One of the main questions you might have as the owner of a residential home service business is, “How well is my business performing?” You may know that your business is making money, but do you know how and why? Do you know if your marketing is effective, and how well your sales force is converting leads into sales?
More importantly, if you do not know the answers to those questions, how can you create and implement a strategy to improve and grow your business?
Key Performance Indicators (KPIs) are measures of performance a business uses to see whether its activities can be considered successes or failures. This information helps businesses understand how they compare to other similar businesses and gives business owners the data needed to set realistic goals for improving and increasing profitability. Tracking and monitoring your business’ KPIs through dedicated operational software is a way to do this.
Examples of KPIs include:
- Gross profit margin
- Annual sales
- Income per lead
- Lead conversion
- Cost per lead
- Job cost vs. profit
- Unbilled time
- Call conversions
- Return calls per technician
Measuring service business performance without the right tools can be difficult and time-consuming, but HVAC-dedicated software like ServiceTitan makes the process simple. ServiceTitan founders created this software with HAVC, plumbing and electrical service businesses in mind, and worked directly with these businesses in the development stages to offer a targeted software product not available in the marketplace.
KPI tracking needs change from year-to-year depending on individual business objectives and industry trends, so if you think your residential home service business could benefit from customizable tracking software, look no further than ServiceTitan.