What Is Service Quality?

Written by: Claire Cavanaugh
10/14/2024

Read Time: 5 min

What is service quality? 

Field service quality measures the efficiency and effectiveness of a technician completing a repair or providing maintenance. While these measurements help companies understand how well they are meeting customer expectations, getting better at service offers benefits. These include brand reputation, the ability to improve customer outcomes while reducing costs, and the ability to scale and grow service offerings. To improve service quality, it’s important to enable the workforce with tools that instantly connect them with the information and assistance they need to do their jobs correctly the first time.

Why is service quality important? 

The level of service quality—from poor to excellent—is an indication of the service organization’s dedication to its customers. Those who provide poor quality service risk losing customers and damaging their hard-earned reputation. But to put the importance of service quality in context, we must consider the shift—across many verticals—to subscription and service-centric revenue models. Traditionally, a customer would purchase a product outright, and companies would offer standard and premium services as part of a warranty model. Some companies are shifting to outcome-based service models in the current environment. In these models, service organizations must have a clear view of quality metrics to ensure profitability.

What are the benefits of measuring service quality? 

Measuring service quality can help validate good quality service—or help identify ways to improve poor-quality service. Taking steps to improve quality can have multiple benefits for the service provider and its customers.

Improves brand reputation 

For better or worse, the level of service quality greatly impacts a service organization’s brand reputation. Those that boast excellent service and short wait times will improve their brand reputation, while those known for repeat service visits and a low first-time fix rate are bound to see their reputation suffer.

Enables more informed decision-making 

The level of quality says just as much to the service organization’s leadership as it does to its customers. Business leaders measure service quality to determine the effectiveness of current technician training methods, work instructions, and key processes. Depending on the level of service quality being provided, leadership might consider implementing different tools and solutions that connect the workforce to improve efficiency, productivity, quality, and collaboration.

Enhances customer relationship 

Above all, measuring service quality indicates a commitment to customers. Over time, good quality service builds trust and enhances the customer relationship—while poor quality service can cost a service organization its customers, revenue, and overall brand reputation.

Drives outcome-based service models 

In outcome-based service models, companies don’t depend on a point-of-sale event—but on capturing revenue over months and years. These models in service rely on guaranteeing uptime and machine performance for potential profitability— rather than the traditional warranty and service contract coverage models. Many companies make premium services and outcomes a competitive differentiator. But for outcome-based service to be successful and profitable, service organizations must focus on tracking and improving quality metrics.

What are the 5 dimensions of service quality? 

Service organizations can use the following service quality dimensions to measure technician performance and identify areas for improvement. Service leaders evaluating new workforce technology should consider these areas when determining their use case (or use cases).

Reliability 

Service reliability is crucial to customers. Knowing the technician will arrive on time, complete the service correctly, and avoid repeat visits is a huge part of customer trust. Customers should also be able to rely on consistent machine uptime—a benefit of high-quality service.

Schneider Electric, a leading manufacturer of power management systems, leveraged a service lifecycle management (SLM) solution to improve efficiency, scheduling times, and technician skills management. As a result, the manufacturer’s first-time fix rate (FTFR) is up by three points from two years ago, proving their reliability to customers.

Tangibility 

Tangibility refers to all the physical aspects of the service business, including tools, employees, and facilities. Service quality can also be measured by tangible parts, including resources and tools left behind for the customer. Offering solutions for self-service and remote collaboration with the service organization can go a long way in boosting customer satisfaction. High-quality service also provides tangible benefits to the customer, such as improved first-time fix rates, fewer repeat visits, and increased asset uptime and availability.

Harpak-ULMA, an original equipment manufacturer of packaging solutions, provided one customer with tangible tools in the form of augmented reality (AR) experiences and Internet of Things (IoT) data. These tools enabled the customer to complete self-service on their equipment and avoid costly unplanned downtime.

Responsiveness 

Customers expect their machines to be back up and running as quickly as possible after repairs or maintenance. That’s why a timely and attentive response from the service organization is another prerequisite for quality service.

Peterbilt, a commercial vehicle manufacturer, used AR and product lifecycle management (PLM) solutions to create service efficiencies. Its ARTech solution accelerates repairs, while a combination of AR and PLM helps the manufacturer create a digital thread of data, ensuring always up-to-date information at service technicians’ fingertips.

Assurance 

While on-site to perform repairs or maintenance, service technicians should assure the customer and keep them informed on their progress. Customers should also be assured that the technicians working on their equipment are experts they can trust to complete the job correctly, the first time.

Empathy

Empathy is one of the most important service quality dimensions, and one that service technicians should bring to every job. Customers who feel cared for as people will associate those feelings with the service business, resulting in higher customer satisfaction scores and improved brand reputation.

Leading additive manufacturing solutions company 3D Systems used an SLM platform to enable a more proactive and predictive service approach, increasing their net promoter score by 195% in two and a half years and improving their overall FTFR.

How to ensure high service quality

Improving service quality should be an act of collaboration between leadership and technicians at the service organization and the customers they serve. From considering innovative technologies that boost technician efficiency and accuracy to communicating transparently with the customer, service quality improvement is an ongoing effort.

Understand customer needs 

What is service quality to one customer might not hold true for others. That’s why the first step to providing great service is understanding how to best serve the customer. Whether it’s routine maintenance, preventative repair, or an urgent response to machine failure, technicians should arrive on site fully prepared for the job ahead. Without this understanding, repeat visits are more likely to occur, negatively impacting customer satisfaction.

Be transparent about services 

Customers should also have complete visibility into the services being performed. This builds trust in the relationship and helps them know when their equipment will be up and running again. When customers don’t receive transparency, service organizations risk making them feel misinformed and losing their trust.

Use feedback to improve 

Improvement is impossible without feedback, both for service technicians looking to improve individual performance and organizations looking to improve the overall service experience for their customers. Technologies that connect the workforce enable technicians, service organizations, and customers to communicate and identify opportunities for improvement together.

Adopt solutions to connect the service workforce

Leading service organizations leverage a combination of solutions that connect the workforce with the information, products, and people they need to improve service quality on the job:

An SLM solution supports the technician by providing work execution management so they know where to go, what to bring, how long the job is, and which steps to take. It also gives teams across the service organization visibility into service history and asset data, aiding in decision-making for customer service, dispatchers, field service technicians, and remote technicians.  

Internet of Things (IoT) data and remote support increase service technician visibility into machine performance, reduce truck rolls, and optimize technician time and efficiency.

In-context AR work instructions empower technicians through the simplest or most complex service procedures with always up-to-date information and visual guidance.

Conclusion

Customers expect high service quality, but it’s not always guaranteed. By implementing solutions that connect the service workforce, service organizations ensure they not only meet those customer expectations but exceed them. Discover how leading service providers leverage those solutions to better understand customer needs, empower technicians, and improve customer relationships in our Service Workforce Maturity Model.

Improve Service Quality

Assess the maturity level of your workforce to adopt the right solutions for service quality improvement Explore the Maturity Model
Tags: Augmented Reality Industrial Internet of Things Service Lifecycle Management (SLM) Service Optimization

About the Author

Claire Cavanaugh

Claire is a Content Marketing Manager on PTC's Commercial Marketing team. She creates content in support of PTC products and solutions.