As a home service business owner, there are several key performance indicators (KPIs) that you should be monitoring to ensure the success of your business. Here are some important numbers to keep an eye on:
Revenue: This is the total amount of money your business brings in from sales. It’s important to track your revenue on a regular basis to ensure that your business is growing and generating enough income to cover your expenses.
Gross Profit Margin: This is the percentage of revenue that is left over after deducting the cost of goods sold (COGS). A high gross profit margin indicates that your business is generating enough revenue to cover your expenses and still make a profit.
Customer Acquisition Cost (CAC): This is the amount of money you spend to acquire a new customer. It’s important to keep your CAC low to ensure that you’re not overspending on marketing and advertising. We help our clients find ways to analyze and lower their CAC.
It’s also beneficial to increase client retention and upsells and recurring sales to keep the cash flow coming through the door. We review it all in our programs to ensure optimized profitability.
Customer Lifetime Value (CLV): This is the total amount of money a customer is expected to spend on your services over their lifetime. A high CLV indicates that you have loyal customers who are willing to pay for your services over the long term.
Average Ticket Size: This is the average amount of money a customer spends on each service call. Increasing your average ticket size can help you generate more revenue without having to acquire new customers.
By monitoring these key performance indicators, you can make informed decisions about how to grow and improve your service business.
