7 basic KPIs for a plumber business

Introduction

As a plumber business owner, it can be difficult to track and calculate your key performance indicators (KPIs). KPIs are an essential part of any successful business and should be tracked and calculated on a regular basis.

There are many different KPIs for the plumbing industry, however, there are seven basic KPIs that all plumbing businesses should pay attention to. This blog post will cover what these seven KPIs are, as well as how to track and calculate them.

The seven essential plumber activity KPIs are:

• Percentage of time the first call is successful
• Average service time
• Percentage of customer requests completed on time
• Percentage of customer complaints resolved within 48 hours
• Percentage of customer quotes accepted
• Average Customer Satisfaction Rating
• Average Monthly Sales Growth

Keep reading to learn how to track and calculate these basic plumber KPIs.

Percentage of time the first call is successful

Definition

Time to first call percentage is a key performance indicator (KPI) that measures the proportion of successful customer service calls that are completed on the first attempt. This KPI assesses the effectiveness of customer service representatives and their ability to resolve customer inquiries quickly and accurately.

Benefits of Tracking

Tracking percentage of time, first call, is beneficial to businesses for several reasons. Monitoring this KPI helps identify areas for improvement and can help inform customer service strategies. Additionally, tracking this metric helps ensure that customer service representatives are following established protocols and procedures, which leads to better overall customer service.

Industry Benchmarks

The industry benchmark for percentage of time the first call is successful varies by industry. Generally, a good benchmark is 70-80%.

How to calculate

The first call time percentage is calculated by dividing the number of successful customer service calls completed on the first attempt by the total number of calls.

Calculation example

For example, if a plumber received 100 calls and was able to successfully resolve 80 of them on the first attempt, his call time percentage is calculated as follows:

Tips and tricks

• Make sure that customer service representatives follow established procedures.
• Provide feedback to customer service representatives on their performance.
• Provide additional training to customer service representatives on customer service best practices.
• Use customer service software to track customer service calls.

Average service time

Definition

Average service time is a key performance indicator (KPI) that measures the average time it takes plumbers to complete a job after arriving at a client or business. This metric is important for plumbing companies because it can help identify areas for improvement, inform pricing decisions, and gauge customer satisfaction.

Benefits of Tracking

• It helps identify areas for improvement in terms of speed and efficiency.
• It helps inform pricing decisions.
• It helps to gauge customer satisfaction.

Industry Benchmarks

The average service time for plumbing jobs can vary widely depending on the job. Generally speaking, the average service time for a plumbing job is between two and four hours.

How to calculate

Average service time is calculated by dividing the total time spent on a job (from arrival to completion) by the number of jobs completed.

Calculation example

For example, if a plumber completes 10 jobs in one day, with a total time spent of 30 hours, his average service time would be:

Tips and Tricks for Tracking Average Service Time

• Use a time tracking tool to accurately measure the time spent on each job.
• Set benchmarks for yourself and your team to strive for.
• Use customer feedback to identify areas for improvement.

Percentage of customer requests completed on time

Definition

This KPI measures the percentage of customer requests completed on time. This metric is important for plumbing companies as it gives an indication of the efficiency of the business and how well they are responding to customer demands.

Benefits of Tracking

• It helps to identify areas for improvement in the business workflow process.
• It helps to measure customer satisfaction.
• It helps to identify potential bottlenecks in the workflow process.

Industry Benchmarks

The industry benchmark for this KPI is 80% or higher. If a plumbing company is not meeting this target, it is a sign that changes need to be made in order to improve the efficiency of the business.

How to calculate

The formula to calculate this KPI is as follows:

Calculation example

If a plumbing company had 10 customer requests in a given month and 8 of those requests were fulfilled on time, the KPI would be calculated as follows:

Tips and tricks

• Ensure that customer requests are accurately tracked to achieve an accurate KPI.
• Identify areas for improvement in the workflow process and make changes accordingly.
• Set realistic goals for the KPI to ensure it is achievable.

Percentage of customer complaints resolved within 48 hours

Definition

Percentage of Customer Complaints Resolved Within 48 Hours KPI is a measure of how quickly a plumbing company is able to resolve customer complaints. This KPI looks at the percentage of customer complaints that are resolved within 48 hours of being reported.

Benefits of Tracking

Tracking this KPI is important for plumber companies because it helps them understand how quickly they are able to resolve customer complaints. This in turn can help them identify any areas for improvement, as well as help them provide better customer service.

Industry Benchmarks

The industry benchmark for this KPI is to have at least 80% of customer complaints resolved within 48 hours. However, this may vary depending on the type of business and the size of the customer base.

How to calculate

The formula to calculate this KPI is as follows:

Calculation example

For example, if a plumber company received 100 customer complaints in the last month and 80 of them were resolved within 48 hours, the calculation would be:

Tips and tricks

• Be sure to track customer complaints over time to get an accurate picture of how quickly they are resolved.
• Set realistic targets and baselines for this KPI to ensure customer complaints are resolved in a timely manner.
• Ensure customer complaints are handled professionally and efficiently.
• Be sure to review customer feedback regularly to identify any areas for improvement.

Percentage of customer quotes accepted

Definition

Percentage of customer quotes accepted metric measures how often customers accept quotes given by a plumbing company. It is a key performance indicator (KPI) that helps identify the success of the sales process.

Benefits of Tracking

Tracking this metric provides many benefits. It can help identify any customer service issues that may need to be resolved, such as prices that are too high or quotes that are too complex or long. Plus, it can provide insight into how customers perceive the business and any areas that need improvement. Finally, it can be used to accurately measure the success of the sales process, enabling better decision-making and more efficient use of resources.

Industry Benchmarks

The industry benchmark for the percentage of customer quotes accepted is typically around 70%. This means that on average, seven out of ten customers will accept quotes from a plumbing company. However, this may vary depending on the size of the business, its location, and the services it provides.

How to calculate

The percentage of accepted customer quotes is calculated by dividing the number of accepted quotes by the total number of quotes and then multiplying by 100. This equation can be expressed as:

Calculation example

For example, if a plumbing company gave 10 quotes and seven of them were accepted, the percentage of customer quotes accepted can be calculated as follows:

Tips and tricks

• Be sure to keep track of accepted and rejected quotes in order to accurately calculate this metric.
• Look for data trends over time to identify any areas that need improvement.
• Regularly benchmark your performance against industry benchmarks to ensure your business is operating at an optimal level.

Average Customer Satisfaction Rating

Definition

The average customer satisfaction rating is a key performance indicator (KPI) that measures the overall level of customer satisfaction with your plumbing business. It is calculated by compiling customer feedback, surveys and reviews and is expressed as a numerical score on a scale of 1 to 10.

Benefits of Tracking

• Gives you a clear overview of customer satisfaction levels.
• Helps identify areas for improvement.
• Provides an objective measure of customer service.
• Improves customer loyalty, retention and acquisition.

Industry Benchmarks

The average customer satisfaction rating for plumbing companies is 8.5. This is based on customer feedback and industry surveys.

How to calculate

Calculation example

Let’s say you have a plumbing business and you want to calculate the average customer satisfaction rating. You have received 10 customer reviews and the average rating for these reviews is 8.5.

Your average customer satisfaction rating is 85.

KPI Tips and Tricks

• Encourage customers to leave reviews and ratings.
• Use customer feedback to continuously improve your services.
• Regularly monitor customer satisfaction ratings.
• Aim to exceed industry benchmarks.

Average Monthly Sales Growth

Definition

Average monthly sales growth is a key performance indicator (KPI) that measures the rate at which a plumbing business is growing its sales month over month. This metric provides insight into the effectiveness of marketing and sales strategies, and is used to assess the long-term success of a business.

Benefits of Tracking

Tracking the average monthly sales growth of a plumber business can be beneficial in several ways. With this metric, companies can measure their performance over time, compare it to industry benchmarks, and identify areas for improvement. By tracking this KPI, business owners can make informed decisions about their sales strategies and tactics to ensure the continued growth of their business.

Industry Benchmarks

The average monthly sales growth of a plumber business varies widely depending on the size and type of business, as well as the industry in which they operate. Generally speaking, the industry benchmark for average monthly sales growth is between 1-3%, although this could be higher or lower depending on the nature of the business.

How to calculate

To calculate the average monthly sales growth of a plumber business, the following formula should be used:

Calculation example

For example, if a plumber business had sales of ,000 in the current month and ,000 in the previous month, the average monthly sales growth would be:

Tips and tricks

• It is important to regularly track monthly average sales growth to ensure business success.
• It is also important to keep an eye on industry references to ensure that the business is operating at an optimal level.
• Finally, it’s important to monitor the performance of sales and marketing teams to make sure they’re doing their best to drive sales growth.

Conclusion

In conclusion, tracking and calculating your business KPIs is a great way to measure your performance and provide feedback for improvement. The seven critical plumber business KPIs are: Percentage of call time completed, Average service time, Percentage of customer inquiries completed on time, Percentage of customer complaints resolved within 48 hours, Percentage of customer quotes customers accepted, average customer satisfaction rating, and average monthly sales growth.

By tracking, collecting, and analyzing data from these metrics, you’ll be able to measure the success of your business, identify opportunities for improvement, and take action to maximize your profits. By constantly monitoring and evaluating your business KPIs, you can achieve long-term success.