Five Essential KPIs to Improve MSP Efficiency and Profitability, According to Datto

Autotask and IT Glue provide practical insights for managed service providers to optimize their service delivery and enhance customer loyalty.

Managed service providers (MSPs) are facing increasing challenges related to operational efficiency, response times, and customer satisfaction. In this context, a well-optimized PSA (Professional Services Automation) solution can make a significant difference. According to Datto, leveraging key KPIs can improve productivity, enhance profitability, and provide a more seamless customer experience.

In a recent seminar organized by IT Glue and Autotask, industry experts Eric Simpson and Kevin Sequeira elaborated on the five most critical metrics for IT service delivery and explained how to improve them using smart tools. Here are the key points discussed:

1. Mean Resolution Time

Why it Matters: Customers expect fast and efficient solutions. High resolution times negatively impact the experience and margins.

How to Improve It:

  • Set clear priorities based on urgency and impact.
  • Automate ticket management to speed up processing.
  • Utilize real-time dashboards from Autotask to identify bottlenecks.
  • Integrate standard operating procedures (SOPs) from IT Glue to streamline responses.

2. First Contact Resolution Rate (FCRR)

Why it Matters: Resolving issues on the first contact saves time and improves the service perception. Frequent escalations indicate a lack of efficiency.

How to Improve It:

  • Integrate relevant documentation directly into the ticket with IT Glue.
  • Use Cooper Copilot to automatically generate reusable resolution notes.
  • Apply the smart writing assistant to convert technical jargon into clear and empathetic messages for the end user.

3. SLA Compliance

Why it Matters: Failing to meet service level agreements jeopardizes customer retention.

How to Improve It:

  • Define realistic SLAs based on service levels (“Good, Better, Best”).
  • Use Autotask’s impact/urgency matrix to prioritize tasks.
  • Activate proactive alerts to react before breaching an SLA.

4. Customer Satisfaction (CSAT)

Why it Matters: Speed doesn’t always guarantee a good experience. Measuring satisfaction ensures that real value is being delivered.

How to Improve It:

  • Automate post-ticket surveys through Autotask.
  • Analyze trends and common causes of dissatisfaction.
  • Connect responses with operational metrics to address shortcomings.

5. Technician Utilization Rate

Why it Matters: Technician time is a valuable resource. If it’s spent on non-billable or low-value tasks, margins shrink.

How to Improve It:

  • Automate time tracking with Autotask billing tools.
  • Identify repetitive tasks that can be optimized or delegated.
  • Use smart ticket summaries with Cooper Copilot to reduce time spent on administrative tasks.

Conclusion: Start Small, Scale Fast

The experts’ advice is clear: do not attempt to transform your entire service at once. Start with one or two key metrics, make incremental improvements, and scale according to the results.

For those already using Autotask, most of these KPIs are available directly. And for those who aren’t, it could be a good time to assess how these tools can enhance customer service, internal efficiency, and business profitability.

For more information, visit: www.datto.com

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