Reducing Customer Churn by Applying Goodhart’s Law in Customer Service

Support teams can reduce customer churn by prioritising user satisfaction

1. Why Over-Focusing on Metrics Can Hurt Customer Service

Support teams often track metrics like response times and ticket closures to measure success. While these metrics are helpful, they can sometimes shift attention away from what the customer truly needs. Quick fixes may look good on paper but can leave customers feeling unsatisfied if their issues aren’t genuinely resolved. According to Goodhart’s Law, metrics alone don’t always reflect quality. To effectively reduce customer churn, teams should focus on outcomes that genuinely enhance the user experience, leading to greater loyalty and satisfaction.

2. Measuring Total Resolution Time to Centre on the Customer

A customer-centric approach measures the total resolution time from when a customer first contacts support until their issue is fully resolved. This metric promotes quality over speed, ensuring the customer’s needs are genuinely addressed. Focusing on total resolution time keeps the team aligned with customer priorities, increasing satisfaction and reducing churn.

3. Balancing Quantitative Data with Qualitative Feedback

Numbers alone rarely capture the full customer experience. Gathering feedback through surveys and follow-ups allows support teams to understand how well their service met customer expectations. Combining hard metrics with qualitative insights provides a fuller picture, enabling support teams to identify areas for improvement beyond what numbers can show.

4. Setting Minimum Standards Instead of Fixed Targets

Instead of rigid goals, consider framing metrics as minimum standards. For example, a baseline of 98% satisfaction as a minimum expectation can motivate teams to strive beyond simple targets. This approach encourages continuous improvement, pushing support agents to exceed customer expectations consistently.

5. Fostering a Culture of Ownership and Autonomy

When support agents have ownership over their outcomes, they’re more likely to focus on the customer’s needs rather than just meeting metrics. Empowered agents are motivated to go the extra mile to deliver quality service, creating a positive experience that reduces churn and builds loyalty.

6. Regularly Re-Evaluating Key Metrics

Regularly re-assessing metrics helps ensure they remain aligned with customer needs. By taking an “outside-in” approach—prioritising what users value most—support teams avoid becoming overly focused on outdated KPIs and keep their sights on genuinely reducing churn.

Prioritising the Customer Over Numbers

Goodhart’s Law reminds us that focusing too much on metrics alone can miss the mark. To reduce churn, support teams should prioritise outcomes that enhance the customer’s experience. By measuring total resolution time, gathering genuine feedback, and fostering continuous improvement, companies can provide support that not only meets but exceeds expectations.

Goodhart’s Law warns against focusing too much on metrics alone. This post explores how customer service teams can reduce churn by prioritising user satisfaction and continuously improving the support experience.