Phil Risher identifies four metrics that drive home-service company growth: booking rate, close rate (target 40-60%), average ticket, and customer acquisition cost. Optimizing these levers enables scalable growth without constant firefighting.
There's only 4 numbers that's gonna grow your home service business. The first one is your booking rate. How many leads did you get to how many jobs did you book? If you just focus on that number, just take the month and just focus on your booking rate and know that number through and through, then all you have to do is just get more leads and then that's gonna turn into more jobs for your business. So that's the first number. Second is your close rate, your estimates to actual close estimates. It should be between 40 and 60%. If you focus on that number to get it to like 50, 60%, there's no way that you can't grow your business. The third one is your average ticket. This is. You did $2 million and you generated 1,000 different estimate closes. So your average ticket is $2,000. If you know that number and you focus on growing that average ticket, again, no money on ad spend needed and it's gonna grow your business. And then the fourth number is your customer acquisition cost. You spent $1,000 on Google and you got 10 new customers, so it's $100 a new customer. The reason that this all works together is because if you know your booking rate and you track it and you fight for a great booking rate, great booking rate's like 70%. You know your close rate, 40 to 60%. You know your average ticket. And you know your customer acquisition cost, all you have to do is just pull those levers up and down. It's infinite growth. And a lot of businesses just run around firefighting random things, trying different tactics and all this stuff. If you just pull those 4 levers, you're gonna grow your business.
