Callbacks occur when a repair or improvement has been unsuccessful, which results in a return visit to correct the issue.
As Callbacks are generally provided free of charge, this is of course a drain on your bottom line, due to the associated time and monetary cost of further parts, vehicle fuel etc.
How many callbacks are acceptable?
You may argue that if the technician is correctly trained, a proven system is followed and they have the parts or item to hand, due to your stock management system, then the answer is none. However, if only life was so perfect!
We encourage you to manage your callbacks and identify where improvements can be made. The more you eradicate, the more profit you make and importantly the more time you have for other areas in the business.
Reducing the Callback Percentage is a focus for business that are looking to optimise their revenue generation.
The Callback percentage can be calculated by dividing the Number of Callbacks, which occurred, by the Total Number of Jobs performed, in any given period.
As an example, the key reason for poor profitability in a service department often relates to the inability to properly manage an efficient process and the teams technical training.
As well as measuring the percentage, are you looking at trends or the reasons why?
Are you capturing the information from the job sheets to analyse if the callback relates to a specific product, part or process? Was the cause avoidable? The percentage can also be drilled down to view on a per employee basis as part of the staff performance evaluation.
When applicable, this is one consideration we explore with our clients in the construction industry, a specialism here at Chapman Robinson & Moore.