10 Essential Field Service Power Metrics You Need to Monitor in 2020
You know it’s important. You know you should be using it to make critical business decisions. You know that it could be key in growing your home services company (because it is).
But not all data is created equal. Some numbers are vital to the health of your business--but others are just in the way or, even worse, misleading. Below, let’s take a look at the ten most important field service metrics you should be tracking for your field service business.
1. Average Response Time
How long does it take for your business to get a truck to a customer's house following a call? If your business does a lot of on-the-spot, emergency service dispatching, understanding your average response time can help you fit in more jobs (and more revenue) into your average workday.
2. Mean Time to Repair
This is an average time it takes for your techs to repair a unit onsite. Obviously this can vary widely call-to-call, but giving your techs access to education, resources, and technology can help shorten this metric and make your team more efficient.
3. Mean Time to Complete
This is the average time you business completes an entire job cycle-- everything from the initial call to scheduling, service, and billing. Understanding this metric will help you get sense of how efficient the workflow at your company is and-- and how where you can tighten up to improve customer experience.
4. First Time Fix Rate
Ideally, you want to be able to complete a job in one visit, right? It doesn't always happen, but when it does, its optimal for productivity. Figuring out your first time fix rate may reveal that your team is bogged down by too many return visits and missing out on opportunities to profit from new jobs.
5. Repeat Visits
Essentially an inversion of the last metric, repeat visits measure the amount to times your team needs to return to a job to finalize service within a set timeframe. Repeat visits are, of course, not ideal and a high rate could mean it's time for your techs to partake in some training or your company to invest in remote monitoring capabilities.
Utilization is how many productive hours your techs spend during their shift. Servicing the customer and making upsells count as productive time. Being stuck in traffic is not. If your utilization is low, it may be time to look at how to improve your scheduling and dispatching.
7. Contract Uptime
The percentage of problem-free operation of any piece of equipment (like an HVAC unit, for instance) that's covered by a maintenance contract is your contract uptime. If your company tends to make a lot of calls that are covered by a contract--and not generating revenue--then it may be time to look into your installation practices, the quality of your supplier's hardware, or how to better adjust the terms of your maintenance contract.
8. Service Contract Attach Rate
How often are you selling maintenance contracts/agreements to your customers? You already know that these contracts can be a huge revenue stream for your business. If you're techs/CSRs are not converting on these on a regular basis, it may be time to revisit your contract offerings to make them more appealing to homeowners--or how your team is pitching maintenance contracts to customers.
9. Customer Acquisition Cost
It’s time to look at your marketing. CAC is your ad spend divided by the number booked jobs resulting from that spend (over a certain period of time). You can break this down by campaign to determine which promotional channels are working for your business and which aren’t. You’re shooting for the lowest CAC possible, so campaigns with a high CAC need adjustments—or should be shut down.
10. Organic Growth
All the critical metrics listed here are meant to help you measure the success of your company. Ultimately, good metrics should result in growth. Many owners believe that “growth” can be tracked simply with revenue, but that’s not true. Growth is driven by an expansion of a business’ customer base. In looking at growth, you want be mindful of retention (percentage of returning/loyal customers), churn (the number of customers that drop your services), and just how effective promotional campaigns and word-of-mouth are at adding to your pool of unique customers.
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