World-Class Customer Service: 7 Key Metrics
World-class customer service balances the quality of support with quantifiable metrics. With the wealth of data available regarding customer engagement, identifying what measurements are critical is paramount for organizations. For example, at one point in time, calls per hour or average handling time were key metrics for call centers. But as trends change, technology improves, and the workforce becomes more capable, metrics have also evolved. Today’s metrics focus on quality as much as on quantity to drive a positive customer experience and reduce operating costs.
The following seven key metrics should be considered to achieve the quest for unparalleled customer service:
1. Time Until Resolution
Recent research suggests that no single key performance indicator (KPI) has a bigger impact on customer satisfaction than first-call resolution (FCR), the percentage of issues handled during the first contact. Customer contact research and consulting firm Service Quality Measurement (SQM) Group finds that for every 1% improvement in FCR, you get a 1% improvement in customer satisfaction.
While FCR has been identified as a critical KPI for contact centers, other organizations may need to look at the total time it takes to resolve an issue. Team members may be able to resolve minor issues during the first contact, but other issues may be more complicated and require more time. It’s important to let the customer tell you if their issue has been resolved. Organizations frequently use real-time or near-real-time customer feedback channels, such as post-call, online, live, or immediate email-based surveys.
While FCR is generally considered for call centers, the time until resolution is applicable for anyone in your organization who works directly with clients and customers. Are your employees resolving issues in as close to real-time as possible? Are concerns and complaints addressed promptly? At Momentum, we focus on open and transparent internal communications, so any channel the client uses is the correct channel. Issues are resolved as close to the source as possible, as quickly as possible, to ensure customer satisfaction.
2. Service Level/Response Time
Service level and response time are classic metrics, fundamental to effective management of the contact center and the customer experience. These metrics can tell you how accessible team members are to customers, how many employees are needed to provide efficient service, or how your organization’s service compares to others in your industry.
In essence, service level and response time objectives tie the resources you need to the results you want to achieve. These metrics measure how well you are getting customer contacts in the door and into the hands of employees. When an issue is first raised, are you acknowledging your customer? Do you let them know you are working on the issue? Do you keep them in the loop with progress?
3. Adherence to Schedule
Does your organization do what it says it will do when it says it will do it? Are your team members available when your customers need them?
In today’s remote and hybrid environments, adherence to schedule might measure how much time during an employee’s shift they are logged in and handling contacts or at least available to do so. Adherence comprises time spent interacting with customers, as well as time spent following up from those interactions.
Adherence to schedule is less about the project schedule and more about routine tasks and availability. Variations on a project schedule are to be expected. However, if you promised to follow up on an issue and your customers are still waiting four weeks later, you may have problems even if the project itself is on schedule.
Team members can’t control how many issues are coming in or how long it may take to resolve requests, but they can be held accountable for where they are and what they are doing. The good news is that when placing a stronger emphasis on adherence to schedule, by having
employees in the right places at the right times, other metrics frequently take care of themselves.
4. Forecasting Accuracy
Forecasting accuracy is a performance metric that reflects the percent variance between what you said would happen and what actually happened. It is a critical, high-level objective in all business environments.
Underestimating demand leads to understaffing. This, in turn, leads to long wait times in queues, frustrated customers, burned-out employees, and high costs. However, overestimating demand results in waste, overstaffing, and increased idle time. Again, accuracy and balance are crucial here.
Think about how you feel when a project manager comes back and request more time on the project again and again. Or your own reactions when the price of goods and services comes back significantly higher than the estimate. It’s frustrating! Your customers have the same reaction but improving your forecasting accuracy minimizes the impact.
5. Self-Service Accessibility
Self-service accessibility has emerged as a critical metric in this age of automation and customer-centricity. It has become the quest of most contact centers to deflect as many basic transaction types as possible from the agent queue. These calls are shunted to self-service systems – mainly interactive voice response (IVR) and interactive Web applications. This can help enhance service efficiencies and cut costs. Self-service options also allow employees to use their valuable skills to assist customers with more complex issues, thus keeping staff engaged and motivated.
Leading organizations offer self-service accessibility on many simple tasks to internal and external customers alike. Can customers order their products online? Can they change their own passwords? Many organizations also survey customers after a self-service transaction to gather feedback on their experiences. While not the most proactive or definitive method for gauging self-service accessibility, surveys are a good way to uncover how your valued customers feel about your automated service options.
6. Contact Quality
This is a very common and critical customer-centric performance metric in all organizations, regardless of industry, function, or size. Top companies track contact quality as a high-level, center-wide metric and an individual employee performance measure.
Contact quality assesses the efficiency and effectiveness of contacts with your customers. Are your employees polite and professional? Do they seek to understand the issues? Can they solve your customers’ problems?
7. Customer Satisfaction
Customer satisfaction is one of the most critical metrics for any organization. Studies have revealed, and common sense supports, a critical and direct correlation between customer satisfaction, customer loyalty, and corporate revenues and employee morale and performance.
Customer satisfaction measurement has evolved beyond mail surveys (delivered by post) and phone interviews days after the customer’s interaction transpired. The trend is to survey customers immediately after the interaction occurs, when the experience is fresh in their minds and before problems can escalate.
The Road to Customer Service Success Is Paved with Metrics
The metrics your organization embraces have an impact on the customer experience that simply can’t be ignored. Of course, not every metric can be completely customer-centric – operations costs and business needs must also be considered. Focusing strictly on straight productivity metrics and managing an organization primarily as a cost center is no longer feasible. Improving the customer experience by implementing sound customer service and accurately measuring success is the path to fulfilled constituents and engaged service professionals.
At Momentum, our consultants work with government and institutional clients to identify and implement customer service and communications best practices, including omnichannel approaches, that meet constituent needs while promoting employee fulfillment and retention.
This post was adapted from a Momentum white paper. To learn more about developing communication and customer interaction competency, contact us.