How can Managed Service Providers (MSPs) ensure they’re meeting their goals?
While MSPs have no lack of data to manage and sort through, it’s too often scattered among dashboards and disconnected metrics. As a result, it can be challenging to see what’s really helping improve service quality, profitability, and client retention.
MSPs need to measure their key performance indicators (KPIs) to track operational performance, improve the client experience, and make informed decisions. The key is knowing which KPIs matter most and what those metrics reveal about service quality, profitability, and long-term client health.
Let’s take a look at the top 12 KPIs that Managed Service Providers need to track across financial performance, service delivery, and client health, and how those metrics can help them make informed decisions.
What Are MSP KPIs?
MSP KPIs are data and indicators that MSPs can measure and track to see how effectively they deliver services, support clients, manage resources, and grow profits. KPIs can provide actionable data showing how an MSP is growing, the average speed of its technicians, client satisfaction, and more.
However, while there are plenty of metrics that MSPs can track, the most valuable KPIs have direct correlations with business performance, operational efficiency, and client satisfaction.
Why MSPs Need to Track KPIs
KPIs provide clear data that correlates with performance, profitability, and other vital signifiers of business health and productivity, so knowing what to track and what they indicate can make the difference between growth and failure.
Key benefits of tracking KPIs include:
Measuring profitability and operational health to see if the company is on the right track.
Identifying service bottlenecks early to prevent issues before they can escalate.
Improving technician efficiency and resource allocation.
Strengthening SLA performance and ensuring the MSP is meeting its obligations.
Reducing client churn by tracking and improving client satisfaction.
Making planning and growth decisions with real data, rather than relying on assumptions.
12 MSP KPIs Every Managed Service Provider Should Track
So, what metrics should MSPs monitor to ensure they’re performing at their best? We’ve narrowed it down to the top 12 KPIs that every MSP should track:
1. Monthly Recurring Revenue (MRR)
First, there’s recurring revenue. This is one of the clearest indicators of business stability and growth because it shows how much predictable income the MSP is generating month after month.
You can calculate your monthly recurring revenue (MRR) with a simple equation: total customers × average monthly revenue per user. If your MRR increases month over month, that is usually a sign of healthy growth. If it plateaus or declines, it may indicate that the MSP needs to improve retention, pricing, service packaging, or expansion opportunities.
2. Gross Profit Margin
Revenue isn’t enough on its own, especially if service delivery costs are too high. MSPs need to earn more per user than they spend, but MRR doesn’t account for that. Gross profit margins help MSPs understand if their services are sustainable and scalable based on how much profit they earn per customer.
Calculating gross profit margin takes a slightly more complex formula: (Net Sales – COGS) ÷ Net Sales × 100 = Gross Profit Margin (%). To calculate this, first subtract the cost of goods sold (COGS) from your net sales to determine your gross profit. Then divide your gross profit by your net sales, and multiply by 100. The result is how much gross profit you earn as a percentage.
3. Average Revenue Per Client
Not all clients generate the same revenue, so it helps to understand the average. This KPI helps MSPs measure account value and determine whether their client mix supports healthy growth. It can also highlight opportunities for upselling, service expansion, and long-term account planning.
4. First Response Time
How quickly your technicians can respond is one of the clearest indicators of your service experience. If a client’s first experience with an MSP is a delayed response, that can hurt trust and user satisfaction right from the start.
MSPs need to ensure their staff can respond quickly to clients, especially on the first call. This means having a fully staffed team, as well as proper queue management and responsive service.
5. Average Resolution Time
Not only do MSP technicians need to respond to clients quickly, but they should also be able to resolve issues in a reasonable time. The average resolution time reflects the MSP’s ability to efficiently solve issues, which is important not only for client satisfaction but also for maintaining reasonable labor costs.
6. SLA Compliance Rate
An MSP’s Service Level Agreement (SLA) is a commitment to maintaining a certain level of availability and support. As such, MSPs need to monitor their compliance rate to ensure they’re meeting those obligations.
Strong SLA compliance improves client confidence and helps meet contractual performance levels. If you’re meeting your compliance requirements, that’s a positive sign for consistent operations, but poor compliance can be a sign of poor staffing, workflows, or tools.
7. Ticket Volume by Client
How many tickets come from a single client? Ticket volume can be a sign of a noisy account, recurring issues, or even underperforming environments. Regardless of the cause, a high ticket volume should be investigated.
Keep in mind that this KPI is best viewed in context, rather than just on its own. It’s important to understand what issues the client might be facing and any unique factors that could lead to a higher volume.
8. Repeat Ticket Rate
If technicians keep receiving tickets for the same issue, that can be a sign of a bigger problem. Repeated tickets can reveal deeper issues, such as recurring endpoint problems or inconsistent processes. So if there’s a high number of repeat tickets, that’s a quality of service indicator to investigate.
9. Technician Utilization Rate
Are your technicians making good use of their time? The technician utilization rate helps MSPs understand how effectively technician time is being used, so they can strike the balance needed for healthy utilization.
Keep in mind that, while technicians should be properly utilized, you also don’t want to overload teams to the point of burnout, as that will negatively impact your technicians, service quality, morale, and retention. A healthy balance is the key.
10. Endpoint Compliance or Patch Status Rate
MSPs need visibility into their client devices, especially regarding patching and endpoint health. This is key for both ongoing cybersecurity and maintaining IT compliance, so tracking compliance and patch status rates can help ensure a strong security posture and proactive maintenance.
For this KPI, it helps to have an endpoint management solution that provides a clear overview of patch statuses and remediation workflows. Endpoint visibility is essential here.
11. Customer Satisfaction Score (CSAT)
If your customers are unhappy, you’ll want to know immediately. CSAT helps MSPs measure how clients feel after support interactions or services, and can signal how well agents are performing and meeting customer needs. If a CSAT score is low, that’s a sign that processes may need to change or agents need more training, because a poor customer experience can drive users away regardless of operational efficiency.
12. Client Retention Rate
How well an MSP retains its clients is one of the most important top-level KPIs. This reflects the MSP’s service quality, customer relationships, pricing, and value delivered, and, of course, losing customers is always bad for business. If a client retention rate is low, it’s a clear indicator that something is wrong and needs to change, or the MSP risks driving more clients away.
How to Choose the Right KPIs for Your MSP
With so many KPIs to track, how can you tell which ones are the most important? You’ll want to consider a few factors when tracking KPIs, but here are some important ones to keep in mind:
Start with KPIs directly tied to your business goals to prioritize the most critical metrics.
Balance financial, operational, and client health metrics to ensure you’re getting a full overview of your business.
Avoid tracking too many metrics at once, or you may end up with more data than your team can use effectively.
Standardize how each KPI is defined and reviewed to ensure consistent data and analytics.
Focus on trends over time, not one-off snapshots, to get a more complete overview of your health and performance.
Review KPIs regularly and act on the data they provide, so you can make changes and improvements as needed.
Common KPI Tracking Mistakes MSPs Should Avoid
When tracking KPIs, knowing what not to do is just as important as knowing what to do. MSPs should be wary of common missteps to know what to watch out for.
Common mistakes include:
Tracking too many KPIs without clear priorities, which can result in an overload of unhelpful data.
Focusing only on revenue and ignoring service quality, as poor services can quickly lead to a loss in revenue.
Measuring ticket speed without measuring resolution quality; speed doesn’t matter if the clients’ issues don’t get resolved properly.
Reviewing KPIs without acting on the findings, which turns reporting into a passive exercise instead of a driver of improvement
Using inconsistent definitions across teams, which can lead to miscommunication and confusion.
Looking at averages without segmenting by client, technician, or service type, as that makes it difficult to identify specific areas for improvement.
How Better Visibility and Automation Help MSPs Improve KPI Performance
When MSPs want to improve KPI performance, they need the right operational workflows and tools behind the metric. Endpoint management solutions that provide visibility across environments can help teams identify issues faster, while automation and remote support tools can reduce manual work, improve consistency, and support better service outcomes. This shows up in several ways:
1. Use Real-Time Endpoint Visibility to Spot Issues Faster
With real-time visibility into endpoints, MSPs can more easily detect device issues, gaps in their patch coverage, and trends that could signal potential issues. This enables them to proactively address problems, maintain IT compliance across devices, and ensure they meet their SLA obligations.
2. Reduce Resolution Delays With Remote Access and Support Tools
Remote access and support tools enable MSPs to quickly connect to client endpoints for hands-on troubleshooting and support. This can help improve first response time and average resolution time by reducing support friction, improving technician efficiency, and enabling technicians to resolve issues without waiting for an on-site visit
3. Use Automation to Improve Consistency at Scale
Automation tools can support repetitive tasks such as patching, routine maintenance, and remediation workflows. This reduces manual effort for technicians while improving service consistency across clients and endpoints
4. Consolidate Tools to Simplify KPI Improvement
Fragmented tools can make it harder to improve KPIs consistently because technicians have to switch between systems, workflows, and reporting views. A more unified platform can help streamline workflows, reduce friction, and improve operational control by bringing remote support and endpoint management tasks closer together.
How Splashtop Supports MSP Performance
MSPs need the right tools to manage multiple client endpoints and improve the operational workflows behind their most important KPIs. Splashtop AEM helps support that effort by giving MSPs stronger visibility, automation, and control across managed environments.
With Splashtop AEM, MSPs can gain real-time visibility into endpoint and patch status, along with tools for patching, reporting, automation, and remediation. This helps teams reduce manual effort, improve consistency across client environments, and support better performance in service-related KPIs such as resolution time, compliance, and technician efficiency.
By combining fast remote support with endpoint management capabilities such as real-time patching, visibility, and automation, Splashtop can help MSPs improve the workflows that influence key service-oriented KPIs like response time, resolution time, compliance, and technician efficiency.
Improve Your MSP KPIs Performance With Splashtop
When MSPs track their KPIs, the data needs to do more than just sit on a dashboard. Monitoring metrics can help MSPs understand how their business is performing, where they can improve, and where their strengths lie. However, knowing what data to track and how to act on it is essential.
Tracking and understanding KPIs helps MSPs support client retention and improve profitability. By using solutions that provide better visibility, faster support workflows, and automation, MSPs can put themselves in a stronger position to improve both operational performance and the client experience.
Looking for a better way to support client devices, improve endpoint visibility, and reduce manual work across your managed environments? Explore Splashtop AEM to see how it can help support more efficient, consistent service delivery.
