The time has come for The AC Guys to track what we are doing a bit more and compare our performance to industry standards — Key Performance Indicators. Below are six of the nine proven standard metrics that we will be tracking for each Service Technician. This may be “new” to some. There will be a learning curve. There’s only four-ish of us at the moment, so we get to learn together.
Here we go. Hang onto your shorts.
3. Invoicing Percentage
Industry best practice is that all invoices for work performed should be collected at the time of service. Yes, some of our customers may not be present at the time of completion, but the invoice should be completed and sent at the time of completion regardless. Failure to do so can cause cash flow issues within the company… which is the #2 killer of HVAC companies.
Our goal: 100% of Service Calls should be invoiced and/or collected at the time of service.
4. First Time Completion Percentage
If the Technician is properly trained, their vehicle is properly stocked, and the needed manpower is sent, 95 out of 100 calls should be completed on the first visit. If a call is not completed on the first visit, make a note in the Private Notes as to why.
Our goal: 95% first time completion rate.
5. Callback Percentage
Callbacks are expensive and frustrating for everyone, most importantly, the customer. Yes, new parts do fail, but excessive callbacks could also indicate problems with the Technician.
Our goal: a callback rate of less than 2.75%
6. Average Maintenance Agreement Revenue Per Hour
When performing a maintenance call, the Technician should be educating and informing the customer of imminent parts failures and accessories which could save them money or improve their home’s comfort. Drain switches, UV lights, upgraded thermostats, etc. This could generate additional revenue on top of the actual maintenance visit fee.
Our goal: $40 additional revenue on average per system maintenance.
7. Maintenance Agreement Efficiency
A maintenance visit should take no more than one hour. If the Technician does perform additional repairs, then that time may be longer.
Our goal: complete the maintenance visit within 60 minutes.
Note: proper use of the HCP Start and Finish functions are again critical here.
9. Qualified Sales Leads
If the equipment is old, the Technician should inform/educate the customer. Furthermore, the Technician should ask if the customer would like a written proposal for replacement. If they do, gather all the necessary information about the equipment and forward it to the Sales Team (Brett). Be detailed. Model #s? Upflow or horizontal? Single-story or two-story home? How wide is the attic access, if applicable? Etc.
Our goal: 12% of calls should result in a Qualified Sales Lead being passed on to the Sales Team.
Note: In the above system, service, maintenance, very basic sales, and callbacks are the primary focal points of a Service Technician. Hours spent on other responsibilities are not included in the above metrics (for example: compressor, TXV, or evaporator coil change-outs, etc.).
So there you have it. Yes, it’s a lot of numbers and such that no one really wants to care about… but these are the numbers that describe the Service Department of a healthy company. That’s the driving goal: a strong company. If The AC Guys is healthy and growing, the company can support its staff through better benefits and wages.
There will be an “introductory period” for everyone to wrap their heads around this approach. Service Technicians will receive a weekly report of their progress against the goals. Soon, we will implement some sort of bonus structure for meeting the goals.
If anything above is not clear, ask for your needed clarification. Even better, leave a reply below so we can learn from one another.