Measuring customer service metrics is crucial for understanding how well your business is providing customer service. However, with many metrics to choose from, it can be challenging to determine which ones are the most important.
In this article, we will explore the top customer service metrics to measure, helping you gain insights into your customer service performance and improve the overall customer experience.
Types of customer service metrics
In customer service, there are several types of metrics that businesses commonly use to measure and evaluate their performance. Some of the most common types of metrics include:
- Response time metrics
- Customer satisfaction metrics
- Quality metrics
- Volume metrics
Let’s dig deeper into these metric types and see what are some of the currently popular metrics in each type.
Response time metrics
Sometimes, speed can be everything to the customers since nearly 60% of them feel that long holds and wait times are the most frustrating parts of a service experience. With that in mind, response time metrics are necessary to get an accurate view of how long it takes for your agents to respond to and resolve customer inquiries or issues. Here are some of the popular ones used for this type of metric:
First response time (FRT)
This metric measures how long it takes for a customer service agent to respond to a customer inquiry or issue from the time it was received. A shorter first response time indicates faster and more efficient customer service.
Avg. first response time = sum of first response times / total number of requests
It's important to note that the average FRT can vary depending on the industry, size of the support team, and the specific customer service channels used (e.g. email, chat, phone). Additionally, it's important to continually monitor and work to improve the FRT, as a fast FRT can help to improve customer satisfaction and loyalty.
Average resolution time
This metric measures the average amount of time it takes for customer service agents to resolve customer inquiries or issues. A shorter average resolution time indicates faster and more efficient customer service. For customer service operations, average resolution time can help identify areas where their service may be lagging and take steps to improve them, leading to greater efficiency.
Time to resolution
This metric measures the total amount of time it takes for customer service agents to resolve customer inquiries or issues, including the time it takes for the agent to respond and the time it takes to resolve the issue. A shorter time to resolution indicates faster and more efficient customer service.
A customer service team with fast response time across the board is always optimal, as it shows that you genuinely care about their time and try to solve their problems in the fastest manner.
Customer satisfaction metrics
Happy customers are the secret to driving revenue, as it turns out. According to, customers who have good experiences with the brand spend 140% more – and to show how happy customers are with your services, the following metrics are most commonly used:
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a company's products or services to others. Measuring Net Promoter Score (NPS) involves surveying customers and asking them to rate, on a scale of 0 to 10, how likely they are to recommend a business to a friend or colleague. The NPS survey typically includes an open-ended follow-up question asking the customer to explain their rating.
Once the survey responses are collected, the NPS is calculated by subtracting the percentage of detractors (customers who rate their likelihood to recommend as 0-6) from the percentage of promoters (customers who rate their likelihood to recommend as 9-10). The resulting score is between -100 (if all respondents are detractors) and +100 (if all respondents are promoters). A good NPS score should ideally be in the range of 30 - 50, with over 50 being excellent.
Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) is a customer experience metric that measures how satisfied customers are with a specific product, service, or interaction with a company. CSAT surveys are usually carried out in the form of surveys, messages, or
- Email surveys: CSAT surveys can be sent to customers via email, either after a specific interaction or periodically to measure overall satisfaction. The email can contain a link to an online survey, which can be completed by the customer at their convenience.
- Phone surveys: CSAT surveys can be conducted over the phone, where a customer service representative asks the customer a series of questions to measure their satisfaction with a product or service.
- In-app or website surveys: CSAT surveys can be embedded within a company's website or mobile app, allowing customers to provide feedback directly within the platform they are using.
- Postal mail surveys: In some cases, CSAT surveys may be mailed to customers via traditional postal mail. This method is less common than others due to its higher cost and longer turnaround time.
Regardless of the method used, CSAT surveys typically involve asking customers to rate their satisfaction with a particular product or service on a scale (e.g. 1-5 or 1-10), and may also include open-ended questions for customers to provide additional feedback or comments. The results of CSAT surveys are then analyzed and used by businesses to identify areas for improvement in their customer service operations, as well as to measure the effectiveness of changes made based on previous feedback.
Customer Effort Score (CES)
Customer Effort Score (CES) is typically measured using a survey question that asks customers to rate the level of effort they had to put in on a scale of 1-5 or 1-10. By tracking CES, you can gain insight into the specific pain points and challenges that your customers face when interacting with your business. This can help you identify areas for improvement and tailor your services to better meet customer needs.
Quality metrics
These metrics measure the quality of the customer service experience, such as first contact resolution (FCR), customer retention rate (CRR), and customer churn rate (CCR).
First contact resolution rate (FCR)
This metric measures the percentage of customer inquiries or issues that are resolved in a single interaction with a customer service representative, without the need for the customer to follow up with the business. In today’s landscape, FCR is a key differentiator that, when done right, will set your business apart from the competition. Customers appreciate when their issues are resolved quickly and efficiently, without the need for follow-up interactions.
FCR rates can vary significantly depending on the industry, customer demographics, and the complexity of the products or services being offered. According to benchmarks, average FCR rate is around 71% for call centers, and 65% for tech support, with retail leading the chart with an average FCR rate of 78%.
Customer retention rate (CRR)
Customer retention rate (CRR) is a metric that measures the percentage of customers who continue to do business with a company over a specified period of time. It is calculated by dividing the number of customers retained by the total number of customers at the beginning of the period, multiplied by 100. CRR varies from industry to industry but ideally, you’ll want to aim for at least
Retaining customers is essential for revenue growth, as improving the retention rate by 5% could mean increasing your profitability from as much as 25 - 95%.. A high CRR means that a business is able to retain its customers and generate recurring revenue, reducing the need for costly customer acquisition.
Customer churn rate (CCR)
Customer churn rate (CCR) measures the percentage of customers who stop doing business with a company over a specified period of time. It is calculated by dividing the number of customers lost during the period by the total number of customers at the beginning of the period, multiplied by 100.
Since as you know, retention is still more important than acquiring new customers, CCR is one of the best metrics you could use to measure the quality of your services/products and how well it keeps customers engaged.
Volume metrics
These metrics measure the volume of customer inquiries or issues, such as the number of interactions, calls, emails, or chats received, contact volume, and peak volume.
Total interactions
This metric measures the total number of customer interactions, including phone calls, emails, chats, and social media messages, received by a customer service team over a given period of time.
Total contacts
This metric is similar to total interactions, but it includes all contact attempts, including unsuccessful attempts such as abandoned calls or chats. However, on its own, the total contacts metric may not provide a complete picture of a business's customer service performance. While high volumes of customer interactions may indicate a high level of customer engagement or demand, they can also lead to longer wait times, increased handle times, and potentially lower levels of customer satisfaction if not handled efficiently.
Therefore, it's also important to also track metrics such as first contact resolution rate, average handle time, and customer satisfaction scores in conjunction with total contacts to get a more comprehensive understanding of a business's customer service performance.
Peak volume
As its name suggests, this metric tracks the highest volume of customer interactions received during a specific time period, such as a day, week, or month. Peak volume differs from industry to industry so it’s hard to know for sure, but this is still one of the more important metrics as it helps you plan and allocate resources effectively to handle the surge in demand during busy periods.
Average interactions per day/hour
This metric measures the average number of customer interactions received by a customer service team in a day or hour. Along with peak volume, average interactions per day/hour is also a useful metric to help you plan and allocate your resources effectively, as planning around peak volume might lead to wasted resources.
Additionally, this metric also helps to realize more opportunities to improve the efficiency of your customer service operations. For example, you may discover that certain channels or types of interactions are taking longer to resolve than others, which could indicate a need for additional training or process improvement.
Conclusion
The above-mentioned are all the important metrics that you’ll find useful in the customer service department. Measuring and tracking these metrics will provide valuable insights into the effectiveness and efficiency of your business operations, as well as the satisfaction of your customers.
