Last week on the SmartVan’s Field Service Poll, we asked what you considered to be the most important metric for measuring your team’s performance in the field. The results are in and, while the top performance metric chosen was service revenue (36.8 percent of votes), customer satisfaction and first-time fix rate tied for second (26.3 percent of votes). According to field service research from Aberdeen Group, this isn’t surprising — these three performance metrics not only compliment one another, but are inextricably linked.
Here are a some of Aberdeen’s findings:
According to Aberdeen’s Field Service 2013 Workforce Management Guide: “80 percent of field service revenue is driven from current customer on existing products or new products and services.” But companies with low first-time fix rates (and therefore customer satisfaction) don’t experience this kind of customer retention. For example, according to Aberdeen, organizations with less than 50 percent first-time fix rates saw their service revenue decrease by 2.8 percent over a period of 12 months.
“Ultimately, satisfied customers help drive retention and profitability for the service organization,” writes Aberdeen research analyst, Aly Pinder, organizations that reached a 90 percent or more customer satisfaction rates achieved an annual:
- 6.1% growth in service revenue
- 3.7% growth in overall revenue
- 89% current level of customer retention
What other performance metrics do you measure? Let us know in the comments below.