Field Service Metrics: Find Your Business’s Match

If you know a customer, you have a lead, but if a customer knows you, you have the chance of getting multiple leads. 

Customer satisfaction plays a significant role in the evolution of a business.

Field service involves working on your products and services at the customer’s site. 

It means the customer’s experience will directly depend on your service. 

Hence, it is necessary to know important metrics according to your field service. 

If the important field service metrics are left unaddressed, it can affect your company’s performance and service ratings.

Do you know what field service metrics is?

And why is it so important to find the right match of metrics for your business?

Here’s a guide about field service metrics and their importance.

What are Field Service Metrics?

Metrics that determine the performance of the services provided by the company outside the premises are known as field service metrics. 

It is one of the strategies implemented to achieve the field service business goals.

These are the quantifiable data collected concerning the field service operations to determine the key performance indicators. 

The collected data can be used to plan strategies that contribute to business growth. 

There is a long list of field services metrics if one ever sits down to track the company’s performance:

• Overtime hours
• Reschedule rate
• Employee retention
• Mean time to service
• Mean time to repair
• Mean time to complete
• First-time fix rate
• Technician utilization
• Uptime of equipment or services
• Technician productivity
• Growth rate
• Repeat visits

And this list will go on. But is it necessary to study all the metrics? 

If you consider all the key performance indicators (KPIs), you’ll end up with comprehensive data, and this bulk is actually of no use.

The main purpose is to determine the required field service performance metrics to get accurate results and increase customer satisfaction.

15 Most Common Field Service Metrics

Running a field service business is a complex task, as it involves the management of a field service team and assuring successful field service operations, simultaneously. 

Along with managing all this, one is supposed to determine the company’s performance from time to time. Making the right decisions for the company is possible only if you are well aware of the field service team’s performance. 

The fifteen most common field service metrics have been listed below to make a precise analysis of the business performance. 

These fifteen metrics are chosen under the three key performance indicators to help find accurate data while touching all the important spheres. 

Field service metrics:

• Service efficiency
  • Mean time to complete task
  • Average response and repair time
  • Travel time cost 
  • First-time fix rate
  • Technician utilization 

• Customer satisfaction
  • Customer retention
  • Equipment uptime
  • Customer acquisition cost
  • Service contract attach rate
  • SLA compliance rate

• Business performance
  • Job profitability
  • Business growth
  • Revenue per lead
  • Contract and revenue leakage
  • Service to cash rate

Service Efficiency

It is a time-related metric. Service efficiency refers to the time taken to complete the assigned job. It is important to determine how to reduce the time to finish the job. 

To find the right measures to increase efficiency, one must be aware of the following metrics:

1. Mean time to complete tasks

One among the most common field service management metrics that help in determining the average time spent on the field to complete the activity is the mean time to complete tasks. Additionally, considering the mean time to repair metric can be crucial in understanding the effectiveness and speed of problem-solving activities. It is used to determine the efficiency and productivity of the employees.

It is used to determine the efficiency and productivity of the employees.

How many tasks were completed? 

How much time was consumed? 

These two questions can be considered when calculating the meantime. 

The field service team determines the meantime for tasks. With proper management and skilled field service professionals, field service operations can be successfully carried out. 

2. Average response and repair time

This metric helps measure the average time taken to respond to a service call and complete the task provided.

The response time for a service call is an important skill base metric as it determines the reaction time of the employees. 

The repair time is usually applied to the inventory, shipping, and sales department. 

Both serve the purpose of determining the average time consumed in provided services. The data can be used to take measures regarding improvement in services and providing training.

3. Travel time cost

The metric is to calculate average travel time and distance cost. If it shows that you have spent too much time traveling, it indicates that there is an issue in scheduling and route planning. Also, numerous times traveling to unnecessary and unplanned places could be expensive.

The formula to calculate average total travel/distance:

Average travel time/distance= Total travel time/ distance

                                                        ______________________
                                                              Total service calls

Average cost = Total cost/Total service calls

4. First time fix rate

Does your technician solve the problem or perform the complete job in one visit?

In the first-time fix rate, the metric measures the percentage of jobs that are fixed in the first visit by the field service technician. Multiple times, the tech may not perform or solve the issue in one visit and require too many return visits. And later, it ends up losing opportunities and profit for new projects.

Thus, to enhance this metric, you ensure that your dispatch assigns the task to the right field service technician. Also, ensure that the technician arrives at work with the necessary tools and equipment, then only the task can be completed.

5. Technician Utilization

This metric calculates how many billable and productive hours field service technicians have spent during their shifts. It is used to identify employee productivity and other non-productive such as idle time spent. 

The percentage of billable hours is counted when technicians spend time in:

• Traveling from one job to another
• Getting stuck in traffic
• Finishing the paperwork 
• Returning to complete unfinished tasks

Also, the above points are a lower utilization rate. It means that technicians have spent more time doing other activities and it affects field service performance metrics. 

Customer Satisfaction

Customer satisfaction is equally important in measuring how happy the customer is before, during, and after your services. These KPIs include metrics like customer retention rate and feedback on your service. 

Here are the five important metrics that can ensure satisfied customers:

6. Customer retention

The first step to determine the brand value is the customer retention rate. Retaining customers is an important aspect that leads to repeat business. 

This metric helps in establishing a brand and attracting new or repeat customers.

Customer rate retention can help you understand what features and services your company provides are most liked and keep your customers coming back for more. 

This metric can further help in planning new strategies to improve customer experience.

7. Equipment uptime

Uptime refers to the period for which equipment functions properly, providing all the benefits promised during purchase. 

It is important to track equipment lifecycles. Hence the service contracts are provided to the customers. These contracts generate more revenue and provide a better relationship with your existing customers. 

Customers tend to trust a brand that provides equipment with significant uptime. Timely maintenance can help in achieving this goal and win a customer. 

The entire job cycle revolves around how to enhance customer experience and business performance. 

8. Customer acquisition cost

This metric is helpful and effective for your field service company because cost provides marketing insight for improvement. It measures the cost you have spent on ads to find new customers. 

The purpose of the customer acquisition cost is to get the right customers and target market at the lowest cost. For instance, you can use email marketing at a lower cost per acquisition because it is effective and help you get customer efficiently.

9. Service contract attach rate

The contract attach rate calculates the percentage of sales that have a service contract. Usually, it is during the initial equipment purchase process and at one-off service interactions. It also indicates recurring revenue streams and helps to predict future revenue. 

The rate helps the sales team to improve incentives to attract customers to sign the contract. Also, a low rate of contract attachment means your customers are not seeing the value and do not trust you enough to continue with your business. 

10. SLA compliance rate

The service-level agreements define the service you provide to your customers. It measures how much time you are taking to match their expectations as mentioned in your service contract. They want to ensure that you provide services by offering acceptable standards. 

The rate will be affected if you take more or a slow time to respond, miss scheduled service, and have the insufficient skill to solve the problems. For instance, if the field service engineer fails to meet SLA then it will lead to a loss in business. Also, it will result into falling in customer credits.

Business Performance

For a business to continue to exist, it is important to monitor its performance of the business time to time. 

The insights used to determine business performance, such as productivity and technician utilization, enhance field service management.  

Here are the metrics to determine the business performance:

11. Job profitability

This metric determines the profits you make on your service. This metric identifies the cost involved in completing the task and then calculates the money saved without compromising the service.

It is not limited to the equipment and sales; it is used to determine the money billed for the technician and costs of maintenance, other than on-field services. 

The overall budget calculation can determine your business profitability. 

This metric helps identify key areas where lowering the price is necessary or can be negotiated as per profit goals. 

It improves overall business profitability. 

12. Business growth

Field service industry is a vast industry with a lot of competition. To stand out, one must know about all the aspects of the company.

The ultimate idea is to expand your business, creating its value and ensuring the company’s success. Referring to this metric, a business can compare its services and profits to its competitors in the market.

The key factors that can contribute to creating mindful strategies for better field service management are monthly sales growth rate, net profit, product performance, and net margins. 

13. Revenue per lead 

To get a better understanding of field service team performance, revenue per lead is a great field service KPIs metric. It will help you to examine the percentage of closed and canceled leads. The metric shows when it is time to revamp business practices when the business closes a small percentage of total leads. 

14. Contract and revenue leakage

Contract leakage is the metric that is often missed by businesses. The metric measures when the customers think that work is done under the contract but is not part of it. However, the technician will do it and not charge for it. 

It generally happens when there is confusion due to a lack of information or misunderstanding. Coming to revenue leakage; it is the unnoticed revenue that occurs because of non-billing or under-billing to customers. It is crucial for the company’s bottom line and can be controlled with efficient reporting and monitoring. 

15. Service to cash rate

Is there any customer effort score that indicates that the job completion is done right? 

Not really but the service to cash rate metric help to measure performance. It calculates the time it takes for a customer to pay for service from the time it was finished by the technician. 

The rate is affected the most in the invoicing process. If the customer has not paid their invoices or is yet to be paid signifies that there is less working capital for daily operations. 

Now that you know the key metrics, how will you choose the appropriate field service metrics?

How to Find the Best Field Service Metrics for Your Business?

To find a field service management solution, identifying the key metrics before collecting the data is necessary. One has to be well aware of the important areas. 

It is crucial to understand the business objectives and the outcome one can expect by determining metrics. 

1. Identifying metrics for a broader business goal

There always exists a clear picture of a company’s future that determines the steps to be taken. This business goal might get updated over time, but managing it with discipline keeps the business going. 

The first step is to identify the best field service metrics that align well with your long-term business goal. 

Don’t get confused over the long list of metrics. Keep your business goals aligned and choose the metrics to help you achieve them on time.  

Try and experiment with metrics because you are supposed to set the change according to your goals. 

2. Research and data analysis

To get a clear picture of what to track, the management must know the essential metrics. Capturing data available and updating it with real-time data can help create significant results. 

The results of proper research and data analysis are supposed to be accurate to be implemented to plan strategies. 

Providing reliable and accurate data will provide the management with the desired analytics to make informed decisions. 

3. Actionable metrics consideration

Having a quantifiable metric is good but useless if not actionable. 

Establishing a database for your company and having actionable metrics are two different things. You must know that not all data available is determined to plan a strategy. 

Having limited but accurate and actionable metrics is of utmost importance. 

So, the data you collect under a metric must be actionable. This will make the decision-making process easier and provide accurate results to know the key areas that need attention.

To conclude, one can just answer the following three questions to identify the best metrics for the business:

• What are the long-term goals and objectives of the business?
• Where the research has to be done?
• What metrics must be considered?

FieldCamp – The Ultimate Field Service Scheduling Software

How are you planning to manage all your field service operations and run data analytics?

This can be hectic work to do, but now, not with FieldCamp. 

FieldCamp is the ultimate field service service scheduling software solution to all your service scheduling problems.  You can 

• Save time
• Stay organized
• Boost productivity 
• Delight customers
• Ditch the paperwork

This powerful field service management software comes with a user-friendly interface that can make your field service management a lot easier. To know how this software is beneficial for your business, you can start your 7-day FREE trial.