8 Essential Ecommerce Customer Service KPIs (Plus One Metric Most Brands Totally Miss)

Customer service has a direct impact on business growth and revenue. Slow response times, unaddressed complaints, and other blunders can deter buyers, hurting your reputation and, consequently, your profits.

With that in mind, you’ll want to continuously monitor the customer experience by tracking key performance indicators (KPIs) like the Net Promoter Score℠, churn rate, and average resolution time.

These numbers can reveal how customers feel about your brand — and what you could do to make them happier.

But here's the problem: too many businesses focus on KPIs that make sense on paper but fail to provide meaningful insights. For example, what’s the point in tracking ticket volume if you don’t dig into the reasons behind those requests?

To help you out, we’ve compiled a list of ecommerce customer service KPIs to keep top of mind. Let’s dive in.

Why you should track and measure customer service KPIs

Did you know that 10% of Shopify brands fail within their first year of business?

One reason is the domino effect of bad customer experiences.

In a survey of 2,000 consumers, 54% of respondents said they would leave a brand after just one bad experience. This could be something like waiting too long to speak with a rep, dealing with complex return processes, or feeling dissatisfied with a product.

For example, a customer who reaches out about shipping delays and gets shuffled between departments without resolution is unlikely to come back. The same can happen if your chatbot provides generic or unhelpful responses.

The survey also found that 42% of consumers expect quick, high-quality answers from brands. More than one-third said they prefer to buy from companies with a proven track record of customer responsiveness.

Dissatisfied buyers will also tell others about their experiences. Around 45% will leave a bad review, resulting in revenue loss, reputational damage, and missed opportunities.

Some customers will quietly leave your brand, leaving you wondering what went wrong. If you're only tracking vanity metrics like social media likes, closed tickets, or chatbot interactions, you'll never know the reason behind their decision.

That's why tracking the right ecommerce KPIs, especially those revolving around the customer experience (CX), is crucial for business success. By doing so, you'll be better able to:

• Understand customer behavior
• Increase buyer retention
• Drive operational efficiency
• Stay ahead of the competition
• Build a customer-centric culture
• Drive customer engagement across platforms

With this approach, you send a clear message to your team: customers come first.

For instance, the customer effort score (CES) highlights how easy (or difficult) it is for buyers to take the desired action, such as placing an order. These insights can help you identify and address friction points and build a culture that prioritizes customer satisfaction.

8 customer service KPIs you should track

According to professional services firm Accenture, businesses that treat customer service as a value driver, not just a cost, see 3.5x higher revenue growth. These companies invest only 0.5% more of their revenue into customer support compared to the average enterprise, but they track the right data and act on it.

But which KPIs are best for measuring and improving the ecommerce customer experience? Let’s see a few examples.

1. Customer satisfaction score (CSAT)

This KPI measures how happy customers are with a specific interaction, product, or service. The results are usually collected through surveys and expressed as a percentage.

For example, you could ask shoppers:

• How satisfied were you with the support received?
• How satisfied are you with your purchase?
• How would you rate your overall satisfaction with the return process?
• How would you rate your overall satisfaction with [brand]?

Respondents will rate their satisfaction on a numbered scale, such as 1 to 5, where 1 means "very dissatisfied" and 5 means "very satisfied."

To calculate the CSAT score, divide the number of satisfied customers by the total number of responses. Multiply the result by 100.

CSAT = (Number of satisfied customers / Total number of responses) x 100

If, say, 85 out of 100 customers give ratings of 4 ("satisfied") and 5 ("satisfied"), your CSAT score is 85%. That's pretty solid, considering that online retailers have an average CSAT score of 80%.

Send the survey shortly after a purchase or other customer interactions with your brand. For more in-depth results, follow up with additional questions like, "What could we improve?" or "What did you like most about the product?"

Why does it matter?

By measuring the CSAT, you get direct, qualitative feedback on how well your brand is meeting customer expectations in specific areas. From there, you can take the steps needed to deliver better shopping experiences and boost customer loyalty.

2. Customer retention rate (CRR)

Customer retention rate indicates the percentage of customers who stick with your business over a specific period, such as three, six, or 12 months.

Let's suppose you have 300 customers at the start of a given period (S) and acquire 100 new buyers (N) over the next six months, but lose 50 customers (L). At the end of the period, you are left with 350 customers (E).

Write down these numbers and use the following formula to measure customer retention:

CRR = [(E - N) / S] x 100, where S = Start, N = New, and E = End

In the above scenario, your CRR would be 83.3%.

This means you retained 83% of your existing customer base over six months and lost 17%. The latter represents your churn rate for that period.

According to Shopify, the average CRR in ecommerce is 30%. The higher this number, the more customers are loyal to and satisfied with your brand.

What does it matter?

CRR can reveal improvements or declines in customer retention following a product launch, marketing campaigns, changes in pricing strategy, and more. Use these insights to identify and address the root cause of customer churn.

Let's say you sell fitness apparel. At some point, you notice that customers who buy yoga pants don't return for other items. In this case, a low CRR could point to poor product quality.

For most businesses, retaining customers is more cost-effective than acquiring new ones. On top of that, existing buyers are more likely to make repeat purchases, resulting in higher ROI. So, it's in your best interest to continuously track and improve CRR.

3. Repeat purchase rate (RPR)

The repeat purchase rate is the percentage of buyers who place more than one order over a specific period. A high RPR indicates customer loyalty and satisfaction, making it a predictor of revenue growth.

To calculate this KPI, divide the number of returning customers by the number of total customers within a given period, then multiply by 100.

RPR = (Number of returning customers / Total customers) x 100

A healthy repeat purchase rate is 20% to 30%, depending on your industry. The higher this number, the better.

Why does it matter?

Repeat purchases indicate that customers are satisfied with your products and services. Returning buyers have a higher lifetime value, meaning they spend more over time than first-time customers.

By tracking RPR, you gain valuable insights into customer behavior and preferences.

For example, you can identify which items customers are more likely to purchase or which groups tend to make repeat purchases. This data makes it easier to optimize your inventory and marketing efforts, leading to higher profits over time.

4. Customer lifetime value (CLV)

This key performance indicator estimates a customer's total worth throughout their relationship with your business. Simply put, it measures the revenue you can expect from a single buyer.

While there are several ways to calculate customer lifetime value, you can use a basic formula like:

CLV = Average order value x Average number of transactions per period x Average customer lifespan

Let's say you run an online business selling skincare products. Based on your sales reports, most customers spend $50 per order, make four purchases per year, and stick with your brand for three years.

Multiply these numbers together to calculate customer lifetime value. In the above scenario, you can expect to earn $600 in revenue from an average customer over the course of your relationship.

Why does it matter?

According to consulting firm Gartner, CLV is one of the five key metrics for 25% of marketers, as it allows them to evaluate and optimize their outreach efforts.

This KPI can help you identify high-value customers and spot early signs of churn. Plus, it provides the insights you need for better customer segmentation, resulting in more effective marketing campaigns.

For instance, you can use CLV data to segment your audience based on average spending and then tailor your marketing efforts to each customer group. If you plan to launch a new product, analyze historical CLV data to assess the viability of your idea and forecast revenue.

5. Customer acquisition cost (CAC)

Have you ever wondered how much it costs to acquire a new customer? To find out, choose a time frame — like six or 12 months — and then use this formula to calculate customer acquisition cost:

CAC = Marketing and sales costs / Number of new customers

For example, if you spend $30,000 on marketing and sales and acquire 1,000 customers within three months, your CAC is $30.

CAC varies by industry, but, generally, this number should be much lower than CLV. Ideally, aim for a CAC-to-LTV ratio of 3:1.

A high CAC means less profit, making it difficult to grow your business. However, expect to spend more on customer acquisition if you sell high-end products or have a lot of competition.

For reference, fashion brands have an average CAC of $129. The same goes for online retailers specializing in home and garden products. By comparison, consumer electronics retailers spend a whopping $377 to acquire a single customer.

What does it matter?

CAC is directly related to sales and marketing ROI and can pinpoint inefficiencies in these areas. If your CAC is too high, you may need to rethink your advertising strategy, focus on other acquisition channels, or optimize your sales funnel.

Analyzing customer acquisition costs can help you improve profitability and allocate resources more efficiently. Leverage this data to plan for future growth, adjust product pricing, and improve your marketing spend.

6. Refund rate

Refund rate is the percentage of orders returned for a refund during a specific period. It’s calculated using the formula:

Refund rate = (Number of refunds issued / Total number of transactions) x 100

Let's assume you sell 80 leather bags within two months and have to refund 20 of them. This means you have a 25% refund rate, which is rather high, even for an online business.

In 2023, consumers returned $14.50 in merchandise for every $100 spent. Generally, ecommerce businesses have higher refund rates than brick-and-mortar stores because customers can't physically see, touch, or try the products before purchasing.

A good refund rate is around 7–15%, depending on what you sell. The lower this percentage, the higher your profits.

What does it matter?

If your customer service team is getting loads of refund requests, you need to determine the reason behind it. This could be anything from product quality issues to deliberate overbuying and fraud.

For example, late deliveries or damaged goods can prompt customers to file for a refund. The same can happen if the sizing is wrong or the product looks different from the photos on the vendor's website (see these product photography tips).

A high refund rate is often a sign of customer dissatisfaction and can point to recurrent issues. If left unaddressed, these problems can hurt your revenue and increase operational costs, such as restocking fees.

7. Average resolution time

Average resolution time is one of the KPIs you should measure as part of your efforts to improve customer satisfaction. This key performance indicator shows how long it takes customers to get a ticket resolved.

The formula for calculating ART during a specific period is:

ART = Total resolution time / Total number of tickets solved

For example, if you chat with five customers in a given day and solve all tickets in 80 minutes, the average resolution time is 16 minutes.

Online retailers have an average resolution time of six minutes or less. However, this number may vary based on case complexity, communication channels, industry, and other factors.

For small businesses with low ticket volumes, monthly tracking may be sufficient to spot trends in customer service performance. But if you have a high ticket volume, you should measure ART daily or weekly and take action as needed.

Why does it matter?

Average resolution time has a direct impact on CSAT and other ecommerce KPIs. Most customers want to get their issues solved quickly and may leave your business if you fail to meet their expectations.

This customer service KPI also reflects the efficiency of your support team. For example, if you have an in-house customer service team, you can track ART by agent to spot underperformers.

With these insights, you can scale your support, optimize your communication channels, and address inefficiencies.

The result? Happier customers, reduced churn, and improved team performance.

8. Net Promoter Score (NPS®)

Have you ever filled out a survey that asked you something like:

On a scale of 0 to 10, how likely are you to recommend our brand to a friend?

Companies ask such questions to measure the Net Promoter Score, an indicator of customer loyalty. This ecommerce KPI provides insight into customers' likelihood to recommend a product, service, or business to others.

To calculate your NPS score, split the survey responses into three categories:

• Promoters (ratings of 9 and 10)
• Passives (ratings of 7 and 8)
• Detractors (ratings of 0 to 6)

Next, use this formula to see how many customers are likely to recommend your brand:

NPS = % of promoters - % of detractors

Simply put, subtract the percentage of buyers who'd recommend your business from the percentage of dissatisfied customers.

A good NPS is 1 to 20, showing you have more promoters than detractors. However, you should aim for a score of 50 or higher, which is considered excellent.

Why does it matter?

This KPI predicts customer loyalty and retention while making it easier to identify your brand advocates.

A high NPS indicates that buyers are satisfied with your products and services, which may result in repeat purchases. A low NPS, on the other hand, could highlight issues that require immediate attention, such as unresolved complaints or delivery delays.

The one metric every ecommerce brand should keep track of

Many ecommerce brands track some or all of the above KPIs but still fail to understand the root cause of customer dissatisfaction. That's why you should also measure Tickets Per Order (TPO), a forward-looking metric developed by OpenDesk.

With TPO, online vendors can track the number of tickets generated per order via OpenDesk's analytics. What's more, they can see how many tickets are related to specific issues like order delays or missing items — and address these problems before they escalate.

To get this data, log in to OpenDesk or create an account if you don't have one. As a registered member, you can track customer inquiries across all channels, from email to social media.

Go to your OpenDesk Analytics dashboard and use the following formula to calculate tickets per order:

TPO = (Number of order-related tickets / Number of orders) x 100

For example, if you ship 250 orders in a given month and receive 40 support tickets, your TPO ratio is 16%. This means 16% of buyers had to contact customer support for order-related issues.

OpenDesk categorizes their inquiries by topic, so you can easily see if there's a spike in the number of tickets related to product quality, shipping, or other aspects. These insights allow you to take immediate action and prevent negative reviews.

Why does it matter?

Ecommerce customer service KPIs like CSAT, CRR, and NPS tell only part of the story. They're great for analyzing the post-purchase experience or other aspects of the customer journey but don't provide enough data to help you identify and address friction points early on.

Take CSAT, for example. By tracking this KPI, you can determine how customers feel about a specific product, service, or interaction.

However, a low CSAT score says nothing about why they leave your site or switch to a competing brand. It may provide some cues, but without deeper analysis, you won't know the reason behind customer dissatisfaction.

With CSAT and other KPIs, you'll find out what went wrong only after a customer has expressed dissatisfaction. By then, they may have already changed their opinion about your brand.

TPO provides the insights you need to improve the buyer experience proactively. If, say, a customer inquires about missing items, you can respond immediately and take action (e.g., ship the missing product or give a refund) before it's too late.

This ecommerce metric acts as an early detection system. Not only does it allow you to catch issues that may otherwise go unnoticed, but it also provides actionable data in real time.

3 steps to take right now to improve your customer service KPIs

Deciding which KPIs to track depends largely on your business goals. Ideally, prioritize the ones listed above to get a full picture of the customer experience.

For instance, Net Promoter Score can help you gauge customer loyalty but doesn't explain why some buyers would not recommend your products. That's why you should use it alongside other KPIs and metrics, such as Tickets Per Order, RPR, and CSAT.

Most importantly, act on the data you collect. For deeper insights, use these strategies to improve your KPIs:

1. Choose the right KPIs for your business

Tracking too many KPIs can dilute your focus and lead to information overload. Only monitor those that matter most to your business.

First, define your three most important goals. Next, choose up to three KPIs per goal, suggests performance measurement specialist Stacey Barr. These could be marketing and sales KPIs, customer service KPIs, or financial KPIs.

If, say, you're trying to boost customer retention, track CSAT, NPS, and TPO. To monitor and improve operational efficiency, track ART, CAC, and ticket volume.

Large enterprises often use a higher number of KPIs, but they have more people and resources than the average business. The more KPIs you track, the harder it is to monitor and report on them.

2. Make them "SMART"

Follow the SMART formula when choosing your metrics and KPIs. This acronym stands for:

• Specific
• Measurable
• Attainable
• Relevant
• Time-bound

With that in mind, you'll want to ensure your KPIs revolve around specific goals, such as driving repeat sales. They should also be measurable and have realistic targets that align with your business objectives. For example, you might aim to increase CSAT from 60% to 80%.

Finally, set a date by which you can expect to achieve the desired outcome. A deadline will keep you on track and make it easier to measure progress.

3. Review and refine your KPIs

Tracking customer service KPIs isn’t a one-time task but an ongoing process. Your Shopify business will grow and evolve, and the KPIs you use today may no longer be relevant three, six, or 12 months from now.

With this in mind, it's important to continuously review and refine your key performance indicators.

For example, check your CRR and churn rate quarterly to identify trends in customer behavior. Then, you can take appropriate action and add other KPIs to the mix if necessary.

If, say, visitors keep leaving your website for no obvious reason, start tracking your customer effort score (CES). This KPI can reveal usability issues with your ecommerce site, products, or services.

Keep a pulse on your Shopify business with OpenDesk

Now that you know which KPIs to track, it's time to build your tech stack. Start with OpenDesk, an AI-powered platform that centralizes customer inquiries.

OpenDesk brings all your inboxes into one place while providing the tools you need to keep the pulse on your Shopify business. Use its capabilities to monitor your most important KPIs and stay on top of customer feedback with real-time insights.

Our platform can also automate responses to common inquiries and prioritize tickets based on urgency. Plus, it allows you to continuously monitor TPO and spot order-related issues as they arise.

Ready to level up your business? Try OpenDesk for free to engage, convert, and retain more customers.

Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. Net Promoter ScoreSM and Net Promoter SystemSM are service marks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.