Lagging First-time Fix Rates Killing Mid-Size Business Profits
By Emily Lehnen
Senior Marketing Manager
According to research from the Aberdeen Group, mid-sized companies were significantly less likely than larger firms to resolve an issue on the first visit. This results in longer asset downtime for the customer, and can result in missed service level agreements. The costs associated with the missed SLA’s, as well as the secondary dispatch can wipe out an organization’s service profit margin.
What if instead companies could save $3.74 million?
There are technologies, such as mobile field service software and optimized scheduling that can dramatically increase first-time fix rate. But mid-sized businesses, which lack the vast coffers of their larger counterparts, sometimes look at technology options like the ones outlined above and question their affordability and impact on the bottom line.
ROI Calculation
Let’s consider a mid-sized business with 100 technicians who complete the industry average of 4.8 work orders per day.
100 technicians
x 4.8 work orders per day
x 250 working days per year
= 120,000 service calls/year
The Aberdeen study indicates that 40% of these services calls (48,000) would require at least a second dispatch. Research from the Aberdeen Group estimates that the cost per dispatch is $241.
48,000 service calls
x $241 cost per dispatch
= $11.6 million spent annually on secondary dispatch
Aberdeen found that companies who employ field service scheduling and mobile service software experience a 32% increase in first-time fix rate. This would reduce the number of service calls needing a secondary dispatch by 15,360, a cost savings of approximately $3.74 million.
When you look at all the numbers above, the question in your mind should change from, “Can I afford it?” to “Can I NOT afford it?”
Senior Marketing Manager
According to research from the Aberdeen Group, mid-sized companies were significantly less likely than larger firms to resolve an issue on the first visit. This results in longer asset downtime for the customer, and can result in missed service level agreements. The costs associated with the missed SLA’s, as well as the secondary dispatch can wipe out an organization’s service profit margin.
What if instead companies could save $3.74 million?
There are technologies, such as mobile field service software and optimized scheduling that can dramatically increase first-time fix rate. But mid-sized businesses, which lack the vast coffers of their larger counterparts, sometimes look at technology options like the ones outlined above and question their affordability and impact on the bottom line.
ROI Calculation
Let’s consider a mid-sized business with 100 technicians who complete the industry average of 4.8 work orders per day.
100 technicians
x 4.8 work orders per day
x 250 working days per year
= 120,000 service calls/year
The Aberdeen study indicates that 40% of these services calls (48,000) would require at least a second dispatch. Research from the Aberdeen Group estimates that the cost per dispatch is $241.
48,000 service calls
x $241 cost per dispatch
= $11.6 million spent annually on secondary dispatch
Aberdeen found that companies who employ field service scheduling and mobile service software experience a 32% increase in first-time fix rate. This would reduce the number of service calls needing a secondary dispatch by 15,360, a cost savings of approximately $3.74 million.
When you look at all the numbers above, the question in your mind should change from, “Can I afford it?” to “Can I NOT afford it?”
Labels: dispatch, field servce software, field service, first-time fix rate, mobile field service software, optimized scheduling, scheduling
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