Is Your Business Healthy? | Essential KPIs Every Contractor Needs to Assess Monthly

The Operations KPIs Every Contractor Needs to Assess on Monthly Basis

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In the fast business dynamics of home service contracting, tracking key performance indicators (KPIs) is crucial. These metrics don’t just measure performance but offer actionable insights that can drive growth, efficiency, and profitability. This is our recommendation of top KPIs you can monitor on monthly basis to be able to act in time, make changes, new decision, driving your business financial wellness.

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1. Revenue per Job

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• Why Track It? Revenue per job is a primary profitability indicator, helping you understand the average income each job brings in. This KPI helps in pricing strategy, operational efficiency, and in assessing whether your services are undervalued or overvalued

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• Insights Gained: If revenue per job is lower than expected, it may be time to reassess pricing structures, upselling techniques, or bundling services. Conversely, a high revenue per job can indicate that you’re positioned well in the market, giving room for possible service expansion

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2. Gross Profit Margin

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• Why Track It? Gross profit margin reveals the portion of revenue left after covering the direct costs of providing services, like labor and materials. This is crucial for assessing profitability and financial health.

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• Insights Gained: A declining gross profit margin often indicates rising costs or pricing issues. By tracking this KPI, contractors can take steps to negotiate better supplier rates or adjust pricing to cover increasing expenses, maintaining profitability

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3. Customer Acquisition Cost (CAC)

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• Why Track It? Customer acquisition cost measures the investment needed to acquire a new customer, considering marketing, advertising, and sales expenses. Lowering CAC over time is essential to boost profitability.

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• Insights Gained: High CAC can indicate inefficiencies in marketing strategies, signaling a need for targeted campaigns, referral programs, or partnerships that reduce acquisition expenses while retaining or improving lead quality.

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4. Customer Lifetime Value (CLV)

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• Why Track It? CLV shows the total revenue generated by a customer throughout their engagement with your business. This KPI helps in understanding customer loyalty and the long-term profitability of customer relationships.

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• Insights Gained: A high CLV suggests satisfied customers and effective upsell strategies. By aligning marketing and service offerings to enhance CLV, contractors can generate consistent, repeat revenue, reducing reliance on new customer acquisition.

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5. First-Time Fix Rate

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• Why Track It? This KPI measures how often a job is completed successfully on the first visit. A high first-time fix rate means efficient service, reduced labor costs, and higher customer satisfaction.

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• Insights Gained: A low first-time fix rate often indicates issues in diagnosis or technician training. Addressing this by investing in training or diagnostic tools can reduce costs, improve efficiency, and enhance the customer experience.

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6. Job Completion Rate

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• Why Track It? Job completion rate reflects the percentage of scheduled jobs that are successfully completed within a specific period. It’s a direct measure of productivity and customer satisfaction.

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• ‍Insights Gained: Tracking this KPI can reveal operational bottlenecks, such as poor scheduling or lack of resources. Improving job completion rates often leads to better customer retention and maximized revenue potential.

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7. Repeat Customer Rate

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• Why Track It? Repeat customer rate shows the percentage of customers who return for additional services. Retaining customers is typically less expensive than acquiring new ones, making this an important profitability indicator. This is especially relevant for trades that have recurring jobs (cleaning, HVAC....)

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• Insights Gained: Low repeat customer rates may suggest a need for improved service quality or customer engagement. High rates indicate strong brand loyalty and provide a basis for upselling or introducing new service offerings.

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8. Average Time to Complete a Job

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• Why Track It? Knowing how long jobs take to complete helps contractors balance schedules, optimize workforce productivity, and ensure customer satisfaction with timely services.

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• Insights Gained: If average completion time is higher than anticipated, it may be necessary to refine processes, provide more technician training, or invest in time-saving tools. Efficient job completion increases the number of jobs a team can handle, driving higher revenue

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9. Customer Satisfaction Score (CSAT)

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• Why Track It? CSAT reflects customer happiness with your services, often gathered through post-service surveys. High CSAT scores foster repeat business and positive referrals.

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• Insights Gained: Low scores can highlight areas of improvement, from technician performance to service quality. Boosting CSAT can lead to a virtuous cycle of referrals, repeat business, and reduced marketing costs, driving long-term growth

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10. Cancellation Rate

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• Why Track It? Cancellation rate tracks the percentage of scheduled jobs that are canceled before completion, helping to identify potential dissatisfaction or operational inefficiencies.

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• Insights Gained: A high cancellation rate could reveal scheduling issues, miscommunication, or a mismatch between customer expectations and service delivery. Lowering this rate by improving pre-service communication or scheduling flexibility can help contractors capture more revenue from existing leads.

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There are many other KPIs that are very relevant  for your business: general costs, job and project costing, profitability etc.  Follow our CONTRACTOR ADVISORY series to learn more about making informed business decisions.