Customer service key performance indicators (KPIs) are essential tools for evaluating the performance of teams that interact with customers. They allow you to monitor agent effectiveness, gain a better understanding of workflows, and improve customer interactions. For example, real-time chat performance metrics help determine how quickly and efficiently the team responds to inquiries, and identify areas for improvement in service delivery.

The performance of customer support agents is measured through various KPIs, which allow the evaluation of time management, quality of interaction, and goal achievement. Chat support KPIs provide clear insights into team performance, helping businesses optimize customer service strategies. Continuous tracking of this data allows for a deeper understanding of customer needs, the adaptation of strategies, and ensuring high-quality interactions that drive better results.

How to Measure Chat Agents’ Effectiveness: Key KPIs

Calculating KPIs for chat agents involves measuring several key indicators that impact team performance. Performance is assessed based on aspects such as:

1. First Contact Resolution Rate (FCR)
2. Average Response Time (ART)
3. First Response Time (FRT)
4. Customer Satisfaction Score (CSAT)
5. Agent Time Utilization
6. Missed Chat Rate
7. Average Wait Time (AWT)
8. Average Handling Time (AHT)

These indicators help managers better understand team productivity, improve service strategies, and adjust workflows in a timely manner to enhance customer interaction efficiency. Below, we will explore in detail how to measure each of these indicators and how to improve them.

1. First Contact Resolution Rate (FCR)
What is it?
The percentage of inquiries resolved during the first contact without the need for additional actions.
How to measure:
FCR = (Number of inquiries resolved on the first stage / Total number of inquiries) × 100
How to improve:

• Ongoing employee training.
• Access to a knowledge base.
• Analyze unresolved inquiries to identify recurring issues.

2. Average Response Time (ART)

What is it?
The time it takes for the first response to a customer inquiry.
How to measure:
ART = Total time of the first response / Number of conversations
How to improve:

• Use template responses.
• Implement chatbots.
• Optimize agent work schedules for peak hours.

3. First Response Time (FRT)
What is it?
Measures the time between receiving a request and the first agent’s response.
How to measure:
Analyze the time between receiving a request and sending the first response.
How to improve:

• Use automated messages to confirm the request has been received.
• Optimize the request distribution process.

4. Customer Satisfaction Score (CSAT)
What is it?
An evaluation of customer satisfaction after an interaction.
How to measure:
CSAT = (Number of positive feedbacks / Total feedbacks) × 100
How to improve:

• Personalized surveys.
• Analyze feedback for service improvement.

5. Agent Time Utilization Rate
What is it?
A metric that shows how much of an agent’s work time is spent on active communication with customers via chat. This helps evaluate agent productivity.
How to measure:
Utilization Rate = (Active chat time / Total work time) × 100
How to improve:

• Use chatbots to reduce agent workload.
• Analyze agent workloads.

6. Missed Chat Rate
What is it?
The percentage of chats that were missed without response.
How to measure:
Missed Chat Rate = (Number of missed chats / Total number of chats) × 100
How to improve:

• Use chatbots during non-working hours.
• Optimize agent work schedules.

7. Average Wait Time (AWT)
What is it?
The average time customers wait for a response from an agent.
How to measure:
AWT = Total wait time / Number of chat sessions
How to improve:

• Ensure adequate staffing during peak hours.
• Use chatbots to reduce workload.

8. Average Handling Time (AHT)
What is it?
The average time an agent spends handling a single inquiry.
How to measure:
AHT = (Talk time + Wait time + After-call time) / Number of inquiries
How to improve:

• Reduce talk time using scripts and knowledge bases.
• Minimize wait time by optimizing CRM systems and distributing inquiries among agents.
• Minimize after-call time through automation and templates.

Predicting the Number of Chats Handled per Shift by an Operator

When managing operator workload in a contact center, it is important to have a clear understanding of how many chats each operator can handle during a shift. This predicted metric allows you to plan the number of operators needed for efficient service and maintain quality for customers.

For phone calls, the situation is straightforward: an operator cannot handle multiple calls at once. Therefore, operator utilization (active work time) is easily calculated based on the number of calls and their duration.

However, with chats, the situation is different. An operator can handle multiple chats simultaneously, which significantly impacts productivity. Therefore, a formula is needed that accounts not only for shift duration and average chat handling time, but also for the number of chats an operator can manage concurrently during the shift.

The formula for prediction is as follows:

Number of chats per shift = Shift duration (in minutes) × Number of concurrent chats / Average chat handling time (AHT)

This formula allows contact center managers to:

• Predict the number of operators needed per shift based on the expected chat volume.
• Set realistic benchmarks for operators, taking into account workload and simultaneous chat handling.
• Optimize work schedules to prevent employee overload.

Proper calculation of chat handling norms ensures efficient team operation and prevents situations where customers wait too long for a response. Moreover, it contributes to improving customer satisfaction, as operators can work without being overwhelmed, maintaining high service quality.

How to Set KPIs for Your Business

When implementing KPIs in business processes, it’s important to start with the basics and avoid overloading yourself with too many metrics. Focus on one key aspect, such as improving sales or increasing customer satisfaction. Setting too many KPIs at the start may make tracking and analyzing results difficult. Gradually add new indicators as you become more comfortable with current ones.

Here are a few key steps to follow when setting KPIs:

1. Define the end goal.
Before setting KPIs, clearly formulate the goal. Without a clear goal, you risk wasting time and resources without achieving the desired outcome. It’s recommended to set a measurable goal, including defining the timeline for achieving it.

2. Choose key performance questions.
To check progress, formulate questions that will allow you to assess effectiveness. These questions can help you understand whether your efforts are leading to goal achievement and point out potential weaknesses in processes.

3. Analyze existing data.
Before setting new KPIs, it’s helpful to review existing data. This will provide insight into the current situation and allow you to adjust indicators according to your business’s and market’s specifics.

4. Choose the frequency of progress evaluation.
Determine how often you will monitor progress. This will allow you to make timely adjustments to strategies and achieve desired results.

5. Break large goals into smaller tasks.
This will help maintain focus and track success at each stage. This approach makes work easier and helps assess progress.

6. Involve responsible individuals in the process.
Clearly define who will be responsible for specific tasks. Assign roles among teams, ensuring that everyone understands their part and the final goal, so each can contribute to achieving the overall results.

By following these steps, you can effectively set KPIs that help you achieve business goals and ensure consistent results.

Checklist for KPI Monitoring Launch

Based on the provided information, we can offer a checklist for KPI monitoring that includes the main stages, tools, and approaches for evaluating customer service effectiveness. This will help optimize customer interaction processes, increase team productivity, and ensure a high level of customer satisfaction.

1. Define Clear Goals
Start by understanding what exactly you want to achieve – improve response speed, increase customer satisfaction, or reduce the number of missed chats.

2. Choose Relevant KPIs to Measure Results
For example:

• Percentage of requests resolved on the first contact
• Response time to requests
• Customer satisfaction level

3. Assess the Current State
Before setting new KPIs, evaluate the existing results to understand where you stand.

4. Select Tools for Data Collection and Analysis
Use appropriate software solutions that automatically collect and process data to facilitate KPI monitoring.

5. Regularly Review and Analyze Results
Evaluate KPI results on a regular basis to promptly identify potential issues and make adjustments.

6. Educate the Team on the Importance of KPIs
Explain to your team why these indicators are important for improving customer service and achieving business goals.

7. Analyze Data and Adjust Strategies
Use the collected data to identify weaknesses and improve customer service processes.

8. Provide Regular Feedback to the Team
Inform your team about KPI achievements and make adjustments to processes to ensure further development.

9. Adapt Strategies Based on Results
Based on the obtained data, adjust service strategies to improve operational efficiency.

10. Edit KPIs as Necessary
If business conditions or goals change, adjust the KPIs to keep them relevant and help achieve new results.

Using KPIs allows for quick adaptation to changes and ensures sustainable business development. Regular KPI monitoring is the foundation for company growth and success.

NovaTalks offers convenient analytics tools for chat centers. By connecting a BI system, you will get access to ready-made dashboards for quickly analyzing key indicators such as agent performance, customer satisfaction levels, and more.

With automated reports and the ability to customize dashboards, you can monitor performance indicators both in real-time and based on historical data. This enables you to adjust chat center operations, enhance agent efficiency, and improve customer interactions.

Leave a request for a trial period today to personally evaluate all the benefits NovaTalks can offer your business!