zero to ten and is an indicator of customer loyalty to your brand. A high NPS score indicates that customers are satisfied with your services and will recommend them to others, which is essential for building a loyal customer base.
A Table of the KPIs for Call Center Customer Service
| KPI | Description | Formula |
|---|---|---|
| First Contact Resolution | Percentage of inquiries resolved during the first contact. | Number of Resolved Calls ÷ Total Calls Handled |
| Average Handle Time | Average time taken by an agent to complete a call. | Total Time to Handle Calls ÷ Total Calls Handled |
| Abandonment Rate | Percentage of calls disconnected before they are answered or resolved. | Number of Abandoned Calls ÷ Total Calls Received |
| Service Level | Percentage of calls answered within a certain period. | Number of Calls Answered in < 30 Seconds ÷ Total Calls Handled |
| Occupancy Rate | Percentage of time agents are engaged in customer service activities. | (Total Handling Time ÷ Total Time) x 100 |
| Customer Satisfaction Score | A measure of customer satisfaction with the customer service experience. | Number of Satisfied Customers ÷ Total Number of Customers Surveyed |
| Net Promoter Score | A measure of customer loyalty and satisfaction. | Percent of Promoters (9 or 10) – Percent of Detractors (0-6) = NPS |
Frequently Asked Questions (FAQs)
1. Why are KPIs essential in a call center?
KPIs are essential in a call center because they help to measure the performance of customer service agents and the overall performance of the call center. They provide insight into the effectiveness of your team, allowing you to identify interaction and experience shortcomings and develop plans to improve them.
2. What is First Contact Resolution (FCR)?
First Contact Resolution (FCR) is the percentage of interactions that are resolved on the first contact. It is an essential KPI that reduces the likelihood of follow-up calls and increases the customer’s satisfaction level.
3. What is Average Handle Time (AHT)?
Average Handle Time (AHT) is the time that an agent takes to handle a call, including the time spent interacting with the customer and the after-call work. It’s an essential KPI that affects the number of calls that agents are able to handle and impacts customer satisfaction levels.
4. What is the Abandonment Rate?
The Abandonment Rate measures the percentage of calls that end before the customer speaks to an agent. A high abandonment rate is a red flag for call centers because it indicates that customers are experiencing long wait times or being put on hold for an extended period.
5. What is Service Level, and why is it essential?
Service Level is a percentage of calls answered within a certain period, usually 30 seconds or less. The service level is an essential metric that determines the call center’s ability to handle customer inquiries promptly. If the service level is too low, customers may become impatient and frustrated, leading to a negative perception of your brand.
6. What is Occupancy Rate, and what is an optimal rate?
Occupancy Rate is the percentage of time that agents are engaged in customer service activities. An optimal occupancy rate is between 75% and 85%. It’s important to balance occupancy rates to ensure that agents are neither overworked nor given too much idle time, improving productivity.
7. What is Customer Satisfaction Score (CSAT)?
Customer Satisfaction Score (CSAT) measures the quality of customer service provided by your call center. Companies with high CSAT consistently deliver high-quality customer service and are considered more reliable than those with low CSAT scores.
8. What is Net Promoter Score (NPS) and how is it calculated?
The Net Promoter Score (NPS) measures the customer’s willingness to recommend your company’s products or services to others. The score ranges from zero to ten and is an indicator of customer loyalty to your brand. To calculate NPS, subtract the percentage of detractors (customers who rate your company from 0 to 6) from the percentage of promoters (customers who rate your company from 9 to 10).
9. How often should companies measure KPIs in customer service?
Companies should measure KPIs in their customer service regularly. It’s essential to measure KPIs frequently so that you can identify areas that need improvement and take corrective action quickly. Most businesses measure KPIs monthly or quarterly, depending on their call volumes and staffing needs.
10. How can companies improve their customer service KPIs?
Companies can improve their customer service KPIs by regularly measuring and analyzing their performance data. Once they identify areas that need improvement, they should develop and implement effective policies, strategies, and training programs to boost efficiency and productivity.
11. What are the benefits of measuring KPIs for customer service?
The benefits of measuring KPIs for customer service include identifying areas for improvement, increasing customer satisfaction, improving employee productivity, and enhancing the overall customer experience. Measuring KPIs regularly also helps to align the company’s customer service goals with its business objectives.
12. How do KPIs help managers make informed decisions?
KPIs help managers make informed decisions by providing insights into how well agents perform and how well the call center functions. When patterns emerge in the data, managers can take corrective action to improve the customer experience, reduce wait times, and improve agent productivity. KPIs help to identify what works and what does not.
13. What are the consequences of not measuring KPIs for customer service?
The consequences of not measuring KPIs for customer service include negative customer experiences, reduced customer loyalty, and decreased profitability. Without KPIs, companies risk falling behind their competitors and losing market share.
Conclusion
Managing a customer service call center requires careful monitoring of performance and continuous improvement. Implementing KPIs for customer service is an essential strategy for achieving success in call center operations. By utilizing the KPIs we’ve outlined in this article, companies can track their performance, identify areas that need improvement, and take corrective action quickly to improve their customer service quality.
Don’t let your call center fall behind – start measuring your KPI metrics, and take the necessary steps to improve your customer service operations today!
Disclaimer
This article is intended for informational purposes only and should not be relied upon as legal, financial or other professional advice. You should obtain professional advice before taking any action based on the information contained in this article.