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Customer Experience (CX) Customer Experience November 27, 2024

23 Customer Service Metrics You Need To Track

A woman holds a tablet while explaining customer service metrics.
Measuring customer service metrics ensures that CX keeps improving throughout the customer journey. These are the top customer service metrics you need to know.
Ken McMahon
Author

Ken McMahon

A woman holds a tablet while explaining customer service metrics.
What Are Customer Service Metrics?

Customer service metrics are key performance indicators (KPIs) that businesses use to track, measure, and optimize their level of customer support. 

At least one-third of consumers said they would consider switching companies after just one instance of bad customer service. Those customers might not just take their business elsewhere — they could tell their friends, family, or social media about their poor customer service interactions, damaging your brand’s reputation. But how do you know if your customer service is thriving or needs help? Customer service metrics, of course.

The more value you create for your customers, the less you generally have to worry about losing their business. You can measure your effectiveness with several call center metrics and KPIs that illustrate different parts of the customer experience.

We compiled these 22 best metrics for customer service to help nurture your customer relationships and avoid pitfalls in your customer experience.

Nextiva customer experience dashboard

At least one-third of consumers said they would consider switching companies after just one instance of bad customer service. Those customers didn’t just take their business elsewhere but were also likely to tell their peers or the general public about their poor customer service interactions.

We compiled these 17 best benchmarks to help nourish your customer relationships and avoid customer service pitfalls.

Customer Experience Metrics

1. Customer Satisfaction Score (CSAT)

Happy customers spend more and churn less. One of the best customer service metrics to measure customer satisfaction is through CSAT surveys. This crucial metric measures what customers feel, think, and do regarding your business.

Calculate your CSAT score by giving a simple, one-question survey after a customer interaction:

“How would you rate your overall satisfaction with the service you received?”

You can vary the customer satisfaction survey question if the intent stays the same. Then, customers can respond on a scale from 1–5, with 1 being Very Unsatisfied, 3 being Neutral, and 5 being Very Satisfied.

Satisfied customers core a 4 or 5.

The formula for customer satisfaction, which multiplies total satisfied customers by 100 and divides it by total survey responses.

If you surveyed 100 customers, and 43 answered “Satisfied” while 29 answered “Very Satisfied,” your CSAT score would be 72, based on the formula.

The American Customer Satisfaction Index (ASCI) publishes the CSAT scores of several major companies every year. This public data makes it easy to benchmark your scores against other companies in your industry.

A screenshot of setup screen for a customer satisfaction survey.

With Nextiva’s inbound call center solution, you can easily handle tons of incoming calls, track team performance against benchmarks, and generate more revenue. You can even see customer sentiments in real time with built-in CRM.

How to improve it

Focus on a top-notch customer service strategy and use the right communication tools to increase satisfaction across the board.

2. Net Promoter Score® (NPS)

The Net Promoter Score is a survey-based metric that aims to show how likely a customer is to recommend your business.

Unlike the CSAT survey, it’s not necessarily asked right after a service interaction. 

The NPS survey can be sent to the customer after purchasing your product or service.

Measuring the Net Promoter Score (NPS)

Some consider NPS a staple for SaaS businesses and apps, and businesses often use it when forecasting organic growth. Like the CSAT, it’s one question:

“How likely is it that you would recommend [BRAND] to a friend or colleague?”

Answers are usually on a scale from 1–10. To NPS, you divide the results into three categories:

  • Detractors (Scores 0–6)
  • Passive (Scores 7–8)
  • Promoters (Scores 9–10)

If you surveyed 100 customers and 70 answered 9–10, 20 answered 7–8, and 10 answered 1–6, your NPS would be 60.

How to improve it

Quickly reducing first-impression metrics like hold time, response time and resolution time can encourage customers to recommend you.

3. Customer Effort Score (CES)

The Customer Effort Score is another single-question, survey-based metric. This one is from 1–7, and asks:

“To what extent do you agree or disagree with the following statement?

The company made it easy for me to handle my issue.”

Then, the answer scale ranges from 1 (strongly disagree) to 7 (strongly agree). Total CES is the average of all the answers.

How to improve it

Reduce the number of customer issue tickets (like adding self-service resources) and lower average resolution time to encourage higher CES responses.

4. Next issue avoidance

Next issue avoidance measures agents’ steps to prevent potential problems for customers. This includes proactive actions suggesting preventive solutions or providing resources to help customers with future needs. Tracking how often agents proactively prevent future problems allows you to measure how effectively your team reduces recurring issues. 

How to improve it

Use predictive analytics to anticipate customer needs and encourage proactive communication, especially if it’s bad news.

5. Self-service usage and success rate

Self-service usage measures the percentage of your customers who take advantage of your self-service support options for these support requests.

Each of the following can contribute to your self-service usage rate:

  • How much traffic visits your knowledge base or help center
  • How many cases open and close without an agent
  • Positive feedback on support articles, like ratings or upvotes
  • How many customers elect to solve their issue with interactive voice response rather than contacting an agent
How to improve it

Use self-service tools that enable customers to learn independently to decrease the number of support tickets you receive.

Customer Retention and Loyalty Metrics

6. Customer churn

For any high-growth service business, customer churn is a key customer service metric. Churn is the percentage of customers that leave during a specified time frame.

The formula customer churn, which divides total customers lost during a period by total customers at the start.

For example, if you had 100 customers last year, and 12 months later, you have 50 of those same customers. This means your churn rate is 50% (over 12 months).

There is no unified time for churn, but many companies calculate it by weeks, months, or quarters. Churn rates over different periods can give you insights into how different variables affect customer retention. For example, if you introduced a new CRM in June, churn for the calendar year might look different in the year’s first half compared to the second half.

It all depends on the industry, type of service, and contracts. A social media app might go as far as to calculate churn by the day. A real estate management company might calculate it by the year. But regardless of the industry, reducing customer churn should always be top of mind. 

How to improve it

Spotlight the customer journey touchpoints where most churn happens and redirect resources to improve that pain point.

7. Customer retention rate 

Keeping existing customers is 5-25 times less costly than acquiring new ones. That makes customer retention an extremely important customer service metric to track for long-term business success.

A graphic shows the customer retention rate formula.

Customer retention rate is calculated as the percentage of customers who stay with your company over a specific period. Like customer churn, retention can be measured over various timeframes, such as monthly, quarterly, or annually.

For example, say you had 100 customers at the beginning of a year and 80 of them were still customers at the end. Your retention rate would be 80%.

How to improve it

Deliver exceptional, personalized customer service with every interaction.

8. Repurchase rate

For companies that don’t sell subscription-based products (like e-commerce), the repurchase rate can be a key indicator of customer satisfaction.

The formula repurchase rate, which divides repeat customers by total customers.

If you have a high rate of repeat customers, your customer service squad is likely doing its job right. Especially considering how quickly bad experiences affect customer behavior, customer trust takes time to build.

If you sell consumer goods through retailers, the repurchase rate can be difficult to measure. You’ll only be able to measure it if your customers sign up for product insurance, register the purchase, or contact customer service independently.

The product literature that you provide to customers is crucial here. Think about using a QR code or a simple guide that educates customers on how to use your product best and tutorials that reduce the likelihood of a return. All in all, it adds up to a more well-rounded customer experience.

How to improve it

Build a customer loyalty program that creates value for customers and defines incentives for them to make (and record) return buys.

Operational Efficiency Metrics

9. First Response Time (FRT)

First response time, also known as first reply time, is the average time it takes you to respond to customer inquiries. 

The formula for first response time, which divides total time before response by total tickets.

When you record response times, it’s vital to differentiate between communication channels. This accounts for the different customer expectations seen in each channel. Some customers might think that a 24–48-hour email response time is acceptable, while an Instagram Message response time of more than 12 hours is unacceptable.

How to improve it

Optimize your conversational channels with chatbots to immediately engage with customers.

10. Average response time

While first response time only measures the wait time until the first response, the average response time is the average time for each response to a ticket. 

Since the first response time only shows the start of a customer experience, the average response time is better for the entire customer journey. It indicates how quickly agents follow up, not just initiate responses.

💡How to improve it: Create templated customer service phrases to help your team respond quickly to certain customer messages.
Average response time

11. Average Resolution Time (ART)

Also called time to resolution, average resolution time is the time it takes to resolve a customer request from first contact.

The difference between ART and average handling time is that ART has a confirmed resolution, while AHT typically measures call length, regardless of the result.

The formula for average resolution time, which divides total time to resolve all tickets by total tickets.

With customer care metrics like first response time and average interactions per ticket, ART can show how quickly your customer service agents solve problems. If ART is high, your product needs more post-sale support, lowering your customer lifetime value as you spend more time dealing with issues.

How to improve it

Use unified communication tools that allow customers to continue conversations across channels. This limits repetition and speeds up customer problem-solving.

12. Average Wait Time (AWT)

Average wait time is the average time customers spend before connecting with a support agent.

The formula for average wait time, which divides total time on hold by total number of calls.

No one likes waiting on hold, especially your customers who have important questions about your products. When customers wait, they’re 16 times more likely to feel impatient than excited or any other non-negative emotion besides neutrality.

How to improve it

Use VoIP phone service to gather and display vital customer information before answering their call, so your agents spend less time digging.

13. Average Handle Time (AHT)

Average handle time measures call center efficiency via the average amount of time a customer spends on a call from start to finish.

The formula for average handle time, which sums the total talk time with total time on hold, and divides that by total calls.

You can also use AHT to evaluate individual agent and team performance. Longer AHT for an individual might spotlight a coaching opportunity, while lower AHT across a team may indicate a training need.

How to improve it

Introduce automations to tackle demanding agent tasks, including following up on customer messages.

14. First Contact Resolution (FCR) rate

Also known as first call resolution, first contact resolution rate measures the percentage of customers that have their problem solved on the first call. According to our State of Customer Experience Report, 24% of respondents said their company doesn’t track first contact resolution rates, creating a blindspot in the customer experience.

The formula for first contact resolution rate, which divides complaints solved on first contact by total customer complaints.

FCR can be tricky to measure without a proper CRM system.

If you only measure phone numbers, you could dilute your data with calls from the same customer about different issues. If they call from two different phones or reach out through another channel, you’ll record two different customers.

FCR is also a key call center metric that captures a more nuanced customer annoyance: disappointment. They’ll start getting impatient if they don’t ever reach an agent. However, they may become disappointed and annoyed if they get through to an agent and don’t solve their problem.

That’s why tracking the customer journey across all channels is crucial by using state-of-the-art tools.

How to improve it

Get the right calls to the right people at the right time by using conversational AI prompts to quickly route calls to different teams.

15. Issue resolution rate

Your issue resolution rate is the percentage of total issues your customer service team resolves.

The formula for issue resolution, which divides total resolved issues by total issues

Customers who don’t resolve their issues aren’t exactly happy, so a high resolution rate is always a priority for customer service teams.

Many companies offer self-service customer support for common issues, whether through a Facebook chatbot or a VoIP phone service.

How to improve it

Think about any problems your customer has that could be solved with one click. Then, create a CTA for them to click it.

16. Average interactions per ticket

Average interactions per ticket show how often a customer contacts support over the same issue.

The formula for average interaction per ticket, which divides total interactions by total tickets

Without a CRM that tracks customer profiles across channels, recording the average interactions per ticket is difficult. Most businesses will want to track average interactions per ticket to flag customers who might have had a negative experience.

How to improve it

Use self-service tools like FAQs and video tutorials to help reduce customer inquiries and potentially lower average interactions per ticket over time.

Customer Service Productivity Metrics

17. Ticket volume

Ticket volume measures the total number of customer interactions your support team handles across all channels within a certain period of time. It’s a key metric that provides insights into your support team’s workload and helps you identify trends and patterns in customer support requests or issues. 

How to improve it

Offer a customer portal for customers to resolve issues on their own, which will reduce the number of incoming tickets.

18. Ticket backlog

Ticket backlog refers to the total number of tickets unresolved in the queue. Unlike many percentage-based metrics, this number should stay as low as possible — fewer unresolved tickets probably means fewer unhappy customers.

crm ticketing process diagram

However, the service level and response times you commit to customers might vary based on their customer value. If an enterprise customer has a ticket open more than one day, that might be escalated and actioned, but a freemium customer might have a three-day response time.

How to improve it

Cull unresolved tickets periodically (daily, weekly, or monthly, depending on frequency) to reassess them and attempt another solution.

19. Ticket reopens

Ticket reopens measure how often an agent reopens a previously closed support ticket. This metric gives valuable insight into the complexity of customer issues and how effective your support processes are in resolving them on the first try. Tracking ticket reopen rates allows you to gauge how often customers need further assistance after their issue is thought to be resolved. 

A high number of reopens may indicate unresolved issues or insufficient problem-solving in initial interactions. Ticket reopens can also highlight agent training gaps that lead to repeat customer dissatisfaction.

How to improve it

Provide adequate training to help agents handle complex issues. AI-powered contact centers can provide real-time agent assistance and suggestions for how to best resolve a customer’s issue. 

20. Rate of answered calls

The one frustration that enrages customers most is waiting through long, scripted prompts before speaking with an agent. A high percentage of missed calls means you have lots of customers with negative experiences who gave up before they got through to someone.

The formula for answered call rate is displayed.

Measure your answered call rate to watch out for any spikes in customer dissatisfaction. If you use landlines, tracking customer service metrics can be difficult. But with VoIP and Nextiva’s Service CRM, call tracking happens automatically.

Check out this breakdown of the rate of answered and missed calls.

A screenshot shows analytics software displaying customer service metrics.
How to improve it

Use self-service resources like FAQs to help you triage high call volumes and reduce less urgent customer calls.

21. Call Service-Level Agreement (SLA)

A call SLA is an internal goal or rule for your level of service. Your agents have to answer a set percentage of calls within a defined time, like 60 seconds.

The formula for call service-level agreement, which divides calls answers in X seconds by total calls.

Many businesses prefer SLAs to average wait time as a customer service performance metric. This eliminates outliers and allows them to focus on the vast majority of calls they answer.

SLAs can illustrate where companies need to focus, like efficiently pooling their resources around high-demand times and letting a small number of calls during odd times go unanswered.

How to improve it

Monitor customer calls for quality assurance and efficiency to address slowdowns like repetitive, simple questions that you can answer with an FAQ.

Engagement Metrics

22. Social media metrics 

Social media is a great place to start if you want to know what customers — or potential customers — are saying about you. Customers often turn to social media for customer service, ask questions, or post positive or negative reviews. This could come in the form of posts, DMs, or mentions and acts as valuable customer feedback.

Social media metrics, such as response times, engagement rate, and customer sentiment, can provide valuable insights into how well your customer support team manages interactions on platforms like Facebook, Instagram, Threads, TikTok, or X, and even online review sites. 

How to improve it

Monitor social media platforms with social listening tools and use automated responses to acknowledge customer inquiries immediately. This not only helps manage response time but also ensures that no customer inquiry is left unanswered.

23. Employee satisfaction

When your support agents are satisfied, they often strive to provide better customer service. Employee satisfaction tracks how happy and engaged your support agents feel. This customer service metric is essential for team motivation and morale, positively impacting customer interactions. High levels of agent satisfaction also reduce turnover, saving time and resources on hiring and training new staff.

How to improve it

Provide agents with the tools to make their daily tasks easier. These tools can include AI assistance, gamification, and rewards and recognition programs.

Grow Your Capabilities With Comprehensive Customer Data

Unified communication tools help measure every step of the customer journey across multiple channels. You can isolate metrics like first response rate and average number of interactions per ticket to visualize the satisfaction of each customer account.

Now that you know how to measure customer service metrics, you can pinpoint where your team needs to improve most.

The call center solution teams love.

Sales and support teams use Nextiva to deliver a better customer experience.

Net Promoter, Net Promoter Score, and NPS are registered trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

Customer Service Metrics FAQ

Get the details on customer support metrics with these frequently asked questions.

What is a good KPI for customer service?

The best customer service KPIs measure the entire customer experience and map the journey from beginning to end. These include customer satisfaction score, average wait time, first contact resolution, average resolution time, and more.

What are service level metrics for customer support?

Service-level metrics are internal metrics companies use to benchmark their customer service goals. These metrics aren’t made publicly available. They are often called SLAs and measure how many customer inquiries happen within a given time frame.

How do B2B companies measure customer service success?

One of the best ways B2B companies can measure customer service ROI is with artificial intelligence (AI) tools. Conversational AI and other customer support tools allow you to analyze interactions and gain key insights like issue resolution rate, purchase frequency, and more.

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