Service Sales as a Percentage of Plant Revenue

Service Sales as a Percentage of Plant Revenue

KPI Details

Service Sales as a Percentage of Plant Revenue measures the dollar amount of revenue generated from service (maintenance, machine repair, etc.) sales in relation to the dollar amount of revenue generated by the plant, or production facility, over the same period of time. A low value for this metric may be related to multiple factors, including inefficient lead generation and sales processes, poor customer service practices (which increases customer dissatisfaction and attrition rates), ineffective marketing and advertising strategies (i.e., direct mail marketing, email marketing, etc.), inaccurate demand forecasting methods and sub-par sales and service employee training and performance. Excessively low values can expose the company to financial risks by preventing on-time payoffs of liabilities.

KPI Definition

The dollar amount of revenue generated from service (maintenance, machine repair, etc.) sales divided by the total dollar amount of revenue generated by the plant, or production facility, over the same period of time, as a percentage.

KPI Best Practices

• Invest in highly skilled service technicians to repair/maintain wide range of manufactured goods
• Market repair service to customers of manufactured goods
• Adequately staff service departments to quickly respond to service calls

KPI Calculation Instructions Service Sales as a Percentage of Plant Revenue?

Two numbers are used to calculate this KPI: (1) the dollar amount of revenue generated from the service sales performed by the plant, and (2) the total dollar amount of revenue generated by the plant, or production facility, over the same period of time. In this calculation, service sales includes tasks focused on maintenance, machine repair, etc. for industrybased customers (equipment maintenance, repairs of heavy machinery, facility maintenance, etc.). Do not include service sales (e.g., car repairs, maintenance, etc.) enerated from non-industry-related customers.

KPI Formula :

(Service Sales Generated / Plant Revenue Generated) * 100