By tracking these KPIs, businesses gain valuable insights into how effectively they are engaging with customers, identifying areas that require improvement and highlighting successful practices. This focused analysis not only helps in refining customer service strategies but also directly contributes to increased customer loyalty, repeat business, and a positive brand reputation. In essence, Customer Engagement KPIs act as a compass, guiding customer service teams towards excellence in every customer interaction, fostering a culture of continuous improvement and customer-centricity.
KPI |
Definition
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Business Insights [?]
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Measurement Approach
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Standard Formula
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Abandon Rate More Details |
The percentage of customers who hang up or leave a queue before their call is answered.
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Indicates the initial customer experience quality and can reveal system or process inefficiencies leading to lost opportunities.
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Percentage of interactions abandoned by the customer before reaching a service agent.
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Total Number of Abandoned Interactions / Total Number of Interactions * 100
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- An increasing abandon rate may indicate understaffing or inefficient call handling processes.
- A decreasing rate could signal improvements in customer service response times or better call routing systems.
- Are there specific times of the day or week when the abandon rate tends to spike?
- How does our abandon rate compare with industry benchmarks or customer service standards?
- Implement call routing and queuing systems to distribute calls more evenly among available agents.
- Invest in additional training for customer service representatives to handle calls more efficiently and effectively.
- Offer self-service options or call-back features to reduce the need for customers to wait on hold.
Visualization Suggestions [?]
- Line charts showing abandon rates over different time periods (e.g., daily, weekly, monthly).
- Comparative bar charts displaying abandon rates by different customer service channels or departments.
- High abandon rates can lead to customer frustration and dissatisfaction, potentially resulting in lost business.
- Consistently high abandon rates may indicate systemic issues in customer service operations that need to be addressed.
- Customer relationship management (CRM) systems with call tracking and reporting capabilities.
- Call center software with real-time monitoring and analytics to identify trends and patterns in abandon rates.
- Integrate abandon rate data with workforce management systems to optimize staffing levels based on call volume.
- Link abandon rate tracking with customer feedback systems to understand the impact of high abandon rates on satisfaction.
- Reducing abandon rates can improve overall customer satisfaction and loyalty, leading to increased customer lifetime value.
- However, overemphasizing abandon rate reduction may lead to longer average call times or decreased first-call resolution rates.
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Active Issues More Details |
The number of open customer service cases at any given time.
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Helps in understanding the current workload and in identifying any trends or patterns in customer problems.
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Count of ongoing customer issues or tickets.
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Total Number of Active Customer Issues or Tickets at a Given Time
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- An increasing number of active issues may indicate a growing backlog of unresolved customer service cases.
- A decreasing trend could signal improved efficiency in resolving customer issues or a decline in customer complaints.
- Are there specific types of customer issues that consistently contribute to the active issues count?
- How does the active issues count compare to industry benchmarks or seasonal fluctuations in customer service demand?
- Implement a more efficient case management system to prioritize and resolve customer issues in a timely manner.
- Provide additional training or resources to customer service representatives to address common issues more effectively.
- Regularly review and update customer service processes to identify and eliminate potential bottlenecks.
Visualization Suggestions [?]
- Line charts showing the trend of active issues over time to identify patterns and potential seasonality.
- Pareto charts to identify the most common types of customer issues contributing to the active issues count.
- A high number of active issues can lead to increased customer frustration and dissatisfaction.
- Consistently high active issues may indicate systemic issues in customer service operations that need to be addressed.
- Customer relationship management (CRM) software to track and manage customer service cases more effectively.
- Workflow automation tools to streamline and optimize customer service processes.
- Integrate active issues tracking with customer feedback systems to identify and address recurring issues.
- Link with customer communication platforms to provide proactive updates on the status of open cases.
- Reducing the number of active issues can lead to improved customer satisfaction and loyalty.
- However, a significant decrease in active issues may also indicate a decline in customer engagement or feedback, which could be a cause for concern.
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Advocacy Actions More Details |
The number of times customers actively promote or defend the company in online or offline forums.
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Reflects customer loyalty and satisfaction, signaling the strength of customer relationships and brand advocacy.
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Number of customers performing actions that demonstrate brand support, like referrals or positive reviews.
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Total Number of Advocacy Actions Taken by Customers in a Given Period
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- An increasing number of advocacy actions may indicate a growing base of satisfied customers who are willing to promote the company.
- A decreasing trend in advocacy actions could signal declining customer satisfaction or negative sentiment towards the company.
- What specific actions or initiatives have led to an increase in advocacy actions?
- Are there any recent changes in customer service or product quality that could explain a decrease in advocacy actions?
- Implement a customer referral program to encourage and reward advocacy actions.
- Regularly solicit feedback from customers to identify areas for improvement and address any issues that may be affecting advocacy actions.
Visualization Suggestions [?]
- Line charts showing the trend of advocacy actions over time.
- Comparison charts to analyze advocacy actions across different customer segments or product categories.
- A decline in advocacy actions may indicate a decline in customer loyalty and potential churn.
- High variability in advocacy actions could signal inconsistency in customer experiences and satisfaction levels.
- Social media monitoring tools to track and analyze customer advocacy and sentiment online.
- Customer relationship management (CRM) software to manage and nurture customer relationships, leading to increased advocacy actions.
- Integrate advocacy action data with customer feedback and satisfaction scores to gain a comprehensive view of customer sentiment.
- Link advocacy actions with sales and marketing systems to measure the impact on customer acquisition and retention.
- An increase in advocacy actions can positively impact brand reputation and lead to higher customer lifetime value.
- Conversely, a decrease in advocacy actions may lead to decreased customer retention and ultimately, reduced revenue.
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CORE BENEFITS
- 39 KPIs under Customer Engagement
- 15,468 total KPIs (and growing)
- 328 total KPI groups
- 75 industry-specific KPI groups
- 12 attributes per KPI
- Full access (no viewing limits or restrictions)
FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.
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Average Handling Time More Details |
The average duration of a customer service interaction, including talk, hold, and follow-up time.
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Provides insight into operational efficiency and effectiveness of customer support staff.
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Average duration taken to handle a customer interaction.
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Sum of All Handling Times / Number of Interactions Handled
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- An increasing average handling time may indicate more complex customer issues or a need for additional training for customer service representatives.
- A decreasing average handling time could signal improved efficiency in addressing customer inquiries or a reduction in the complexity of issues being handled.
- Are there specific types of customer inquiries that consistently take longer to resolve?
- How does our average handling time compare with industry benchmarks or with different customer segments?
- Implement training programs to improve the efficiency and effectiveness of customer service representatives.
- Utilize customer service software that provides quick access to customer information and issue resolution tools.
- Analyze common customer issues to identify opportunities for process improvements or self-service options.
Visualization Suggestions [?]
- Line charts showing average handling time over time to identify trends and seasonal patterns.
- Stacked bar charts comparing average handling time by customer service representative to identify performance variations.
- High average handling times can lead to customer frustration and dissatisfaction.
- Consistently low average handling times may indicate rushed or incomplete issue resolution, leading to customer escalations.
- Customer relationship management (CRM) systems with built-in customer service modules for tracking and managing customer interactions.
- Performance analytics tools to identify patterns and opportunities for improving average handling time.
- Integrate average handling time tracking with customer feedback systems to understand the impact of service interactions on customer satisfaction.
- Link average handling time data with workforce management systems to optimize staffing levels based on anticipated service volumes.
- Reducing average handling time can improve overall customer satisfaction and loyalty.
- However, overly aggressive reduction targets may lead to rushed interactions and lower service quality.
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Average Resolution Time More Details |
The average time it takes to resolve a customer's issue or inquiry from the moment it was reported.
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Indicates the efficiency of the problem-solving process and impacts customer satisfaction.
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Average time taken to resolve customer issues.
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Sum of Time Taken to Resolve Each Issue / Number of Resolved Issues
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- An increasing average resolution time may indicate growing complexity of customer issues or a lack of resources to handle inquiries.
- A decreasing average resolution time can signal improved customer service efficiency or better-trained staff.
- Are there specific types of customer issues that consistently take longer to resolve?
- How does our average resolution time compare with industry benchmarks or customer expectations?
- Invest in training programs to enhance staff skills and knowledge for quicker issue resolution.
- Implement customer self-service options to address common inquiries without staff intervention.
- Utilize customer relationship management (CRM) software to streamline issue tracking and resolution processes.
Visualization Suggestions [?]
- Line charts showing average resolution time over different time periods to identify trends.
- Pareto charts to highlight the most common issues and their corresponding resolution times.
- High average resolution times can lead to customer frustration and dissatisfaction.
- Consistently long resolution times may indicate systemic issues in customer service operations.
- Customer service management platforms like Zendesk or Freshdesk to track and analyze resolution times.
- Workflow automation tools to streamline and standardize issue resolution processes.
- Integrate average resolution time tracking with customer feedback systems to understand the impact of resolution times on satisfaction.
- Link with workforce management systems to align staffing levels with demand for customer service support.
- Reducing average resolution time can lead to higher customer satisfaction and loyalty.
- However, overly aggressive targets for resolution time may compromise the quality of issue resolution and customer experience.
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Churn Rate More Details |
The percentage of customers who stop doing business with a company over a given time period.
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Highlights customer retention issues and can identify the need for customer experience improvements.
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Percentage of customers who stop using a company's product or service during a certain timeframe.
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(Number of Customers at Start of Period - Number of Customers at End of Period) / Number of Customers at Start of Period * 100
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- An increasing churn rate may indicate issues with customer satisfaction, product quality, or competition.
- A decreasing churn rate could signal improved customer service, loyalty programs, or product enhancements.
- Are there common reasons cited by customers for discontinuing their business with us?
- How does our churn rate compare with industry averages or with our competitors?
- Implement customer feedback mechanisms to understand the reasons behind customer churn and address them proactively.
- Enhance customer service training to improve interactions and resolve issues more effectively.
- Develop loyalty programs or incentives to retain existing customers and encourage repeat business.
Visualization Suggestions [?]
- Line charts showing churn rate trends over time.
- Pie charts to visualize the distribution of churn reasons or customer segments.
- High churn rates can lead to revenue loss and damage to brand reputation.
- Consistently high churn rates may indicate systemic issues that require immediate attention.
- Customer relationship management (CRM) software to track customer interactions and feedback.
- Analytics tools to identify patterns and correlations related to customer churn.
- Integrate churn rate analysis with customer feedback systems to identify areas for improvement.
- Link churn rate data with sales and marketing systems to understand the impact on revenue and customer acquisition costs.
- Reducing churn rate can lead to increased customer lifetime value and overall revenue.
- However, efforts to reduce churn may require additional resources and investments in customer retention strategies.
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In selecting the most appropriate Customer Engagement KPIs from our KPI Library for your organizational situation, keep in mind the following guiding principles:
It is also important to remember that the only constant is change—strategies evolve, markets experience disruptions, and organizational environments also change over time. Thus, in an ever-evolving business landscape, what was relevant yesterday may not be today, and this principle applies directly to KPIs. We should follow these guiding principles to ensure our KPIs are maintained properly:
By systematically reviewing and adjusting our Customer Engagement KPIs, we can ensure that your organization's decision-making is always supported by the most relevant and actionable data, keeping the organization agile and aligned with its evolving strategic objectives.