7 Field Service KPI Examples You Shouldn’t IgnoreBy My Service Depot on Thursday, January 23, 2020
This list of key metrics will help you better evaluate the performance of your field service business.
With one year having just ended and another one starting, now makes a good time to think about overall success metrics related to the field service industry. These metrics are also called key performance indicators (or KPIs) and they are critical to helping business owners measure and evaluate their own successes. These measures point towards how well a company does its work. Nine out of ten of the best field service companies manage their businesses with these sorts of strategic goals in place. If you take the time to perform some simple evaluations, your company will gain a quick leg up.
Here is what you need to track–at a minimum.
According to 68% of respondents in a recent Aberdeen survey, customer satisfaction defines success more than any other key performance indicator. Never forget that field service, like most industries, is based on relationships. Happy customers don’t just stay loyal, they also have a tendency to tell their friends about their favorite companies. If you take the time to make sure your customers stay happy, you can build a field service business that stands the test of time.
Service profitability is also important. Pay attention to how much you spend on each call and the margins you earn on each transaction. Small expenses, like fuel getting the techs to and fro or the wrong payment processing service, can really add up–but you won’t know that if you don’t track your costs as they directly relate to each call.
Specific Service Costs
Make sure that your overall service costs are also part of the key performance indicators you track. Look at how much you actually use your service techs and how much of their time you can directly bill to customers. You wouldn’t be the first field service company to find that your techs spend more time in transit or doing paperwork than they do on billable production. Pay attention to field tech utilization rates, routing efficiency, and employee productivity. Some of your technicians may be able to finish jobs more quickly, and some may benefit from additional training.
First-Time Fix Rate
Look at your first-time fix rate (FTFR) as well. It plays a big part in customer satisfaction. Did you know that almost 75% of field service calls require that a tech make a return visit? Some 40% of the time, they didn’t have the right tool and another 35% of the time, the tech couldn’t complete the transaction because they lacked complete customer information. These are issues that could be easy to solve. With a smartphone and the right app, your guys would know what to bring every time. Track this information so you can see where your opportunities lie.
Contract or SLA Compliance
Consider your contract or SLA compliance as well. There is no reason for your field service company to be penalized for failing to fulfill your contracts. Keeping an eye on maintenance schedules and repair histories can make it easy, plus an ounce of prevention is better than an expensive break-fix issue. Don’t hesitate to set reminders or schedule routine appointments, especially with your biggest service contracts.
Customer retention is an important KPI as well. It costs money and time to attract a new customer. You may have to create social media posts, offer discounts, or beg for referrals just to get someone to call for an estimate. It can be hard work, especially if you do business in a smaller area. However, if you can keep your customers happy, you can keep them coming back.
Finally, be sure to track employee retention. Just like customer retention, it costs a lot less to retain an employee than find and train a new hire–so, don’t pay more on staffing than you have to. Make an effort to keep your employees happy and help them feel appreciated. Whether you need to buy them fresh uniform shirts, put a foosball table in the break room, or give your guys some extra flexibility in when they work, the extra effort will help you keep quality field service techs.
Tracking Field Service KPIs
Tracking key performance indicators for your field service business can help you offer the type of excellent service that your customers demand and expect. This year, take control of your company’s future and make sure that your business stays on the right track. Need help wrapping your hands around the comings and goings of your business? Streamlining processes with field service management software that compiles data and generates report can help. Why not request a Smart Service demo today?