How can you tell if a customer service representative is doing a good job? KPI (Key Performance Indicators) – key performance indicators will be a tool that helps managers objectively evaluate work performance and accurately measure customer experience.
A well-structured KPI system not only helps improve service quality but also boosts the motivation of customer service representatives, helping them understand their goals and strive for excellence in their work.
Where to start when developing KPIs for customer service representatives?
Determining which metrics to include in the KPI table requires a clear direction. It usually starts with the business's objectives → Align with customer service cultural values → Customer Service Department objectives → Customer service employee KPIs
Following this sequence ensures that the KPIs of customer service representatives are aligned with business objectives and consistent with the organizational culture.
Note: Each business has different business objectives and cultures, so the KPI set for customer service representatives may vary.
2. Characteristics of Customer Service Professionals & Management Perspective
To develop a KPI table, businesses also need to consider both sides.
2.1 The Manager's Perspective – KPIs Are Not Just Numbers
For managers, KPIs are not only a measure of performance but also reflect service quality, customer satisfaction levels, and the business's growth potential. Understanding KPIs correctly helps managers not only evaluate employees fairly but also develop reasonable service improvement strategies.
As a professional manager, you need to build a KPI table that balances three factors:
- Practicality
- Challenges (motivating call center agents to strive)
- Flexibility (adjustable in some cases)
2.2 Customer Service Representatives – More Than Just Call Center Agents
Customer service representatives are individuals with strong communication skills, patience, flexibility, and, most importantly, the ability to maintain a professional attitude even in stressful situations. They not only resolve issues but also serve as a bridge to build trust between customers and the brand.
See details: Customer service representative profile and recruitment criteria
3. Key Performance Indicators for Customer Service Representatives
The customer care KPI system is divided into the following three groups of metrics:
- Performance evaluation
- Assessing customer satisfaction levels
- Assessing the level of compliance with internal rules and regulations
3.1 Key Performance Indicators (KPIs) for Work Performance Evaluation
Average Handling Time (AHT)
- Measure the average time an employee is needed to handle a customer request.
- If AHT is too high, the support process may not be optimized or employees may lack the skills to handle the situation.
First Call Resolution (FCR) rate
- Assess the ability to resolve issues the first time a customer contacts us.
- FCR High levels of satisfaction, reduced workload, and optimized customer experience.
Number of requests processed per day (Tickets)
- This KPI helps measure the productivity of each employee.
- If the number is too low, employees may need additional training on how to work more effectively.
Average Response Time
- Measure the average time employees need to respond to customers via phone, email, or chat.
- The faster the response time, the better the customer experience.
3.2 KPI for Evaluating Customer Satisfaction Levels
Customer Satisfaction Score (CSAT)
- This index is typically measured through surveys after each support session, helping assess customer satisfaction levels with customer service representatives.
- If the CSAT score is low, the quality of service and work processes should be reviewed.
Net Promoter Score (NPS)
- Assess whether customers are willing to recommend the business to others.
- One NPS Low scores may indicate that customer service representatives have not created a memorable experience or have not resolved issues thoroughly.
3.3 KPIs for evaluating compliance with internal rules and regulations
Process Compliance Rate [%]
- Purpose: To evaluate the level of employee compliance with customer service procedures, from greeting, verifying information, handling requests, to ending the call.
- Formula: (Number of interactions that comply with the process / Total number of interactions checked) × 100
Compliance rate with security policies & customer data processing [%]
- Purpose: To ensure employees do not disclose customer personal information in violation of regulations, thereby avoiding legal risks.
- Formula: (Number of times compliance with security regulations was achieved / Total number of checks) × 100
Number of violations of internal regulations during the month (Number of incidents)
- Description: Record the number of times employees violate internal regulations (late arrival, taking unscheduled leave, failure to follow work procedures, unprofessional communication, etc.).
Training completion rate & new regulation updates [%]
- Purpose: To ensure employees are always up to date with new regulations and reduce errors due to lack of knowledge.
- Formula: (Number of employees who completed training / Total number of employees requiring training) × 100
4. KPI Template for Customer Service Representatives
| KPI Group | Index | Formula/evaluation method | Purpose | Cutoff score |
|---|---|---|---|---|
| Work performance | Total calls handled | Total number of support calls/chats/emails in the month | Workload assessment | ≥ 50 calls per day |
| Average Handling Time (AHT) | (Total processing time/number of requests processed) | Measure employee processing speed | ≤) 5 minutes per request | |
| First-time resolution rate (FCR) | (Number of requests resolved on first contact/total number of requests) x 100 | Test problem-solving skills immediately | ≥ 80% | |
| Escalation rate | (Number of requests requiring escalation/Total number of requests) x 100 | Assessing problem-solving skills | ≤ 10% | |
| Quality of service | Internal quality assessment points | (QA score / maximum total score) x 100 | Verify compliance with procedures and expertise | ≥ 90% |
| Error rate | (Number of errors/Total number of requests) x 100 | Determine whether employees make frequent mistakes | ≤ 2% | |
| Call recording evaluation points | Scoring based on the following criteria: Attitude, process, effectiveness of support | Evaluating communication quality | ≥ 4.5/5 | |
| Customer satisfaction level | CSAT | (Number of satisfied responses/total number of responses) x 100 | Assessing customers' direct perceptions | ≥ 85% |
| NPS | % Referred Customers - % Complaining Customers | Measuring customer loyalty | ≥ 50% | |
| Complaint rate | (Number of complaints/total interactions) x 100 | Monitor customer complaints | ≤ 5% | |
| Comply with rules and regulations | Process compliance rate | (Number of interactions following the process/total number of interactions) x 100 | Ensure compliance with the company's established procedures | ≥ 95% |
| Compliance with the privacy policy | (Number of times compliance with security regulations was achieved / total number of checks) x 100 | Avoid the risk of customer information leaks | 100% | |
| Number of violations of internal regulations during the month | Total number of times employees violated internal regulations | Check the level of employee discipline | ≤ once a month | |
| Internal training completion rate | (Number of courses attended/total number of courses offered) x 100 | Ensure employees update their knowledge | ≥ 90% |
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