Efficient customer service is a decisive competitive factor. But how do companies objectively measure the quality of their services? This is where key performance indicators (KPIs) come into play. They provide valuable insights into service processes, help with optimization, and increase customer satisfaction.
Use modern service management solutions to measure and sustainably improve your performance. With the right KPIs, you can take your customer service to the next level and make it more efficient.
The most important KPIs in service management
These are the most important metrics in service:
First response time (FRT) – response time to customer inquiries
The first response time indicates how quickly a service team responds to a customer inquiry. A short response time not only demonstrates high service quality, but also commitment and customer focus.
Why is this KPI important?
- Customers expect quick responses, especially for urgent issues.
- Long wait times can significantly reduce customer satisfaction and lead to negative reviews.
Optimization tip: Automated ticket systems, chatbots, and prioritized requests can help capture customer inquiries immediately and provide initial responses quickly.
First fix rate (FFR) – solution on first contact
This KPI measures how often customer problems are solved on first contact. A high first fix rate saves time and resources and significantly improves the customer experience.
Why is this KPI important?
- Customers appreciate it when their problems are solved without long waiting times.
- A low FFR often means that customers have to call or write multiple times, which reduces efficiency and increases costs.
Optimization tip:
- Provide training for service employees to improve their problem-solving skills.
- Use a central knowledge database to equip service teams with relevant information.
- Analyze common problems to optimize processes.
Customer Effort Score (CES) – How easy is it for the customer?
The Customer Effort Score measures how much effort a customer has to put in to resolve an issue or perform a specific action, such as placing an order or contacting support. Low effort leads to higher customer satisfaction.
Why is this KPI important?
- Customers prefer simple and smooth processes.
- High effort can lead to customer churn.
Optimization tip:
- Provide self-service portals and FAQs to offer simple solutions.
- Ensure clear, understandable processes in customer communication.
- Reduce waiting times by automating or efficiently forwarding common problems.
Average Handling Time (AHT)
AHT indicates how long it takes a service employee to handle a customer request from start to finish on average. A low AHT can be a sign of efficiency, but it should not come at the expense of service quality.
Why is this KPI important?
- Efficient processes reduce costs and relieve service teams.
- Processing times that are too short can indicate incomplete solutions.
Optimization tip:
- Use process automation to handle standard requests faster.
- Offer efficient training to improve processing times.
- Find a balance between speed and quality of problem solving.
Customer Satisfaction Score (CSAT)
The CSAT value is usually determined by surveys conducted after a service contact. Customers indicate how satisfied they are with the service they received.
Why is this KPI important?
- Direct feedback helps identify strengths and weaknesses in service.
- High customer satisfaction leads to stronger customer loyalty and more referrals.
Optimization tip:
- Actively ask customers for feedback and incorporate it into optimization processes.
- Conduct root cause analysis for low ratings and take targeted countermeasures.
Net Promoter Score (NPS) – Recommendation rate
The NPS measures how likely customers are to recommend the company to others. It is determined by the question: “How likely are you to recommend our service to a friend or colleague?”
Why is this KPI important?
- Customers who recommend the company are loyal and indirectly generate new customers.
- A low NPS may indicate that service processes need improvement.
Optimization tip:
- Conduct regular customer surveys to measure customer satisfaction.
- Offer customer loyalty programs and personalized support.
Customer Retention Rate (CRR) – Measure customer loyalty
The customer retention rate indicates how many customers remain with the company over a certain period of time. A high CRR means that customers are satisfied and continue to use the products or services.
Why is this KPI important?
- Customer retention is more cost-effective than acquiring new customers.
- A high CRR shows that the service and product are convincing.
Optimization tip:
- Provide proactive customer service through regular follow-ups and personalized offers.
- Introduce loyalty programs and exclusive benefits for regular customers.
- Use customer feedback to identify weaknesses early on and improve them.
Maintenance KPIs: Measure efficiency and reliability
Maintenance KPIs also play a crucial role in technical service, as many companies maintain machines, systems, and technical equipment. Two of the most important metrics are:
MTBF (Mean Time Between Failures) – Average time between failures
This value describes the average operating time of a device or machine between two failures. A high MTBF means high reliability and fewer unplanned downtimes.
Example: A production machine breaks down on average only every 500 operating hours. This means that the system has a high level of operational reliability.
Optimization tip: Preventive maintenance and regular inspections can increase the MTBF and improve system availability.
MTTR (Mean Time to Repair) – Average repair time
MTTR indicates how long it takes on average to get a failed machine or system back up and running. A low MTTR indicates that repair processes are organized efficiently.
Example: A machine takes an average of two hours to repair completely. An optimized spare parts and maintenance process can reduce this time even further.
Optimization tip:
- Organize spare parts inventory well so that repairs can be carried out quickly.
- Train technicians specifically to minimize repair times.
- Use digital maintenance tools such as Innosoft to optimize maintenance schedules.
How companies use KPIs successfully
- Collect and analyze data: Modern service management software enables detailed KPI analysis in real time.
- Define goals: Companies should set clear KPI goals that are aligned with their business objectives.
- Involve employees: Service teams should be trained and motivated to actively improve KPIs.
- Continuous optimization: Through regular monitoring and adjustment of processes, companies can improve their services in the long term.
- Use technology: Automation, AI-supported analyses, and digital tools help to efficiently manage and optimize KPIs.
Conclusion: KPIs as a success factor in service
Service KPIs are an indispensable tool for optimizing customer service processes. They help companies identify inefficient processes, increase customer satisfaction, and continuously improve their services. One thing is certain: those who analyze KPIs in a targeted manner and use them strategically will secure a long-term competitive advantage.
Use KPIs to take your service to the next level!
With service management software from Innosoft, you can keep an eye on your most important key figures at all times and optimize your processes for the long term.
Maximize service KPIs with AI-powered Innosoft software
Our smart software solution optimizes the planning, control, and tracking of service calls through AI-powered processes and smart automation.
How you benefit:
Central ticket system & AI-supported resource planning: All service requests are recorded centrally and efficiently assigned using AI. This reduces response times and improves resource utilization.
Digital documentation & knowledge management: Technicians have access to relevant maintenance and service information at all times. AI-based recommendations increase the first time fix rate (FTF).
Automated task management & mobile app: Work orders are assigned automatically and notifications are sent in real time. The mobile app provides all relevant data on site.
With Innosoft, you benefit from AI-supported efficiency, optimized processes, and higher customer satisfaction.
Contact us for more information about our FSM software!