Many field service businesses may fall behind if they don’t measure their performance risks precisely. Utilizing the right key metrics has become essential for improving efficiency, boosting customer satisfaction, and increasing profitability. But which key performance metrics are helpful for field service businesses? This blog will explore the five essential metrics every field service business should track for long-term success.
5 Key Metrics Every Field Service Business Should Track
1. First-Time Fix Rate (FTFR)
Improving the first-time fix rate (FTFR) is essential for successful field service businesses. It refers to the percentage of service requests resolved on the first visit. Indeed, a high FTFR means fewer technician repeat visits, leading to lower costs and higher customer satisfaction. According to the Service Council, service organizations can save $20,150,000 annually by improving their performance from an 82% first-time fix rate to a high-performance level of 92% FTFR.
2. Mean Time to Repair (MTTR)
Mean time to repair (MTTR) significantly impacts field service organizations. This key metric helps track the average time taken to complete the repair. To achieve a lower MTTR, implementing advanced field service management tools is essential. For instance, Fieldcode offers automated dispatching and route optimization features that streamline scheduling and reduce repair times. By leveraging such solutions, businesses can enhance efficiency and improve customer satisfaction.
3. Technician Utilization Rate
Technician utilization rate also plays an important role in achieving long-term success for field service organizations. This key metric measures how efficiently your workforce is utilized in field service operations. Indeed, businesses can track the percentage of total working hours spent on required tasks as compared to idle time. For example, top-performing field service companies achieve a utilization rate of 70-80%.
4. Customer Satisfaction Score (CSAT)
Happy customers boost repeat business and positive referrals. CSAT surveys typically measure customer satisfaction on a scale of 1 to 5 or 1 to 10 after a service call. The average CSAT score in field services is around 80%, and the best-performing organizations have above 90%. For example, many field service businesses utilize Fieldcode’s customer engagement tools to boost satisfaction.
5. Cost Per Job
Cost per job is also crucial for the long-term success of field service businesses. This key metric measures how much it costs to finish a job each service visit, including travel, labor, parts, and other expenses. Lowering this cost increases profitability while maintaining service quality. The cost per job varies based on industry and location, but reducing operational costs can significantly boost profit margins.
Final Thoughts
In short, we have explored the above five key metrics that can help field service businesses improve operational efficiency, lower costs, and boost customer satisfaction. By leveraging valuable insights, companies can make informed decisions for long-term success. If you’re not tracking these five key metrics yet, now is the time to start!
