Escalation rate

Escalation rate reflects how often support tickets or customer inquiries are passed from a frontline customer support worker or AI agent to a more specialized human agent. While some escalations may be necessary, a high escalation rate can be a red flag. It may indicate problems with agent training, outdated knowledge bases, unclear processes, or product confusion.

Escalation rate helps organizations understand where breakdowns occur in the support journey and how to build a more responsive and satisfying customer experience. Moreover, it’s a holistic measure of agent (human and AI) performance, customer satisfaction, and operational efficiency. AI is increasingly playing a central role in managing and reducing it.

How do you measure escalation rate?

Escalation rate is the percentage of support interactions that are transferred beyond the initial support level and can be calculated using this basic formula:

Escalation Rate = (Number of Escalated Tickets / Total Number of Tickets) × 100

For example, if your team handled 1,000 support tickets in a month, and 200 of them were escalated, your escalation rate would be 20%.

Rates vary by industry and business complexity. A software company with technical products may naturally see higher escalations than an online retailer with straightforward processes. Still, as a general rule, escalation rates under 20% are considered healthy in many support environments, especially if CSAT and FCR rates are strong.

It’s important to gauge these rates in context, alongside other metrics like:

• First Contact Resolution (FCR)
• Average Handle Time (AHT)
• Customer Satisfaction Score (CSAT)
• Net Promoter Score (NPS)

If your escalation rate is low but CSAT is also low, you may be missing complex issues that should have been escalated. 

Escalation rate impact on customer experience (CX)

When escalation rates are too high, it can damage customer trust. Customers don’t want to feel like they’re being handed off or that their issue is too difficult for a company’s team to handle. Even if the issue is ultimately resolved, the experience of being transferred around can leave customers frustrated. That’s especially true when escalations feel unnecessary or avoidable.

A high escalation rate can:

• Increase resolution time
• Decrease First Contact Resolution (FCR)
• Lower Customer Satisfaction (CSAT)  
• Create perceptions of inefficiency or disorganization

In contrast, keeping escalation rates low while still ensuring complex problems get the attention they need shows that your team is well-trained and your processes are working.

How to reduce escalation rate

A high escalation rate can signal deeper issues within a business. Remedial actions are often required and may include: 

• Improving agent training
• Updating and expanding knowledge base
• Implement clear escalation guidelines
• Use AI to assist
• Monitor and act on feedback

Escalation rate is a mirror of your customer support operation’s health. A high escalation rate can signal training gaps, workflow issues, or underused tools. A low rate, if achieved by empowering agents and leveraging AI effectively, often reflects a mature, customer-first support strategy. Ultimately, reducing escalations means faster resolutions, happier customers, and stronger loyalty—goals any business can stand behind.