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 5 OF 7
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. That’s why it is so important to use KPIs to manage your performance. Good KPIs provide objective evidence of progress toward your goal and against industry benchmarks.
What KPIs should I measure?
KPIs can be used for all aspects of your business and each specific job function. The great part about ServiceTitan is that it makes it easy to measure these. As your business matures, more and more KPIs will help refine operations. If you have not used KPIs before, the following is a list of ones many best practice 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.
» Download ServiceTitan's Ultimate Guide to KPIs e-Book 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 | ≥ 72% | |
| % of total sales | 25% | |
| Average calls needed to generate replacement lead | ≤ 10 | |
| Maintenance labor | ≤ 18% | |
| Maintenance cost of goods sold parts and supplies | ≤ 10% | |
| Maintenance gross margin | ≥ 70% | |
| % of total sales | 15% | |
| Average calls needed to generate replacement lead | ≤ 18 | |
| Callbacks | ≤ 1% | |
| Plumbing Service and Maintenance | ||
| Service and maintenance labor | ≤ 20% | |
| 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 | ≤ 30% | |
| Gross margin (after support wages and commissions) | ≥ 50% | |
| IAQ & home performance | ≥ 65% | |
| % of total company sales | 75% | |
| Warranty expense | ≤ 2% | |
| Marketing- Sample Budget | ||
| Target Range | 6-10% | |
| Branding | 25% | |
| Call to action | 50% | |
| Internal | 25% | |
| Leadership – Time Spent | ||
| Recruiting, retaining and building career pathways | 30% | |
| Developing best practices | 30% | |
| Vision and company direction | 30% | |
| 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 | > 75% of calls ran | |
| Earnings before interest, taxes, depreciation and amortization | > 12% target of >20% | |
| Operating cash and or credit days of operating expense | ≥ 20% | |
| Overhead as a percent of sales | ≤ 30% | |
| Field to office ratio | 3 to 1 | |
| Company annual growth rate | ≥ 10% |
Residential Field Staff KPI’s | Target |
|---|---|
| HVAC Service Technician | |
| Average ticket | ≥ $375 |
| Leads set per service call | ≥ 20% |
| Closed calls | ≥ 85% |
| Service call to maintenance agreement conversion rate | ≥ 30% |
| HVAC Maintenance Technician | |
| Average tune-up ticket | ≥ $175 |
| Leads set per maintenance call | ≥ 15% |
| Closed calls | ≥ 50% |
| Tune-up to maintenance agreement conversion rate | ≥ 80% |
| Plumbing Service Technician | |
| Average ticket | ≥ $500 |
| Closed calls | ≥ 90% |
| Service call to maintenance agreement conversion rate | ≥ 30% |
| Tankless water heater leads | ≥ 15% |
| Electrical Service Technician | |
| Average ticket | ≥ $575 |
| Closed calls | ≥ 90% |
| Service call to maintenance agreement conversion rate | ≥ 30% |
| Generator sales leads | ≥ 15% |
| Comfort Adviser | |
| Replacement system (average install ticket) | > $7,700* |
| Sales closing ratios (on average) | > 65% |
| Technician lead | 75-85% |
| Current non-agreement customer | 55-65% |
| Service agreement customer | 70% |
| Self- generated | 65-80% |
| Marketing lead | 25-35% |
| Commission | 9% |
| Annual sales | ≥ 1.5 mill |
| * This figure fluctuates highly per market area. Adjust accordingly. |
Customer Service Rep (CSR) | Target |
|---|---|
| Call conversion ratio | ≥90% |
| Slot bookings per day | |
| Service and Maintenance calls per day | 4 / 4 |
| Sales leads per comfort adviser | 2 |
| Happy calls | ≥75% |
| 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. revenue | 100% of monthly revenue target |
| Maintenance calls booked per maint tech | 4 per day |
Table of Contents
1. Introduction
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2. Building a Company for Success
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3. Setting Your Company Up for Success
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4. Driving a Company Culture
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5. Setting a Path to Maximum Profitability
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6. Billing Structure: Determine Your Pricing
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7. Marketing Practices
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8. Call Center Practices
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9. Call Center + Field Practices
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10. Best Practices in the Field
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11. Field + Office Best Practices
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12. Keys to Success in the Office
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13. Management and Office Best Practices
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14. Human Resources
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15. Preparing Your Company For Sale
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