Episode 223 – Frankie’s Top 9 KPIs

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A Manic Monday Episode. Manic Monday focuses on Numbers, Measuring, Reporting and Workforce Management.

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Announcements:

  • Catch me on Twitter! @FSaucier

  • New Book coming soon: What Customers Want. Sneak peek for members of the Social Pack.

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

Book of the Day:

Winning at Social Customer Care by Dan Gingiss

Key Performance Indicators: Developing, Implementing and Using Winning KPIs by David Parmenter

Frankie’s Top 9 KPIs Part 2

  • Definition (According to Frankie): A key performance indicator is a metric that illustrates the health of a business. If your business is selling vacuum cleaners, then your primary key performance indicator is total vacuum cleaner sales over the reporting period. A secondary key performance indicator could be number of contracts sent out, number of sales meetings held, etc. If those numbers are trending up, that is an key indication your business is moving forward.
  • Top 9 KPIs
    1. Initial Response Time (IRT)
      • Definition: How long it takes, on average, for agents to respond to the first post in a customer thread
      • Why It Matters: Because it tells you how long customers are waiting to hear back from your agents
      • So? So, waiting feels bad to customers. They fear you won’t respond. It creates uncertainty. Feels like a bad customer experience.
    2. Average Handle Time (AHT)
      • Definition: How long it takes to fully resolve an issue
      • Why It Matters: Because taking too long feels bad to customers.And because you can’t calculate your cost per transaction without fully knowing your AHT.
      • Note: This refers to fully resolving not just individual posts, but entire “help tickets,” “trouble tickets,” or however you refer to them.
    3. Cost Per Transaction (CPT)
      • Definition: How much it costs to have agents handle customer issues via social media
      • Why It Matters: Because you want to be able to compare this to your other care channels like phone and chat
    4. Resolution Rate (RR)
      • Definition: The percentage of time you are able to resolve customer issues
      • Why It Matters: You want to understand how effective your social channel is at resolving customer issues as compared to other channels, and for which types of issues. Maybe some issues are better resolved elsewhere.
    5. Escalation Rate (ER)
      • Definition: The percentage of time you must transfer issue resolution to a department outside of social care
      • Why It Matters
        • Customer satisfaction has been shown to decrease significantly when customers must be transferred
        • Transfers can increase costs to your customer operations business model
      • Department Design Impacts
        • Triage Setup: If your department is setup to triage issues and always transfer out to different departments, your escalation rate will naturally be higher
        • One-stop-shop: If your department is such that each agent can resolve almost all issues internally, your escalation rate will naturally be lower
    6. Customer Satisfaction (CSAT)
      • Definition: How happy your customers are with your service
      • Why it Matters: 
        • To ensure customers are satisfied with your social care
        • To compare to other channels like chat, telephone and retail stores
      • Measure with Surveys
        • Survey all channels, not just Twitter
        • Ensure surveys are sent automatically, not manually by agents
    7. Net Promoter Score (NPS)
      • Definition: Net Promoter Score. See The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Digital World – Fred Reicheld.
      • Definition According to Frankie: Ask your customer how likely they are to recommend your company to others.
      • Why it Matters: It’s thought to be a leading indicator of a company’s success. In years past this was highly regarded.
      • Measure with Surveys
        1. Ask this question as part of your regular CSAT surveys
        2. Capture and report out separately
    8. Truck Roll Rate
      1. Definition: The percentage of time you have to send someone in person to correct an issue that couldn’t be corrected over digital channels
      2. Businesses that would use this:
        • Utility Companies – Phone, electric, cable, water, etc.
        • Delivery Companies – Delivery services for groceries, flowers, anything really.
        • Etc. – Any business that has to send employees to a location to correct an issue
      3. Why it Matters: Dispatching a unit to a location costs money. You want as few additional visits as possible.
    9. Cost to Serve (CTS)
      • Definition: How much it costs to run your social customer support program.
      • How to Measure: Takes a combination of elements into account, including:
        • Periodic Ticket Volume: How many tickets / cases you receive in a day/week/month, however you calculate
        • Average Ticket Handle Time: How long, on average, does it take an agent to work those tickets
        • Periodic Labor Cost: How much must you spend on labor for that day/week/month
        • Overhead Costs: How much do you pay for your technology and other overhead costs
        • Etc. – Anything else your company typically includes to calculate cost per transaction
    10. (BONUS!) Cost to Satisfy (CTSAT)
      1. Definition: 
        1. So far this is still a mythical creature, a unicorn if you will. But some companies are working hard to make this happen
        2. Would take the cost to serve your customers and blend it together with the benefits that social customer service brings
      2. Benefits of Social Customer Service: Includes
        1. Avoidance of calls into the call center because people saw their questions answered publicly on social
        2. Avoidance of posts into social media because people saw their questions answered publicly on social
        3. Attracting new customers because your company offers social customer service
        4. Retaining more customers because your social team engaged in dissatisfaction discussed on social but not reported directly to the company

Brought to you by:

    • The Social Pack: Get on the inside to stay on the topside. Join today!
    • ParknFly: Save 10% off Posted Rate Reserve Now 
    • bluehostThe Best Web Hosting for just $3.95/month, bluehost is the #1 recommended web hosting by WordPress.org. Every account features 1-click WordPress installation. Plus, bluehost’s trained, in-house experts are there to help 24/7. Their robust help center includes guides, video tutorials and more. You can try them and love them, or get a refund within 30 days fo signing up. Your satisfaction is their top priority and they’re confident you’ll be pleased with their services. Click here to learn more:
    • Ticket Liquidator:  Concerts, Sports Theater tickets. Buy or sell!
    • GoldMedalWineClub.comWine of the Month Club Award-winning wines delivered to your doorstep every month. They never feature bulk wines, private labels, or closeouts. Each selection is a genuine, small-production wine crafted by a winery with their family’s reputation on the line in each and every bottle.
    • CraftBeerClub.comGood People Drink Good Beer. Get the finest craft beers from America’s best microbreweries delivered to your door! They search out exceptional craft beers from around the country and then deliver the monthly beer club selections direct-to-you or your gift recipient’s door. You can choose an ongoing beer club membership or Craft Beer Club gifts to ship monthly, every-other-month or even quarterly. This is a fantastic gift for the Craft Beer enthusiast in your life. Give 1 to 12 shipments and receive up to 3 bonus gifts and an additional $25 bonus with your order.
    • OneTravel: Search and compare flights from over 450 airlines.

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About the author, Frankie Saucier

Frankie Saucier created the Socially Supportive podcast because believes that in order to advance digital and social customer care, leaders must come together in a community where colleagues can collaborate on the latest strategies and discuss the best technology. The Socially Supportive podcast creates a space for that community to thrive. She is also the Founder and CEO of Socially Supportive, a digital consultancy that helps brands communicate effectively with customers online. Frankie is a member of several consortiums, including the Social Care Leaders Group, an international group of leaders in the digital and social care space. She has over 20 years' experience in customer experience, including 7 years creating and running the digital customer support team at the 3rd largest cable company in the U.S. She also holds a bachelors in Mass Communications.

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