Many businesses have recognized the benefits of outsourcing their IT to help them manage their resources and improve efficiency and profitability. There are more MSPs out there than ever before, so it is crucial that you measure your success with KPIs to help you identify areas for improvement and drive profits.
There are dozens of KPIs that you could and should track to help improve your services. This blog post will discuss some of the most important KPIs to monitor and measure to ensure you offer the best service and stand out among the crowd.
First Contact Resolution Rate (FCRR)
This KPI measures how many of your client’s issues are resolved after just one contact. The higher this number, the better, and it is best to aim for 70% or higher. The more contacts your customers have with your help team, the lower the customer satisfaction and the more you will be spending per client query or complaint.
You should monitor this KPI to identify what is causing additional contacts. This can be an excellent way to determine when and how you should provide extra training to staff members. Using tools like our plugin for automated dispatching of tickets in ConnectWise Manage can be invaluable to help you monitor and improve your FCRR.
Cost Of Goods Sold (COGS)
Cost of goods sold (COGS) helps identify how profitable your business is. You should factor in admin costs, labor, software, infrastructure, delivery, and more. By closely monitoring your COGS KPI, you can see where your business’s money is going and identify any areas of inefficiency. It can also help you fine-tune your pricing to ensure you and your clients are getting value for money.
Net Operating Income
Net operating income helps you evaluate the overall health of your managed service provider. A good level of net operating income is 10%. This means that after all operating expenses, your remaining revenue should be 10% or higher. If it is below this number, it is vital that you work to ensure you are getting the best efficiency and productivity.
You should carefully monitor your retention rate. This means looking at the revenue you have brought in per year to see if this revenue remains with your business the following year. You should work to ensure you keep as much of your recurring income as possible.
Making the customer experience excellent is one of the most important ways to ensure you have an excellent retention rate. Responsive customer care is crucial to ensure your customers remain with you. Here at ServiceTree, we are dedicated to ensuring you and your customers get the most out of your experience. Our tools help make responding to customer contact and ticketing simple and effective.
Monitoring and reacting to your KPIs are crucial for your success as a managed service provider. To find out more about how ServiceTree can help you on your path to success, get in touch today!