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Introduction to Customer Service Metrics


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An introduction to customer service metrics. The presentation covers what to track and why, what customer service metrics are relevant to the bottom line and other groups in various organizations, benchmark information, statistical best practices, as well as examples from Zappos, Bonobos, and Buffer.

Published in: Data & Analytics

Introduction to Customer Service Metrics

  1. 1. Customer Service Metrics 101 Douglas Hanna Founder/CEO - @douglashanna
  2. 2. What to track and why Customer Feedback Customer Behavior Agent/Team Behavior Other • Customer satisfaction • Customer loyalty (NPS, etc.) • Qualitative feedback • Contact volume (by channel) • Account revenue growth • Referrals • Product engagement/use • Hold time / abandonment rates • Self-service use/engagement • Customer churn • Social media sentiment • Cost per incident/case • Trending issues • Response/resolution time • First contact resolution • Issues/cases per agent • Agent productivity (AHT, etc.) • SLA attainment • Escalation rates • Employee turnover (both absolute and relative numbers)
  3. 3. What’s relevant? Most businesses have two or three key metrics. Your customer service metrics should relate to those. Revenue Profit Growth How much money What is customer is customer service costing service helping us us? What is it bring in? Retain? saving us? What is customer service doing to help us grow our business? Loyalty Product use Customer churn Contact volume Agent efficiency Self-service use Referrals Social sentiment Account growth
  4. 4. What do other teams care about? Customer service is relevant to all parts of the organization. Finance Operations Sales • Cost per incident/case • Employee cost • Contact volume • First contact resolution • Customer satisfaction • Qualitative feedback • Referrals • Account revenue growth Product Marketing HR/Legal • Referrals • Customer churn • Social media sentiment • Product usage • Trending issues • Qualitative feedback • Employee cost • Turnover • Compliance
  5. 5. Example: Zappos Zappos doesn’t pay attention to call time. Instead, it asks four key questions: On a scale from 1 – 10, How likely would you be to recommend Zappos to a friend or family member? On a scale of 1-10 how likely would you be to request the person you spoke with again? On a scale of 1-10 how likely would you be to recommend this person to a friend or coworker? On a scale of 1-10, if you owned your own business, how likely would you be to try and hire the person you spoke with? Q1: Q2: Q3: Q4:
  6. 6. Example: Bonobos Employees do QA for each other as a basis for metrics. “Excellent” is the goal. Peer review process | peer pong Bonobos customer service team members (called “Ninjas”) are given a sample of another Ninja’s customer service interactions each month and asked to grade it. They then discuss what’s good and what could be improved. Customer Satisfaction Surveys in Emails If customers don’t rate Bonobos “excellent” in an email survey, the company will reach out and try to understand what they could have done better.
  7. 7. Example: Buffer Contact volume by channel informs hiring needs. 16000 12000 8000 4000 0 Twitter Tickets Live Chat April May June July August (sample data/hiring stats) New Hire! Job Req
  8. 8. Benchmarking NPS Benchmarks 41 80 76 66 Industry Benchmarks Ask Customers
  9. 9. Best practices: collection and analysis Stats Best Practices Proper Scoring • Large enough sample size • Statistically significant differences • Sampling bias • Use standard deviations • 0-10 for NPS • Consistent across channels • Consider relative vs. absolute Data that’s relevant Keep it simple/focus • 2-3 key stats for department • 2-3 key stats for agents • Mix of quantitative/qualitative • Are you measuring what matters? • “Not everything that counts can be counted, and not everything that can be counted counts.”
  10. 10. Fun with stats: spurious relationships Money spent on pets (US) correlates with Civil engineering doctorates awarded (US) Correlation: 0.983038
  11. 11. Discussion Question: What are the most important metrics that your organization tracks?
  12. 12. Discussion Question: How do you report metrics to other teams? What ones seem to be most interesting?
  13. 13. Discussion Question: Do you use something like NPS? How (if at all) do you benchmark your company?
  14. 14. Next Steps Want to learn more? Check out for free customer service resources, best practices, tips, and more.