Service Metrics

According to a recent Aberdeen Research Study3 of services executives, best-in-class service organizations are nearly two and a half times more likely than laggard firms to analyze service data daily or near time. Additionally, Aberdeen found that nearly 80% of service executives either have in place or plan within the next twelve months to implement aBusiness Intelligence (BI) and analytics solution for their service operation. These executives are using better data analysis to balance customer, competitive, and cost pressures. Increasing customer demand for faster and more efficient service performance and rising costs are challenging service executives to make faster and more accurate decisions.

According to a recent Aberdeen Research Study3 of services executives, best-in-class service organizations are nearly two and a half times more likely than laggard firms to analyze service data daily or near time. Additionally, Aberdeen found that nearly 80% of service executives either have in place or plan within the next twelve months to implement a Business Intelligence (BI) and analytics solution for their service operation. These executives are using better data analysis to balance customer, competitive, and cost pressures. Increasing customer demand for faster and more efficient service performance and rising costs are challenging service executives to make faster and more accurate decisions.

Exhibit 2. Service Business Metrics

Customer Support	Profitability	Growth
Response Time Resolution Time Call Center Performance Order-Fill Ratio On-Time Delivery Training Quality Service Engineer Competency First Time Fix Rate Warranty Compliance Equipment Utilization (OEE) MTBF	Service Engineer Utilization Productivity Sales Discounting List Price Historical CAGR Gross Margin Contract Profitability Concession Expenditures Warranty Expenditures Inventory Turns Accounts Receivable Logistics Costs Parts Scrap & Obsolescence	Service Engineer Utilization Productivity Sales Discounting List Price Historical CAGR Gross Margin Contract Profitability Concession Expenditures Warranty Expenditures Inventory Turns Accounts Receivable Logistics Costs Parts Scrap & Obsolescence

Metrics for organizations focused on service growth are centered on gaining a deeper understanding of their customers business and on services innovation. As a result, New Service Introduction metrics are important and might include the number of new service offerings, new offering market adoption rates, and time-to-market cycles. Service portfolio mix is also important and might include metrics that indicate actual and variance to target portfolio mix ratios blend of product, managed, professional, and multi-vendor offerings.

The metrics shown in Exhibit 2 are of course not exhaustive, and it should be recognized that organizations may in fact span various phases for different product lines, customers, service offerings, regions, etc. Generally speaking, however, the examples should provide directional guidance and ideas of the type of metrics and factors that are relevant within each stage. It is the responsibility of the services leadership team to select and prioritize these metrics for their situation.