KPIs for Field Service Businesses: The Ultimate Guide to KPIs
The contributions of tracking KPIs toward this success cannot be taken for granted. Every service business is unique, and to that end, some metrics are more important than others. How each KPI is categorized may also differ slightly from one business to the next, and many are reflections of the performance of more than one function.
This guide is an ongoing reference that you can use to tap or add KPIs or “gauges” to your “instrument panel” as your business reaches higher altitudes. It’s a framework of relevant categories of KPIs that you can adapt to your specific model. (Hint: most service businesses start with at least two or three metrics in each category.)
Made by subtracting the percentage of detractors from the percentage of promoters, clients answering a 9 or 10 are most likely to refer friends and family and post online reviews on sites like Yelp, Google Reviews, and Facebook. For these reasons, there is a clear relationship between high NPS and business growth. Net Promoter surveys should be sent consistently and regularly to customers at critical intervals, such as after an initial large purchase or after a major service repair.
This metric represents the percentage of issues resolved on first calls or contacts with the customer. It is a critical metric to understand in maintaining strong customer satisfaction scores (CSATs) and business cost controls. Research from the Aberdeen Group shows leaders have an average FTFR of 86% and is often considered to be the single most significant component of CSATs.
Once the SLA model is firmly in place, the rate of recurring revenues relative to service and total revenues should be tracked monthly, quarterly, and yearly to determine the business’ ability to generate renewals. If the recurring revenue rate doesn’t consistently rise over time until it stabilizes, more investment in technician and salesperson training is likely necessary. This metric also helps to assess the value of the subscription- or contract-based service model.
Sometimes idle time can’t be avoided, but it can be reduced, especially through SLAs that generate more appointments. Time spent idle is time not charged to a customer and can include time spent locating parts or just waiting for the phone to ring. Determine the monetary value of idle time by subtracting the hours worked from the hours attended. Compare this KPI to your labor cost per hour to determine how much idle time is actually costing your business.