Published by Gogh Solutions
Analyst publish thousands of facts about the Field Service Management industry but this article compiles the essential statistics every Field Service Organization (FSO) should know:
- Efficiency and productivity are still key challenges for field service leaders
There’s a long list of common challenges that keep field service leaders awake at night according to Field Technologies Online. These include, keeping up with increasing customer demands (46%), improving employee engagement (30%), and remaining competitive (27%). Perhaps not surprisingly however, the biggest concern for field service leaders is ensuring that their field workforce is operating at optimal efficiency and productivity (53%) and that increasing field technician efficiency is number one (74%) on the list of their strategic initiatives for 2018 -2019
- More field service organizations are transitioning to service models to boost revenue
Research conducted by the Technology Services Industry Association reveals that the percentage of FSOs that are “transitioning to a services model” increased from 9% to 23% in 2017. The bad news is that 73% of FSOs are struggling with profitable revenue growth. The good news is that more organizations are seeing revenue growth as they embrace the new service offers.
- An aging workforce is a cause for concern
The aging workforce has been an issue of growing concern across many field service organizations in North America and the numbers are clear; the pace of baby boomer retirement is set to accelerate significantly in the years ahead. Many field service organizations are now faced with their seasoned, tenured field service technicians fast approaching retirement age and a shortage of skilled workers. According to the latest research from the Service Council, 70% of service organizations indicated that they would be burdened by the knowledge loss of a retiring workforce in the next 5 to 10 years.
- Changing workforce dynamics
Gartner predicts that by 2020, more than 40% of field service work will be performed by technicians who are not employees of the organization that has direct contact with the customer. A hybrid workforce of employees and contractors is now the norm for many FSOs and requires a Field Service Management (FSM) solution which can intelligently schedule both employees and contractors and facilitate the right balance of labor supply to meet customer commitments.
- Customer satisfaction is still a priority
72% of field service organizations are prioritizing improvements in customer satisfaction according to a survey by Field Technologies Online. The fact that the customer experience is equally is important as driving efficiencies illustrates how field service is transforming from a cost to a profit center, moving beyond cutting costs to understanding that improving the customer experience is the real to key to success. However, it’s still a work in progress with 32% of field service organizations failing to attain at least 80% customer satisfaction according to the Raconteur Digital Change Survey.
- Investment in disruptive technologies
With estimates of 30 billion connected devices by 2020, we’ve reached a level of maturity in the market with the Internet of Things (IoT) where analysts expect we will now see large-scale adoption of these technologies. IFS research shows that IoT is rated as the single most disruptive factor and 55% of FSOs report that IoT is a key requirement for investment. Organizations that leverage IoT and digital transformation can significantly reduce their response times. Even before issues are reported, being able to determine service needs proactively and predictively is a significant competitive advantage that can dramatically affect margins and growth.
- Employee engagement significantly impacts productivity and profitability
According to Gallup’s State of the Workplace report, on a global scale, 85% of employees are either not engaged or actively disengaged. The impact of low employee engagement is staggering, costing an estimated $7 trillion in lost productivity. Organizations with higher employee engagement realize 10% higher customer metrics, 17% higher productivity, 20% higher sales and 21% higher profitability. Organizations at the top achieve earnings per share growth that is more than four times that of their competitors.
- Return on investment is real
Gartner’s 2019 Magic Quadrant for Field Service Management indicates that of the FSOs who had performed a formal ROI analysis of their FSM solution, the top contributors to ROI were: improved technician utilization and dispatcher efficiency (63%), improved customer satisfaction (53%), improved SLA achievement (48%) and cost tracking (48%). The average time to achieve ROI was approximately 10 months.
- First time fix rates matter
The average first-time fix rate for an FSO is between 75- 79%, according to data from The Service Council. Simply put, that means at least one more follow up visit for a quarter of service calls, not to mention the added inconvenience for the customer and additional service costs impacting your bottom line. Investing in improving first-time fix rates can significantly impact customer satisfaction results. The Service Council’s research showed that a lower than 50 percent level of first-time fix can be catastrophic, leading to a near 50 percent level of customer satisfaction. Ideally, organizations should strive to be in the 90 percent and above bracket leading to a similarly above 90 percent level of customer satisfaction.
- Best in class benefits
FSOs running a best in class FSM solution are reporting benefits such as a 10% increase in asset uptime, 15% reduction in travel time and costs, 15%–20% improvement in service response times as well as a 10-20% improvement in first time fix rate.
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