In an increasingly competitive market, an MSP’s profitability doesn’t just rely on service quality, it depends on the ability to efficiently manage operations. To achieve this, tracking the right indicators is crucial.
Here are the 3 essential KPIs to stay on top of performance and ensure healthy growth.
1 - Cost Per Ticket (CPT)
Why it matters:
CPT measures the average cost of resolving a ticket. The lower it is, the more operationally efficient you are.
How to calculate it:
Total cost of the technical team (salaries, expenses, tools) ÷ number of tickets resolved over a given period.
What to watch for:
- A sudden increase may indicate lower productivity or overload.
- A very low CPT could also mean superficial issue resolution.
💡 Mizo* Tip:
With AI, you can automate simple tickets and significantly reduce your CPT without compromising quality.
2 - Technician Utilization Rate
Why it matters:
This measures the percentage of time technicians spend on billable or value-added tasks.
How to calculate it:
(Time spent on value-added tasks ÷ total work time) x 100
What to watch for:
- Below 70%? Too much time may be lost on administrative or poorly prioritized tasks.
- Too high? Watch out for burnout or lack of time for strategic projects.
💡 Mizo Tip:
AI helps distribute tasks efficiently and automate follow-ups, maximizing technicians’ productive time.
3- Average Revenue Per Client (ARPC)
Why it matters:
This KPI measures the individual profitability of your clients. It helps identify those who cost more than they generate.
How to calculate it:
Total recurring revenue ÷ number of active clients
What to watch for:
- Spot clients who generate many tickets but bring in little revenue.
- Optimize your packages and adjust your business model if needed.
💡 Mizo Tip:
With better visibility into your operations, you can fine-tune your offerings and focus on your most profitable clients.
Conclusion
Tracking these three KPIs allows you to maintain control over your MSP’s performance and profitability. Combined with an intelligent tool like Mizo, they become powerful levers for making informed decisions, improving efficiency, and growing your business—without overburdening your team.
*Mizo is an AI-powered SaaS platform for MSPs, automating tasks, optimizing resources, and boosting productivity for IT service teams. Curious? Book a call