How to define Customer service excellence goals & KPIs?
Customer service goals are an essential part of delivering excellence. Setting them provides a path for the company and the teams to follow. Having set goals makes it easier to know what to do and when changes are needed.
Goals provide important benefits. They bring the entire team together and can motivate individuals within a team. In addition, they allow for a certain level of autonomy, so team members can take initiative, make decisions and carry out actions that positively impact customers.
Measurable goals are especially effective, as they allow management to keep track of customer service goals. Tracking shows whether the priorities are being met, where there are gaps, and how customer service may be improved. It offers an opportunity for clear and helpful feedback, as well as showing results and achievements.
The Problem: Consistently Delivering Excellent Customer Service
It is a challenge to deliver the highest level of customer service to each customer during each encounter.
This requires consistency of service.There are many aspects of a business that impact customer service and customer satisfaction. That makes this a complex issue to understand and measure.
Even knowing the level of customer satisfaction brings up issues about which aspects of service are impacting the customer.
In addition, the team may provide excellent service but fail to do so consistently. They may also be unsure about expectations without having a clear path to follow.
Asking customers for feedback may not provide enough information or the right kind of information to consistently provide better service to everyone.
A better method is needed to show the team how to provide top-notch service on an ongoing basis and to measure efforts.
The Solution: Setting effective goals and track performance
The way to create consistency regarding great customer service is to set effective goals. The following framework can help to develop goals that are specific and measurable. Further, key performance indicators (KPIs) provide an effective way to track and measure the success of these goals, which gives clear direction for identifying problems and creating improvements.
Framework for Developing Effective Goals
The SMART method provides a roadmap for developing effective customer service goals that help a company achieve the right results. This framework creates goals that can go along with KPIs, so they are trackable. This way, it’s possible to know when the goals are accomplished or when there is room for improvement.
KPIs to Measure Effectiveness
Once a company has SMART service excellence goals in place, it is able to track and measure the progress towards these goals. This happens by measuring key performance indicators, or KPIs.
The first step is to determine the KPIs to measure
Since SMART goals are inherently measurable as one of their attributes, it may be part of the process of creating the goals to also determine how to track the progress towards their achievement. If not, this part can be carried out separately.
KPI #1: Customer Satisfaction Score
The customer satisfaction (CSAT) score shows how customers felt after an interaction with the customer service department or another type of interaction with your company.
KPI #2: Net Promoter Score
The net promoter score (NPS) gives an indication of the likelihood of receiving recommendations and referrals. The quantifiable score is measured through a quick one-question survey.
KPI #3: Customer Retention Rate
The customer retention rate (CRR), or its opposite, the churn rate, indicates whether customers are likely to return after an experience with the brand. This is a good indicator of customer service excellence, as it helps to show whether a customer had a positive or negative experience with your company.
KPI #4: Average Resolution Time
The average resolution time (ART) shows the length of time for a customer issue to be resolved. A prerequisite for tracking the ART is having some kind of ticketing system that enable your customer facing teams to log customer issues. This number is helpful for gaining an understanding of the customer experience when they encounter problems with your services. It helps to show how responsive the customer service team.
KPI #5: Complaint Escalation Rate
The complaint escalation rate shows how many complaints require the involvement of a 2nd level of support service such as the intervention of an expert or a manager. This can help identify problems with customer service, whether they are temporary or ongoing.