KPI KPI stands for "Key Performance Indicator," which in Portuguese means Indicador-Chave de Desempenho. It is an essential tool for measuring and evaluating the performance of an organization, team, or process in relation to pre-established goals and objectives. KPIs are used across various sectors and hierarchical levels, from companies and departments to individual projects..
The function of KPIs is to provide a clear and measurable view of progress towards organizational goals.They offer concrete and quantifiable indicators, allowing for an objective analysis of performance and facilitating decision-making based on solid data. There are thousands of indicators that can be measured. We are in an era where the flow of information is immense and constant! The key point is knowing which indicators to measure.
One of the main advantages of KPIs is that they allow for continuous performance monitoring over time. By setting goals and regularly measuring key indicators, it's possible to identify trends, bottlenecks, and areas that need improvement. In this way, managers have a clearer view of what is working well and what needs to be adjusted to achieve the desired results.
Furthermore, KPIs also promote transparency and alignment within an organization.When everyone has access to the same indicators and goals, it's easier to coordinate efforts, share information, and make decisions together. KPIs create a common language and a solid foundation for performance management at all levels.
Some very simple reports and analyses can show what needs to be done to ensure customer satisfaction. Furthermore, they help anticipate potential problems, preventing them from actually occurring. This is achieved by monitoring process quality indicators and your team's ability to find solutions.
Why use customer service KPIs in your company?
Through effective management using KPIs, the company reduces operational costs; optimizes processes; increases team productivity; and makes better use of company resources.
The first step towards this is to constantly learn and master the indicators.
Services
Requests
The first customer service KPI on our list measures the volume of calls received, the number of calls resolved, and the resolution time.
This type of report indicates how much your team is managing. After gaining an understanding of the volume your team can manage per day, week, or month, this metric will be extremely important for staffing planning.
Planned list of pending items
Analyzing your projected backlog can help you learn from the past and prepare for the future. This customer service KPI helps identify which teams or individuals are falling behind, as well as the expected increase or decrease in the volume of upcoming support requests. This allows for more effective planning of actions and solutions.
Resolution time
Metrics that track resolution time help you identify how long your customers wait for resolutions. The time to first resolution is considered to be the period between the opening and the first handling of a ticket. On the other hand, the total resolution time refers to the period between the creation of the request and the final resolution of the support request, that is, its actual completion. A growing gap between these numbers may mean that more training is needed to eliminate the constant reopening of the same problem.
OPERATIONAL TIMES
Average Handling Time (AHT)
Average Handling Time (AHT) is one of the main customer service indicators. As the name suggests, it indicates the approximate amount of time invested in resolving a request, including transfers and waiting times for the customer. While there is no ideal handling time, a very high AHT indicates problems with team productivity and a lack of focus when resolving issues. Conversely, a low AHT may reveal that the customer is receiving less attention than they should. The important thing is to keep an eye on numbers that deviate significantly from the norm and act quickly in extreme cases.
Why measure TMA?
There are several reasons to measure Average Handling Time (AHT). And, in addition to facilitating the monitoring of your team's productivity, looking at performance and customer satisfaction indicators like AHT also allows you to:
- Evaluating the services provided on an individual basis;
- Recognition of the need for new hires;
- Developing a much more effective plan, guided by data;
- Cost reduction.
Key Benefits of TME
Decision-making and investments in training.
It's a good thing that first response time analysis is there to help you define your company's strategies! For example, if you take too long to respond to a customer, there may be a flaw in your customer service process, or your staff may need training. Therefore, the tip is to keep an eye on this customer satisfaction indicator to know which actions should be prioritized to improve your numbers. We need to emphasize that offering fast service is only possible when teams have a thorough understanding of the product/service offered by the company. Analyzing first response time can also indicate the level of knowledge of your employees.
Customer Service Channels
Nowadays, we work in a way that allows customers to control how they prefer to contact us, choosing between chat, web form, email, social media, call, and phone. Monitoring this is essential for optimizing the efficiency of your support center, as well as identifying whether you need to relocate, train, or hire staff. Furthermore, this customer service metric also indicates daily, weekly, and annual peak demand. This allows you to develop strategies to effectively serve your customers during each of these periods.
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However, it is important to emphasize that the KPIs should be chosen carefully and aligned with the organization's strategic objectives. It is crucial to avoid creating an excessive number of KPIs, as this can lead to information overload and hinder the interpretation of relevant data. KPIs should be simple, relevant, and actionable, in order to guide actions and drive continuous improvement.
In summary, KPIs play a crucial role in performance management, providing objective and measurable indicators to assess progress toward objectives. They help identify areas of success and opportunities for improvement, fostering a culture of transparency, alignment, and results-oriented focus. With the right choice of KPIs and careful data analysis, organizations can drive growth and achieve sustainable success.
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