What KPIs can you use to improve aftersales performance?

1 Customer Satisfaction

Customer satisfaction is the most basic and essential KPI for aftersales. It reflects how happy your customers are with your products, services, and overall experience. You can measure customer satisfaction using surveys, ratings, reviews, testimonials, or net promoter score (NPS). Customer satisfaction can help you identify areas of improvement, increase referrals, and reduce churn.

2 Customer Retention

Customer retention is the percentage of customers who continue to buy from you over a given period of time. It shows how loyal your customers are and how well you retain them. You can calculate customer retention by dividing the number of customers at the end of a period by the number of customers at the beginning of the period, minus the number of new customers acquired during the period. Customer retention can help you increase customer lifetime value, reduce acquisition costs, and enhance profitability.

3 Service Quality

Service quality is the degree to which your aftersales services meet or exceed your customers' expectations. It can include factors such as timeliness, accuracy, professionalism, courtesy, and responsiveness. You can measure service quality using metrics such as first-time fix rate, mean time to repair, service level agreement (SLA) compliance, and customer effort score (CES). Service quality can help you improve customer satisfaction, retention, and loyalty, as well as reduce costs and errors.

4 Service Revenue

Service revenue is the amount of money you generate from your aftersales services. It can include fees for installation, maintenance, repair, warranty, training, consulting, or subscription. You can measure service revenue by tracking the total service sales, the average service revenue per customer, and the service revenue as a percentage of total revenue. Service revenue can help you increase your cash flow, diversify your income streams, and enhance your competitive advantage.

5 Service Profitability

Service profitability is the ratio of service revenue to service cost. It shows how efficient and effective your aftersales services are in generating profit. You can calculate service profitability by subtracting the total service cost from the total service revenue, and dividing the result by the total service revenue. Service profitability can help you optimize your pricing, resource allocation, and cost management strategies.

6 Cross-Selling and Upselling

Cross-selling and upselling are the techniques of selling additional or higher-value products or services to your existing customers. They can help you increase your service revenue, profitability, and customer lifetime value. You can measure cross-selling and upselling using metrics such as cross-sell rate, upsell rate, average order value, and customer lifetime value. Cross-selling and upselling can help you create more value for your customers, deepen your customer relationships, and expand your market share.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?