Introduction
Having the right KPIs is essential to help any appliance repair business succeed and grow. KPIs measure the performance of a business and give owners insight into areas that can be improved. The top seven appliance repair KPIs are average service turnaround time, average ticket resolution time, quality of customer service, customer retention rate, technician utilization rate, cost average repair cost and profit per service call.
In this blog post, we’ll describe what each of these KPIs is, how to track and calculate them, and what the ideal numbers should be.
1 average service recovery time
Definition
Average Service Completion Time (AST) is a Key Performance Indicator (KPI) that measures the time it takes to complete a repair. This metric is important for appliance repair companies because it helps them understand the effectiveness of their service and identify areas for improvement.
Benefits of Tracking
Tracking AST can help device repair companies measure the effectiveness of their service and identify areas for improvement. Additionally, it can be used to benchmark performance against other companies in the industry. AST can also help create Service Level Agreements (SLAS) for customers, as it can provide an estimate of how long a repair will take.
Industry Benchmarks
Industry benchmarks for AST vary depending on the type of device and the complexity of the repair. Typically, repairs are expected to be completed within a few days. For more complex repairs, a turnaround time of a few weeks is more common.
How to calculate
The formula for calculating AST is:
Calculation example
For example, if a repair company performed 10 repairs over a two-week period, the AST would be:
Tips and Tricks for KPIs
- Follow AST regularly to identify trends or patterns.
- Look for ways to reduce AST, such as streamlining the repair process.
- Set realistic expectations for customers based on the AST.
- Compare your AST to industry benchmarks to identify areas for improvement.
2 Average ticket resolution time
Definition
Average ticket resolution time, or ATRT, is the average time it takes an appliance repair service provider to resolve a repair request from the time it is received to the time it is completed. This metric is a key performance indicator (KPI) used to measure the efficiency and effectiveness of an appliance repair service. This is an important metric to track as it can help identify areas for improvement in the repair process and provide insight into customer satisfaction.
Benefits of Tracking
ATRT tracking has several advantages. It enables service providers to better understand the performance of their repair services, identify areas for improvement and measure customer satisfaction. Additionally, ATRT tracking can be used to benchmark performance against other service providers in the industry and identify areas where improvement is needed.
Industry Benchmarks
The industry benchmark for ATRT is usually between 24 and 48 hours. This means that, on average, an appliance repair service should be able to resolve a repair request within this time frame. It is important to note that this time may vary depending on the complexity of the repair and the availability of technicians.
How to calculate
The ATRT is calculated by taking the total number of repair requests received and dividing it by the total time it took to resolve all of those requests. The formula for ATRT is:
Calculation example
For example, let’s say a repair department received 5 repair requests and it took a total of 24 hours to resolve them all. The ATRT would be 24 hours / 5 requests = 4.8 hours.
Tips and tricks
- Follow ATRT on a weekly, monthly, and yearly basis for insight into appliance repair service trends.
- Identify areas where ATRT can be improved and set goals for improvement.
- Look for patterns in the data to identify areas for improvement in the repair process.
- Compare ATRT to industry benchmarks to identify areas where improvement is needed.
3 quality of customer service
Definition
Customer service quality is a KPI metric that measures the quality of customer service provided. It tracks customer satisfaction with the service received and helps identify areas that need improvement.
Benefits of Tracking
Tracking the quality of customer service can be beneficial for any appliance repair business. It allows the company to analyze customer feedback and make changes to improve customer satisfaction. It also helps identify any potential issues that may affect the customer’s experience. Tracking the quality of customer service can help ensure that the customer experience is consistent and satisfying.
Industry Benchmarks
The industry benchmark for customer service quality is usually set at 80% satisfaction or higher. This means that 80% or more of customers are satisfied with their experience. Any customer service quality score below 80% indicates that there is room for improvement.
How to calculate
The quality of customer service is usually calculated using the following formula:
Calculation example
For example, if a business receives 10 customer service inquiries and 8 of them are satisfied with the service provided, the customer service quality would be 80% (8/10).
Tips and tricks
- Regularly monitor the quality of customer service to identify potential areas for improvement.
- Encourage customers to provide feedback to get an accurate picture of customer satisfaction.
- Ensure customer service inquiries are responded to in a timely manner.
- Encourage customers to provide reviews on third-party websites and social media.
4 Customer retention rate
Definition
Customer retention rate (CRR) is the percentage of customers who continue to use a company’s services or products within a given period. It is also known as customer retention ratio, repeat purchase rate, and repeat customer rate.
Benefits of Tracking
CRR is an important metric to track in any business, as it helps measure customer loyalty and satisfaction. Monitoring customer retention rate can help businesses identify the root cause of customer churn, which can in turn be used to improve customer experience, create better customer service, and optimize overall marketing strategies.
Industry Benchmarks
The average customer retention rate for companies in the appliance repair industry is around 70%.
How to calculate
The formula for calculating customer retention rate is:
Calculation example
For example, if a business had 100 customers at the start of the year and added 20 new customers throughout the year, and ended the year with 120 customers, the customer retention rate would be:
Tips and tricks
- Be sure to track customer retention rate regularly, as changes in customer retention can indicate whether current strategies are working or not.
- Identify customer pain points and areas for improvement to reduce customer churn.
- Encourage customer loyalty with discounts, loyalty programs, and referral programs.
- Analyze customer data to understand customer needs and preferences.
- Provide excellent customer service to ensure customer satisfaction.
5 Technician utilization rate
Definition
Technician utilization is a key performance indicator (KPI) for appliance repair companies. It reflects the efficiency of the technicians in their work. It is the ratio of the total time spent by technicians on repair and maintenance work compared to their total available time.
Benefits of Tracking
The utilization rate of follow-up technicians can have a few advantages for an appliance repair business:
- It helps to measure the efficiency of technicians.
- It can help identify areas for improvement.
- It can help reduce costs and increase profits.
Industry Benchmarks
The industry benchmark for technician utilization rate is typically between 75-85%.
How to calculate
The technician utilization rate is calculated by dividing the total time spent by technicians on repair and maintenance work by the total available time.
Calculation example
For example, if a technician works 8 hours a day and spends 6 hours on repair and maintenance work, the technician’s utilization rate will be:
Tips and tricks
- Try to reduce the time spent on repair and maintenance work, while providing quality service.
- Focus on preventive maintenance to reduce the time spent on repair work.
- Provide regular training to your technicians to increase their efficiency.
- Monitor the utilization rate of individual technicians and compare it with the industry average.
6 average repair costs
Definition
The Average Repair Cost KPI measures the cost of repairing a device or group of devices. It is calculated by taking the total repair cost and dividing it by the number of repairs.
Benefits of Tracking
Tracking the average repair cost KPI can provide valuable insight into the efficiency of the repair process. By monitoring the cost of repairs, companies can identify cost saving opportunities and identify areas where they may need to invest in better parts or processes. Additionally, tracking the average repair cost KPI can help companies determine the profitability of repairs and compare them to industry benchmarks.
Industry Benchmarks
The average repair cost for the appliance repair industry varies by industry. For example, refrigerators generally cost more to repair than washers and clothes dryers. In addition, the cost of repairs varies by geographic region due to differences in labor and parts costs.
How to calculate
The average repair cost KPI is calculated by dividing the total repair cost by the number of repairs. The formula to calculate this KPI is:
Average repair cost = total repair cost / number of repairs
Calculation example
For example, if a repair shop spends 0 to repair a refrigerator and 0 to repair a dryer, the average repair cost KPI would be calculated as follows:
Average repair cost = (0 + 0) / 2 = 0
Tips and Tricks for Tracking the KPI
- Track the cost of repairs for different types of devices separately to better understand the cost of repairing different types of devices.
- Consider tracking the average repair cost KPI over time to identify repair cost trends.
- Compare your repair costs to industry benchmarks to identify areas where you can improve.
7 profits per call call
Definition
Profit per service (PPSC) is a metric that measures the amount of profit made per service call. It is a key performance indicator (KPI) used to gauge the efficiency and effectiveness of an appliance repair business.
Benefits of Tracking
Tracking PPSC is essential for any appliance repair business. It allows business owners to understand how profitable each service call is and helps them identify areas for improvement. As a result, they can make informed decisions on how to improve their services and increase their profits.
- Helps identify areas for improvement
- Enables informed decision making
- Maximize profits
Industry Benchmarks
The average PPSC referral is around 0. However, this number may vary depending on the type of appliance repair services offered and the efficiency of the company. It is important to note that this benchmark should be used as a guide and not as a target or objective.
How to calculate
To calculate the PPSC, divide the total profit made by the number of service calls. The formula is:
Calculation example
For example, let’s say a company made a total profit of ,000 from 50 service calls. The PPSC for this company would be:
Tips and tricks
- Monitor PPSC regularly to identify areas for improvement.
- Compare PPSC to industry benchmarks to ensure you are meeting industry standards.
- Monitor employee performance to ensure they are providing efficient services.
Conclusion
Ultimately, tracking and understanding the top seven Appliance Repair KPIs gives owners a better understanding of their business performance and where improvements can be made. Having the right KPIs in place to track and measure the performance of an appliance repair business is essential for owners to maximize their profits and satisfy their customers.
From tracking average service turnaround time, to understanding customer service quality, to calculating average repair cost and profit per service call, all of these KPIs are necessary for a successful appliance repair business. .
- Home
- 1 average service recovery time
- 2 Average ticket resolution time
- 3 quality of customer service
- 4 Customer retention rate
- 5 Technician utilization rate
- 6 average repair costs
- 7 profits per call call