A company’s success depends on its customer service. Whether you are promoting your company image, working to earn customer loyalty, prospecting new customers, or personalizing your interactions, the quality of your customer service is critical to your revenue. Since customer service is a strategic component for your company, it must be managed by an exemplary customer service department, whose performance is measured continuously to deliver optimal customer experiences. Why should you use key performance indicators in your customer service ? Which KPIs should you choose? How can you put them in place ? Take a look at the essential KPIs for customer service.
The NPS aims to evaluate and analyze your customers’ level of loyalty and satisfaction, through their ability to recommend your brand, products, or services. The task consists of asking your customers a simple question such as, « Would you recommend this product to a friend ? » and to provide them a response scale of 0 to 10. Your customers will then be defined as « promoters » (ready to recommend your brand), « detractors, » (susceptible to talking negatively about your brand), or « passive » according to the score given.
NPS = [(Number of promoters – Number of detractors) / (Number of people surveyed) X 100]
A positive score means that you have more customers who would recommend your brand than customers who would speak of you negatively—what may be considered an “adequate” score. A score exceeding 50 is considered good or very good, and one which exceeds 70 is excellent. The analysis of NPS and its evolution over time allows your company to capitalize on and earn the loyalty of promoters, anticipate potential risks with detractors, and better engage your passive customers.
Unlike the Net Promoter Score, the CSAT analyzes short-term customer satisfaction immediately following an interaction. It is an indicator that evaluates in real time, which allows your company to take initiative quickly and oversee customer service in a “live” fashion. It is obtained by asking a simple question such as, “Are you satisfied with your last interaction with our customer service?” The answer to the question can be given in three ways: the customer may answer “yes” or “no,” give his response with a star or smiley, or provide a numerical score on a scale from 1 to 5 or 1 to 10. The calculation of the score is simple:
CSAT = [(Number of positive responses /Total number of responses) X 100].
The CSAT is a strong reporting tool since it is simple, is measured in real time, and allows your company to take action quickly if a customer is unsatisfied. However, this score does not allow your company to understand the “why” behind a customer’s answer or score and therefore know the reasons for potential dissatisfaction.
The CES is a KPI also linked to the measure of customer satisfaction and deals with customer perception, by measuring the effort your customers make to interact with your company (buying a product or contacting customer service, for example). The CES consists of asking once again a simple question such as, “How would you evaluate the effort you made to contact our service?” The numerical scale offered would range from 0 to 5 (with 0 being no effort, and 5 being great effort). The weaker the score, the less the customer will feel he has to take difficult steps to contact your customer service, in this example. The CES is inspired by the idea of NPS and can be seen as a complement to the NPS as it is relevant for evaluating the difficulty of necessary customer actions for specific phases of the customer journey (e-commerce payment for a purchase, product information research, contract cancellation…), with the NPS serving as a more overall scale for customer satisfaction.
In addition, other KPIs can be used for your customer service:
Since many essential KPIs exist for maintaining smoothly functioning customer service, there is another often underestimated but nonetheless essential one to remember: employee engagement. The employee experience echoes the customer experience: an engaged employee will be your best ambassador, allow you to optimize the customer experience, and turn your customers into brand ambassadors as well.
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