Field service business owners want to know one thing: where exactly they need to make improvements in order to achieve more profitability, provide better service, make technicians more productive, and lower business expenses. But you can’t improve what you can’t measure, and KPIs allow service organizations to define, measure, monitor, and track performance to achieve their organizational goals.
A comprehensive field service management software can help you analyze your KPIs and optimize your productivity. Here are 6 KPIs you can use to measure your performance against your strategic plan:
1.First-Time Fix Rate (FTFR)
First-time fix rate is the percentage of repairs that are resolved on the first customer site visit. Being a leader in this regard indicates your field service processes are streamlined and your techs are enabled with the mobile tools they need. Research shows leaders have an average FTFR of 86 percent. This goes together with another important KPI, callback percentage. A good service department should have less than 2% of its service calls result in a callback.
2. Customer Satisfaction (CSAT) Rate
Knowing how satisfied your customers are is critical for a field service organization. CSAT, a critical KPI, drives customer loyalty over the long-term and is directly linked to profitability. Loyal customers buy more from you,stay longer, refer business to you, and recommend your organization- all of which drive the top and bottom line. Which leads us to our next point.
3. Customer Retention
How good is your company at inspiring loyalty among its customers? Existing customers are worth more than new ones, as the revenue a company generates from loyal customers can sustain a business. Customer acquisition is often expensive due to the time, resources, and efforts that need to be put into finding new clients. Retaining clients means having ready-to-go word-of-mouth marketing that can help you acquire new customers. Similarly, if you provide great service and your technicians use their power to offer customers new products and services, you will be able to increase customer retention.
4. Field Technician Utilization Rate
What percentage of appointments do our techs arrive to on time? How long does it take them to complete a service appointment? How much time are they spending on job sites? Breaks? Overtime? Do they frequently upsell additional maintenance, products, or services? How many jobs are they completing each day? Who are our best performing technicians, and why? Knowing how productive your employees are can show you where their skill strengths and weaknesses lie. It can also show you whether more training is required, new techs are needed, or if you need to restructure your current team.
5. Average SLA Compliance Rate
This KPI is crucial to both customer retention and service profitability. As the main contract between the field organization and the customer, SLA compliance rates have far-reaching implications. Did we make money on that job? Are our maintenance contracts profitable? Are we giving away free service? How many customers are on service contracts? If your service organization is routinely being penalized for missing SLAs, you are incurring financial penalties, not to mention providing less than stellar service to your customers. Industry research shows that top performing companies have a 90 percent SLA compliance rate while average companies are at 80 percent. It is crucial for field service companies to measure how much revenue is being made from services so that business processes can be adjusted and improved.
6. Completed vs. Invoiced Jobs
If a technician has completed a job, but the customer has not been invoiced, you would want to know, right? The clock for service-to-cash starts ticking the moment the job is done, not when the customer is invoiced. That’s why it’s so important to stay on top of your company’s invoicing and billing cycle. The longer the lag time between the service and invoice dates, the greater the cash flow crunch you will have to deal with. An unsent invoice after completed work means missing revenue for your business.
KPIs help provide a snapshot into how your company is performing overall- which is critical for the success of your field service company. Does the thought of measuring all these KPI’s seem overwhelming? With a comprehensive field service software, all of this information can be automated and analyzed in easy to read charts and graphs any time, any place. If you can measure these aspects of your business, you can identify what you’re doing well and what needs improvement – and make better-informed business decisions based on the real-time data your business is already generating.
Contact FIELDBOSS to learn how to better serve your customers – and to help your business thrive.