Customer service is a crucial factor for customer satisfaction, loyalty, and retention. But how can you measure and improve the quality and effectiveness of your customer service operations? In this article, we will explore some of the different methods of evaluating customer service performance and their advantages and disadvantages.
One of the most common and direct ways of assessing customer service performance is to ask customers for their opinions and ratings. Customer feedback surveys can be conducted through various channels, such as email, phone, web, or social media, and can include questions about various aspects of the service, such as timeliness, professionalism, friendliness, accuracy, and resolution. Customer feedback surveys can help you identify the strengths and weaknesses of your customer service team, as well as the expectations and preferences of your customers. However, customer feedback surveys also have some limitations, such as low response rates, biased or inaccurate responses, and difficulty in comparing results across different platforms or segments.
If we want to evaluate the customer service vision of any organization, please look into the following- 1) What is their investment in the people development towards building a sense of product or service ownership. 2) Next you check how sufficient/efficient they are in backfilling their Managers, leads or Level 2 positions internally. 3) Last evaluate how robust is the DSAT closure procedure. 4) Then offcourse there are KPIs which you can use to evaluate such as CSAT, NPS, Survey Return Rate, Reopen rate, FTR/First Level resolution rate.
Some of the industry norms to measure Customer Service performance through surveys are - 1. Requesting customer to rate the support offered (CSAT). 2. Re-open Rate of the issue 3. In case of negative feedback offer options for the customer to choose what went wrong such as - Agent behavior, Company policy to handle such issues, Time taken etc.
As with any interaction, some individuals are more prone than other to provide feedback. When one takes time to give feedback, you must value the opinion and try to provide live 1-1 interaction to get as much details from the user. Agents taking feedback must be trained in customer interaction specific to feedback. This includes active listening, open questioning technique and careful notetaking including sentiment analysis. As for any feedback, context is crucial to develop improvement. Clear predefined questions should lead the conversation to define the origin of the problem.
Instead of using a one-size-fits-all survey, implement segmented surveys tailored to different customer profiles or touchpoints. This allows for more targeted insights and a deeper understanding of specific customer needs, ultimately leading to more effective service improvements.
A well rounded Customer Feedback Survey form is the key. More towards hearing areas of improvement than great things about the organization and process. Two critical parameters that can have significant impact are: --Average Response Time. --First Contact Resolution. The above are now industry specific. But personal attention (depending upon type of customer) still goes a long way.
Another way of evaluating customer service performance is to use quantitative indicators that measure various aspects of the service process and outcome. Customer service metrics can include things like average response time, first contact resolution rate, customer satisfaction score, net promoter score, customer effort score, customer retention rate, and customer lifetime value. Customer service metrics can help you monitor and track the efficiency and effectiveness of your customer service operations, as well as the impact of your service on your business goals and outcomes. However, customer service metrics also have some challenges, such as defining and measuring the right metrics, collecting and analyzing the data, and aligning the metrics with your customer service strategy and vision.
Measure how efficiently and effectively customer feedback is collected, analyzed, AND translated into actionable improvements within your customer service operations. A well-functioning feedback loop can be a critical driver of service excellence.
There are numerous metrics to evaluate a call center's performance, but the primary one will always be whether we're effectively resolving customer issues. To measure this, FCR, or First Call Resolution, is unbeatable. Ensure issues are resolved on the first call, then proceed to other indicators.
It's important to choose and measure the right metrics that align with your customer service strategy and overall vision. Here are examples of some methods: - Average Response Time: Measures response speed (e.g., <30 minutes). - First Contact Resolution Rate: Evaluates solving issues on first contact. - Customer Satisfaction Score (CSAT): Rates satisfaction (e.g., 4.5/5). - Net Promoter Score (NPS): Gauges loyalty (e.g., NPS 70). - Customer Effort Score (CES): Assesses issue resolution ease (e.g., CES 4/5). - Customer Retention Rate: Tracks customer longevity (e.g., 90% retention). - Customer Lifetime Value (CLV): Measures long-term value (e.g., CLV $10,000). These metrics gauge overall customer service effectiveness.
Some notable customer service metrics which are effective are: - CSAT - NPS - CES Everyone would easily know the CSAT, however, the other two are also useful. Agreed that they can be employed across the various phases; - During the funneling of your sales campaigns, for leads, the CES is important. - When you've secured clients and have retainership, your CSAT is important for ops - towards completion of projects, and new promotional contents or campaigns, your NPS is great
You can easily find customer service metrics online, but it's vital to pick the ones that fit your industry and customers best. Prioritize these metrics wisely; for example, timely responses might be more critical at times, while customer satisfaction scores could matter more later. Analyzing how these metrics relate to each other helps you make targeted changes to your customer service teams. Keep in mind that short-term goals and long-term objectives may sometimes clash. For instance, cutting service costs and reducing handling times could hurt first contact resolution. Similarly, directing questions to self-service might lower your Net Promoter Scores (NPS). So, stay flexible and keep analyzing.
A third method of evaluating customer service performance is to conduct a systematic and objective review of your customer service policies, procedures, standards, and practices. Customer service audits can be performed internally by your own staff or externally by a third-party consultant or agency. Customer service audits can help you assess the quality and consistency of your customer service delivery, as well as the compliance and alignment of your customer service operations with your organizational values and objectives. However, customer service audits also have some drawbacks, such as the cost and time involved, the potential resistance or bias of the auditors or the audited, and the need for follow-up actions and improvements.
Implement a more agile and ongoing auditing approach. Instead of infrequent, exhaustive audits, embrace continuous, real-time monitoring and audits in smaller, manageable chunks.
While it is true that customer service audits take time, money and possible biases, it is beneficial in evaluating customer service performance because the auditors can calibrate their ratings especially during discussions. Calibrating audits may indeed take time but it will establish a benchmark or standard that can then be applied during customer service performance evaluations.
When conducting audits, it is imperative to prioritize outcomes over cost considerations. Audits serve as the primary means to obtain precise feedback regarding processes that require improvement, thereby minimizing future inconsistencies. In this regard, internal audits are preferable to outsourced ones. This is because an internal audit team is better positioned to grasp the company's values and objectives, offering a deeper understanding compared to third-party auditors.
Establish a Quality Monitoring division dedicated to overseeing interactions by listening to calls and reviewing responses in text channels. Develop a concise set of guidelines that agents can follow to ensure a consistent, yet personalized service that avoids scripted interactions. Whether in-house or outsourced, this unit can effectively influence the Plan-Do-Check-Act (PDCA) cycle, leading to improved outcomes in your operation.
A fourth method of evaluating customer service performance is to use a covert technique of posing as a customer and observing and evaluating the service experience. Customer service mystery shopping can be done by your own employees, by hired professionals, or by volunteers. Customer service mystery shopping can help you gain a realistic and unbiased insight into the customer's perspective, as well as the behavior and performance of your customer service staff. However, customer service mystery shopping also has some limitations, such as the ethical and legal implications, the reliability and validity of the results, and the difficulty in generalizing and replicating the findings.
Working to find industry standards or great things other companies do are a really great way to speed up improvements for your current support organization. Don't be afraid to ask others in the industry of how they do something if you are struggling, people love to share wins.
Mystery shopping is a great way for a business to really dive deep into their overall operations and get data on how those processes impact the customer experience. Human intelligence is still key for measuring processes and understanding emotional intelligence in the service process. Finding a partner who is ethical, honest, and has a robust set of data analytics capabilities is extremely important.
This is likely the most effective approach for gaining insights from a customer's point of view. It's preferable to have internal employees handle this task, as external contractors would offer a similar perspective as the customers themselves. On the other hand, internal employees are already familiar with the standard operating procedures and have a grasp of how to address the issue. They can better evaluate your response to the problem and assess the level of understanding within the customer experience team. Let's say, for example, that multiple employees approach the same issue and receive different responses, it can provide valuable insights into areas where the customer experience team may need improvement.
I've been employing mystery shopping in my operations for years with genuinely positive outcomes. This approach rapidly uncovers process and technological flaws and concretely identifies the primary pain points of your customers. Demand such proactive measures from your managers; a fundamental requirement for success in customer service is to regularly experience and evaluate your own customer journey.
A fifth method of evaluating customer service performance is to compare your customer service operations with those of your competitors or industry leaders. Customer service benchmarking can help you identify the best practices and standards in your field, as well as the gaps and opportunities for improvement in your own customer service operations. Customer service benchmarking can be done by using publicly available data, by conducting surveys or interviews, or by participating in networks or associations. However, customer service benchmarking also has some challenges, such as the availability and quality of the data, the relevance and applicability of the comparisons, and the risk of imitation or complacency.
To truly be competitive in today's market you need to understand the competition on a granular level. It is no longer just about price. How your competitors engage their customers, through other programs and offerings is key to staying competitive. Facilitating a robust competitive shopping/market analysis program can be complex and costly that is why finding a vendor with the proper capabilities to help collect and analyze the data is important.
We are currently navigating a fast-paced world where virtually everything is transformed into data sets. In this data-driven landscape, it's crucial to stay attuned to the actions of your competitors. Failing to do so could leave you in the dark about the reasons behind declining sales and a lack of consumer interest in your products. The same principle holds true for your customer service efforts. To thrive in this dynamic environment, it's essential to gain insights into what your competitors are excelling at and, simultaneously, to emphasize your unique strengths.
External consulting can provide invaluable insights. Even short-term engagements offer substantial benefits, including a wealth of competitive benchmarks and market best practices. These can lead to impactful, short-term improvements in your operations.
Be a true coach and review "footage"! Footage in Consumer Care being your incoming/outgoing contacts with agents. As a coach - be sure that you're listening to your calls, reading your emails, looking at the path the consumer takes to get to you and what happens after they leave. Engaging with these can all give you that "gut" check that doesn't come from looking at any metrics. When you've listened to your calls, get curious about what else is going on in the industry. Call/email competitors and understand their experience. What can you learn from them?