Throughout time, organizations judged the health of their business by the productivity of their customer support team. They looked at how many tickets were closed per day, how many demos were booked etc. The usual metrics to see if a rep is performing above or below average.
And although it’s imperative that we keep track of metrics that show productivity, we should also look at metrics that measure developing, maintaining and strengthening relationships with our customers.
Here are some customer success metrics that will matter more than ever this year and for years to follow:
- Customer Health Score
- Qualitative Customer Feedback
- Customer Churn Rate
- First Contact Resolution Rate
- Customer Satisfaction Score
Customer Health Score
At the risk of pointing out the obvious, we have to look at the bigger picture and ask ourselves if our customers are really seeing value in our products or services.
How often are they using our product? How successful are they after they purchase our product? Were all of their pain points eliminated? What type of impact does it have on their business?
When we think about customer support, we often think about getting someone to sign on a dotted line, answer calls and emails or setting up a service but there’s more to it than that. Reps should be following up with customers and ensure that they are thriving and not just surviving. Customer support is the driving force behind increasing revenue and influencing new sales.
How to Measure Customer Health Score
The best sign of business success is growth, so start by analyzing their business at the start of the purchase. What do their finances look like? How many employees/customers do they have? Analyze the business as it pertains to your product and then track it over time. You can compile these factors and use an index as the score metric to keep things consistent and easier to track.
Qualitative Customer Feedback
Another important thing to measure is Customer Feedback. What do they like and dislike about your company? What are they saying about you and the service you provide?
Customers need to feel that they have a voice and offering them the chance to provide feedback in order to improve different aspects of your business is a great way to build long standing relationships.
Although it may not feel good to hear about where your business is lacking, its better to right your wrongs before customers jump ship.
How to Calculate Qualitative Customer Feedback
The easiest way to do this is by sending out surveys. Pose a few questions to your customers and determine how they feel about your customer service. Having 1-on-1 sit downs with your customers and talking about what they like and dislike about your company is also a good way to open up discussions for improvement. Remember that customer feedback shouldnt only be about how they view just your product but your service and company as a whole.
Customer Churn Rate
Customer Support is all about maintaining Relationships so customer churn is a great metric to measure on a rep-to-rep basis. A rep with a healthy customer relationship is likely to have a low customer churn rate.
How to Calculate Customer Churn
Calculating a churn rate can be done in 3 steps.
- First you want to consider the time frame that you’ll be calculating the data. Whether it be a week, a month or a year. Whatever works best for you.
- Determine how many customers exist at the start of the timeframe versus how many churn over that period.
- Lastly, divide the number of churned customers by the number of existing customers you had at the start.
For example, let’s say you start with 1000 customers at the start of the month. By the end of the month 50 customers churned. In this case your churn rate would be 50%.
When measuring the churn be sure to exclude any new customers acquired during this period of time as they will be included in the existing customers at the start of the next period but be sure to include any new customers that did churn during this period as the churn happened during the analysis period.
First Contact Resolution Rate
In business, time is the most valuable asset. Its also the most important thing for your customers. Your customers want their issues fixed promptly and if they have to sit around and wait for a fix it can cause friction in the relationship. This is why it;s important to measure the first contact resolution rate, this is the percentage of times an issue is solved on the initial call. If the number is high, this means your team is helping your customers out quickly and effectively.
How to Measure First Contact Resolution Rate
In order to do this it might be easier to have a tool in place that tracks how many support tickets you receive in a day. You’ll want to divide the number of tickets closed on the first interaction by the number of total tickets received on the day.
Customer Satisfaction Score
Your Customer Satisfaction score is a simple way to measure how satisfied your customers are with your company. It does require a survey and it’s best to trigger the survey after every first customer interaction so you can get the most accurate response from those who participate. The idea is to measure a customer’s immediate reaction to their individual experience and not to get their overall view. Here’s how you can calculate it:
- Once you have your form set up, you want to divide the number of high scores you got (scores 6-10) by the number of total responses you received.
- Multiply the number by 100 and you’ll have the total number of customers happy with their experience.
For example, if we got 50 responses and 40 of those were high scores, our CSAT would be 80%. (40/50 = .80 x 100 = 80%)
Happy Customers, Happy Business
When you’re in the B2B or B2C industry you understand that customer success is a key component in how far your company will go. Behind every increase in revenue and growth is a happy customer. The only way to know if your customers are happy is to measure their happiness. We hope these metrics helped you find ways to improve your business and keep your customers happy.Learn About Consolidata