Top 4 KPIs To Track For Home Service Businesses
Businesses in the home service industry are experiencing unprecedented growth. Many individuals are working longer hours than ever and homeowners have less time to do necessary tasks. Verified Market Research reveals that continuous demand for these services will spark a year-over-year increase of 18.91% until 2026. While this rise is music to the ears of home service businesses, it also increases the pressure to provide an excellent service to remain competitive and avoid losing market share.
Part of staying competitive is setting and monitoring key performance indicators (KPI) for home contractors. Monitoring KPIs enables service industry businesses to determine their personnel’s strengths and weaknesses. It also helps to create an atmosphere of learning while simultaneously increasing the customer base. Continue reading to find out key performance indicators for service industry workers that you need to monitor for increased employee efficiency.
What are the top KPIs for Home Service Businesses?
Average Job Completion Rate
Measuring the home contractor’s average completion rate can help you understand your employees’ time to finish the job. This makes it easier to determine the contractors’ efficiency and make the necessary adjustments to enhance their productivity levels.
Tracking KPIs for home service business also allows you to properly allocate labor. You can also reduce employee turnover rates due to overworking. The service industry is fast-paced, and often, companies make the mistake of assigning numerous tasks to their contractors without considering their respective workloads.
Doing so can increase the likelihood of healthy profits. However, it also sends a signal to your employees that you only care about revenues and not their well-being. Tracking this KPI empowers you to ensure employee satisfaction. Plus, you can bring about quick desired results by measuring the contractor’s overall performance.
Revenue Per Contractor
Revenue per contractor is another KPI for employee performance, which every home contractor business should measure. It tells you about contractor productivity and determines how efficiently you utilize employees.
Knowing this enables businesses to put their employees in the position to succeed. Theoretically, you want to achieve the highest average of revenue per contractor because it automatically translates to greater productivity and more returns.
You can use a field service management platform to track contractor revenues and provide clients with quick invoices. A comprehensive list of field service management software from FinancesOnline is an excellent start to look for the right solution for your operations and budget.
Errors Per Contractor
The best home service businesses hire high-caliber employees, but every contractor is bound to make a mistake now and then. Keeping track of errors per contractor allows you to evaluate employee performance. Plus, you can set up training sessions to improve weak areas in their arsenal.
Thus, increasing overall job satisfaction, morale, and efficiencies in performing processes results in delivering quality work. Training employees also enables your contractors to be well-equipped with the skills necessary to avoid the risk of a complete job makeover.
Reworking is what no service business wants to encounter since it can curtail productivity, increase unnecessary expenses, and limit revenue-generating opportunities. Monitoring errors ensures that those same mistakes won’t reduce future contractor productivity, thereby increasing the likelihood of quickly turning quality work.
Customer Feedback Per Employee
Most home service businesses bank on positive customer feedback to acquire more clients and increase return on investments (ROI). Unlike other work fields, home service is relatively sensitive. Clients only tend to trust contractors with good recommendations from their peers.
Keeping close tabs on customer feedback per employee enables you to pinpoint the contractors who are providing sub-par services. Hence, you can take corrective measures. Conduct surveys and encourage customers to leave a review right after your contractor turns the job in.
You can use field service management software to avoid paperwork. It would make the review process painless and more streamlined for your clients. Either way, monitoring customer feedback per contractor is a vital KPI that can provide valuable information regarding your employees’ service quality and help you improve to get repeat customers for your home service business.
Winning Customer Trust through KPI Monitoring
Winning customer trust in the home service industry is a long journey that often starts with ensuring your contractors are equipped with their job tools. One of the tools that improve field operations, reduce common accounting errors in the field service business, and increase customer satisfaction is a field service management platform.
An excellent example of this solution is SmartServ. It is a robust yet easy-to-use cloud-based field service software designed to help service contractors and home service businesses to create service agreements, custom checklists, and customer invoices. You can sign up for a free personalized demo to know more about the software.
SmartServ is an all-in-one home service software. Schedule jobs in seconds, dispatch effectively, track team performance, shorten the payment cycle, enhance the customer experience, and much more. For a personalized demo, claim your free session today at https://www.smartserv.io/demo-request/