Customer service is not just about solving problems and answering questions. It is also about creating a culture that values customer feedback, satisfaction, and loyalty. How can you measure and improve your customer service performance and align it with your business goals? In this article, we will explore some of the key metrics that can help you build a customer-focused culture.
One of the most common and simple metrics to assess customer service quality is customer satisfaction (CSAT). CSAT is usually measured by asking customers to rate their experience with your service on a scale of 1 to 5, or using emoticons, stars, or thumbs. CSAT can help you identify how happy your customers are with your service, what aspects they like or dislike, and how likely they are to recommend you to others. However, CSAT can also vary depending on the customer's mood, expectations, and context, so it should not be the only metric you use.
Some departments are not suitable. - Purchasing dept. Usually buyers are always unsatisfying. - Quality dept. They wants to tighten specifications for better performance but don’t want to share cost.
Another metric that can indicate customer loyalty and advocacy is net promoter score (NPS). NPS is calculated by asking customers how likely they are to refer your service to a friend or colleague on a scale of 0 to 10. Then, you subtract the percentage of detractors (those who give 0 to 6) from the percentage of promoters (those who give 9 or 10). NPS can help you measure how loyal your customers are, how much they trust your brand, and how much word-of-mouth marketing you can generate. However, NPS can also be influenced by external factors, such as competition, market trends, and customer segments, so it should be complemented by other metrics.
Another metric that can reflect customer satisfaction and retention is customer effort score (CES). CES is measured by asking customers how easy or difficult it was to get their issue resolved or their goal achieved with your service on a scale of 1 to 7, or using labels such as very easy, somewhat easy, neither, somewhat difficult, or very difficult. CES can help you evaluate how frictionless and convenient your service is, how well you anticipate and prevent customer problems, and how much you reduce customer churn. However, CES can also be subjective and relative, depending on the customer's expectations, preferences, and alternatives, so it should be balanced by other metrics.
One of the metrics that can impact customer satisfaction, effort, and loyalty is first contact resolution (FCR). FCR is the percentage of customer inquiries or issues that are resolved on the first contact, without the need for follow-ups, transfers, or escalations. FCR can help you measure how efficient and effective your service is, how well you train and empower your agents, and how much you save on operational costs. However, FCR can also be challenging to track and define, depending on the channel, type, and complexity of the customer contact, so it should be aligned with your service standards and goals.
One of the metrics that can link customer service to business outcomes is customer lifetime value (CLV). CLV is the estimated total revenue that a customer will generate for your business over the course of their relationship with you. CLV can help you understand how valuable your customers are, how much you can invest in acquiring and retaining them, and how you can segment and target them based on their potential. However, CLV can also be difficult to calculate and predict, depending on the data, assumptions, and models you use, so it should be updated and refined regularly.
One of the metrics that can enrich and validate your customer service performance is customer feedback. Customer feedback is the qualitative and quantitative data that you collect from your customers through surveys, reviews, ratings, testimonials, comments, suggestions, complaints, or compliments. Customer feedback can help you gain insights into your customer needs, preferences, expectations, and perceptions, how you can improve your service quality and delivery, and how you can enhance your customer relationships and loyalty. However, customer feedback can also be biased and incomplete, depending on the source, method, and timing of the feedback, so it should be analyzed and acted upon carefully.
What about customer source ? Are you even capturing this data ? Customers that refered by other customers indicate that the original customers were very happy. On the other hand customers that came in responding to an ad are very expensive. What if next week your competition is cheaper or has a catchier ad ? Never forget, the most expensive customer is a new one ! Is your customer service driven by the most cist effective way to gain and hold customers ?