How to Measure Service Quality: Key Metrics

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New satisfied customers continue to share their positive impressions. Over time, they can become brand ambassadors.

3. Companies with high levels of service are more likely to receive valuable feedback. To improve the customer experience, you will listen to your customers a lot. Their feedback and comments will help you understand how to improve the service. You will be able to make changes to better meet the needs of buyers.

At Carrot Quest, we have a close connection between the marketing, support, maintenance, and Customer Success teams. It all started when we realized that we weren't growing as fast as we wanted. We started analyzing the weak points of the processes and found out that there was a lack of synchronization between the departments: there were few australia email list processes where marketing and sales worked towards the same goal. We started exchanging experiences between the departments: we created a lead analysis committee, where we discussed hypotheses that we would launch or the results of those already launched. We discussed the user's path from creativity to the purchase itself. Over time, we realized how to change the product to be useful to customers: we conducted audits, analyzed funnels and their path to collect feedback.

Sergey Glukhov
Sergey Glukhov
support team lead at Carrot quest
Let's look at metrics that will help evaluate the level of customer service in a company.

Service quality cannot be measured at just one point in the customer journey. Therefore, the metrics that determine it are support metrics, customer success metrics, and general company metrics.

Here's what most teams measure:

Customer Retention

The indicator is made up of the percentage ratio of the company's number of clients at the end of the reporting period to their number at the beginning of the reporting period.

How to improve:

Analyze the bottlenecks of the funnel and potential problems at these stages. For example, users find it inconvenient to pay for goods or do not like the lack of a loyalty program.
Automate the areas where users most often contact the manager. For example, offer quick answers to frequently asked questions using a chatbot, thereby retaining the user and relieving the manager.
Segment your audience and make personalized offers for each user group. This will increase the likelihood that the client will choose you.
LTV (Customer Lifetime Value)

The metric shows what profit a company can expect from a client over the entire period of cooperation. High LTV indicates the client's profitability for the company. To increase LTV, companies try to increase the average check, the duration of the client's life cycle, and reduce churn.

How to improve:

Influence the average check with additional recommendations at the checkout stage or cross-selling. This way you will get more profit from one user.
Increase customer lifetime through long-term loyalty programs. This will encourage the customer to choose you. To evaluate the result, use NPS surveys and monitor the indicators over time.
Reduce user churn by helping them get value from the product. Rely on analytics: determine which feature leads to the aha moment, after which the decision to purchase is made. If the user starts using it, they will sooner realize the value of the service. Focus your efforts on activating users in this feature. This way you can retain them, bring them to the purchase and increase the number of repeat sales.
NPS (Non-Profit Score)