Understanding Basic Customer Service Metrics and What They Are For

17 December 2021
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Customer service metrics represent how effective a company is at meeting its customers’ needs.

Imagine that your customer service metrics are the vital signs of your insurance business’ health. Your customers are the heart, and the quality of your customer service is the blood that gives your business life. With this analogy, you need to closely monitor your outsourced customer service team’s overall performance to see where your business is at in providing a seamless, top-notch customer experience.

Therefore, having key performance indicators keeps everyone on the same page. However, tons of customer service metrics can be utilized, and it can be overwhelming to choose which metric will suit your team.

The following metrics are a great start in understanding the jargon of customer service metrics.

1. Performance or Quality-Based

  • Customer Satisfaction Score

The Customer Satisfaction Score (CSAT) helps to determine how satisfied your customers are with the support service that your outsourced customer service team provides. This is usually determined through surveys that customers answer at the end of an email or a phone call.

In determining customer satisfaction, the values are pre-determined to indicate how satisfied a customer is. For example, on a scale of 1 to 10, a rating of 7 to 10 can be categorized as a “highly satisfied” score, while on the other hand, a rating of 1 to 3 can indicate a customer as “not satisfied”.

CSAT scores are a basic calculation of customer feedback and loyalty. But it can be a useful metric in understanding general customer happiness and measuring your business against your competition.

  • Negative Response Rate

The Negative Response Rate (NRR) is the inverse of a CSAT score. For example, if the CSAT rating is 80%, NRR is 20%. NRR ratings should always be kept at a minimum. A persistently increasing NRR should be a sign to align with your outsourced customer service agents on how they should handle dissatisfied customers.

2. Volume Based

  • Total Tickets Solved

This is a primary metric that gives a broad view of the number of customers that your team must cater to. The total number of tickets can be calculated daily, weekly, monthly, quarterly, or depending on your need. What is important is that you can see how efficient and productive your team is.

3. Time-Based

  • Average Resolution Time

There is no standard time on how a ticket or a support call can be completed due to the varying complexities of issues to be resolved. It certainly helps to group all issues received and observe their average resolution time to determine if the team is consistent with their efficiency or determine if there is a need for improvement.

  • Average Response Time

The rule of thumb is that the longer a customer waits, the higher the likelihood that they will walk away unhappy. This metric covers the time when a support ticket is received to when the ticket is replied to or responded to.

The Average Response Time is subjective and is similar to the Average Resolution Time in which there are no set standards due to varying complexities and conditions. However, this metric is still important to help ensure that customers are not left waiting and assures them that their issues are acknowledged by your team and are quickly being addressed.

When an insurance company is increasingly customer-driven, customer satisfaction drives up repeat purchases, instills brand loyalty, and promotes positive referrals.

Do you have questions on how to outsource your customer service? Contact us now!

Kelly Wade

Account Executive

I am building a long-term sales career utilizing my intrapersonal strengths, achievement drive, and competitive spirit to satisfy unmet customer needs and create value for my organization. I have demonstrated my ability to succeed in multiple business scenarios by quickly becoming a subject matter expert so I can offer customers unique solutions that lead to repeat business and new customers. I am currently working for Staff Boom as an Account Executive and I thrive on building dedicated teams for Insurance Purposes and watching our clients succeed. I am looking forward to working with you in the future.

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