What are the 5 main KPIs?

A short KPI list should cover different parts of the business without pretending one figure explains everything. Revenue tells you about volume, margin about included delivery costs, booking rate about conversion, average ticket about job value and days outstanding about balances relative to sales. Each still needs supporting records.

Start with the decision you want to improve this month. If too few inquiries become appointments, the guide to booking rate from leads to jobs is a useful next step. If completed work leaves little contribution, inspect costs first. Keep one owner for each measure and agree on what happens when it changes. A KPI is useful when someone can move from the number to a sensible investigation.

A key performance indicator earns its place by helping someone decide what to do. Start with the question, then choose the number. An owner asking whether the business can cover expenses needs different detail from a dispatcher checking tomorrow's workload.

For each KPI, record the formula, time period, data source, exclusions and person responsible for review. Specify whether jobs are scheduled or completed and whether revenue is collected or recorded. The service business KPI guide provides broader context. The five measures here are a practical selection, not a claim that all businesses use the same five.

Compare revenue with a goal for the same period and definition. The dollar gap is actual revenue minus goal. If the goal is nonzero, attainment is revenue divided by goal, multiplied by 100. Keep scheduled revenue separate from completed work when discussing likely outcomes.

Suppose a hypothetical weekly goal is $20,000 and the selected revenue figure is $18,000. The gap is $2,000 below goal and attainment is 90%. That does not explain why. Review job count, service mix, cancellations and work timing before responding. A low week may reflect an installation moving to next week rather than a change in underlying demand.

Gross margin equals revenue minus included direct costs, divided by revenue, multiplied by 100. Document which labor, material and subcontractor costs are included. Do not compare a wages-only calculation with one using loaded labor costs and call the difference performance.

For a hypothetical job with $500 revenue and $300 direct costs, gross profit is $200 and gross margin is 40%. That amount must still contribute to remaining business expenses. Use the profit per job calculator to examine a job scenario. Across multiple jobs, add the dollars first and then calculate margin; do not take a simple average of percentages.

Booking rate equals booked eligible leads divided by total eligible leads, multiplied by 100. Choose the lead unit carefully. A person who calls twice about one broken heater is normally one opportunity under a deduplicated policy, not two independent chances to sell.

If a hypothetical group contains 40 eligible leads and 20 book, its booking rate is 50%. Investigate the other leads by reason: outside the service area, unsuitable work, unavailable appointment, price concern or no response. The reasons lead to different actions. Booking rate is a calculation you can make from appropriate records; a revenue report alone does not supply the full lead denominator.

Average ticket equals the revenue for selected completed jobs divided by their count. Keep the same completion and revenue definitions in both parts. Decide how cancellations, credits and zero-value callbacks are treated and document the choice.

Suppose a hypothetical electrical crew completes ten jobs with $5,000 of revenue. Average ticket is $500. That does not mean every technician should sell a $500 job. A panel replacement and a small repair have different scopes. Compare similar work, then inspect job count and total revenue. A rising average can coexist with falling total revenue if fewer jobs are completed.

A common DSO calculation divides accounts receivable by credit sales and multiplies by the number of days in the period. Definitions vary, so name the formula you use. A change in sales mix or payment terms can move the result without changing the age of a particular invoice.

ServicePro IQ defines days outstanding as outstanding balance divided by revenue, multiplied by 365, over the last 365 days. Its A/R page also lists outstanding invoices. Keep that product definition separate from a credit-sales-only calculation. Review the invoices behind the number before deciding who needs a reminder or which payment issue needs attention.

ServicePro IQ adds business reports built from your Housecall Pro data. The Revenue page shows total and year-to-date revenue, a running-total line against the revenue goal, revenue by lead source, the job list and cancellations. Those details give you records to review alongside your own operating calculations.

Reports can be filtered by date range, by day, week, month or year, and by tag, tag combination, lead source and employee. Filters stay in place as you move between report pages. Use the same period and selection when comparing related figures. A report filter does not by itself establish that two groups performed equivalent work.

The Housecall Pro integration requires a Housecall Pro MAX account. ServicePro IQ reads your data without changing anything in Housecall Pro. Job and revenue figures refresh once an hour, at 20 minutes past the hour. After connection, your contact lets you know when reports are ready. See pricing and start the free 7-day trial with a specific set of jobs you want to understand.