Table of contents:
Introduction
In a previous article, we covered the 10 best metrics to use in home service marketing departments. So naturally, in this article, we want to switch over to the sales department and describe some of the best KPIs to use in that context. Let’s dive in!
1. Average Ticket
What is this KPI, and how do I find it?
The Average Ticket, also referred to as Average Ticket Size or Average Job Value, indicates the amount of revenue generated from each job over a period of time.
The value of your Average Ticket is found by dividing the number of sales by the total number of completed jobs over a given period.
Why Average Ticket is important
Average Ticket is a particularly critical KPI because it helps you grow revenue without increasing your budget. How? By making better use of the customers you already have.
Average Ticket allows you to best align your technicians’ abilities with the jobs at hand, so you can derive maximum value from your existing customers. Between your employees’ technical skills and their abilities to identify and capitalize on customer needs, you can go a long way in making the best use of your current budget.
How to use your Average Ticket value
Your Average Ticket has a few crucial uses.
For one, it’s a solid measure of how your individual agents are performing. A low Average Ticket for a specific agent likely means that they likely require additional sales training, so they can better identify and respond to customer needs.
For another, it can be used to analyze and adjust your pricing, especially if your overhead costs are increasing.
Finally, with this knowledge, you can use your Average Ticket value as a baseline to budget with—for example, by multiplying the number of expected jobs in a period by your Average Ticket value.
2. Closing Rate
What is the Closing Rate KPI, and how do I find it?
Also called the Close Ratio or Win Rate, Closing Rate indicates the percentage of service opportunities that have been successfully converted to jobs within a specific timeframe.
Find your Closing Rate by dividing the number of closed job opportunities by the number of sales opportunities you’ve received over a period. Multiply by 100 to obtain a percentage.
Why Closing Rate is important
Closing Rate measures how effectively your sales team and technicians turn expenses into revenue. In this case, “high efficiency” means you’re fully optimizing ROI.
With that in mind, even a small percentage of improvement in your Closing Rate can give you a massive revenue windfall. For example, if you double your closing rate, you cut your cost per sale in half!
How to use Closing Rate
The key point to remember about Closing Rate is that it is a lagging indicator. That is, this KPI tells you the what and not the why. If you have a too-low Closing Rate, you’ll need to look at leading indicators to give you a better picture of what’s going on.
Relevant leading indicators to Closing Rate can include Speed-to-Lead, which measures response times; and Follow-Up Cadence, which measures follow-up touches such as calls, text messages, and emails.
Bear in mind that your Closing Rate can actually be too high! If you’re regularly closing 70 or 80 percent of leads, your services are likely underpriced and you could be leaving valuable revenue behind.
3. Options per Opportunity
What is this KPI, and how do I find it?
Options per Opportunity is the average number of distinct price or service choices offered to customers during a single service call or sales presentation. This KPI is a leading indicator for both Average Ticket and Closing Rate.
To find Options per Opportunity:
- Divide the total number of options available by the number of packages presented to a customer.
- Divide the result from (1) by the number of service opportunities (a.k.a jobs) in a period.
Why Options per Opportunity is an important metric
Options per Opportunity is an essential sales metric because it shifts the dynamic from sale / no sale to one of presenting multiple sales opportunities. It cultivates a more positive sales experience for the customer: a “Sorry, we can’t do that,” becomes a “Let me offer you…”.
Providing customers a wider range of options actually makes your sales KPI goals easier to quantify, because you have more data to work with. Rather than simply telling your technicians to increase their Average Ticket, for example, you can give them a specific directive about which aspect of the sales process to improve (such as to present three options for every call).
How to use Options per Opportunity
Upselling and cross-selling are commonly used Option per Opportunity methods used to increase an Average Ticket value (and create a better CSAT too). High-performing technicians will have (or really, create) many Options per Opportunity—and because this KPI is a leading indicator for Closing Rate, they’ll have a high Closing Rate too.
You can use Options per Opportunity to analyze your pricing scheme. For example, if customers are only choosing the cheapest upsell option, it likely means your other options are priced too high.
Also, if some of your technicians have a too-low Options per Opportunity or Closing Rate, you can coach them in stronger coaching techniques—a time and monetary investment that will absolutely be worth it!
4. TGL Conversion
What is TGL Conversion, and how do I find it?
Tech-Generated Leads Conversion (TGL Conversion) is the percentage of leads that come from a digital, tech-based source that become paying customers, or booked jobs. TGL Conversions can originate from search engines, social media, email marketing, referral sites, or your own website.
To find your TGL Conversion, divide your number of jobs booked from tech leads by the total number of tech leads you’ve generated. Multiply by 100 to obtain a percentage.
Why TGL Conversion is important
TGL Conversion is no vanity metric. Rather, it helps you ensure that you’re putting your money where your mouth is—that you’re using your time and resources wisely in the digital channels best suited to your needs.
A good TGL Conversion means that you have a successful marketing strategy; that your website makes it easy for potential customers to find information and request service; and that your sales team is effectively nurturing, following, and closing deals with leads.
How to use this KPI
Use TGL Conversion to compare different lead channels, and determine how effective your website is at attracting leads.
You can also compare your TGL Conversion against tech-generated lead volume: if the volume is high but the conversion rate low, you can address this as an issue with your sales process—whether because you’ve attracted too many unqualified leads, or your sales team requires a better process to follow.
5. Tech-Generated Sales
What are Tech-Generated Sales, and how do I find this KPI?
Tech-Generated Sales is the percentage of your total revenue that derives from tech-generated leads. While your TGL Conversion tells you how efficiently you turn your leads to jobs, your Tech-Generated Sales tells you how valuable these leads are to begin with.
To find your Tech-Generated Sales, take the total revenue from tech-generated leads in a period, divide by your total company revenue in the same period, and multiply by 100 to obtain a percentage.
Why Tech-Generated Sales are important
TGL Sales is the “holy grail” of digital sales and marketing efforts. If there’s one KPI to measure your ROI on these, it’s this.
TGL Sales doesn’t just evaluate digital ROI overall—it can help you pinpoint which channels are actually driving growth. Channels that convert at lower rates can actually result in considerably higher revenue than channels that convert at higher rates.
How to use this KPI
The best use case for TGL Sales is budgeting: you can allocate appropriate funds to the channels that yield the highest ROI, and also have a clearer picture about financial forecasting and goals. As an added bonus, you can use this KPI to recognize high performers on your sales team—those that excel in turning high-value leads into cold, hard cash.
6. Marketed Conversion Rate
What is this KPI, and how do I find it?
Marketed Conversion Rate indicates the percentage of leads from a marketing channel—such as Google Ads or a website—that convert into a desired action. In the home service industry, there are two types of marketed conversion:
- Macro-conversion: A booked and completed service job (a.k.a., a sale).
- Micro-conversion: A qualified lead (such as a completed booking form or a phone call).
Here’s how to find your Marketed Conversion Rate:
- First, divide your booked jobs by your completed jobs.
- Next, multiply this result by the number of sales in a period.
- Then, divide your result from (2) by your total number of leads within the period.
- Finally, multiply by 100 to obtain a percentage.
Why Marketed Conversion Rate is important
Marketed Conversion Rate indicates alignment between your marketing and sales teams. A strong alignment means that the leads identified by your marketing team become paying customers through your sales team.
If both marketing and sales are successfully working with the same customer base, you’ll also save money by reducing your CAC (Customer Acquisition Cost).
How to use Marketed Conversion Rate
Use Marketed Conversion Rate as a tool to gauge how successful your lead channels are. You can then shift attention away from low-converting lead sources and to high-converting ones instead—an excellent use of your time and resources.
7. Marketed Sales Rate
What is the Marketed Sales Rate KPI, and how do I find it?
Finally, the Marketed Sales Rate measures the percentage of leads from marketing efforts that become your customers.
To find your Marketed Sales Rate, divide your number of new customers obtained from marketing channels by the number of leads obtained from marketing channels. Multiply the result by 100 to obtain a percentage.
Why Marketed Sales Rate is important
Marketed Sales Rate is something of a “final boss” of sales KPIs, as it shows your company’s ultimate goal: how well your lead generation efforts turn into completed jobs. A high Marketed Sales Rate means that your sales and marketing efforts are well and truly paying off.
How to use this KPI
Use your Marketed Sales Rate to evaluate your revenue goals. You can see how many leads you need to obtain to meet these goals, and how you can best reduce your CSAT.
Because Marketed Sales Rate is also a reflection of your entire customer journey, you can take it as a starting point to identify where your lead-to-customer funnel can be improved.
The Plecto difference
Using digital dashboards is an incredible way to make your home service data accessible, visual, and easy to understand. Plecto is a product that offers all of these data viz benefits (and gamification too) to bring your data to life and build your team spirit.
Using Plecto, you’ll be able to easily track the KPIs described in this article and more—freeing up your time, so you can spend more of it doing the work that really matters.
Read examples here of how home service firms have revolutionized their data processing and team culture with Plecto's data viz and gamification features:
Game-Changing Culture Drives 20% Increase in Calls and Jobs at Electrika
Plecto Saves Canadian Home Service Firm Hundreds of Hours
Real-Time Plecto Dashboards Drive 100% Higher Engagement at Arnold & Sons
If this sounds exciting to you, don’t wait! Give Plecto a free 14-day trial today, and see for yourself what it can do for your home service sales team.
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JAMES NIILER
Content Writer
An in-house content writer and specialist at Plecto, James brings an academic touch and journalistic flair to his marketing copy. Having worked and studied on both sides of the Atlantic, James is a great believer in the importance of communicating across cultures and industries. Catch his work here on the Plecto blog, or as a guest contributor on other B2B websites.
