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Top MSP KPIs You Should be Tracking, Part 2: Client-Focused Metrics

client-focused key performance indicators

Welcome to the second installment of our three-part series: “Top MSP KPIs You Should be Tracking: Client KPIs.” In the first installment, we explored key financial KPIs every MSP should monitor, and why. Today, we dive into customer-centric metrics that are essential for maintaining operational efficiency and ensuring customer satisfaction.

Table of Contents: 

  1. Average ticket response time
  2. Average ticket resolution time
  3. First Contact Resolution Rate
  4. Service Level Agreement (SLA) Compliance Rate
  5. Customer Satisfaction (CSAT) Score
  6. Customer Efficiency
  7. Technician Efficiency
  8. Number of New Tickets Opened/Closed
  9. Customer Churn Rate

But First, What are Client KPIs for MSPs?

Being an effective and successful MSP is all about client service. After all, delivering exceptional service while maintaining client satisfaction is how you both attract and keep customers (hello, referrals!). To that end, understanding which client-centric KPIs matter most to your operation, and how to measure them, is essential.

From Customer Satisfaction (CSAT) scores to Net Promoter Score (NPS), these metrics offer invaluable insights into the health of client relationships and the overall success of your operation. By focusing on client-centric KPIs, you can ensure clients’ needs are met, as well as foster long-term partnerships built on trust and mutual success.

Below, we’ll explore the significance of client-centric KPIs specifically for MSPs and IT professionals, and highlight key metrics to prioritize in service delivery strategies.

1. Average Ticket Response Time

Definition: Measures the speed at which an MSP responds to new tickets.

Why It Matters: Quick responses are a clear indicator of your commitment to resolving client issues promptly. An efficient response time boosts client confidence in your ability to manage and prioritize their needs effectively.

How to Calculate: Average Ticket Response Time = Total Time Waiting for Response / Total Tickets

​Example: If your team spent a total of 400 minutes responding to 20 tickets, your average ticket response time would be:

400 minutes / 20 tickets = 20 minutes per ticket

2. Average Ticket Resolution Time

Definition: Measures the speed at which an MSP resolves tickets.

Why It Matters: Clients value not just the quick response but also the timely resolution of their issues. Enhancing your resolution time can significantly improve client satisfaction and reduce operational bottlenecks.

How to Calculate: Average Ticket Resolution Time = Total Open Ticket Time / Total Tickets​

Pro Tip: Implement automated remediation to improve resolution times. Automation helps eliminate the human element from straightforward fixes, drastically reducing resolution times and enhancing client satisfaction.

3. First Contact Resolution Rate

Definition: The percentage of tickets resolved on the first contact.

Why It Matters: Minimizing back-and-forth communication enhances efficiency and client satisfaction. High first contact resolution rates demonstrate your team’s ability to understand and solve issues without needing additional input.

How to Calculate: First Contact Resolution Rate = (Total Tickets Resolved on First Contact / Total Tickets) * 100

Example: If 90 out of 100 tickets were resolved on the first contact, your rate would be:

(90 * 100) * 100 = 90%

4. Service Level Agreement (SLA) Compliance Rate

Definition: The percentage of tickets resolved within the timeframes defined by SLAs.

Why It Matters: Adhering to SLAs is vital for maintaining trustworthy client relationships. This KPI helps you assess how well your team meets agreed-upon service standards.

How to Calculate: SLA Compliance Rate = (Total Tickets Closed Within SLA / Total Tickets) * 100

Example: If your team closed 95 out of 100 tickets within the SLA timeframes, your compliance rate would be:

(95 / 100) * 100 = 95%

5. Customer Satisfaction (CSAT) Score

Definition: Quantifies customer satisfaction based on surveys or similar customer interactions.

Why It Matters: Satisfied customers are more likely to continue using your services and recommend you to others. Tracking CSAT helps you gauge overall customer sentiment and identify areas for improvement.

How to Calculate: Using the Net Promoter Score (NPS) as an example: NPS = (Percentage of Promoters) − (Percentage of Detractors)

Example: If 70% of your surveyed customers are promoters and 10% are detractors, your NPS would be:

70% − 10% = 60

6. Customer Efficiency

Definition: Measures the time it takes to service a ticket by customer.

Why It Matters: Identifying which customers have higher than average ticket times can pinpoint training needs or suggest product enhancements. Conversely, customers with low ticket times might highlight your most efficient and straightforward service areas.

How to Calculate: Customer Efficiency = Total Time Spent on Customer Tickets / Total Tickets for a Customer

Example: If you spent 300 minutes on 10 tickets for a customer, the efficiency would be:

300 minutes / 10 tickets = 30 minutes per ticket

7. Technician Efficiency

Definition: Measures the time it takes a technician to service a ticket.

Why It Matters: This metric helps identify star performers and those who may benefit from additional training or support. High efficiency suggests a need for rewarding or further empowering those technicians.

How to Calculate: Technician Efficiency = Total Time a Technician Spent on Tickets / Total Tickets for a Technician

Example: If a technician spent 500 minutes on 25 tickets, their efficiency would be:

500 minutes / 25 tickets = 20 minutes per ticket

8. Number of New Tickets Opened/Closed

Definition: Indicates whether your ticket backlog is growing or shrinking.

Why It Matters: This KPI helps assess the efficiency of your help desk in managing incoming and existing tickets.

How to Calculate: You can use a ratio or a simple difference:

  • Ratio: New Tickets / Tickets Closed
  • Difference: New Tickets − Tickets Closed

Example: If 120 tickets were opened and 100 were closed, the ratio would be…

120 / 100 = 1.2 

…and the difference would be:

120 − 100 = 20

9. Customer Churn Rate

Definition: The percentage of customers that stop using your service over a given period.

Why It Matters: Low churn rates are critical for sustained growth and profitability. Understanding churn helps you identify and address the underlying causes to improve client retention.

How to Calculate: Customer Churn Rate = (Customers Lost in a Given Period / Customers at Start of Period) * 100

Example: If you started with 100 customers and lost 3 by the end of the month, your churn rate would be:

(3 / 100) * 100 = 3%

In addition to customer churn rate, consider calculating recurring revenue churn:

Recurring Revenue Churn Rate = (Recurring Revenue Lost in a Given Period / Recurring Revenue at Start of Period) * 100

This helps provide additional context, especially if customer account sizes vary significantly.

Choosing the Best Client KPIs for Your Operation

The client-centric KPIs we’ve covered are vital for data-driven decisions that can significantly enhance your business operations. However, it’s crucial to select the right set of KPIs that align with your specific business goals.

At the end of the day, MSPs will always strive to be trusted advisors to their customers in the IT realm. As such, understanding and optimizing specific KPIs will help to significantly enhance your service delivery and client relationships. And, by merging PSA and RMM into a unified MSP platform, you can greatly reduce data silos within your business, making it easier to track and improve client-centric KPIs.

Remember to check back soon for the last installment of our series, where we’ll discuss Sales & Marketing KPIs, which along with parts 1 and 2, will give you a complete picture of your MSP’s performance.

Jillian Ho-Lung

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