6 Customer Service KPIs That Every Logistics Provider Should Track
Customer service as a valuable customer touchpoint has become a decisive unique selling point. Due to increased competitive pressure, logistics providers must also pay more attention to how satisfied their customers are with their service in order to maintain or even strengthen their market position.
As a logistics provider, you should therefore ensure that your service quality does not have a negative impact on your business. The right KPIs allow you to assess the current condition of your customer service and, if necessary, initiate targeted optimization measures.
In this blog post, you will find answers to the following questions:
- Which parameters should you measure in customer service?
- What conclusions can be drawn from individual KPIs for service processes?
- How can the performance of parameters in customer service be improved?
Why Performance Measurement Is Crucial in Customer Service
Many companies are unaware of how negative customer service experiences can impact the entire organization. In addition, the assessment of service quality by those responsible in the company and by customers often differs greatly. What may not seem like a problem to you can be an absolute no-go for your customers.
An objective and informative evaluation is therefore provided by measuring selected key performance indicators (KPIs) in customer service. This way, you have a black-and-white overview of which areas in your customer service perform very well – and which areas you still need to optimize.
The 6 Most Important KPIs For Measuring the Performance of Your Customer Service
There are some important KPIs that you should record and monitor in your contact center, which will enable you to gain a better overview of what your customers experience every day when they contact your service reps. Individual KPIs can also be improved in a targeted manner to effectively improve your service quality.
1. First response time
What it indicates: The first response time (FRT) indicates how much time elapses from the time your customer contacts you until a service employee first responds to your customer’s request. This could be the minutes a caller spends in a queue or the time it takes for your customer to receive an initial response to their email. Among other things, the FRT provides information about whether you have sufficient capacity to respond quickly to a customer.
How to improve it: No customer likes to wait long for an employee to handle their inquiry. At first glance, the simplest solution to improve a poor first response time seems to be to hire more service reps.
A more cost-effective alternative, however, is to give your customers the opportunity to contact you via chat on your website. This way, a chatbot can independently solve many inquiries for you. If the bot is not able to process a request, it will forward the customer to an employee. Most importantly: this way you do not let your customer wait too long without being noticed.
2. First contact resolution rate
What it indicates: The first contact resolution rate (FCRR) indicates how many issues your service team can resolve on a case-by-case basis during the first contact. A good FCRR means that customer problems are quickly understood, classified and resolved. Based on this KPI, you can conclude how efficiently your team is working, whether the customer is being offered suitable solutions to their problem and how many additional steps – e.g. forwarding to another department – need to be taken before a solution is found.
How to improve it: The FCRR increases as your customer service handles more requests per day upon first contact. You can achieve this by using chatbots, email bots and voicebots to answer standard requests, which account for up to 60% of the volume. Questions such as “Where is my package?”, “How can I cancel an order?” or “How do I change my billing address?” are now resolved by bots on a mass scale in seconds, on all channels and around the clock.
3. Average resolution time
What it indicates: The average resolution time (ART) tells you how long it takes your team on average to resolve a case. The less time it takes from opening a ticket to closing it, the better you’re performing. This KPI is strongly influenced by how complex your customers’ problems are. A short resolution time means that your employees are able to work productively and also solve difficult issues in a quick and competent manner.
How to improve it: Create the right conditions in your contact center so that your employees have the time to listen to tricky customer issues. At this point, use artificial intelligence to lighten the load on your service team’s back. While the AI assistants answer simple standard inquiries and perform repetitive routine tasks, your employees can focus on customers with more patience and less time pressure.
4. Cost per contact
What it indicates: What about cost efficiency in your customer service? Many customer service issues seem to be easily resolved by just hiring more agents. However, increasing the number of staff also means that your contact center expenses will skyrocket. Cost per contact or cost per ticket indicate how much a contact costs and shows you how cost-efficiently you use the resources in your customer service.
How to improve it: Optimize the ratio between the number of employees and the number of resolved requests. If you can successfully resolve more requests with fewer staff, the cost per contact will also decrease. AI solutions offer immense benefits, especially with regard to this KPI. The AI works in a scalable manner and takes a large part of the requests from your team, meaning more requests can be processed per day with the same number of employees.
5. Customer loyalty
What it indicates: This KPI is the reason why business success and service quality are interconnected. Driven by the cross-industry “Customers first” approach adopted by many companies and ever better technical possibilities, customer demands on service quality are increasing rapidly.
Without excellent customer service, it becomes more and more difficult to successfully acquire and retain customers in the long term. For this reason, faltering customer loyalty can certainly be a sign of low service quality.
How to improve it: By optimizing the entire service experience, you will see improvements in customer loyalty. In other words, don’t view this KPI in isolation; you also need to look at other key metrics such as customer satisfaction, response time and average resolution time.
You can find out more about strengthening customer loyalty in logistics here.
6. Customer satisfaction
What it indicates: Customer satisfaction speaks volumes about the quality of your service and about how well your customers feel looked after. Whether a customer is satisfied with your service also has far-reaching consequences. A satisfied customer is less likely to switch to a competitor, will leave a positive review about your company on public platforms and even recommend you to others. By contrast, an unsatisfied customer will do the exact opposite.
How to improve it: To increase satisfaction, the first step is to find out how your customers view the ideal service experience. In addition to rapid response times and excellent availability, aspects such as a high level of personalization when it comes to advice and offers are usually what make the difference.
What makes customers in the logistics industry tick? Learn more about today’s customer expectations as well as intelligent ways to optimize your customer service in our free guide on logistics.
Artificial intelligence in the customer service of your logistics company enables you to optimize your processes to ensure higher service quality. Revolutionize your customer service today with the parlamind omnichannel solution. Register now for a free demo to see it for yourself.
parlamind is a Berlin-based start-up for Artificial Intelligence in Customer Service. The parlamind AI understands incoming messages from customers on a semantic level and thus determining intents, specific content and the mood of the customer in the message. Equipped with these skills, the AI engages in customer dialogue independently and quickly carries out the associated processes. Latest research results from the fields of computational linguistics and machine learning form the basis for the continuous further development of parlamind AI technology. parlamind has been part of the 4TechnologyGroup since July 2018. The 4TechnologyGroup is an association of technology companies from the communications and AI sector. Today companies worldwide in the industries of e-commerce, information and communication technology, energy management, logistics and financial services use parlamind’s AI solutions. More than 20 employees work continuously on the further development and marketing of this unique technology “Made in Germany”.
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