Let’s face it – determining whether or not your service function is a success, and whether or not it adds value to your business, can be really difficult. We know this first-hand; being in the business of performing service and becoming the service arm of many tech companies, we need to find ways to demonstrate ROI as a service organization.
Yet, time and time again over the years, we’ve seen that properly measuring service starts with using the right metrics. They should not only pertain to the actual execution of the service events; they should also show how the service function relates to other core business functions and even helps drive value and revenue for the company. The right metrics can do all of these things at the same time.
Here are just a few of the metrics that we often use to measure service:
- Customer Satisfaction. This one is the granddaddy of them all, to borrow a phrase from the Rose Bowl, and where service discussions often start and end. You won’t succeed if your customers aren’t happy, end of story. To ensure that we capture the full story and understand how we are performing overall, Source includes every measure of customer satisfaction in our overall ratings.
- Service Level Agreement (SLA) Achievement. SLA achievement is tied to customer satisfaction because SLAs reflect customer expectations. Consistently low SLA performance affects the quality perceptions of both the customer and end-user. If the service provider signs a contract saying they can provide service in 4-hour window, they should be able to consistently deliver on that promise.
- Escalations. How often are service events referred or forced up the organizational chart? A low escalation rate means service events are being handled in the right way, by the right people with the right skills and more.
- Labor Costs. If you’re using Source to outsource your service function, you should see a massive reduction in labor costs and other overhead relating to having service in-house.
- Logistics Costs and Process Flow. There’s a lot more to a successful service function than simple execution; parts need to get where they need to go and on time, logistics need to be handled and much more. Again, in working with Source, logistics costs should be significantly lowered and process efficiencies should be realized – which should trigger even more savings on operational expenses.
- Lead Generation and New Revenue. Good service teams don’t just help you keep customers – they help you develop new ones. It is possible to devise systems for directly correlating service to leads generated, and sales closed.
At Source, we believe that service can really help a tech provider increase both its top and bottom line – and that measuring these items and more over time is essential to helping your company grow and succeed over the long term. For more information on how Source can help you to deploy service programs to support your success, please contact us.
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