Customer support leaders rely on data-driven insights to inform customer support strategies and improve customer satisfaction.
The challenge is finding reliable and accurate information.
Modern business software has significantly improved this, with customer support tools such as help desk software and live chat platforms making customer support data easier to access than ever.
In recent years, another software toolset has emerged as a key piece of the customer support tech stack — CRM (customer relationship management).
With CRM, customer support leaders can track every customer interaction and customer support activity performed by their customer support agents and create reports and dashboards that translate those activities into customer service KPIs (key performance indicator) that measure issue resolution, customer satisfaction, and overall customer support performance.
In this article, we will identify the top 10 CRM KPIs that customer support leaders should be using to track performance in 2024.
What is CRM?
A CRM system (customer relationship management) is a software toolset that assists businesses with the day-to-day management of their people (customers and employees), work processes, products, and projects.
Once thought of primarily as a tool for the sales team, CRM systems have evolved to address the needs of many different business aspects, including marketing, customer service, and HR.
Through the use of advanced automations tools and data centralization, CRM software can help businesses improve communication (both internal and external), work more efficiently, and track performance.
1. First response time
First response time (FRT) is a measure of the time it takes your customer support team to respond to a customer inquiry or request.
FRT is a foundational customer service KPI that can be used to evaluate the efficiency and productivity of your customer support processes. It is also closely associated with higher customer satisfaction rates.
If FRT is consistently below expectations, it may indicate a need for additional resources or customer support agents. Technology could also be an answer as automated responses and chatbots can reduce FRT significantly.
2. First contact resolution rate
First contact resolution rate (FCR) measures the percentage of customer support issues that are resolved during the first customer interaction — without the need for additional support or follow-ups.
FCR helps customer support leaders gauge the effectiveness and accessibility of their knowledge bases and the quality of their employee training.
Comparing your FCR rates against the benchmark standard of your industry peers can help you understand how your team stacks up when compared to the competition. That said, the nature and complexity of your products and services play a big role in this customer service metric so your results should be evaluated accordingly.
For help finding benchmark data, check out our article, Using Sales Benchmarks to Evaluate Sales Performance.
3. Average resolution time
Average resolution time is a measure of the average time it takes your customer support team to resolve a customer issue.
Average resolution time may be the most important customer service metric for evaluating customer support performance, as prompt and efficient issue resolution is the ultimate goal.
Average resolution time can help customer support leaders gain valuable insight into:
- Areas that require greater resource investment
- Inefficiencies and bottlenecks in your support process
- Gaps in knowledge and training (of employees and customers)
4. Cost per resolution
Cost per resolution is a measure of the average cost involved in resolving a customer’s issue from start to finish.
This cost includes direct and indirect expenses related to customer support, such as:
- Labor costs
- Training costs
- Technology costs
- Overhead (administrative costs, facility costs)
Cost per resolution provides valuable insight into the financial efficiency of your customer support team.
Customer support leaders can use cost per resolution to determine whether the resources allocated to customer support are being used effectively and to identify areas where costs can be cut without negatively impacting the customer experience.
5. Customer effort score
Customer effort score is a measure of how easy it is for customers to get their support issues resolved.
This key performance indicator is typically measured through surveys that ask customers to rate the ease of their experience on a scale from 1-10.
First response time, first contact resolution rate, and average resolution time are customer service KPIs that can all contribute significantly to these responses.
Customer effort score can help customer support leaders identify common pain points and refine their customer support processes to better address systemic issues.
6. Customer lifetime value
Customer lifetime value (CLV) is an estimation of the total revenue you can expect from a customer throughout the entirety of their relationship with your business.
Understanding the lifetime value of your customers can help inform your customer support strategies.
For example, customer support leaders can use CLV to identify high-value customer segments and tailor their customer engagement strategy towards ensuring that the most valuable customer segments receive prioritized support, which in turn could further enhance their lifetime value.
7. Customer retention rate
Customer retention rate is a measure of the percentage of customers who continue to do business with your company over a specific period of time and is a good gauge of overall customer loyalty.
High customer retention rates suggest that your customers are not only satisfied with your products and services but also with the customer support they receive.
Customer support leaders can correlate customer retention rates with customer satisfaction scores to demonstrate the value of investing in customer support resources and efforts.
8. Volume by channel
Volume by channel is a measure of the number of customer interactions occurring across all your communication channels.
Common customer support communication channels include:
- Phone
- Live chat
- Social media
- Self-service portals
Understanding which channels have the highest volume helps customer support leaders allocate resources more effectively.
For example, if a particular channel is experiencing high volumes, it might indicate the need for more customer support agents or upgraded technology to handle the load.
This data can also be analyzed by customer segment, providing customer support leaders with guidance on targeting support strategies more effectively.
9. NPS/CSAT
Customer satisfaction can be difficult to measure so many businesses employ tools such as NPS (Net Promoter Score) and CSAT (Customer Satisfaction Score) surveys to gather customer feedback.
For customer support leaders, these surveys can be used to assess how well their customer service team is performing. They are also great for assessing the performance of individual customer support agents.
The following are questions that can be used to evaluate customer support performance.
- Were your issues or concerns resolved to your satisfaction?
- How would you rate the effectiveness of the communication from our customer support team?
- How satisfied are you with the response time of our customer support team in addressing your inquiries or issues?
10. CRM ROI
CRM is renowned for its high ROI (return on investment). According to Nucleus Research, every dollar spent on CRM translates to an $8.71 return.
While that is a fine benchmark, knowing how much your CRM is returning to your own pockets is what matters most.
Getting an exact number down to the penny can be a challenge, but many of the KPIs on this list can speak to the benefits your CRM provides.
For example, if your first response time improves after your CRM implementation, you can be sure the CRM is a significant contributor. The same can be said for decreasing your average resolution time and increasing your customer retention rate.
CRM ROI is not a one-time calculation. Regularly review and update your results to account for the ongoing benefits your CRM provides.
FreeAgent CRM is the best CRM for tracking customer support effectiveness
FreeAgent CRM is a modern work management platform that provides top-of-field software tools for organizations of all sizes and technical proficiency.
FreeAgent is the best CRM for tracking customer support effectiveness because FreeAgent is:
- Easy to use- FreeAgent’s modern user interface is quick to learn and easy to use, encouraging teams to work within the platform and providing you with a comprehensive and accurate accounting of sales activities.
- User-configurable- With FreeAgent, the power is in your hands. You can customize and personalize FreeAgent to fit the specific needs of your business and teams without external support.
Plus, FreeAgent offers:
- Robust integration- FreeAgent’s flexible toolset and extensive integration library support teams and businesses of all types and structures.
- Generative AI- Uplift your work with Generative AI-powered features. With FreeAgent, you can access AI across any app, allowing you to get the information you need faster.
