Key performance indicators or "KPIs" are a dime a dozen—there’s no shortage of interesting metrics for company managers and leadership to keep an eye on. In fact, quite a few sources list over 100 KPIs (and counting!). Managed service providers (MSPs) depend on KPIs to inform their development decisions, influence their customer relations strategies, and direct their sales processes.
Harnessing the power of the best MSP KPIs can help your company capitalize on emerging trends faster, make more effective use of available resources, and (most importantly) keep your customers happy with your services.
What is an MSP KPI used for?
Each MSP KPI that you choose to use in your organization helps give your team a top-down view of the many important processes at play while adding to your big-picture understanding of overall performance. Of course, to comfortably view and assess the various KPIs you choose to track, it helps to have them organized and easy to read. You will need a proper KPI dashboard to do that with ease.
MSP KPI dashboards
Keeping up with your company's KPIs involves regularly consulting them and tracking progress. A major issue you could run into in attempting to do this is figuring out how to do so without jumping from one application window to another. It’s vitally important that the bulk of your business's most salient KPIs are visible in a single space. This goes beyond mere convenience, allowing you and your team members to notice correlations and potential issues much more readily without wasting time. This is what MSP KPI dashboards do best.
These dashboards aggregate the metrics your organization needs the most and display them in a single location, usually with the addition of custom reporting options based on role and access level. Of course, even the best KPI dashboard money can buy is nearly worthless when combined with the wrong KPIs.
What are the best KPIs for MSPs?
Choosing a KPI for MSP is best done by first considering what performance factors matter most for your company. The best KPIs for MSPs can help your team pinpoint potential performance problems in critical areas such as customer retention and service uptime. Following are a select few MSP KPI examples worth considering for sales, service, and marketing optimization:
MSP sales KPIs
- 1. Monthly recurring revenue. Some say this is the single most important metric an MSP can measure. If your company makes most of its revenue from recurring sales every month, then this metric will indeed prove especially handy.
- 2. Customer lifetime value. This one measures the average customer's value to your organization over a given period of time. This helps you develop a more cost-effective acquisition strategy for your business.
- 3. Retention rate. Use this KPI to inform your sales team of the type of value they can expect from each customer. Your retention rate specifies how many customers you’re holding onto over a period of time.
MSP service KPIs
- 1. Average response time. Your support team's average response time tells you how long it takes your customers to receive an answer once contact has been made. This can help you identify lagging support processes and make incremental changes.
- 2. Outstanding issues. Sleuthing out specific parts of your service model where additional staffing, training, or automation are needed is this KPI's superpower. All unresolved issues submitted by your customers are measured by week, month, or quarter to give your team a good idea of what needs improvement.
- 3. Service utilization. This metric measures the percentage of your team's billable hours vs. their non-billable hours. However, other types of billable and non-billable events can be measured as well. Use this to boost your efficiency and realign your staff's performance with customer expectations.
MSP marketing KPIs
- 1. Cost per lead. You can leverage this KPI to learn how effectively your outreach campaigns work to reel in fresh leads for your sales team.
- 2. Net promoter score. This metric is taken from survey results and tells your team just how loyal your customers actually are to your brand. Use net promoter score results to learn what aspects of your service matter most to your customers.
Take control of your KPIs
MSP KPIs can make a clear difference in the way that you run your business as well as help to keep you from overlooking important concerns with customers and staff as they arise. Nowhere are KPIs more vital than in your organization's sales process. That's where Goolash comes in.
Goolash is an optimal solution for tracking your customer’s service utilization and keeping your company's invoices up-to-date. Once activated, we can also send you license usage updates on a regular basis, whether you prefer weekly glimpses or daily details. Learn how other companies have already made the most of Goolash to boost their sales processes.