Did you know that one of the strongest drivers of revenue growth comes from excellent customer service? According to McKinsey, high-quality customer service can double a company’s revenue potential. This makes it crucial for businesses to start improving their service performance using customer service KPI.
What Is a Customer Service KPI?
A Key Performance Indicator (KPI) is a measurable metric that reflects how successfully a business achieves its objectives. When applied to the customer service function, a customer service KPI becomes an indicator of how well your customer service team performs.
As a customer service manager, you should already have specific metrics in place to assess the success of your service operation. Customer service performance directly influences purchase decisions. Gartner reports that 80% of customers are more likely to buy from a business that provides excellent customer service.
This article breaks down the essential customer service KPIs you can apply to evaluate your team’s performance and measure the effectiveness of your customer service operations.
20 Essential Customer Service KPIs
There are various customer service KPIs you can implement to evaluate your team’s performance. Using customer service applications will make it easier to track and measure these indicators.
These 20 customer service KPIs serve as a reference to help you determine which metrics are most relevant for your customer service team.
1. First Contact Resolution
First Contact Resolution (FCR) is a metric that shows how many customer issues your support team can resolve during the initial interaction. For example, if a customer experiences a payment issue and reaches out to your support team for help—and your team provides a solution within 10 minutes—that interaction counts toward FCR.
A high FCR rate indicates that your customer service team is able to resolve issues quickly and efficiently. Conversely, a low FCR rate signals potential problems in your customer service process.
The analytics feature in Qiscus Omnichannel Chat enables you to monitor agent performance in resolving customer issues. With robust analytics, you can easily track how often issues are resolved on the first contact and identify areas for improvement.
2. Average Handling Time
Average Handling Time (AHT) is the average amount of time required to respond to a message or resolve a customer issue. This metric helps you define the ideal timeframe for your customer service team to handle and complete each case.
A low AHT indicates that your customer service team is resolving customer issues quickly and efficiently.
3. Customer Satisfaction
One of the most common KPIs you can use is customer satisfaction (CSAT). To measure customer satisfaction, your support team can request feedback directly from customers. This feedback can also be collected through ratings on your online store or marketplace platform.
Conduct customer satisfaction surveys regularly—weekly if possible. If weekly is not feasible, sending a customer satisfaction questionnaire once a month is a good alternative.
With omnichannel integration through Qiscus Survey, you can distribute customer satisfaction surveys quickly and collect accurate, reliable data. Surveys can be delivered across multiple channels such as WhatsApp, email, or live chat, making it easier to gather customer feedback efficiently.
4. Customer Effort Score
Customer Effort Score (CES) is a customer service KPI that reflects how easy it is for customers to resolve their issues through your support team. CES is typically measured through customer surveys.
An example question used to measure CES is:
“Based on the solution we provided, how easy was it for you to resolve your issue?”
It’s important to note that resolving an issue does not mean customers must solve it without any guidance. Instead, CES measures how easily customers can resolve their problems using the instructions or support your team provides.
5. Net Promoter Score
Net Promoter Score (NPS) measures the likelihood that your customers will recommend your product to others. You can determine your NPS score through customer surveys, ideally sent some time after the purchase is made.
An example NPS question you can use is:
“How likely are you to recommend this product to someone close to you?”
From this response, you can gauge how satisfied customers are with your product and overall service experience.
6. Escalation Rate
Escalation Rate measures how effectively your customer service team resolves complex customer issues without requiring supervisor intervention.
While customers often raise simple questions, more complex issues do arise. Escalation Rate serves as a key indicator of how well your customer service agents handle these complex cases independently. A lower escalation rate generally means your team is capable, knowledgeable, and empowered to resolve issues efficiently.
With the support of Qiscus AI, agents can answer customer inquiries faster and more accurately. The AI assists by generating relevant responses, accelerating issue resolution, and adapting replies to each customer’s persona—ultimately reducing unnecessary escalations.
7. Response Time
Response Time is one of the simplest customer service KPIs to measure. It reflects how quickly your customer service team replies to incoming customer messages. This KPI also helps you establish ideal response time standards for your team.
A fast response time demonstrates responsiveness and shows customers that you value their needs. With Qiscus’ AgentLabs integration, your team can respond to customers instantly. The AI Agent can also route messages to the right agent automatically, reducing manual workload and significantly improving overall response speed.
8. Churn Rate
Churn Rate measures how many customers stop using your product or service within a specific period. A low churn rate indicates strong customer retention, while a high churn rate signals potential issues in the customer experience.
Churn is influenced by multiple factors, including customer satisfaction, response time, and other customer service performance indicators. Monitoring churn helps you understand whether your service quality is meeting customer expectations.
9. Self-Service Usage
Self-Service Usage Rate measures the percentage of customers who resolve their issues independently through self-service channels. High self-service usage indicates that you provide customers with easy access to resources that allow them to solve problems on their own—reducing workload on your support team while improving customer convenience.
10. Resolution Time
Resolution Time refers to the average amount of time needed to resolve a customer issue. A fast resolution time indicates that your customer service team can handle customer problems quickly and efficiently.
With Qiscus Helpdesk integration, your team can manage tickets with ease and ensure timely resolutions according to your SLA. The system simplifies ticket tracking and prioritization, helping accelerate the entire problem-solving process.
11. Ticket Volume
Ticket Volume is the total number of customer requests or tickets received within a specific period. This KPI provides insights into your team’s workload and the types of issues customers are experiencing.
A sudden spike in ticket volume may signal systemic issues, such as product bugs or unclear information on your website. As a manager, monitoring ticket trends helps you allocate resources appropriately.
Ticket volume analysis can also support preventive actions, such as improving documentation or running educational webinars for customers.
12. Call Abandonment Rate
Call Abandonment Rate measures the percentage of customer calls that are dropped before reaching an agent. This KPI often results from long wait times, which can create negative experiences for customers.
To reduce this metric, optimize your workforce management. Use historical data to forecast call spikes and adjust agent schedules accordingly.
13. Average Resolution Time (ART)
Average Resolution Time (ART) measures the average time required to resolve a customer issue from start to finish. This KPI reflects not only operational efficiency but also the overall customer experience.
Long resolution times often occur when agents lack access to relevant information or when escalation processes are overly complicated. A highly effective strategy to reduce ART is to maintain a comprehensive, easy-to-access knowledge base for agents.
14. Cost Per Contact (CPC)
Cost Per Contact (CPC) represents the average cost required to handle a single customer interaction. This KPI is crucial for measuring operational efficiency within your customer service team.
A high CPC may indicate inefficient processes, while a very low CPC may signal rushed or impersonal service. To optimize CPC, focus on automation and workflow improvements.
15. Repeat Contact Rate
Repeat Contact Rate measures the percentage of customers who must reach out again because their issue wasn’t resolved during the previous interaction. This KPI directly reflects the quality of first-contact resolution.
To reduce repeat contacts, ensure your agents have access to a customer service system that stores detailed interaction histories. This helps agents understand the full context without forcing customers to repeat their stories.
Additionally, use analytics to identify the root causes of repeat contacts, such as slow processes or unclear communication.
16. Queue Time
Queue Time refers to how long customers wait before being assisted by an agent. This KPI is crucial because long wait times can lead to dissatisfaction and increase the likelihood of customers switching to competitors.
Queue time also reflects the efficiency of workforce management and workload distribution within the team. To reduce queue time, use analytics to predict interaction volumes based on historical trends.
With chatbots, queue time becomes less of a concern because incoming questions can be answered automatically and instantly.
17. Agent Utilization Rate
Agent Utilization Rate indicates the percentage of an agent’s working hours spent assisting customers compared to their total working hours. This KPI helps managers measure the efficient use of human resources without overburdening agents.
The optimal utilization rate typically falls between 80%–90%. Rates below this may indicate underutilization, while higher rates increase the risk of burnout.
18. Upsell and Cross-sell Rate
Upsell and Cross-sell Rate measures how successful agents are at offering additional or complementary products during customer interactions. This KPI increases revenue and enhances customer value by providing relevant solutions.
To improve this KPI, train agents to identify upselling and cross-selling opportunities without sounding pushy. A CRM system helps segment customers and personalize offers more effectively.
19. Social Media Response Rate
Social Media Response Rate measures the speed and consistency of responses to customer inquiries made through social media channels. These platforms are often the first place customers seek assistance or voice complaints, making fast responses vital for protecting brand reputation.
Tools like Qiscus Omnichannel Chat connect your social media channels to a central system, allowing your customer service team to respond in real time without switching platforms.
Ensure your team also follows clear social media guidelines, including maximum response times and consistent communication tone.
20. Feedback Implementation Rate
Feedback Implementation Rate measures the percentage of customer feedback that is translated into actual service improvements. This KPI reflects how effectively your company listens to customers and takes meaningful action.
To improve this metric, use analytics to prioritize feedback that has the greatest potential impact on customer experience. Qiscus Survey helps you gather customer insights directly and visualize them in an easy-to-understand format.
Driving Business Growth Through Customer Service KPIs
Strong customer service performance is a key driver of business success. Managing the right customer service KPIs enables you to improve customer satisfaction, reduce churn, and ultimately increase your business revenue. To achieve these outcomes, technology plays a critical role.
Qiscus Omnichannel Chat offers a comprehensive solution with WhatsApp Business API integration, AI Agents, chat automation, online surveys, and a customer data platform—making it easier for you to manage customer service KPIs more effectively.
Contact Qiscus today for a consultation and discover how we can help you achieve outstanding customer service performance.
