7 Important KPIs for Roofing Businesses

1. Average Job Completion

The average job completion time is the time it takes to complete a job from the initial consultation to the final invoice. 

Roofing businesses must track and measure this KPI because it connects to efficiency. 

If you have roofing employees, the average job completion metric can help you measure the overall performance of your employees. 

For example, if your roofing team completed five roofing jobs with the following timelines: 10, 12, 8, 15, and 9 days, you first need to add these times together. Then, you divide this by the number of jobs. 

The average job completion time in this case would be:

54 days / 5 jobs = 10.8 days per job

This metric helps you identify if your team meets productivity standards and if there are delays.

2. Revenue

Revenue is the total amount of money you generate through your roofing services.

Roofing companies that track and measure their revenue are in better control of the financial health of their business. 

Why?

Because by tracking revenue, they can easily see if their business grows, stagnates, or, worse, declines. 

When measuring revenue, it’s important to consider the bigger picture of the business and how different factors, like market conditions or pricing strategies, might affect this metric. 

With ServiceTitan, tracking revenue trends and seeing which jobs and employees are the most profitable is easy. 

ServiceTitan’s Field Reporting software gives business owners in-depth reporting tools to measure the profitability of their roofing services. 

Users can access a dynamic and customizable dashboard that shows revenue and trends by day, week, or month.

3. Profitability

A business is profitable if it can generate more revenue than the costs it pays to run it. 

Roofing companies should measure profitability to understand if their business is financially healthy and sustainable. 

There are three specific KPIs to track when measuring profitability:

Net profit margin

This KPI tracks how much profit the roofing business makes after all expenses, including taxes and interest. 

The formula for calculating the net profit margin is:

Net profit margin = (Net profit / Total revenue) x 100.

For example, if your roofing business makes $200,000 in revenue and has $160,000 in total expenses, your net profit would be $40,000 and the net profit margin would be:

($40,000 / $200,000) x 100 = 20%

Operating margin

The operating margin shows your profit after covering operating expenses minus interest and taxes.

You can calculate the operating margin with this formula:

Operating margin = (Operating income / Total revenue) x 100

If your revenue is $200,000 and your operating expenses are $140,000, the operating income is $60,000. The operating margin can be calculated as follows:

Operating margin = ($60,000 / $200,000) x 100 = 30%

Gross margin

The last KPI to track for measuring the profitability of your roofing business is the gross margin—i.e., how much revenue you make after subtracting direct costs. 

You can calculate this important indicator of business performance with this formula:

Gross margin = (Total revenue - Direct costs) / Total revenue x 100

For example, if you have a total revenue of $200,000 and your direct costs are $120,000, your gross margin is:

[($200,000 - $120,000) / $200,000] x 100 = 40%

4. Number of Repeat Customers

How many recurrent customers you get as a home services business says a lot about your company’s performance and quality of services.

It speaks volumes about how good your team is at roofing jobs, your customer service, and your ability to build trust and customer loyalty. 

Retaining repeat customers is more cost-effective than acquiring new ones. They also often provide valuable word-of-mouth referrals. 

You can easily calculate the number of repeat customers as a percentage with the formula:

Number of repeat customers = (Number of customers who made more than one purchase / Total number of customers) x 100. 

For example, if you had 100 customers in the past year and 30 of them returned for additional services, your repeat customer rate would be:

Repeat customer rate = (30/100) x 100 = 30%

ServiceTitan has a Service Agreement Software tool to increase your renewals and revenue. 

With this software, roofing businesses can create tailored contracts for each customer’s needs. They can automate agreement renewals to keep revenue recurring and improve customer retention, just like referral programs do.

5. Customer Satisfaction Score

You should track the customer satisfaction score because it shows how your customers feel about your roofing services. 

Although it’s difficult to satisfy every customer, this metric will help you learn from possible mistakes and customer feedback to improve your services. 

The customer satisfaction score is a goldmine for measuring the quality of your work, how efficient your team is, and the overall experience your customers have with your roofing business. 

To calculate this metric, use the following formula:

Customer satisfaction score = (Total positive responses / Total responses) x 100

In an example, that would look like this: If you surveyed 100 customers and 85 of them gave positive feedback, your customer satisfaction score would be:

Customer satisfaction rate = (85/100) x 100 = 85%

If you’re looking to meet and exceed customer expectations, ServiceTitan has Customer Experience software that can help. 

This customer-centric tool lets roofing companies:

• Send appointment reminders and technician bios so customers know who to expect in their homes.

• Communicate by text with customers, who can confirm, reschedule, or ask questions via text. 

• Show customers where technicians are on the map and when they are due to arrive for a roofing job.

6. Closing Percentage

The closing percentage measures how many leads are converted to jobs.

Roofing businesses should track this KPI for various reasons, including:

• Setting realistic sales goals

• Monitoring your sales team’s performance

• Improving this metric if it’s not where you want it to be

Calculating the closing percentage is fairly easy: divide the number of jobs by the total number of leads and then multiply by 100. 

For example, if your roofing team had 50 leads in a month and turned 15 of those leads into jobs, your closing percentage would be:

Closing percentage = (15/50) x 100 = 30%

ServiceTitan makes it easy for roofing techs to close sales in the field.  With the mobile app, techs can receive payments as soon as customers decide to close a deal. Using the tablet camera, roofers can capture checks and credit cards to make it frictionless for customers to pay.

The property data display is another feature that helps your salespeople close more deals. It shows key customer details, like the age or size of their property, to help sales reps spot sales opportunities. 

You might also like: 11 Best Roofing Apps for Sales & Business Management in 2024

7. Number of Leads

Using the number of leads in your pipeline as a KPI can provide valuable information about the success of your marketing strategies.

Not having enough leads might signal you need more time on lead generation. Too many leads you can’t handle might mean it’s time to grow your sales team. 

To improve your number of leads, different marketing strategies might help, including:

• Optimizing your roofing business website for search engines 

• Running targeted pay-per-click campaigns 

• Promoting your roofing services on social media platforms

• Listing and optimizing your roofing business on Google My Business

These are just some examples of how you can grow the number of leads in your pipeline.

How Can Roofing Contractors Use KPIs?

In any business, KPIs measure how well the business achieves its objectives.

If you set an objective of reaching a specific number of leads by the end of Q1, measuring this KPI will show things like:

• How well your marketing efforts attract new customers

• The performance of your sales team

• Your marketing ROI

Armed with these numbers and insights, you can take action to change current strategies to grow your number of leads (if you’re not meeting your target). 

The customer satisfaction score can help you decide whether to improve the quality of your roofing services by training your employees or finding new talent. 

The average job completion can show roofing business owners how productive and efficient the team is. 

Roofing companies can use KPIs to measure and grow their business success in countless ways. 

What Makes a Good Roofing KPI?

Not all roofing KPIs are created equal. 

Good KPIs show your progress toward an end goal in an objective and clear manner. 

Business managers can make more informed decisions that support growth by measuring progress clearly and objectively. 

Good KPIs are specific, measurable, and aligned with your business objective. 

For example, if your end goal is to increase repeat business, a good KPI to track might be the customer satisfaction score. 

Or, if you aim to increase business profitability by 15 percent within the next year, you might need to track the net profit margin. 

When Matt and Lori Swanson, founders of Guardian Roofing, wanted to attract more clients and grow their roofing company, they turned to ServiceTitan. 

By integrating advanced roofing software features, Guardian Roofing streamlined operations and reinforced its commitment to its “Customer for Life” motto. 

“There is no way that we could have done that [tripling in size since 2015] without ServiceTitan,” Matt says. 

Also, ServiceTitan has helped Guardian Roofing take control of its marketing efforts. 

“If I was going to use one word to describe ServiceTitan, I would say dynamic. And that's simply because there are so many things that we can do with it from start to finish,” adds Matt. 

“From making the phone ring with Marketing Pro, all the way to the project being done and making sure that our customer is happy.”

Lori, meanwhile, highlights the importance of using adequate technology when managing a roofing business:

“With technology…I think what took us 18 years is going to take someone five. Because you have real-time information, your KPIs, you can make quick decisions, you can pivot, you can see what marketing is working.

“If we would've had the same technology we have now [...] when we started, everything would've looked a lot different.”

When asked about ServiceTitan features, Lori said these are her favorites:

• Tech-friendly mobile app: ServiceTitan’s Field Service App enables technicians to create estimates and manage tasks on the go. 

• Agile dispatch: Another favorite feature of Guardian Roofing is the platform’s efficient dispatch system, which helps the company quickly adapt to changing weather conditions. 

• Customer-centric insights: ServiceTitan provides techs with comprehensive customer histories. “Techs can access that customer history and see that we've tried to go out there two or three times, but the weather didn't cooperate,” says Lori. “They know the backstory with the customer and what they've been going through. They're not going in blind.”

• Easy membership management: Guardian Roofing leverages ServiceTitan to effectively manage its membership program. They manage all their service contracts in one place and automate agreement renewals. 

“I can't even imagine going back to pre-ServiceTitan because of how archaic it was and not having real-time information,” says Lori Swanson. “Having to wait until the end of the month to know your metrics is just not scalable. It's really hard to grow that way. You find yourself really reactive.”

With nearly $30 million in revenue generated in 2023, Guardian Roofing ranks among the nation’s top residential roofing companies. The business has expanded significantly, increasing by 200 percent since 2015.

The Bottom Line

Tracking and measuring KPIs gives your business direction and insights into what works and what needs to change. 

Now you know what specific things you need to track in the roofing industry, like profitability and revenue. 

With a trusted partner like ServiceTitan, it’s easy to track roofing KPIs from one software platform. 

See how well your marketing strategies are performing, how much money your business makes, or how efficient your sales team is. 

ServiceTitan is a comprehensive software marketing solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, roofing, and chimney sweep shops across the country—and they have increased their revenue by an average of 25 percent in just their first year with us.