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3 KPIs to Track for MSP Profitability

There’s a lot of noise about measurement, accountability, and using data to make better decisions. Everyone has a theory about how you should be doing it, and this varies based on business type and industry. As a managed service provider (MSP), you may be asking yourself, “How can I use data to make smart decisions about my business in particular?”

In this blog post, we’re cutting through the noise, and sharing some of the key performance indicators (KPIs) MSPs should be tracking. Based on Autotask PSA data and expertise, we have determined that these KPIs will help MSPs make a positive impact on continuous business growth and profitability.

1. Profitability: Profitability should be examined by breaking it down at the client, contact, and service level. To gain an accurate understanding of profitability, start by identifying your current revenue stream and possible losses. You also need visibility into underlying costs. Consider looking at profitability by account, contract, and offering to gain an even more accurate understanding of the impact these items have on your monthly recurring revenue (MRR).

2. Customer Satisfaction Score: Customer satisfaction (CSAT) is the measure of knowing if your clients are satisfied with the services you deliver, but also an indication of how likely they are to recommend you. CSAT scores can be your greatest resource to gain insight into what is working and what needs improvement. This measure gives you the opportunity to take action immediately when client relationships are at risk. For example, by using the Service Thermometer in Autotask PSA, you can gauge how satisfied customers are with your service before you even close their ticket. The customer can simply respond with a positive, neutral, or negative icon. From there, you can use the dashboard to display a widget with open tickets that have a negative temperature and potentially prioritize these at-risk clients.

3. First Call Resolution: When it comes to providing support to clients, the ability to meet promised response and resolution timeframes defined within your Service-Level Agreements (SLAs) is crucial. Solid SLA performance will help you build a strong brand and retain clients. However, SLAs may only scratch the surface when it comes to truly measuring performance. We recommend measuring your first call response (FCR) rates along with SLA performance. FCR is the percentage of tickets where the first call solved the problem. This measures the speed of resolution for your clients. FCR can also be a great indicator for customer satisfaction because the more calls or touches it takes to resolve an issue, the more frustrated the client may become. Keeping a close eye on FCR helps MSPs meet client expectations and deliver great service in a timely manner.

By strategically aligning KPIs to grow revenues and improve service delivery, MSPs can enhance customer experience and prioritize IT services by criticality and impact. Once you’re managing IT services as services, not as technical entities, the opportunities for growth and profitability are endless. To learn more about which KPIs you should track, check out our eBook. You’ll learn about dashboards designed to help measure profitability at the client, contact, and service level, how to measure customer satisfaction within Autotask PSA, how to track Help Desk efficiency, and more! Download it today.


Grace Loney is Product Marketing Manager for Datto’s Autotask PSA. Read more Datto blogs here.

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