Fran Molloy
Finding the right data to help you measure the effectiveness of your sales team is simple. It's not as simple to gauge the value of your customer service team and the overall impact they have on your bottom line. Why? Measuring sales is fairly straightforward; measuring service, however, can be complex. Time to first response, customer handle times, resolution rates - these metrics are all measurable, but unless you're a service business with a data analyst on your books, reporting, cutting and sorting this type of data can be tricky.
So, how can you measure the success of your customer service without losing yourself in data? Here are six signs to look out for:
1. Your customers come back, and order more
Repeat business is the customer service baseline. If your customers are satisfied, they'll show their satisfaction by buying from your business again. If they come back and order more in subsequent transactions, you can thank your customer service team. The two metrics that will tell you this are customer churn rate - the percentage of customers who end their relationship with your business over a given period - and expansion revenue, the new revenue coming from your existing customers.
2. Your reputation is strong with customers
Positive online reviews and customer testimonials are the best advertising money can't buy. If your customers are happy enough to share their experience, it's a good indication your customer service team are doing a sterling job. On the other hand, if they're dissatisfied and leaving negative reviews, then there's room for improvement. Monitor online reviews and any offline issues or complaints - better yet, ask your customers to rate their experience with an online survey, via a tool such as SurveyMonkey.
3. Your reputation is strong in the industry
Consumer advocacy groups and review sites, industry panels and the media all keep a close eye on what customers think of your business. For example, consumer review and comparison site CanstarBlue asks Australians to rate their experience with brands on a sliding scale from 1 to 10 based on overall satisfaction, value for money and - depending on your industry or category - your service. Get enough points and you'll receive a high star rating or win an award for overall satisfaction - an excellent sign that your customer service is delivering.
4. Your conversion rates are high
Sales teams are there to draw in potential customers but closing the sale doesn't always come down to just them. Customer service is often a key part of the customer's decision-making process. Poor service can be enough to make a keen customer walk away, while good service at the time of purchase can seal the deal. If your conversion rates are getting better, it's often a sign that your customer service is on the up too.
5. You're getting new business
New business comes from many places, and great customer service will draw in plenty of potential new customers. If your company has a good reputation for delivering fantastic service, sales opportunities will come to you. When customer service is delivering, your customers are happy and everyone in the business will feel the love.
6. Your staff are happy and stay with you
Shabby service doesn't just leave your customers feeling unsatisfied, it affects the rest of your team too. Everyone, from sales to marketing and even accounts, feels the pain when products are regularly returned, sales decline or perception of the business in your industry starts to change.
Customer service is a critical front-end function with real impact on your bottom line - get it right and your business will notice a change in how customers perceive you, a spike in sales and retained customers, and even a mood boost among teams.
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