The Best Field Service KPI Examples
Every organization should be able to measure its performance and track its success and be strongly committed to the process. Key performance indicators (KPIs) are key metrics that indicate the level of performance, gross margin, and success of organizations. KPIs are important for organizations across all sectors, including the field service sector. Here are the important KPIs that every field service company should track.
Customer satisfaction
Every field service organization should track customer satisfaction as it is a clear indication of the success and gross margin of the organization. High customer satisfaction means enhanced customer retention and customer conversion.
Satisfied customers will definitely tell their friends, family, and acquaintances about the organization. It has been well proven that the best marketers for any organization are satisfied customers. By measuring customer satisfaction, an organization assesses how well it is using what is probably the most efficient form of organic marketing, satisfied customers to improve its gross margin.
Customer retention
Even though it could be described as an extension of customer satisfaction, it is an important standalone KPI that organizations should measure in assessing their gross margin.
Customer retention is an important KPI that every field service business should monitor because it is an indication of the organization’s best assets, existing customers. Customer conversion is a hard and expensive process. Instead of committing resources to acquire new customers, the organization can focus on retaining existing customers.
As highlighted above, existing customers will market the service if they consider it to be a high-quality service. Thus, assessing customer retention is a way of assessing the success or progress or even the gross margin of the organization.
Service profitability
When an organization monitors service profitability, it can tell whether its operations are in line with set goals. To assess service profitability, track the margin for each call. This would involve considering even the miscellaneous expenses.
Without assessing service profitability, an organization can receive a lot of calls and still struggle to stay afloat. The knowledge of the level of service profitability will guide the optimization of operational costs and service charges.
Completed versus invoiced jobs
This is an important metric to assess because it influences the actions an organization can take to prioritize its operations. When a job is completed but the invoice is not sent, the company loses revenue.
Thus, when an organization considers completed versus invoice jobs as a KPI, it can assess and optimize its revenue. For example, if jobs are being completed without invoices being sent out, the company can invest in invoice automation tools
First-time fix rate
Techs do not always fix issues on their first visits. They may assess the issue and realize that they do not have the required tools or skills. The first-time fix rate is the rate at which the techs fixed issues on first visits, a measure of efficiency.
Field service organizations can assess first-time fix rates to evaluate their overall efficiency and optimize as necessary.
An organization aiming for long-term growth and success should follow core KPIs closely. The best KPIs for field service companies have been highlighted above. Field service companies can optimize their operations for maximum efficiency and success by assessing these KPIs.
