4 Customer Service KPIs Every Online Shop Should Measure and Manage

“You can’t manage what you don’t measure.” — Peter Drucker

If you answer 99 percent of all customer inquiries within a few minutes, your customer service is under control and obviously has a soft spot for KPIs. You don’t need to have a knack for numbers to understand that behind good metrics is not just mundane arithmetic, but also a genuine value proposition: An outstanding customer experience is not a coincidence, but rather the result of thorough management. But which KPIs are actually relevant in customer service?

“You can’t manage what you don’t measure” is perhaps the best-known quote from the Austrian-born American economist Peter Drucker. This is a good opportunity to get acquainted with the most important customer service KPIs for online shops. In addition to operational metrics, you should measure and control indicators that provide information on why your customers contact your customer service at all. Your customer experience will only become excellent if you continue to learn and improve your processes with new insights.

1. The Classic One: Response Time

Let’s start with one of the most classic KPIs: How long do you need to respond to a customer inquiry? Your customers do not like waiting, especially for long periods. Communicate your customer service’s availability clearly and if you say you are available, make sure that is the case. Long waiting times, whether on hold on the phone or when responding to an email, are completely unacceptable and have a directly negative impact on your customer satisfaction. To put it differently, good availability does not even have a particularly positive effect on customer satisfaction because a fast response time is just simply assumed.

2. Fast, But Effective: Resolution Time

Again it is about speed, however, this time about how long you need to solve a customer’s problem. Studies show that speedy responses are worth it, though that doesn’t mean you should rush anything. The solution to the problem is more important than pure speed. So it does not matter if you quickly tick off requests. The problem has to be solved completely so that your customer does not have to contact you again, which leads us to the next KPI.

3. Less Is More: Number of Interactions per Inquiry

Give your all the first time round. Nothing is more unpleasant for your customer and your employees in customer service than an old case reoccurring. Ideally, a customer request will be solved the first time round. If this happens quickly, you have achieved the ideal balance between the aforementioned KPI and this one here. If a number of second or even third interactions accumulate, you should urgently ask the following: Are these questions related to certain root cause that need fixing? Do your service experts have the right know-how for this? Or is it a more serious problem that your customer service cannot solve anyway?

4. Digging Deeper: Number of Inquiries on the Same Topic

Now we get to the nitty gritty. This KPI provides us deeper insights into the root causes why your customers contact your customer service again and again. If many of your customers are sending emails, chatting with or calling your service staff for the same reasons, this is a reliable indicator that your customer experience is incomplete.

AI for customer service teams — parlamind Assist

Identify the root cause and close the process gap which reduces the number of unnecessary service requests and improves your customer’s overall experience. Since manual evaluation is a tedious and inaccurate process, we recommend you try it using artificial intelligence (AI). The Berlin-based online fashion store Modomoto, for instance, relies on parlamind Assist, our AI solution for customer service organizations. It analyses customer inquiries and even prepares recommended answers for your service staff. Modomoto saves around 30% of time — which can be used by the service team to improve processes, take care of more complex customer requirements or surprise customer with little wows.

The design of a perfect customer experience requires consistent work with KPIs. Measure what is relevant and carry out root cause analysis as soon as your customer service deviates from your predefined targets. Artificial intelligence helps you to get to the root of all service inquiries — the reasons why your customers contact your customer service at all.

We would love to advise you on how to make more of your customer service. At parlamind, we make artificial intelligence (AI) for customer service and we would love to show you in a personal demo appointment what we can do for you.