Measuring profitability in a field service business
In an ever-changing world, it is increasingly important for a field service business to know how they are succeeding at what the company has set out to do. Without proper measuring techniques, it can be difficult for the company to follow how it is doing. This blog post will discuss the importance of such techniques. What should your company measure and how?
Profitability is key
Being profitable as such is one of the most basic goals for any company. However, the subject of profitability and measuring it require some insight. To achieve that goal, the company must be able to compete with other companies in its field.
Measuring success cannot rely on information with no proper numbers. In order to map out how the company is currently doing and estimate how it will perform in the future, it needs data and ways to analyze it.
For a field service business, services are the key offering. Even though services are described as intangible, it does not mean they cannot be measured. It just means a service business cannot utilize the same measurements as a business with tangible products, but instead need their own.
The simple way to measure the success of a business would be to see how much profit the investments in labor bring the company. While this might be the gist of it, it is a rather black and white, narrow way of looking at a complex subject.
What to measure
A productized service can be measured more accurately. It adds new measures to the process, which includes the efficiency of the service provider and response time. Furthermore, the company can measure how profitable a certain aspect, service agreements for example, is. While those aspects can be put in numbers, it is difficult to do the same to the quality of the service. In order to measure and develop the service, businesses focus on service design and the service experience.
To determine the quality, businesses can adopt smart measurement techniques. These include aspects easily put in numbers as well, such as time spent on the job. In addition, they could for example utilize estimations of the service to see how well it matches the actual outcome.
In order to adopt such tools, you do not have to look further – FSM software can help you measure success using smart techniques. Measuring success does not have to be an overwhelming task – with the right tools, it can help develop your services and give you a competitive advantage.