Determining KPIs for a new Customer

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gautambangalore
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Mon Nov 14, 2011 8:48 am

How would you determine which KPI's you would need to measure when engaging with a new customer?


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Diarmid
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Mon Nov 14, 2011 2:24 pm

I hope I'm not misinterpreting the question, but when you first engage with a new customer there are no KPIs to discuss. You have to establish the service requirements aligned to the customer's business requirements. You establish the service levels to meet these requirements up to the point that the customer is willing to pay for them. Then you derive the KPIs from these service requirements and service levels as a means of baselining performance of and improvement to the service.
"Method goes far to prevent trouble in business: for it makes the task easy, hinders confusion, saves abundance of time, and instructs those that have business depending, both what to do and what to hope."
William Penn 1644-1718
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gautambangalore
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Tue Nov 15, 2011 2:41 am

Hello Diarmid,

Thank you. Could you give me an example on this please? Taking an example of s service requirement and how it is aligned to customer's business requirement and service levels are established around it from which how KPIs are derived.

This would really help.

Thanks in advance.
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Sunny60in
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Tue Nov 15, 2011 2:40 pm

Hi Gautam,

Customer has to evaluate the quality versus the cost. To give a example:

For a Service (say X), vendor can propose something like:

90% availability of the service @ 10 Rs/month
95% availability @ 15 Rs/month
98% availability @ 22 Rs/month
99% availability @ 27 Rs/month

Customer & vendor discuss in detail & decide on the different important parameters w.r.t service(s) being taken (example: latency, response time etc.) and the relevant cost.

Once the customer select the options (agrees for the relevant cost), KPIs will be set.
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