Important Telecom KPIs For Every Business To Track!

Every business needs to start tracking these important telecom KPIs!

telecom KPIs for businesses from Data Talk

Telecommunications have been around for decades, but there are newer data-driven performance sales factors that are tracked using key performance indicators (KPIs) to give a competitive edge for businesses of all sizes. These valuable insights make it easier for business leaders to make informed investments/decisions, adjust their processes, and achieve more predictable revenue streams.

Below we’ll be detailing some important telecom KPIs that your business should incorporate this year to improve your company’s skill sets, make everyone’s jobs easier, recognize areas for improvement, and optimize your company’s operational efficiency!

Important Telecom KPIs To Track At Your Business!

The main reason why KPIs are so important to track is because they eliminate any confusion and help teams through actionable insights.

The below telecom KPIs will help you identify potential problems related to your service quality, customer experience, network performance, operational efficiency and regulation compliance!

Network Uptime & Availability

The gold standard of availability within the telecom industry is considered to be the five nines availability, or 99.999%. This typically equates to less than five minutes of downtime on a yearly basis.

It’s no secret how availability is generally important for ensuring your customer satisfaction and support, and this KPI is particularly important for measuring the availability of your online network. Here’s the formula to calculate your network uptime/availability:

(Total Uptime Hours/Total Hours) x 100

Service Response Times

There have been very high response time standards throughout the telecom industry for many years, and these standards are only getting higher in 2024. The overall time that it takes for a business to respond to and address a client’s issue or request is referred to as service response time.

This telecom KPI is crucial for improving a company’s customer satisfaction, and this is partly because improved response times often boost customer experience and create loyal customers.

Here’s the formula for calculating service response time:

(Total time to resolve service requests/Number of service requests)

Customer Satisfaction Score (CSAT)

Your company’s CSAT score should generally be above 80%, because this demonstrates that your team is committed to customer satisfaction. These scores often derive from customer surveys, which evaluate several aspects of your products/services.

High CSAT scores indicate that your customers are satisfied with your services, whereas low CSAT scores are an indication that changes need to be made. This important KPI can be calculated using the following formula:

(Number of satisfied customers/total number of survey responses) x 100

Network Latency

It’s important for a network’s latency to be low for tech-savvy features like video conferencing, real-time financial transactions, online gaming, and many other popular applications within today’s marketplace.

The ideal network latency should be anywhere below 50 ms, and most network latency issues derive from data transfer lags.

Network Traffic Volume

The telecom industry has a truly gigantic scale of data transmission, and KPIs like network traffic volume are important for monitoring and evaluating the data that moves through your company’s network.

Some of the common benefits associated with monitoring your network traffic volume include cost containment, optimal performance and resource allocation.

Packet Loss Rate

Every business must minimize their packet loss rate in order to maintain an optimized network performance, and most businesses aim for a packet loss rate of less than 1%.

The formula used for packet loss rate includes:

(Number of lost packets/Total number of packets sent) x 100

Average Revenue Per User (ARPU)

ARPU rates often vary a lot between industries, services offered, and a company’s customer base. This means that businesses should only compare their ARPU rates to very similar businesses in order to get a more accurate competitive analysis.

This KPI measures how much money your business makes from each customer, so it’s a crucial indicator of how well you’re increasing your profit margins. The formula for calculating your ARPU is:

Total revenue/ Total number of customers

Operating Expense Ratio (OER)

OER is an important KPI for every company’s operational efficiency, and many businesses aim to achieve an OER rating of around 40-50%.

OER evaluates how much of your earnings are being spent on operational costs, so keeping your OER as low as possible is crucial for your company’s long-term financial health.

The formula for calculating OER is:

(Total operating expenses/Total revenue) x 100

Regulatory Compliance Rate

No business wants to experience regulatory penalties, which is why everyone must strive toward achieving a high compliance rate. There are many telecom-specific regulations that businesses need to be aware of as well.

Your regulatory compliance rate indicates how well you’re adhering to industry regulations, and higher scores subsequently minimize the overall likelihood of having legal troubles and other organizational hurdles.

The formula for calculating your regulatory compliance rate is:

(Number of compliance incidents/Total number of regulatory checks) x 100

Emergency Response Time

Emergency response times are crucial for every business, and these scenarios are often when companies rely heavily upon their telecom provider.

Although you might not be taking 911 emergency calls at your business, promptly responding to customer issues is huge for your customer service and other KPIs.

Reach Out To Data Talk To Improve Your Company’s Telecom KPIs!

The above list of telecom KPIs is just the beginning in terms of everything that you’ll need to know while using a tech-savvy Unified Communications system. It’s understandable how it can be complicated to maximize these KPIs to your team’s advantage, which is why the Data Talk specialists are here to help.

Data Talk is the leading telecom provider in Columbus, Ohio, and we’ve supported businesses of all types throughout the entire country since 1963.

Reach out to us online or give us a call at 614-784-7100 to get in touch with our telecom experts today and learn more about maximizing your team’s telecom KPIs!