Hidden KPI 1: Managing Technician Productivity
The concept of technician productivity is a KPI for Service Managers that can hugely impact expected labor hour goals. Productivity is the relationship between the amount of time a tech spends producing hours within the time they are scheduled to work.
For example, a technician could be 150% efficient, however, if roadblocks and obstacles only allow this tech to work 75% of the time they are scheduled, they will not achieve the amount of flat rate hours expected. Conversely, if a technician is able to generate their flat rate hours 100% of the time they are scheduled but is only 80% efficient, they will not achieve the amount of the flat rate hours that are expected. Therefore, Service Managers must pay attention to both the technician’s efficiency and productivity in order to identify opportunities for growth.
Hidden KPI 2: Categorizing Unapplied Time
Often overlooked is the importance of uncovering the concept of unapplied time in financial statements and how Service Managers can influence and control this factor. Every financial statement has a line for unapplied time. However, this number is often misunderstood. It is simply this: money paid to the technicians not collected on a repair order. It is driven by many factors that Service Managers can control. Because of the common misunderstanding of unapplied time, other teams like payroll can add items to this line that do not belong there. This directly affects the profitability of the Service Department! When you can establish an accurate understanding and ensure the proper categorization of items in unapplied time, your Service Department will reap the reward of more dollars to your bottom line.Hidden KPI 3: Upselling LOF
It can be easy for your Service Advisors to get in the habit of performing only the work a customer came in for without thinking like the sales team. When your Advisors begin to learn how to upsell, especially LOF customers, it not only benefits the shop’s profitability but also allows them to provide customer education, build trust, and create long-term customer retention.
An example of an important upsell opportunity is an oil change with a tire rotation. This is one of the easiest ways for a Service Advisor to move beyond being an “order taker” and to become an actual advisor or advocate for the customer. Additionally, it builds the habit of asking the customer for the business. Think of it as the service drive equivalent of “do you want fries with that?”.
