Key performance indicators (KPI) are used by businesses to gauge progress in a variety of ways. Some commonly used KPI’s include sales per day, sales by salesperson or customer service representative (CSR), gross profit, net profit, lines per invoice and others.
The field service industry has some common KPI’s that are used also. These KPI’s primarily focus attention on sales, but also they can focus on productivity levels in various areas of the business.
Many field service businesses only look at the top and bottom line numbers to measure their business. These are probably the most popular and arguably the most important metrics; but there are many others available for the field service industry that can reveal problems before they have a negative effect on your top or bottom line.
Some field service industry metrics to consider are:
Number of work requests per day – this can reveal trends that may otherwise go unnoticed. You may find, for example, that most requests occur on Mondays. With this information you can better manage your CSR staffing.
Jobs completed per day – this can be an interesting number to analyze and compare to your sales per day. You may also want to look at the types of jobs that are completed and compare to your profitability by job type.
Emergency overrides – how often do your dispatchers need to get involved to shuffle work requests when an emergency arises? If you are having emergencies every day, you may want to allocate certain “emergency specialist” resources to specifically handling these urgent requests.
Cancellations – a high number of cancellations can indicate customer satisfaction issues that might be price related or service related. In these situations it might be wise to perform a customer satisfaction survey and determine the root cause of the cancellations.
Travel time and costs – vehicle and gas expenses can strip almost all profit away from a work order. By examining your travel time and trip expenses you can look for ways to fine tune your business rules and field resource location routing to reduce these expenses.
Turn-around time on jobs – How quickly can your field personnel complete a job? Do you have some highly productive resources, or do you have some resources that may need additional training? This metric can reveal a key productivity measure.
Location mapping – what areas of town have the most work requests? Should you plan your resources around those areas of town, or have the resources distributed across a broader area?
Average invoice total – by looking at your overall average invoice and focusing on ways to increase the average, you can gain sales by helping your field resources to look for opportunities to add more services such as ongoing maintenance agreements.
Not everyone loves to look at numbers all day. But by utilizing some key performance indicators, you can get improved customer service while adding to a very important metric – your business bottom line.