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How to apply customer service KPIs

How to apply customer service KPIs

How to apply customer service KPIs

Written by Interactive Media

July 8, 2020

Customer service KPIs (key performance indicators) are the parameters and metrics used to evaluate the performance of this service in companies, as well as the satisfaction of customers with it. Monitoring the performance of the customer service process within companies has become paramount, as more and more, customer experience is one of the factors that most impacts the reputation and results of organizations in all sectors.

Consumer culture has changed dramatically in recent years. The modern consumer is demanding and attentive, and the immense offer of products and services further increases their bargaining power. In other words, this means that organizations that do not put their customers at the center of their strategies are at risk of being pushed aside.

With this in mind, it is not enough to offer an excellent solution. It is necessary to deliver a complete experience, from the first contact with the brand to the after-sales service, and customer service plays a decisive role in this process.

But how to check its performance and make sure that your company is on the right track? This is where the KPIs come in, and in this article, we bring you some considerations that cannot be missed in your analysis. Check them out!

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Cost of customer service

The cost of customer service is a financial metric that can be divided into two types:

  • hourly cost: which must also include overtime, benefits and charges when calculated for teams of employees.
  • total cost per service: the total cost of the period (day, week, month or year) divided by the total service at that specific period of time.

These KPIs are widely used as a criterion for comparison, considering that there are several solutions to deliver the service, from outsourcing to the implementation of virtual agents, such as chat and voicebots.

Abandonment rate

The abandonment rate indicates the percentage of people who drop out of the contact center calls while waiting for customer service. To calculate it, just divide the total number of dropouts by the total number of calls and then multiply the result by 100.

This is one of the most important KPIs, as it reveals points that need immediate improvement. If your calls are not being completed, certainly your customers are not only having trouble solving problems with your company, but they are also irritated by this situation.

The dropout rate, however, can be linked to several different factors and, therefore, other metrics need to be analysed to understand what can be done to lower it as much as possible.

FCR (FIRST Call RESOLUTION)

The FCR rate assesses the percentage of calls that are resolved in the first contact. It is, therefore, an efficiency KPI directly related to your company’s ability to identify the most recurring problems of your audience or your customers and offer quick solutions.

Its result is obtained from the difference between the total number of contacts resolved in the first call by the total number of contacts made, times 100.

Naturally, the faster the demands are resolved, the greater the customers satisfaction. Time is just as valuable as money, so any metric aimed at gaining agility in the different stages of the purchase process is highly appreciated by consumers in general.

TME (AVERAGE WAITING TIME)

If a long service time is stressful, a long waiting time is even worse. This is one of the main complaints of consumers of large companies that depend on call centers. The famous electronic songs played during the waiting calls have already gained space even in comedic scenes from successful series and films.

We have the TME by dividing the total (sum) of all waiting times by the number of completed calls. Its result allows us to estimate the efficiency of the team and the digital support solution, including pointing out the need to invest in training or expansion.

As you can see, service indicators are closely related. A small problem at the beginning or in conducting a contact can increase the waiting time for others and affect the quality of everyone’s experience.

TMA (AVERAGE SERVICE TIME)

Following the same direction as FCR and TME, TMA is used to identify the average time that has been required for your service to be performed. The TMA is the result of dividing the total and uninterrupted time of all calls by the number of contacts received.

However, this KPI needs to be used with caution. While it is always desirable to provide agile service, your strategy needs to be based not only on the customer’s solution, but also on delivering the right experience. This means that there is no point in solving the problem quickly if the impression generated by this call is impatience, neglect, or any other negative feeling. Whether performed by a human agent or carried out by a chat- or voice-bot, it is essential that your service is adapted to the rhythm and demands of your audience.

NPS (NET PROMOTER SCORE)

NPS is a methodology that aims to identify the contentment and loyalty of a company’s customers. It is one of the most used service and Customer Success KPIs in the world and its application is relatively simple.

In practice, it is a kind of a satisfaction survey in which a single question is asked: on a scale of 0 to 10, how much are you willing to recommend our company to a family member or friend?

When presented at the right time, the simple and incisive character of the question favors the honesty of the respondents, and their answers are classified into three groups:

  • 0 to 6 (detractors): it does not necessarily mean that these people do not like your product or service, but it certainly indicates that they expect more from them.
  • 7 and 8 (neutral): these are those who probably had their problem solved but did not have such a satisfactory experience.
  • 9 and 10 (promoters): these are the ones who felt very well looked after, either by the product or by the experience provided, and are willing to promote their brand.

This type of analysis, as well as all others presented throughout the article, is usually performed with the help of software that is also able to organize this data and indicate the best actions to be taken by managers.

Strict monitoring of these metrics is one of the safest ways to evolve your service strategy and, consequently, increase customer retention and satisfaction. However, this is just the beginning. It is very important to optimize your internal processes, and technology can also play a key role in this regard.

Interactive Media is an expert company in the development, implementation, and improvement of virtual conversational agents. In addition to improving the experience of your customers and improving its service KPIs, the Interactive Media virtual conversational agents also benefits your employees by freeing them from exhausting and repetitive tasks and concentrate on really improving the customer experience for the benefit of your customers, and your company.

Get in touch with us and find out how to take the future of the customer experience into your daily business!

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Customer service technology: what changes with the coronavirus pandemic?

Customer service technology: what changes with the coronavirus pandemic?

Customer service technology: what changes with the coronavirus pandemic?

Written by Interactive Media

June 26, 2020

The past few weeks have been marked by a profound transformation in society. The coronavirus pandemic has forced huge changes in habits and brought about a series of urgent adaptations – for both people and businesses. Technology in customer service, for example, has gained even more space and relevance, corresponding to the new demands of the market.

On a daily basis, COVID-19 modifies the routines and causes people into new ways of learning and buying. In companies, the coronavirus has forced the adoption of more integrated, transparent, and flexible tools, to try and ensure the quality of service in these challenging times.

In this post we add our view of the new corporate scenario and of what the importance of implementing the right technology for customer experience.

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The impact of the coronavirus on consumer behavior

The first case of COVID-19 in the US was officially announced in January 2020. Since then, with the rapid expansion of the virus and aiming to contain the spread of the disease, states and counties have adopted restrictive measures to try and preserve the health and maximize the safety of individuals.
The recommendation for physical isolation was, therefore, one of the first guidelines. As a result, daily activities – such as going to school and dining out – needed to be replaced by routines at home.

From the point of view of consumer behavior, the changes have been immediate and profound. Schools switched to online classes and so usage of remote conference software like Zoom skyrocketed overnight. Gyms were among the first businesses to close their doors, and sales of at-home exercise equipment went through the roof.

In general, electronic commerce increased significantly during social isolation. According to Adobe’s Digital Economy Index, U.S e-commerce market jumped 49% in April compared to the baseline period in early March before pandemic restrictions were put in place. This is thanks to the essential workers who pack and deliver our food and purchases: they are indispensable and very much appreciated. There would be a lot to say about their plight and the risk they go through on a daily basis to help all others, but this blog is more about the technology revolution that has been supercharged by the coronavirus.

Technology plays a central role in enabling routines in line with safety recommendations, and provides very efficient alternatives for solving problems that, just a few months ago, did not seem to exist.

The new work mode in coronovirus times

One of the most stunning transformations forced by the coronavirus has been in the way we work. Working form home, for example, has become mandatory for many companies and is now part of the daily life of 62% of employed Americans in an effort to prevent the spread of COVID-19 in the corporate environment.

Of course, working from home includes meetings. Communication software is powerful enough, and widespread enough, that this is possible: companies providing it have been put to the task for the increased volume and have reacted well. Many will adopt this model even after the coronavirus emergency has passed.

Likewise, the need to optimize resources demanded that managers rethink the workflow and visualize new opportunities to reduce costs and, at the same time, leverage results. Once again, technology has emerged as an excellent ally. Artificial intelligence – which, in 2019, was already on the investment radar of 90% of managers -, to name just one of the possibilities, is a highly productive solution. In addition, it can be implemented in companies of the most diverse sizes and segments, enhancing operations at the factory or at the customer service center.

The importance of technology in customer experience

It has long been clear that, when it comes to customer service, technology is indispensable. Integrated call registration, for example, is quite common in modern organizations and has become essential in the mission of centralizing data, ensuring a more efficient, agile and transparent process.

Neglecting good service is undoubtedly the shortest path to failure. Back in 2017, Walker released a study stating that by 2020, customer experience would overtake price and product as a key differentiator. 2020 is now here and we couldn’t agree more with Walker’s insights. Researches have shown that nearly 70% of people would currently spend more money with a company that has excellent customer service.

This indicator reinforces the urgency of inserting, in the day-to-day contact center, tools capable of optimizing work and maximizing team performance in human service, as well as multichannel self-service modules based on the customer’s profile and history, enjoying the maturity of natural language processing technology (NLP, Natural Language Processing) for a more efficient and humanized service.

In times of pandemic, when most agents work from home and the impact of technology is felt more than ever, it is even more valuable to see the customer service area in a strategic, comprehensive and automated way. To support those pillars, Interactive Media offers IM.MIND, a software platform that makes use of artificial intelligence to manage conversational and multichannel virtual agents.

IM.MIND also functions as a logical infrastructure for development, control and support, which includes several interfaces dedicated to the navigation flows developers, to the service administrators and to the business resources that analyse the service to apply ever more helpful strategies, optimizing the users experience.

Deploying, testing and managing virtual agents and technology in customer service becomes strategic to move the end to end process along and guarantee the efficiency and adherence of the solution to market requirements.

We have seen this first-hand. At Interactive Media, the increase in demand for voice bots is already significant. One of our customers in Brazil, for example, requested to double their monthly capacity: from 800 thousand to 1.6 million calls. According to Roberto Valente, Interactive Media’s CEO, in Italy the increase in requests was equally impressive, reaching more than 100 contacts per second in the biggest voice bot deployment.

In conclusion, we believe that the focus on excellent customer service and the technology that makes it possible must be considered a priority to ease the challenges of the coronavirus, reducing the negative impacts of the pandemic on business. It is a necessity to attract and retain customers, responding to demands quickly and completely.

And the benefits of technology in the customer experience are not restricted to periods of insecurity or crisis. When the pandemic is contained – or even neutralized, through vaccines and / or proven treatments (and we hope that will be soon!), the market will return to more normal conditions, but good customer service will not lose relevance.

It is likely instead that the exact opposite will happen: the relationship between people and companies will become even more intimate and will demand more and more attention. IM.MIND is certainly the right technology in customer service to differentiate organizations that are able to face not only today’s challenges, but also tomorrow’s new normal.

To understand how IM.MIND can help your business adapt to the new reality of the market – during and after the coronavirus pandemic – request a free demo of the software and get to know our solution focused on excellent and efficient customer experience.

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Giving chatbots the gift of voice

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A battle of the botsChatbots are everywhere. According to Gartner, at the moment of writing between 1500 and 2000 companies worldwide have in the past couple of years developed a chatbot platform that they offer their customers as the base for applications. Of course,...

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How to apply customer service KPIs

How to apply customer service KPIs

Customer service KPIs (key performance indicators) are the parameters and metrics used to evaluate the performance of this service in companies, as well as the satisfaction of customers with it. Monitoring the performance of the customer service process within...

read more

Interact with us

Follow us