40 KPI Examples for the Service Industry (Updated for 2021)

By Jessica Wishart

40 KPI Examples for the Service Industry (Updated for 2021)

Research shows that our economy is largely being driven by middle-market firms, especially those in the40 KPI Examples for the Service Industry service industries. Key Performance Indicators (KPIS) are one of the most effective tools for service companies to manage their growth, cash flow, customer retention and customer satisfaction.  According to a press release from American Express: 

"Middle market firms are leading business growth in the United States, outpacing both small and large-sized firms,” said Jeff Stibel, vice chairman of Dun & Bradstreet. “More specifically, the service industry continues to lead middle market growth in terms of revenue, employment and number of firms, reflecting the larger trend in the U.S. moving from a manufacturing-based to a service-driven economy.

Many of our successful middle-market clients are in the professional services, IT, or staffing industries, so we’ve seen plenty of trends and patterns in these industries over the years. As these companies experience rapid growth, a common question is “What should we measure?”  What is a good service KPI?  How many service KPIs should I have?   Many leaders are finding that they have more information than ever at their fingertips—but this can create confusion, too. What good is having access to data that you don’t use or can’t consume?

The best practice is to identify a handful of key metrics—or KPIs—that will help you measure the health of your business over a specific period of time. We’ve found that measuring a handful of service KPIs in each of these four categories can help you keep a pulse on the overall health of your enterprise: Employees, Customers, Revenue and Process. Check out our online comprehensive KPI guide to learn more about creating metrics that matter.

Here’s a list service KPI examples

Employees

  1. Utilization rate
  2. Attrition/retention
  3. Employee satisfaction score
  4. Employee engagement score
  5. Employee health index
  6. Performance (specific desired result by role)
  7. Number of open postions
  8. Time to fill positions
  9. Number of managers on virtual bench
  10. Training hours

Revenue

  1. EBITDA
  2. Profit margin
  3. Year-over-year revenue growth
  4. Cash conversion cycle
  5. Cost of acquiring a customer
  6. Cost of service delivery
  7. Revenue/employee
  8. Revenue/customer
  9. Revenue/product line or service delivered
  10. Actual v. budget

Customers

  1. NPS (Net Promoter Score) or customer satisfaction score
  2. Retention
  3. Amount ($) of up-sell opportunities
  4. Service renewal rate
  5. Customer lifetime value
  6. Number of customer complaints
  7. Number of open service requests
  8. Service Level Agreement (SLA) failures
  9. Number of customer testimonials
  10. Number of referrals

Processes

  1. Project profitability
  2. On time product/service delivery
  3. Labor cost
  4. Unscheduled downtime
  5. Number of defects
  6. Percentage of bugs detected in-house
  7. Safety incidents
  8. Idle time
  9. Time to product launch
  10. Length of sales cycle
 

This list is by no means comprehensive, and if you measured everything on this list, you’d be measuring too many things. The trick to setting a valuable KPI for your company is to focus on your specific business model and what you need to know in each category.  Narrow your list to the top 8-12 KPIs during your team's quarterly planning session.  The key is to start measuring service performance and you can always make adjustments from there.  

See how Rhythm Systems software can help you execute your KPI strategy and all of your strategic initiatives.

Download our Free KPI Guide to Stay Focused, Aligned and Accountable

Looking for more KPI Examples to help get you started? Check out our additional resources:

33 KPI Examples to Measure Productivity & Prevent Organizational Drag

Comprehensive List of 179 KPI Examples for Any Industry

25 KPI Examples for Manufacturing Companies

Employee KPI Examples: How to Measure What You Want to Move (Video)

KPI Examples for Successful Sales Teams

Marketing KPI Examples

10 Best Employee KPI Examples

Rhythm Systems KPI Resource Center

 

Photo Credit: iStock by Getty Images  

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