Earlier, we took a look at 12 key KPIs that are essential for use in home service. Today we’ll explore 12 more.
These KPIs are more in-depth than the ones covered previously. Many of them are SLMs, or service level management, KPIs. SLMs help service providers ensure they consistently meet high standards of quality, service, and efficiency in their work.
This is where data software comes in. While you probably already use ServiceTitan to improve your workflow, keep track of your finances, and monitor your KPI performance, it’s a highly time-consuming platform to learn and engage with.
Meanwhile, Plecto is great for tracking metrics and goals because it simplifies your data and displays only what you need it to. Better yet, you don’t have to sacrifice the powerful capabilities of ServiceTitan to access this simplified data on Plecto. You can use the Plecto x ServiceTitan integration to get your data fast and efficiently.
With Plecto, you can do whatever you want with your data. Doing so gives you more freedom and flexibility while providing the KPI overview you need.
With that, here are 12 more commonly used home service KPIs, perfect for tracking in Plecto.
Finance
1. Gross Profit Margin
Gross Profit Margin is your profit after you account for the cost of your services provided. In a nutshell, you can think of it as the cost of doing business. Because it indicates how successfully you turn sales into profits–a key measure of operational efficiency–having a high Gross Profit Margin is the goal to aim for. What's more, a high Gross Profit Margin means your company occupies a favorable position in the market, especially when compared to home service industry averages.
2. Average Opportunity Ticket
The Average Opportunity Ticket KPI tracks average revenue for opportunity jobs. It’s used to gauge the value that each opportunity, or potential service job, represents. Essential for any home service firm’s sales team, the Average Opportunity Ticket allows you to understand the sizes of service job deals you’re after. Knowing this data will help you hone in on your marketing and sales strategies, as well as in making decisions about the personnel or resources to allocate to future service requests. Note: If you want, you can substitute Conversion for Opportunity.
3. Revenue per Technician
Revenue per Technician indicates the mean amount of revenue each technician in your firm has generated in a period. Monitoring this KPI—especially over shorter intervals such as weeks or days—is an ideal way to see how effectively your technicians are contributing to the team. If, for example, you notice that Revenue per Technician declines every time a couple of newer employees are in the field, you’ll know how to best respond (such as providing them with additional training). This KPI can also reveal problem areas your firm might face, such as lack of equipment. Addressing these issues by giving your technicians the tools to perform their jobs at the highest level will only increase the revenue they’re able to deliver.
Operations
4. Sold Hours Efficiency
A KPI that’s hard to track in ServiceTitan but easy to do in Plecto, the Sold Hours Efficiency KPI indicates how efficiently your company delivers its services. It measures the actual time spent on billable work against the scheduled time available for work. Tracking Sold Hours Efficiency will help promote and improve your service quality, as it can prompt technicians to complete jobs quickly while maintaining high standards. Sold Hours Efficiency can also form the basis of performance evaluations or one-to-ones, where technicians can use this KPI to understand how to improve their productivity and time management.
5. Sold Hours/Worked Hours
The Sold (or Worked) Hours KPI measures the total billable hours delivered to clients. This KPI refers directly to hours that can be charged to customers–in other words, how much time technicians actually spend in the field on service jobs. Because Sold Hours measures the time spent on revenue-generating activities, it’s an ideal KPI to use to track technician performance and determine further metrics (such as Utilization Rate). You can also use the Sold Hours KPI to predict revenue for the upcoming period and determine what resources to allocate for service projects.
6. Inventory Turnover
The number of times a business replaces its stock in a given period, Inventory Turnover has a lot of relevance for home service firms that have stocks of equipment or supplies that need to be replenished or updated at regular intervals. Keeping track of your Inventory Turnover has three main functions: maintaining efficiency, so that you’re actually using your supplies; stock management, so you avoid over- or understocking; and cost control, so you can reduce the cost of holding inventory as needed. Inventory Turnover is heavily tied to seasonality as well—for example, it’s reasonable to assume you’ll go through more AC components in the summer than winter months. Because of this, tracking your Inventory Turnover is important to forecasting the cost of your supplies so that you can factor these into your annual budget.
Customer Satisfaction
7. CSAT
One of the best-known and most important KPIs used across all industries, CSAT (short for Customer Satisfaction) measures just that: the percentage of customers satisfied with your service. To find CSAT, customers are given a question about their experience with your company (whether specific or general). Customers respond by ranking their satisfaction on a scale of 1-5, or 1-10. Satisfied customers are those who give at least a 4 (or at least an 8). Tracking your CSAT over time is one of the most effective ways to monitor those aspects of your business that might require improvement, because the customer input you receive from CSAT will help you know if you’re on the right track.
8. NPS
NPS is pretty similar to CSAT, and it can be easy to confuse them. The two KPIs measure distinct things, however. While CSAT indicates customer satisfaction, NPS indicates how likely customers are to recommend your service to others. NPS is measured on a scale of 0-10: 9-10 are promoters, 7-8 are passives, and 0-6 are detractors. The percentage of detractors (from the total number of respondents) is then subtracted from the percentage of promoters, revealing a score between -100 and +100. A score of +1 is considered “good”—but of course you should want to get much higher than that!
At a time when marketing is based not only on word-of-mouth recommendations but online reviews, maintaining a high NPS is a powerful assurance that customers have such a high trust in your firm that they feel comfortable advocating your services to others.
Service Quality and Performance
9. Average Worked Hours
As you might expect, this KPI indicates the mean number of hours worked by your technicians over a certain period. Average Worked Hours can help ensure your technicians’ labor is being used efficiently and fairly. You can use this KPI to check not only how productive your employees are, but also see if they are stretched thin with tasks. If this is the case, you’ll know further steps to take, such as hiring more personnel or restricting the number of new jobs.
10. Total Worked Hours
The sum of all hours worked by all employees over a period, Total Worked Hours is an essential KPI for building efficient and effective service teams. Beyond using this KPI to see how productive your technicians are on an overall basis, you can evaluate your Total Worked Hours against the projected number of hours your employees are scheduled to work. This way, you can have technicians on call to respond to urgent requests as needed. Of course, this KPI is also ideal for ensuring your technicians don’t overwork themselves, and that your firm is staying within legal limits on working hours, overtime pay, and other, related requirements.
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11. Warranty Claim Rate
The Warranty Claim Rate is an all-important metric to monitor, because warranties are not only a matter of professionalism but also of legality. Knowing your Warranty Claim Rate is essential for maintaining quality of your services, compliance with legal regulations, and satisfaction from your customers. Your Claim Rate is also key for managing (and mitigating) financial costs and other risks related to the impact of warranties and recalls.
Growth and Expansion
12. Number of New Jobs
It’s a simple measure but reveals a lot about how your firm is doing. The Number of New Jobs KPI measures the count of new service jobs or appointments booked by customers over a set period. Beyond just showing your technicians where they need to be that day, this KPI indicates how your firm is growing based on the demand customers have for your services. For this same reason, the Number of New Jobs can reveal how effective your marketing strategy is, and how satisfied your customers are overall. Beyond using this KPI for more effective capacity planning, you can also use it to forecast revenue for a certain period, while taking into account factors such as seasonal variations and local market competition.
Conclusion
We can’t stress enough that tracking these KPIs in Plecto is guaranteed to make your life easier!
While ServiceTitan has incredible capability and reach, Plecto is the tool that will analyze, simplify, and explain your key data points at a glance.
Using these KPIs in Plecto are the perfect way to visualize and track your business development so you can spend your time doing the work you want while caring for your customers—not analyzing data.
Sound appealing? Give Plecto a shot—it’s a free 14-day trial—and see what the ServiceTitan integration can do for you.
