The Successful CXO
Committed to Customer Service

Business Case KPIs for Customer Service

  

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Customer service and support issues can have a huge impact on operational performance. This makes it an issue for the C-suite, not just the service department. Customer service initiatives and programs demand a good share of time and money; development of a business case is imperative.

As with all programs, you need to know where the money and effort are going and if they are being effectively utilized. From the beginning a strong baseline and measurement of progress/effectiveness. Successful project management requires Key Performance Indicators (KPIs) to be applied to identified milestones.

Common Business KPIs:

• ROC - Return on Customer
• Customer Lifetime Value
• Share of Wallet

In addition, different industries have different KPIs, for instance:

• Banking: customer retention, # products used per customer, churn reduction, average sum deposited in new accounts
• Construction and Engineering: % of construction and demolition waste recycled, % of market returns on total sales quanitity
• Automotive Manufacturing: amount of recyclable materials in fleet as % of vehicle weight, % of fleet that scores 80% or more on Consumer Reports reliability ratings
• Power and Electricity Utilities: own power peneration as a % of total power.

Then there are the more granular KPIs specific to customer management/customer service and support:

• First Contact Resolution Rate (FCR)
• Abandon Rate of Incoming Calls
• % of Overdue Service Requests
• Service Level/Response Time

There are certainly more and it is up to you to determine the correct mix for your industry and business. But measure you must or one of the KPIs you will see increase is wastage of time and money.

Look to your industry's professional associations as well as customer service and support associations and institutes to help you define your Key Performance Indicators and apply them appropriately. Here are a couple to get you started:

ICMI

SupportIndustry.com

Customer Care Institute