Customer Service Metrics

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What are Customer Service Metrics?

Customer service metrics are used to measure how good an organization’s customer service is. It is important for companies to measure and track customer experience in order to prevent customer churn and promote customer loyalty.

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Types of Customer Service Metrics

These are some metrics used to measure customer service within organizations:

NPS^® Score
CSAT Score
CES Score
Customer Churn
Social Media Monitoring
Operational Metrics

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NPS^® Score

Net Promoter Score^® , or NPS^® , is a customer satisfaction metric that quantifies customer satisfaction by measuring the likelihood that customers will recommend your products/service/organization to others. It typically takes the form of a single-question survey that asks consumers the following question, or a similar variation of it: “How likely are you to recommend our products/services to others?”.

This question is followed by a 10 point scale, where respondents can express their likelihood to spread a positive word about the organization or its products/services.

Survey respondents are then categorized into the following three categories:

Promoters are respondents who choose a score of 9 or 10.
Passives are respondents who choose a score of 7 or 8.
Detractors are respondents who choose a score between 0 to 6.

Once respondents have been categorized, the following formula is used to calculate the NPS^® :

NPS^® = % of promoters – % of detractors

NPS^® is expressed as a number between -100 to 100, where a positive score indicates the organization has more promoters than detractors and a negative score indicates more detractors than promoters.

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CSAT Score

Customer Satisfaction Score, or CSAT, measures customer satisfaction levels. Similar to NPS^® , it usually takes the form of a single-question survey. The CSAT question directly asks about a customer’s satisfaction with the company or its products, and the question is often framed along the lines of: “How would you rate your overall satisfaction with the product you received?”. This question is followed by a five-point or ten-point numeric scale, or the likert scale ranging from “very satisfied” to “very unsatisfied”. The following formula can be used to calculate CSAT: CSAT = (Number of Satisfied customers ÷ Total number of Respondents) x 100 Satisfied customers are those customers who have responded with a 4/5 or 5/5 on the numeric scale, or with “very satisfied” or “satisfied” on the likert scale. CSAT scores are represented as a percentage.

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CES Score

Customer Effort Score, or CES, measures how much effort a customer has to exert during an interaction with a company. This interaction can be a touchpoint such as the effort exerted while:

Purchasing a Product/Service
Returning a Product
Getting an Issue Resolved
Getting a Request Fulfilled

CES surveys take the form of a single-question survey as well, where customers are asked to rate their experience from “very difficult” to “very easy”. The following formula is used to calculate CES:

CES = % of customers who had – % of customers who had

an easy experience a difficult experience

A good CES score is defined by industry standards, however, a positive value is a good indication as it means that the number of respondents that had a seamless experience with the organization is higher than the number of respondents that had a difficult experience.

Customer Churn Rate

Customer Churn Rate, or customer attrition rate, is the rate at which customers stop doing business with an organization. This customer service metric is an important indicator of customer satisfaction but is a little more tedious to calculate than other metrics as there is more than one predictor of churn. To calculate it, operational insights such as declining repeat purchases or reduced purchase amounts need to be taken into consideration.

Operational Metrics

Operational metrics are calculated using operational data, or O-Data. These are tangible records of activities that can indicate employee efficiency, response times, resolution rates, and more.

These are a few important operational metrics used by organizations to measure customer satisfaction:

First Contact Resolution (FCR)

First contact resolution rate, or FCR, measures how many cases require only one contact from the customer before their issue is resolved. A high first contact resolution rate is an indicator of good customer service as it correlates with a high CES, which means the customer exerts less effort when contacting your organization

Average Handle Time (AHT)

Average Handle Time, or AHT, measures the time a contact center agent spends working on a single contact. The less the AHT, the more efficient your contact center is. This means they are providing good customer service efficiently, improving customer experience while reducing operational costs.