Success in a customer-oriented role demands precise metrics and performance tracking. As responsible for any Customer Success, Service, or Support team, you need to have full focus on the Key Performance Indicators (KPIs) that illuminate your team’s performance, the customer’s journey, and the overall health of your customer relationships.

Recommended reading: The ultimate wordlist for sales, marketing and customer succcess. If you work in sales, you could be interested in this article about the most important KPIs for sales.

This blog will guide you through the 10 most crucial KPIs in this field, explaining their significance and providing practical examples.

#1 – Customer Churn Rate

What is Customer Churn Rate?

The Customer Churn Rate measures the number of customers who leave your service over a specific period. A high churn rate could signify dissatisfaction with your product or service.

Example: If you start with 500 customers and lose 25 during a month, your churn rate is 5%.

#2 – Customer Satisfaction Score (CSAT)

What is the Customer Satisfaction Score?

CSAT gauges a customer’s satisfaction with a particular interaction or overall experience. It is typically calculated using survey responses, often on a scale from 1 to 5.

Example: After resolving a ticket, you can send a simple survey asking the customer to rate their satisfaction.

#3 – Net Promoter Score (NPS)

What is the Net Promoter Score?

The NPS measures customer loyalty by asking customers how likely they are to recommend your company to others. It segments customers into Promoters, Passives, and Detractors.

Example: If you have more promoters than detractors, your NPS score is positive, reflecting a good customer sentiment.

#4 – First Response Time

What is the First Response Time?

First Response Time is the average amount of time it takes for your team to respond to a customer inquiry. Lower response times typically lead to higher customer satisfaction.

Example: A benchmark for email support might be to respond within 24 hours.

#5 – Average Resolution Time

What is the Average Resolution Time?

This is the average time it takes your team to resolve a customer’s issue after it has been reported. Faster resolution times mean fewer frustrated customers.

Example: If your team resolves most issues within 3 hours, that’s your Average Resolution Time.

#6 – Customer Retention Cost

What is the Customer Retention Cost?

This KPI represents the total cost of all activities carried out to retain an existing customer, including support, marketing, and onboarding costs.

Example: If you spent $10,000 on customer retention last quarter and retained 1,000 customers, your Customer Retention Cost is $10 per customer.

#7 – Customer Effort Score (CES)

What is the Customer Effort Score?

CES measures how easy customers feel it is to get their problems solved. A lower score indicates that customers have to put less effort into resolving their issues.

Example: After interaction with your support, ask customers how easy it was to get their problem solved.

#8 – Ticket Volume

What is Ticket Volume?

Ticket Volume is the number of support tickets your team receives within a given period. High ticket volume could signify a product issue or a lack of effective customer education.

Example: If your team receives 500 tickets per week, consider deploying more resources to manage this volume.

#9 – Resolution Rate

What is the Resolution Rate?

Resolution Rate is the percentage of resolved tickets out of the total received. A higher rate means your team successfully handles most customer issues.

Example: If you receive 100 tickets and solve 95, your Resolution Rate is 95%.

#10 – Customer Lifetime Value (CLV)

What is Customer Lifetime Value?

CLV calculates the total revenue a business can reasonably expect from a single customer account. It considers a customer’s revenue value and compares that number to the company’s predicted customer lifespan.

Example: If a customer spends $50 per month and stays with your company for 3 years, their CLV is $1,800.

Conclusion

These 10 KPIs are vital for any Customer Success, Service, or Support organization. Monitoring these indicators provides valuable insights into your customers’ experiences and your team’s performance, helping to inform strategies for ongoing improvement. By utilizing these metrics, you can ensure your customers remain satisfied, loyal, and valuable to your business in the long term.

References

1. https://www.profitwell.com/recur/all/churn-rate
2. https://www.qualtrics.com/experience-management/customer/csat/
3. https://www.netpromoter.com/know/
4. https://www.zendesk.com/blog/best-practices-first-response-time/
5. https://www.zendesk.com/blog/best-practices-average-resolution-time/
6. https://www.profitwell.com/recur/all/customer-retention-cost
7. https://www.qualtrics.com/experience-management/customer/ces/
8. https://www.salesforce.com/products/service-cloud/what-is-case-volume/
9. https://www.hubspot.com/service/help-desk-metrics
10. https://www.shopify.com/encyclopedia/customer-lifetime-value-clv

Subscribe to the blog:

PS! I promise not to spam you! Just when I have published a new blog!