There are numerous KPIs in the various corporate departments. The following metrics are most relevant for aftersales and service teams.
#1 First Time Fix Rate (FTFR)
Definition: How often is a problem fixed during the first contact with the customer?
Indicator: The FTFR shows whether your service technicians have the necessary information and spare parts to fix a customer‘s problem quickly and efficiently. The higher the FTFR, the more satisfied the customer.
Formula: FTFR = number of successful first-time fixes / total number of all service requests * 100
#2 Average Reply Time (ART)
Definition: Average period of time a customer has to wait for a response
Indicator: This key metric measures how long it takes service employees to respond to a request. The shorter the response time, the more effectively the service team addresses customer needs.
Formula: Total time taken to respond to inquiries within a given time frame / number of inquiries during this time frame
#3 Service Level Agreements (SLAs)
Definition: The amount of time a company takes to respond to and resolve different types of incoming inquiries from customers
Indicator: Time-based deadlines agreed on by the customer and outlined in contracts or in the terms of service. This key figure shows how quickly and reliably service teams work. The shorter the response time, the higher the service level.
Formula: Depends on the deadlines outlined in contracts or in the terms of service
#4 Order Cycle Time
Definition: Average time taken to process an order from the receipt of the service request to the execution
Indicator: A short order cycle time means that the customer service team is working efficiently, and this can increase customer satisfaction. Order cycle time is a useful metric for measuring the efficiency of the fulfillment process. The shorter the order cycle time, the more responsive the company is regarding customer orders.
Formula: Time from the first contact to the closing of the service request
#5 Cost Per Order (CPO)
Definition: The total cost of acquiring and fulfilling a single order, including marketing, manufacturing, storage, shipping, and other expenses depending on the business
Indicator: A low CPO and a high level of customer satisfaction are indications that resources are being used efficiently.
Formula: Cost per order = total costs of all orders / number of orders processed
#6 Sales Growth
Definition: Sales growth measures the degree to which the aftersales team increases the company’s revenue over a period of time.
Indicator: Positive sales growth in aftersales shows that the chosen service strategy is effective. If this is not the case, service processes have to be optimized or new business models must be developed.
Formula: Sales growth = (current period sales - previous period sales) / previous period sales * 100
#7 Spare Parts Availability
Definition: This KPI measures the effectiveness of a company's spare parts management within the aftersales and maintenance teams.
Indicator: Aftersales teams aim to solve customer problems as quickly as possible and avoid downtime. High spare parts availability improves FTFR, shortens repair times, and increases customer satisfaction.
Formula: Determining the availability of spare parts is a major challenge for many machinery and plant manufacturers — especially if they are selling through different retail channels. An ERP or aftersales tools are helpful here.
#8 Net Promoter Score (NPS)
Definition: Measures the satisfaction and loyalty of a company's customers with a score from 1 to 10
Indicator: The NPS indicates whether a customer would recommend your company to others. This key metric is based on the answers to the question "How likely is it that you would recommend our company to a friend or colleague?" A high NPS indicates a positive customer experience.
Formula: Customers can enter the probability of their recommendation on a scale of 1 to 10. This results in a classification that includes Detractors (unhappy customers, 0-6), Indifferents (satisfied but unenthusiastic customers, 7-8) and Promoters (loyal customers, 9-10). NPS = % Promoters - % Detractors
#9 Mean Time To Repair (MTTR)
Definition: The average time it takes to repair a system or a device (usually technical or mechanical) and return it to service after a failure
Indicator: A low MTTR shows that the employees in aftersales and customer service solve problems quickly and efficiently. This ensures cost efficiency and satisfied customers. One of the conditions for this is that service operations are planned efficiently.
Formula: MTTR = total time spent on repairs / number of repairs
#10 Capacity Utilization
Definition: Percentage of available time that service employees spend on billable activities
Indicator: Use this key figure to measure how busy employees in aftersales and agents in customer support are. The benchmark is a value of 85%. At 100%, the workload would be too high, while a value of 50% indicates that half of the employees' capacity remains unused.
Formula: Utilization = time available for technician assignments or customer support / actual time required