Most Important KPIs For Managed Service Providers

From dozens of possible metrics to adapt, most MSPs spend their precious time measuring their precious little driving growth. The only trick to choose from these metrics is the KPI that fits best with your business and management style. 

To deliver premium managed noc services, MSPs need to collect a lot of data, analyze, and then report them. The time invested in data/reports generation can be abridged through KPIs.

Use of KPIs by Managed Service Providers

Like all good providers, NOC service providers should monitor and analyze their performance concerning themselves and their peers. Such tracking can assist them in improving their offering and stay competitive. 

Determining critical metrics of pre-set goals and targets for the company to achieve, Key Performance Indicators hold an important designation. Because service providers make a specific investment on assets which need timely monitoring and effective measures to use. MSPs can take the privilege to monitor KPIs and can carefully set them on achieving customer satisfaction.

Not just customer satisfaction, critical metrics such as the KPIs can assist the organization's scalability by improving its service, parallelly improving client as well as customer satisfaction.   

President of the leading TBG's, John Christophersen, addresses metrics proportionately related to the growth of the business. Especially businesses that have a vision and believe in a high-horsepower sales engine. These entrepreneurial companies invest in profits back for development and are managed by numbers and metrics. 

 

Leverage These Most Important KPIs For MSPs

Here you will understand a few managed services Key Performance Indicators or KPIs and how they can enhance selecting an IT partner.

Net Promoter Score

Rolling out a survey to understand how likely your customer recommends your business to another. Net Promoter Score range from 0-10 rated by the customer to comprehend whether your current customers are detracting from your business. 

For customers who rank the business within the range of 0-4, you can either fire them or improve your quality by addressing the concerns.

Customers who rank your business between 5-6 determine specific needs relating to their satisfaction. Underline the wish list of the customer and execute on the common big need of all the customers to move them to rate you under 7-10. 

Churn Rate 

Most companies rated under the 'best' category prefix have an annual retention rate of 90 percent and even more for the scalability. Here, you have to check on the percentage of the customers that fire your business or discontinue or disappear suddenly and work on your strategies to shoot similar figures as that of other companies. 

Monthly Recurring Revenue (MRR)

Overlooking the MRR figure and trusting the top line would be a mistake. Comprehend every new sales data, renewal, and churn them each month. 

Cost Per Ticket

A great indicator of service efficiency, Cost Per Ticket indicates the spend. The higher the spending means higher customer satisfaction, which is an essential number on the budget for MSPs to keep a note of. Resolving the ticket as soon as practically will avoid the unnecessary support-tier of escalation.

Average Revenue Per User (ARPU)

ARPU is the total revenue derived from the subscription-based services divided by the amount of subscription-based clients. It's like borrowing a similar measure from the wireless industry.

First Contact Resolution Rate (FCRR) 

FCRR is known to be the single largest component of customer satisfaction. The FCRR denotes the percentage of the MSPs Helps Desk support resolve on the first call/contact with the customer. It is the FCRR is one of the most critical elements of both a high customer satisfaction rate and cost for the MSP. 

Service Level Agreement (SLA) Compliance Rate 

Any MSP's IT service team must have deep insights into the client's business and the risk outages & more before setting up a service contract - SLA. Also, both MSP and client must negotiate obtainable service levels with non-compliance penalties. 

Mean-Time To Resolve (MTTR)

A service-level metric in which MSPs or the noc service providers can measure the total time from ticket opening until ticket closure. Like the First Contact Resolution Rate (FCRR), MTTR also has a strong effect on customer satisfaction.

Technical Utilization Rate (TUR)

This type of KPI measures both costs and the effect of the technician's support of the organization. TUR is a means to measure the current and future staffing needs for the organization's support. Since the largest cost incurred by any organization is the labor and the number of time technicians works in resolving the ticket. 

Hence, the managed service provider’s major role is to keep a healthy balance by experiencing more support staff turnover at a higher technician utilization rate, thus raising support costs.  

To Conclude -

Managed Service Provider key performance indicators and associated measures help MSPs compare themselves to their peers. With the help of KPIs, MSPs can measure, manage, and improve the business. The major role of the KPI is to continuously improve the business while balancing the budget for growth and customer satisfaction optimization.