Phil Risher ranks five KPIs for scaling a home-service business. Booking rate is the "holy grail" because it shows how many leads convert to jobs. Average ticket price matters for profitability, while cost per lead is just vanity.
Average ticket price. This one's going to be number 4 because you got to have a good average ticket if you're going to be profitable, and you have to track it. But there's other things that's more important to grow a home service business. Customer acquisition cost. I would say number 3. It's important to know how much it costs to get more customers, but it's a byproduct of a good booking rate coming in the door. Cost per lead. Cost per lead is going to be number 5. Cost per lead is a vanity metric because it doesn't matter how much a lead actually costs you, it matters how much return you get from that lead. Close rate. Number 2. Obviously it's important to close deals, but It starts with getting good booking rates so that way you can actually have deals to go and close. And then you have to build your customer acquisition cost of what you close and then your average ticket from there. Booking rate, number one, so important. Most people don't know how many leads that they get and they don't know how many they convert into a job. And if you know that number, all you have to do is just get more leads and your booking rate's gonna be the holy grail to unlock growth in your business.
