Article Ultimate Knowledge Popular 2 min read

What Are Customer Service Metrics You Should Be Looking At?

Five metrics to assess the happiness of your customers and the efficiency of your customer service.

Assessing the efficiency of your customer support relies, among other things, on a series of KPIs. Here are the five main metrics to look at:

1. Average First Response Time (AFRT)

First Response Time is the time taken by customer support to send its very first response to a customer. The average is calculated by dividing the sum of all FRTs by the number of all resolved tickets. Usually, the shorter the AFRT, the better: most customers prefer to have their query acknowledged, even if it takes some more time to solve it.

2. Average handle time (AHT)

AHT measures the time spent by a support agent on handling a transaction with a customer. AHT takes into account talk time, hold time and any after-call tasks the agent has to perform. This is not exactly a success metric since reducing AHT at all costs might mean that agents are rushing through tickets to close them rather than solve them. Improving AHT should combine a decrease in handle time and an increase in customer satisfaction.

3. First contact resolution rate (FCRR)

FCRR measures the proportion of tickets that are resolved on the first interaction. This metric is crucial, because customer satisfaction is closely linked to FCR: the quicker the solution, the happier clients tend to be.

4. Net Promoter Score (NPS)

The NPS is an index that assesses the willingness of customers to recommend a brand or service to others. Customers are asked to rate that willingness on a scale from 0 to 10; those who give a score lower or equal to 6 are called "detractors", "passives" give a score of 7 or 8, and "promoters" a 9 or a 10. The NPS is determined by subtracting the percentage of detractors from the percentage of promoters. The result ranges somewhere between -100 and 100.

5. Customer Lifetime Value (LTV or CLV)

Finally, LTV is an estimate of the total amount a customer can be expected to spend with a business over the course of their lifetime. It is calculated by multiplying the average value of the purchase by the number of times a customer may buy each year, and the average number of years they might remain a customer. Knowing the LTV of your clients helps you know to whom you should pay the most attention.

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