Key Performance Indicators (KPIs) objectively measure how a Service Technician is performing. The goals below are based on industry standards and are part of the Service Technician’s Annual Review.
1. Revenue Per Billable Hour (service calls only)
A “billable hour” is the time you are actually at a customer’s home doing the diagnostic and repairs. During that time, be sure to bill for whatever (and all) work you perform. This includes the majors and the minors. The minors could include: new brass valve caps, new Armaflex, drain overflow protection switch, etc.
The AC Guys is not a sell, sell, sell company. We value integrity and an honest work ethic. We also value providing our customers with a complete solution for their home comfort needs.
Our goal: $320.43 in revenue per billable hour.
Note: this is also where the Start and Finish buttons in HCP are important. Each call has a specific OMW, Start, and Finish time. When you are done with a call, click Finish before moving on to the next call. If the initial call needs follow up, a new Segment can be created. Said another way: make sure to click Start when you arrive at the customer’s home and Finish before you leave. Read the last sentence again if you are unclear about the Start/Finish process.
2. Percent of Daily Revenue Goal Achieved
Our Daily Revenue Goal is $1,762.36 per full-time Technician. This assumes that in a normal day, the Service Technician will have 5.5 hours of billable hours.
Our goal: the Technician should meet or exceed that $ goal an average of 100% of the time.
On some days, a Technician will exceed the goal; on others, maybe not. On weekly average though, the goal should be met at least 100% of the time.
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.
8. Maintenance Agreement Sales
The Family Plan
- Two visits per year
- 10% off any repairs throughout the year
- Priority service should something come up
- The Office will contact and schedule with the homeowner when the next visit is due.
Our goal: Forty percent (40%) of applicable calls should result in the sale of a Family Plan.
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? What is the filter size? What is the condition of the ductwork? How wide is the attic access, if applicable? Does the homeowner have any complaints about hot spots? Etc.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: A bonus is currently available for Qualified Sales Leads that result in sales. See here for the details.
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.
If anything above is not clear, ask for your needed clarification. Even better, leave a reply below so we can learn from one another.
