The true cost of callbacks

We all know callbacks negatively impact your company, but have you taken time to determine exactly how much? In order to improve your business, you first need to consider all of the factors that go into the true cost of a callback.

  • The call itself. A callback is costs you in three ways: first, the cost of sending a technician in a truck out to the call and truck operation cost. Second, the cost of the material needed to fix the problem, and finally, the loss of the chargeable call your tech is missing because they're on a no-cost service call.
  • Loss of a customer. Satisfied clients will most likely use your services again, but if you have to return once or even twice to fix a problem that should've been resolved on your initial visit, what are the chances that customer will ever call you again? In addition, satisfied customers will recommend your company to others but if they are unhappy with your work - not only will they not recommend you - they will let people know of your poor performance, costing you future business.

Now that you know what callbacks are truly costing you, it's time to take action. Keep these three questions in mind:

  1. What's the reason for the callback? If the same repairs are repeatedly being made, retrain your team so they know exactly what to do going forward.
  2. Who's responsible for the callback? If the majority of your callbacks are coming from a single technician, take advantage of this coaching opportunity to determine a plan of action and help the tech grow their skills over time. Many dealers view training as an expense, but if it reduces the need for callbacks, that money out of your pocket is really an investment in your business.
  3. How are callbacks affecting your KPIs? If various departments are expected to generate a certain amount of revenue, callbacks will have a negative impact on that performance. Set a baseline so you can determine how callbacks are influencing where you're at and where you need to go.

Maintaining the status quo is never acceptable; you should always strive to continuously help your business grow and prosper. Start by accurately determining how callbacks are affecting your company and take action to eliminate them.

Dave Nichols is a regional training manager with HVAC Learning Solutions.

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