In the following article, we will explore:
- A quick overview of repair centers
- Using repair-focused KPIs to improve customer service
- Which Repair KPIs to focus on?
Repairs are far from just a consequence of consumerism and our careless nature. They have been around since the dawn of time. When humankind first created tools, they started mending both their creations as well as what they made them with. Repairs are as part of being human as human history.
As we've evolved, our thirst for new products has grown. The repair and repurposing process has developed to increase efficiency in response to this desire to make our lives easier. This industry of repairs allows us continued access to novel goods while also protecting our environment through reuse instead of disposal. The ever-growing repair movement has focused on the rights and needs for repairs to reduce consumer costs and save the environment.
Unfortunately, nothing lasts forever. And nothing is guaranteed to blow a biological fuse than having something you just bought break at the worst moment.
Thankfully, the way we handle repairs has advanced to reduce this disruption. Streamlining repair processes by managing essential Key Performance Indicators (KPIs) can provide financial savings and improved customer service while also promoting product growth.
A quick overview of repair centers
Internal and external repair centers are all about supporting quality products. They specialize in mending or maintaining items they have manufactured and those requiring specialized attention. Such upkeep commonly includes servicing equipment within their company – often done through an established maintenance plan.
On the other hand, external repair services usually hone in on particular goods, from offering warranty repairs to managing larger product recalls.
Using repair-focused KPIs to improve customer service
Repairs are essential for both companies and customers. These services can help companies maintain their reputation and customer satisfaction by providing quality service and timely repairs.
Repair services can also help companies reduce costs by extending the life of their products and reducing waste. For customers, repair services can be a cost-effective way to extend the life of their products and avoid costly replacements. Repair services can also help customers reduce their environmental impact by lowering waste. In addition, repair services can help customers save time by providing quick and convenient repairs.
Which Repair KPIs to focus on?
When you're seeking to measure the performance of your repair or service center, Key Performance Indicators (KPIs) provide an endlessly dynamic selection. Of all these KPIs available, eight are the most powerful and essential for optimizing success in this area.
Average total costs per repair (labor and parts)
First, consider the repair time to calculate labor costs. Then, calculate labor efficiency by comparing total labor costs with the hours you invoiced. This KPI will provide insight into economic and financial factors surrounding product servicing and repair.
Average time to repair
This KPI is essential if you're looking to reduce customer waiting time or increase the number of jobs completed daily.
This KPI is calculated by taking the number of repeat repairs / defective products: this helps you identify trends and highlight any recurring issues.
Number of Uneconomic Repairs
This KPI will identify the number of repairs that aren't financially viable, allowing you to make more informed decisions. It is calculated by recording the number of products that are too expensive to repair.
Number of rejected jobs (parts only)
Are you using faulty parts? Track the percentage of rejected parts so that you can focus on sourcing better-quality products.
Returned repairs per technician
a higher number of returned repairs can be an indication of a lack of specific experience or training. Monitor this KPI and use it to identify the need for additional support where necessary. If a technician takes longer to find an answer but manages to fix it in one attempt, they have been productive! The lower your 'reopen' rate is, the more successful your team can be.
Ratio of warranty, internal and External repairs
This KPI helps you track the types of repairs undertaken by your team and any external partners. This can help you identify where to focus your resources best to streamline operations.
Average repair cost/Hours
This KPI will help you understand the costs of repairs in relation to the time taken to complete them. It's a valuable metric for understanding both labor and parts efficiency.
Percentage of first-time fixes
This KPI measures the percentage of successful repairs completed in one attempt. It's an excellent indicator of how well your team identifies and fixes problems.
Companies reduce costs by extending the life of their products and reducing waste. For customers, repair services can be a cost-effective way to extend the life of their products and avoid costly replacements. Repair services also help customers reduce their environmental impact by reducing waste while saving them time with quick and convenient repairs.
When it comes to measuring the performance of your repair or service center, Key Performance Indicators (KPIs) provide an endlessly dynamic selection. Of all these KPIs available, 8 stand out as the most powerful for optimizing success in this area – if there was ever a set of metrics worth paying attention to, it's these!
Tracking these KPIs ensures that your repair or service center runs as efficiently as possible and delivers the best customer service.
Investing in tracking these key performance indicators will enable you to better understand what's working well and where improvements can be made – this includes maximizing profits and raising customer satisfaction in the long run!
Stuart Kinsey writes on Key Performance Indicators, Dashboards, Marketing, and Business Strategy. He is a co-founder of SimpleKPI and has worked in creative and analytical services for over 25 years. He believes embracing KPIs and visualizing performance is essential for any organization to strive and grow.