Six Field Service Metrics You Should Be Tracking
I’d like to share the key field service metrics that are invaluable for service providers to track, what they show you, and the reasons these metrics are so beneficial for your business.
If you have a team of technicians in the field servicing equipment, then you know the value of driving efficiency and improving customer satisfaction – all with an eye on growing your service business, reducing costs, and increasing revenue. These analytics will help refine your vision, shape your business plan, and maximize your resources.
Average Resolution Time monitors the efficiency of the entire life cycle of a work order, from the time the service was promised to the time it was completed. This will help you get insights into things like whether you had the right parts, or if the problem was properly diagnosed before the technician was dispatched. It’s a great metric that can show you where things were slowed, or where they were efficient, and it looks across the entire picture of your customer’s journey.
First time fix rate is one of the most talked about metrics, and for a good reason. If you can fix issues the first time, you’re able to get your customer back up and running (or avoid downtime altogether), which means satisfied, loyal customers. They won’t have to wait for a tech to return with parts and make another service appointment, creating further disruption. If First Time Fix Rate is low, it can reveal insights into your initial diagnosis of problems before techs are dispatched to a customer site, whether you have the parts readily available, or whether techs are dispatched for the issues they’re best skilled to resolve.
Meantime to Failure allows you to be predictive about upcoming maintenance and empowers you to service equipment before it fails, preventing downtime and inconvenienced customers. This data may be derived from your internal maintenance records to notify you when a component is likely to need servicing, upgrading, or replacing, and when. This measure can also be based in part on third-party historical data sources for similar equipment, giving predictive insights on when you may need to service assets. You’ll keep equipment and customers operating & performing.
Average Profitability of Service by Asset Type monitors profit margins for labor, travel, and components. This gives insights into establishing and hitting your targets on service profitability. You’ll know exactly how much profit you’re making per asset type, technician, customer, and work order – in the long-term helping to shape your business plans and see how you’re tracking against them.
Contract Renewal Rate monitors when extended warranties and service agreement renewals are due, helping to ensure continued subscriptions – ideally renewed before they expire. This will help your retention rates and improve customer loyalty with timely service. It also helps shape your business plans by giving you solid forecasting numbers because you’ll have a good expectation of which customers are due to renew their warranties and agreements. More organizations are starting to alert technicians of expiring agreements and have them drive renewals to augment sales rep initiatives.
Repair Quote Turnaround Time helps you learn how quickly you’re closing service deals. If you delay getting a quote to the customer, they may go elsewhere for service or choose not to pursue the service if they don’t consider it urgent. Customers always prefer a timely follow-through of commitments, and if it’s lagging, this can show you an area of opportunity to improve service.
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