38 Questions
What is the primary purpose of business metrics?
To track all areas of business
What approach do most organizations use to balance their metrics?
A balanced scorecard approach
Why is it important to have a clear strategy when choosing metrics?
To decide which metrics to choose
What is the starting point for understanding the strategic position in a customer-facing organization?
The strategic plan
What type of metrics are likely to be important if an organization competes on differentiation?
Customer satisfaction and loyalty measures
Why is it important to consider the behaviors that will result from choosing certain metrics?
To lead to the achievement of strategic KPIs
What should operational and tactical measurements provide?
Information that supports the strategic level
What are the three levels at which metrics and measures should be focused?
Strategic, tactical, and operational
What is the formula to calculate the CSAT score?
CSAT Score = (Happy Customers) / (Total number of customers asked) * 100
What does a CSAT score of 80% and more indicate?
High customer satisfaction
Why is it important to survey customers immediately after their transaction?
Because the experience is still fresh and memorable for the customer
What is the primary goal of tracking metrics in an organization?
To focus on key measures that make a difference
What is the primary role of customer experience core competencies in an organization?
To ensure the most appropriate measures are used to improve customer experience
What is the purpose of following up with customers who give a rating of three or less?
To gain feedback to improve the service
What is the direct correlation between customer satisfaction and?
Employee performance, morale, customer loyalty, and organization revenue
What is the SAcsi used for?
National and international customer satisfaction benchmarking
What type of metrics are more useful for making business decisions?
Qualitative metrics
What is the primary purpose of the CSAT score?
To predict changes in the bottom line
What is an example of a quality metric that supports customer service?
Perception of the quality of touchpoints
How can customer satisfaction be measured?
Through all of the above methods
Why should surveys be short and easy to complete?
Because customers are unlikely to complete them if they are long
What is the relationship between customer satisfaction and customer loyalty?
Customer loyalty cannot be achieved without customer satisfaction
What is the purpose of benchmarking customer satisfaction?
To compare customer satisfaction between organizations
What is the primary benefit of simplifying the process of tracking metrics?
It helps individuals know what is important and focus on improving those measures
What is the primary purpose of linking customer satisfaction to Maslow's hierarchy of needs?
To indicate how well customer needs are met
What does a CSAT score of 100% demonstrate?
Total customer satisfaction
What is the primary benefit of using customer satisfaction scores?
It predicts changes in the bottom line
What is the primary role of metrics in an organization?
To focus on key measures that make a difference
What is the most highly correlated metric to customer satisfaction?
First Contact Resolution (FCR)
What is the benefit of resolving a customer's issue on the first contact?
Improving customer retention
How can organizations measure the quality of service across channels?
By monitoring the quality of service in-house through randomly selected interactions
What is the purpose of a scorecard in measuring service quality?
To identify areas for improvement, training, and coaching
What is the benefit of providing a good self-service experience?
Reducing costs and improving customer satisfaction
What is Customer Satisfaction (CSAT) a measure of?
How well an organization's services and products match customer expectations
What is the direct correlation between customer satisfaction and?
Customer loyalty and organization revenue
Why is it important to measure First Contact Resolution (FCR)?
To improve productivity and customer satisfaction
What is the benefit of a high First Contact Resolution (FCR) score?
Improved productivity and customer satisfaction
What is the most accurate way to calculate First Contact Resolution (FCR)?
By asking customers directly via a short post-contact survey
Study Notes
Metrics for Customer Service
- Metrics track all areas of business, while key performance indicators (KPIs) target essential performance areas.
- A balanced scorecard approach is used, which includes financial results, operational and running costs, quality, and customer satisfaction measures.
- Different industries may add other metrics, such as compliance, to the group of metrics.
Customer Satisfaction
- Customer satisfaction (CSAT) measures how happy or satisfied customers are with a service, product, or organization.
- CSAT indicates how well an organization's services and products match customer's expectations.
- Customer satisfaction is a critical measure for any customer-facing organization.
Measuring Customer Satisfaction
- Customer satisfaction can be measured through broad survey questions, such as "How would you rate your overall satisfaction with the service you received?"
- The level of customer satisfaction can be assessed in several ways, including:
- Rating scales (e.g., 1-5, 1-10)
- Symbols (e.g., stars, smiley faces)
- Words or phrases (e.g., "very unsatisfied", "unsatisfied", "neutral", "satisfied", "very satisfied")
- The CSAT score is calculated by collating the number of customers who are "satisfied" or "very satisfied".
Quality Metrics
- Quality metrics measure outcomes, not activities, and address the standards of performance.
- Quality metrics that support customer service include:
- First Contact Resolution (FCR)
- Quality and consistency of service across channels
- The quality of self-service experience
- Customer satisfaction (CSAT)
- Customer loyalty
First Contact Resolution (FCR)
- FCR refers to the number of interactions resolved on the first engagement with a customer.
- FCR is highly correlated to customer satisfaction, with a 1% improvement in FCR resulting in a 1% improvement in customer satisfaction.
- Organizations with high FCR scores have lower operating costs, reduced at-risk revenue, and improved employee satisfaction.
Learn about metrics for customer service, including key performance indicators, balanced scorecards, and different metrics for various industries.
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