Service Benchmarking and Measurement-Using Metrics to Drive Customer Satisfaction and Profits

Service Benchmarking
and Measurement
Service Benchmarking and
Measurement
Using Metrics to Drive Customer Satisfaction and Profits
June 2009
Bill Pollock Service Benchmarking and Measurement: Using Metrics to Drive Customer Satisfaction and Profits Page 2

Executive Summary
The ability to measure, monitor, assess, and track KPIs is critical to any Research Benchmark organization's ability to manage its service operations. Some may use only Aberdeen's Research the most basic, or standard, service KPIs (such as Mean Time to Repair, or Benchmarks provide an in-MTTR), while others have developed more sophisticated metrics to hone in depth and comprehensive look on the most critical areas reflecting service performance (such as field into process, procedure, workforce utilization). This report reveals how Best-in-Class firms methodologies, and distinguish themselves from all others by routinely benchmarking and technologies with best practice measuring their service performance; implementing effective measuring, identification and actionable monitoring and tracking systems; integrating service KPIs with companywide recommendations. CRM or ERP systems, wherever possible; and establishing a formal process for automatically collecting and disseminating data.
Best-in-Class Performance "There is no one 'most During May 2009, Aberdeen conducted a research survey of more than 150 important' metric, as there is a service professionals engaged in the use of KPI / metrics benchmarking and blend of metrics you need to measurement programs at their respective companies. The three key grow and scale." performance criteria that may be used to distinguish Best-in-Class firms are: ~ Dan Adams, Director of . 88% customer satisfaction rate Support Services, Hobsons
. 60% service profitability
. 15% increase in workforce productivity over the last 12 months
Competitive Maturity Assessment Survey results show that the firms enjoying Best-in-Class performance are: . 50% more likely than Industry Average to use KPIs / metrics to measure, manage, and reward service delivery performance . More than twice as likely as Industry Average to have an enterprise-wide performance management strategy and processes in place . Two-thirds (67%) more likely than Industry Average to have a centralized service performance database / repository
Required Actions In addition to the specific recommendations in Chapter Three of this report, to achieve Best-in-Class performance, service organizations must: . Adopt an enterprise-wide performance management strategy and associated business processes . Establish a program of KPIs / metrics that align directly with business goals . Implement a formal KPI / metric benchmarking measurement process - and use the results as a roadmap for improving service performance
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Table of Contents Executive Summary.......................................................................................................2 Best-in-Class Performance.....................................................................................2 Competitive Maturity Assessment.......................................................................2 Required Actions......................................................................................................2 Chapter One: Benchmarking the Best-in-Class....................................................5 Business Context .....................................................................................................5 The Maturity Class Framework............................................................................7 The Best-in-Class PACE Model ............................................................................8 Best-in-Class Strategies...........................................................................................9 Chapter Two: Benchmarking Requirements for Success.................................12 Competitive Assessment......................................................................................14 Capabilities and Enablers.................................................... [download for more]