What is an example of a customer service Key Performance Indicator (KPI)?

The selection of Net Promoter Score (NPS) as an example of a customer service Key Performance Indicator (KPI) is appropriate because NPS specifically measures customer loyalty and satisfaction through their willingness to recommend a company's products or services to others. It is a widely acknowledged metric that captures the voice of the customer, providing insights into their overall experience and perception of the brand.

NPS is calculated by asking customers a simple question: how likely they are to recommend the service to friends or colleagues, on a scale from 0 to 10. Based on their responses, customers are categorized into promoters, passives, and detractors. This categorization helps businesses understand their strengths and areas for improvement in customer service and support.

In contrast, while customer acquisition rate indicates how effectively a company is attracting new customers, it does not directly reflect the quality of existing customer service. Customer satisfaction ratio may seem relevant, but it is often a broad measure that can lack the specificity of NPS. Daily transaction volume, although useful for operational metrics, does not provide meaningful insights into customer satisfaction or loyalty. Thus, NPS stands out as a direct and specific measure that links closely to customer service quality.