Toolboxplaybook-back-btn Playbookplaybook-back-btn Chapter 13

CHAPTER 13

Management and Office Best Practices

The day-to-day visibility into KPIs on the ServiceTitan dashboard puts trade company managers in position to recognize and act on business trends. Setting alerts, building custom reports and automated delivery of information to key stakeholders supercharge what you know.

SECTION 4 OF 6

KPIs and Tracking

Why are KPIs needed?

Key Performance Indicators (KPIs) are important indicators of performance toward a desired goal.  In the home service industry, what gets measured and recognized gets improved. Good KPIs provide objective evidence of progress toward your goal and against industry benchmarks.

What KPIs should be measured?

KPIs can be used for all aspects of a business and each specific job function.  Anywhere you want to see improvement, use KPIs. ServiceTitan makes it easy. And as a business matures, more and more KPIs will help refine operations. If you have not used KPIs before, these are the ones many of the best contractors start with:

  • Average Ticket

  • Membership Conversion Rate

  • Closing Percentage

  • Labor as a Percentage of Revenue

  • Call Booking Percentage

  • Gross Profit Percentage by department

  • Equipment and Material cost Percentage

  • Lead turnover Percentage

To get insights into these data points, you can leverage your ServiceTitan Dashboard or run reports in ServiceTitan. Check out our dashboard KPIs here.

This is just a sample of some important KPIs & Benchmarks:

Business Performance Metrics
Target
HVAC Service and Maintenance
Service labor≤ 20%
Service cost of goods sold parts and supplies≤ 18%
Service gross margin≥ 62%
% of total sales25%
Average calls needed to generate replacement lead≤ 10
Maintenance labor≤ 18%
Maintenance cost of goods sold parts and supplies≤ 10%
Maintenance gross margin≥ 60%
% of total sales15%
Average calls needed to generate replacement lead≤ 18
Callbacks≤ 1%
Plumbing Service and Maintenance
Service and maintenance labor≤ 21%
Cost of goods sold parts and supplies≤ 15%
Callbacks≤ 1%
Electrical Service and Maintenance
Service and maintenance labor≤ 21%
Cost of goods sold parts and supplies≤ 15%
Callbacks≤ 1%
HVAC Residential Replacement
Replacement labor≤ 9%
Equipment and materials≤ 35%
Gross margin (after support wages and commissions)≥ 45%
IAQ & home performance≥ 65%
% of total company sales60%
Warranty expense≤ 2%
Marketing- Sample Budget
Target Range6-10%
Branding25%
Call to action50%
Internal25%
Leadership – Time Spent
Recruiting, retaining and building career pathways30%
Developing best practices30%
Vision and company direction30%
Other
Average revenue per team member per year≥ $170,000
New service agreement customers per day> 35% of new customer opportunities
Service agreements per million dollars of service sales≥ 1,000
5 Star reviews per tech per day> 40% of calls ran
Earnings before interest, taxes, depreciation and amortization> 10% target of >20%
Operating cash and or credit days of operating expense≥ 20%
Overhead as a percent of sales≤ 30%
Field to office ratio3 to 1
Company annual growth rate≥ 10%
Residential Field Staff KPI’s
Target
HVAC Service Technician
Average ticket≥ $350
Average calls needed to generate replacement lead≤ 10
Closed calls≥ 85%
Service call to maintenance agreement conversion rate≥ 30%
HVAC Maintenance Technician
Average tune-up ticket≥ $175
Average calls needed to generate replacement lead≤ 18
Closed calls≥ 50%
Tune-up to maintenance agreement conversion rate≥ 70%
Plumbing Service Technician
Average ticket≥ $450
Closed calls≥ 92%
Service call to maintenance agreement conversion rate≥ 30%
Tankless water heater leads≥ 15%
Electrical Service Technician
Average ticket≥ $500
Closed calls≥ 85%
Service call to maintenance agreement conversion rate≥ 30%
Generator sales leads≥ 15%
Comfort Adviser
Replacement system (average install ticket)> $8,500*
Sales closing ratios (on average)> 50%
Technician lead75-85%
Current non-agreement customer55-65%
Service agreement customer70%
Self- generated65-80%
Marketing lead25-35%
Commission9%
Annual sales≥ 1.5 mill
* This figure fluctuates highly per market area. Adjust accordingly.
Customer Service Rep (CSR)
Target
Call conversion ratio≥80%
Slot bookings per day
Service and maintenance calls per tech3
Sales leads per comfort adviser2
Happy calls≥60%
Non-agreement conversion ratio≥20%
Service Coordinator/ Dispatcher
Percentage of productive time booked per day dispatched≥50%
Total service dept. club memberships sold≥30%
Total service dept. leads turned in≥20%
On time percentage≥95%
Service dept. revenue100% of monthly revenue target
Maintenance calls booked per maint tech4 per day

Go to Section 5: KPIs at a Glance