Selling services online? Here are 8 KPIs you should be tracking

The quote above can show you how crucial customer satisfaction is. Especially if you are selling a service, your customers feeling happy is an essential component that can have an effect on your business revenue and how the customers view your service.

Measuring KPIs and indicators for customer service becomes vital as a result.

Therefore, it’s essential that you know how to measure your customer’s satisfaction and keep delivering a better experience. In this post, let’s see what KPIs you should be tracking, and how to make the most of them.

The benefits of KPIs for a service business

Because they give an inside view at how companies interact with customers, customer support metrics and KPIs are significant. Although you may believe the service you are providing is the greatest available, your clients may feel otherwise. Customers select businesses that offer excellent customer service, according to 70% of consumers.

When you use key performance indicators (KPIs) and customer service metrics, you can use concrete data analytics to close any gaps and make better decisions, resulting in total improvements in the three major areas listed below.

• Team performance: The KPIs equip you with the necessary knowledge about the team's weak points and further generate improvement plans and training schedules to meet customer service criteria.
• Customer satisfaction: How pleased your consumers are with your service is measured by customer satisfaction. The longer the customer lifetime value, the higher the satisfaction score.
• Customer retention: Making an effort to match your offerings to your consumers' needs keeps them satisfied, and they not only decide to stick with your company but also become brand ambassadors.

KPIs to track for service business

By taking into account the entire customer journey, companies may monitor and analyze customer relations by choosing the appropriate KPIs or metrics. The key performance indicators (KPIs) for measuring customer satisfaction and gathering useful feedback are listed below.

1. Customer Satisfaction Score (CSAT)

Customer satisfaction score (CSAT), also known as happy customer key performance indicator, is a tool for assessing how satisfied customers are with your company's goods and services. Understanding what your customers think of you can be learned via measuring customer service satisfaction.

In order to gather real-time client feedback for surveys, you may directly ask your consumers to score their happiness using various communication channels including live chat. The average of all customer responses is your score.

Questions to ask customers:

• How would you rate your satisfaction with our service? (Very Satisfied, Unsatisfied, or Somewhat Satisfied)
• On a scale of 1-10, how satisfied are you with our service?
• Were you satisfied with our product or service? (Yes/No)

Formula: % of satisfied customers = Number of satisfied customers / Number of surveyed customers

2. Customer Retention Rate (CRR)

While gaining more consumers does definitely help your brand's image, keeping them around for a longer period of time demonstrates that your customer retention techniques have helped you win their trust and loyalty.

Excellent customer service results in a higher CRR. The customer's lifetime value grows dramatically if you provide consistent and predictable services.

The retention rate should be one of the primary customer service metrics to track because it is something that every company strives to increase. Your customer retention graph will be strongly impacted by your brand's overall positive perception and high satisfaction score.

Formula: Customer Retention Rate = ((Number of current customers – Number of new customers) / Number of the customers at the beginning of the process)) x 100

Your process can be anywhere between six months to one year - which will help you determine the effort in the customer retention strategy.

3. First Response Time (FRT)

Average first response time (FRT) is the interval between a customer's chat request and an agent's reply. Higher ratings on customer satisfaction surveys show that your representatives are quick at serving consumers.

How significant is FRT as a measure of customer support?

• It assures clients that their concerns are being investigated quickly.
• The measure shows how quickly your team resolves customers’ problems.
• You can determine whether your team is effective or whether you need to add more resources with the help of this KPI.

Formula: First Response Time = Time of first response - Time of customer request.

4. Average Resolution Time (ART)

Customer satisfaction is consistently determined by quick resolution. Every consumer wants prompt, reliable customer service. You must respond to customer questions immediately if you want to prevent them from leaving your business.

Once a support ticket has been examined, the average resolution time (ART) measures how long it took the team to resolve it. Days or online hours are used to measure it. Customer satisfaction increases as resolution time decreases.

Formula: Average Resolution Time = Sum of all time to resolution / Total number of cases resolved.

5. Average Conversion Rate

The number of visitors that successfully completed their purchases or booking on your website is referred to as the average conversion rate. Your business growth campaigns will be more successful the greater the conversion rate.

Answering clients' questions in the moment and interacting with them can make the difference between a purchase and a bounce.

Formula: Conversion rate = (Converted customers / Total visitors) x 100%

6. First Contact Resolution Rate (FCR)

First contact resolution (FCR) is a useful metric for evaluating consumer happiness; generally, the greater your FCR rate, the happier your customers are. The ability of your representatives to handle a problem on the initial interaction is a crucial element that influences client loyalty.

The FCR performance indicator provides information on how well your agents comprehend and resolve issues without the need for multiple conversations.

Formula: First Contact Resolution = Cases resolved in one touch / Number of all cases

7. Net Promoter Score (NPS)

A common technique for determining how loyal a company's client connections are is the NPS statistic. It gauges customer satisfaction and anticipates business expansion.

You may determine how probable it is that your customers will suggest you to their friends and family by using the NPS score.

A simple question to research is: “How likely is it that you would refer our brand to your friends or family? Rate from 1 - 10”

Formula: Net Promoter Score = the percentage of promoters (rated 9-10) - the percentage of detractors (rated 0-6)

8. Booking Abandoned Rate (BAR)

By monitoring this KPI for customer service, the appropriate tactics may be put into place to provide clients with proactive support in real time and enhance their experience. Adding the BAR statistic to your scorecard enables you to identify it and determine what is making people not showing up at bookings.

To calculate this rate, remember to research with your customers each time they abandon a booking, whether by online form or support by agents.

Formula: Booking Abandoned Rate = (Number of booking abandoned / Total number of booking) x 100%