Customer Service Best Practices - Metrics

A compilation of the contributions of the Global Service Committee and, more specifically of its Metrics Sub-Committee. Contributors:

Greg Westrick, Mazak Corporation
Richard Peach, Siemens
Matt Lane, Control Gaging
Donald Forrest, TRUMPF
Mario Winterstein, AMT

The purpose of this document is to suggest a common language when measuring Best Practices and Excellence in Customer Service.

This is a living document, subject to amendments as warranted. Commentary, suggestions, and contructive criticism are encouraged and welcomed. All suggested amendments will be reviewed by the committee and included in the master document as deemed appropriate.

The metrics are broken down into six categories:
Operational Metrics
Customer Satisfaction & Loyalty
Sales & Marketing
Financial Metrics
Management Dashboard - Measuring Actual Performance vs. Planned Goals
Referencing Company Numbers Against Benchmarking Best Practices

 



Operational Metrics
Topic Definition Metric/Measurement Notes
On-Time Shipment/Delivery- Service Shipment/Delivered on the same or next day as defined by customer Percentage of on time per the Company’s goal Customer decides the priority of the delivery
On-Time Shipment/Delivery - Parts Shipment/Delivered on the same or next day as defined by customer Percentage of  on time  per the Company’s goal Customer decides the priority of the delivery
On-Time Shipment/Delivery - Equipment Shipment/Delivered on the same or next day as defined by customer Percentage of  on time  per the Company’s goal Customer decides the priority of the delivery
Shipment Quantity Ratio of Number of orders received and shipped per day Percentage of orders shipped per day  
Stock vs. Special Order The Ratio of shipment from inventory vs special orders Percentage of Products that are not in stock on a monthly basis. Special orders are products not commonly replaced or failed
Delivery Condition The Quality or integrity of the product upon delivery Percentage of deliveries that are received in proper condition vs number of shipment Shipment that experienced damages are always reviewed for correction.

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Customer Satisfaction & Loyalty
Topic Definition Metric/Measurement Notes
Warranty Any activity with the customer before the original warranty term is complete Claims are used in the engineering process, as well as to determine the overall cost of quality Information is fed into the design fema and used for product evaluation
Warranty Cost All costs that is associated with the repair, or replacement of a defective product or service.    Labor cost + Material cost = product warranty cost Field service cost is tracked separately and added to the appropriate CO# on the monthly Cost of Quality statement
Requests for Corrective Action Anytime the customer has issued a request for corrective action A customer problem report is generated and delivered to the Quality Manager for evaluation All CPR's are reviewed by the Management Review Team and the affected Department Manager
Service Report All information obtained during an on-site service activity.  Includes but not limited to:  Equipment make & model and serial numbers. Utilization, repair time, response time. Warranty issues All completed service orders are sent to the Service Manager and the logged into the service database
Service Feedback   Information that is typically not made available to sales departments  All completed feedback forms are sent to the Service Manager for evaluation and then sent to the appropriate departmental manager
Survey Results   Accurate customer response and concerns  not captured thru quality systems. Also used to validate process improvement effectiveness  

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Sales & Marketing
Topic Definition Metric/Measurement Notes
Bookings Service Calls Installation, Warranty, Non-Warranty Break out by
Bookings Spare Parts Installation, Warranty, Non-Warranty Break out by
Bookings Machine Installation Installation, Warranty, Non-Warranty Break out by
Marketing Activity      
Promotion Result      
Market Separation      
Product Separation      
Hit Rate # of hits on desgnated web-site location or acknowledgement of promotion Activity generated at specific web location or response to pomotional mailings (regular & email) To be used as a comparison to determine/redesign your model
Capture Rates # of calls per person, # of hours per person # of inbound calls, # of hours  
Shipments # of machines shipped # of orders/ Net dollars, # by region To plan future manpower needs
Warranty Statistics # of service calls By region, by machine type  

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Financial Metrics
Topic Definition Metric/Measurement Notes
Bookings Sales - Orders booked and delivered, invoices Orders in pipeline to be delivered (includes parts, machines, services) Volume of orders/work to be delivered Use to determine projected installation and service requirements/resources
Shipments # of parts shipped # of orders/ Net dollars  
Service Revenue $ volume of billable service invoices $'s invoices per measured period Use as a comparion to previous years and seasonality
Parts revenue $ volume of billable service invoices $'s invoices per measured period Use as a comparion to previous years and seasonality
Inventory turns # of times a part is used/sold during a measured period   Designates stocking level requirements

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Management Dashboard - Measuring Actual Performance vs. Planned Goals
Topic Definition Metrics/Measurement Notes
% of Controllable Budget Amount of $'s spent per plan for services provided   Track to budget
Delivery Reliability Product - on-time delivery of part, software, machine. Service - on-time delivery of service or support function % of times delivery commitment met Meet delivery commitment
Delivery Quality Product - product operational when delivered and no damage. Service - service rendered meets customer expectation % of deliveries without internal physical damage to item or machine Determine if appropriate packaging & protective crating/procedures are used.
Customer Satisfaction Measure of customer's approval with your operations, servies & interaction  & attentiveness by your personnel    
Employee Satisfaction Measure of satisfaction by your employees with work environment, policies and supervisor/management leadership    

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Reference Company Numbers Against Benchmarking Best Practices
Topics Definitions Metric/Measurement Notes
Compare Customers' Expectations with your Company's Best Practices in Effect Expectations as outlined in the Benchmark Study Deviation between expectation and your practice  
Compare Other Members' Practices with Yours Best practices as performance indicated in Benchmark Study Deviation between other companies and your practice  

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