Measure Your Painting Contractor Success – Top 7 KPIs

Introduction

As a painting contractor, there are key metrics you need to track to measure success and performance. Monitoring the right key performance indicators (KPIs) can help you identify opportunities for improvement and inform strategies to increase your business growth and efficiency.

For painting contractors, here are the 7 best KPIs to track and calculate to measure and guide business performance:

• Number of painting projects completed
• Average Cost of Painting Projects
• Average Customer Satisfaction Score
• Day/s in arrears of late payments
• Total paint services sold
• Attrition rate of current customers
• Percentage of on-time delivery of painting projects

Number of painting projects completed

Definition

The number of painting projects completed is a key performance indicator (KPI) that measures the total number of painting projects a painting contractor completes during a given time period. This is an important metric to track because it indicates how productive a business is, how successful its marketing efforts are, and how well it is able to meet customer needs.

Benefits of Tracking

Tracking the number of painting projects completed helps painting contractors see how well their business is doing. By tracking this metric, painting contractors can identify trends in customer demand, gauge the effectiveness of marketing efforts, and determine how well they are meeting customer needs. Additionally, tracking this metric can help painting contractors set realistic goals and benchmarks for their business.

Industry Benchmarks

The number of painting projects completed varies from company to company and depends on factors such as the size of the company, the region, the types of services offered and the level of competition. Generally speaking, a successful painting contractor should aim to complete at least 5-10 painting projects per month.

How to calculate

The number of paint projects completed can be calculated by taking the total number of paint projects completed during a given period and dividing it by the total number of days during that period. For example, if a painting contractor completed 20 painting projects in a 30-day period, their number of painting projects completed would be 20/30, or 0.67.

Calculation example

Let’s say a painting contractor completed 15 painting projects over a 30 day period. The number of painting projects completed would be 15/30, or 0.5.

Tips and tricks

• Track the number of painting projects completed on a weekly, monthly and/or yearly basis.
• Set realistic goals and benchmarks for the number of painting projects completed.
• Identify trends in customer demand and assess the effectiveness of marketing efforts.
• Create a system to track and monitor the number of completed painting projects.

Average Cost of Painting Projects

Definition

The average cost of painting projects is a key performance indicator (KPI) that measures how well a painting contractor company is able to manage project costs. It takes into account the total cost of a project, including labor, materials, overhead, and more, divided by the total number of completed projects. This metric helps determine the profitability of each project and ensures that the company does not overspend on each project.

Benefits of Tracking

Tracking the average cost of painting projects helps painting contractors run their business more efficiently. By understanding where their costs are going and how much each project is costing them, they can make better decisions about how to price their services and ensure that they are running their business profitably.

Additionally, this metric can provide valuable insight into the performance of the business as a whole. If the average cost of painting projects is consistently high, it may indicate that the company is not managing costs properly or that there is room for improvement in pricing or efficiency.

Industry Benchmarks

The average cost of painting projects varies greatly depending on the type of project, location and other factors. Generally, painting contractors in the United States can expect to pay anywhere from ,500 to ,000 per project, on average.

How to calculate

The formula for calculating the average cost of painting projects is:

Calculation example

For example, if a painting contractor completes 10 projects in a month with a total cost of ,000, the average painting project cost for that month would be:

Tips and tricks the KPI

• It is important to track the average cost of painting projects over a period of time to get an accurate picture of business performance.
• Analyzing the cost of each project can help identify areas where the company may be able to improve efficiency or reduce costs.
• It’s also important to compare the average cost of paint projects to industry benchmarks to make sure the company isn’t overspending on each project.

Average Customer Satisfaction Score

Definition

The average customer satisfaction score is a key performance indicator (KPI) that measures the average customer satisfaction rating for a painting contractor’s services. This metric can help a painting contractor understand how satisfied their customers are with the quality of their services and can also be used to identify areas for improvement.

Benefits of Tracking

Tracking the average customer satisfaction score can benefit painting contractors in several ways. It can help them identify areas for improvement in their services, as well as demonstrate their commitment to providing excellent customer service. Tracking this metric can also help them monitor the performance of their employees and ensure that all customers receive the same high quality service.

Industry Benchmarks

The average satisfaction score for painting contractors is usually between 8 and 9 out of 10. This score indicates that customers are generally satisfied with the services they receive and that the painting contractor provides high quality service.

How to calculate

The average customer satisfaction score can be calculated by dividing the total number of customer satisfaction ratings by the total number of services provided. The formula for this calculation is as follows:

Calculation example

For example, if a painting contractor received 100 customer satisfaction ratings and provided 200 services, their average customer satisfaction score would be calculated as follows:

Therefore, the average painting contractor satisfaction score of customers would be 0.5.

Tips and tricks

• Encourage customers to provide feedback on the services they receive.
• Analyze customer satisfaction ratings to identify areas for improvement.
• Encourage employees to provide excellent customer service.
• Regularly review the average customer satisfaction score to ensure that customers are satisfied with the services they receive.

Day/s in arrears of late payments

Definition

Day/s in arrears in late payments is a key performance indicator (KPI) that measures the average number of days that customers are late in their payments to the painting contractor. This metric is important to track in order to maintain a healthy cash flow, as well as determine the efficiency of the contractor’s billing and collection process.

Benefits of Tracking

Tracking day/s in past due KPI payments allows painting contractors to quickly assess the current state of their cash flow and identify any potential issues with invoicing and collection. This metric is especially important for small businesses, as cash flow is often a major concern for them.

Industry Benchmarks

The industry standard for day/s in late payment KPIs is 15 days or less. This means that the majority of customers should pay their bills within 15 days of the due date. All of the above is an indication that the contractor’s billing and collection process may need to be improved.

How to calculate

The Days/s in Overdue Payments KPI is calculated by taking the total number of days that customers are behind in their payments, dividing it by the total number of invoices issued, and then multiplying the result by 100. The formula for this metric is as follows:

Calculation example

For example, if a painting contractor has issued 100 invoices and 10 of those invoices have not been paid within 15 days of the due date, the KPI overdue payment(s) can be calculated as follows:

Tips and tricks

• Regularly monitor day/s) in arrears of late KPIs to ensure customers pay their bills on time.
• Implement an automated billing and collection process to ensure invoices are sent on time and customers remember their payment deadlines.
• Make sure customers are aware of late payment fees that can be associated with late payments.

Total paint services sold

Definition

Total paint services sold is a key performance indicator (KPI) that measures the number of paint services sold in a given time period. This metric measures the total value of services sold, not just the number of services sold.

Benefits of Tracking

Tracking this KPI helps painting contractors understand how much of their services are sold and the total value of the services. This helps them understand how their business is performing in terms of sales, as well as where they stand in the market against competitors. It also helps identify potential areas for improvement, such as increasing sales or introducing new services.

Industry Benchmarks

Industry benchmarks for this KPI vary by industry and region. Generally, a good benchmark is to have a higher number of services sold than the industry average. This indicates that the painting contractor is doing well compared to their competitors.

How to calculate

The formula for calculating total painting services sold is:

Calculation example

For example, if a painting contractor sold 10 services, each at a price of 0, the total painting services sold would be:

Tips and tricks

• Monitor this KPI regularly to ensure that the painting contractor is meeting its sales targets.
• Compare this KPI to industry benchmarks to understand how the business is performing against competitors.
• Introduce new services or raise the price of existing services to increase total painting services sold.

Attrition rate of current customers

Definition

The Current Customer Churn Rate KPI is a measure of the number of customers who cease doing business with a painting contractor over a specified time period. It is calculated as the number of customers lost during this period divided by the total number of customers during this period.

Benefits of Tracking

Tracking current customer churn rate KPIs helps painting contractors stay informed of their customer retention performance and identify areas for improvement. It also allows painting contractors to benchmark their customer churn rate against the industry, providing valuable insights on how to improve their customer retention efforts.

Industry Benchmarks

The average customer churn rate in the industry is around 10-15%. However, this number can vary depending on the specific industry and painting contractor.

How to calculate

The current customer churn rate KPI is calculated using the following formula:

Calculation example

For example, if a painting contractor had 100 customers in January and 10 customers leaving in February, the current customer churn rate KPI for that time period would be 10%.

Tips and tricks

• Track customer churn rate over time to identify trends and identify areas for improvement.
• Compare your customer churn rate with industry benchmarks to understand how your business is performing in comparison.
• Identify the reasons for customer churn and take steps to reduce it.
• Explore ways to encourage customer loyalty and reduce customer churn.

Percentage of on-time delivery of painting projects

Definition

Paint Project On-Time Delivery Percentage is a metric used to measure the success of a painting contractor’s ability to deliver projects on time. It is measured as the number of projects completed within the agreed time frame, divided by the total number of projects. This metric is used to assess the effectiveness of contractor operations, as well as their ability to meet expectations.

Benefits of Tracking

Tracking the on-time delivery percentage of painting projects offers a number of benefits for painting contractors. First, it allows entrepreneurs to identify areas where they are doing well and areas where they need improvement. This helps them stay competitive and ensure that they provide the best quality services to their customers. Second, it allows entrepreneurs to set realistic goals for their operations and track their performance in achieving those goals. Finally, tracking this metric allows entrepreneurs to determine if they are meeting their customers’ expectations and, if not, why not.

Industry Benchmarks

The industry benchmark for on-time delivery percentage of painting projects is generally set at 95%. This means that 95% of projects should be completed within the agreed time frame. However, this benchmark may vary depending on the size and complexity of the project, and the operations and processes of the contractor.

How to calculate

The on-time delivery percentage of painting projects is calculated using the following formula:

Calculation example

For example, if a painting contractor completed 100 projects and 90 of them were completed on time, their painting project on-time delivery percentage would be calculated as follows:

Tips and Tricks for KPIs

• Plan ahead and set realistic deadlines for each project.
• Set up processes and systems to track progress and ensure on-time delivery.
• Hold regular team meetings to make sure everyone is on the same page.
• Track the number of projects completed on time with each client.
• Encourage customer feedback to identify areas for improvement.

Conclusion

By tracking and calculating the right Key Performance Indicators (KPIs), painting contractors can make informed decisions that drive greater efficiency and profitability. The seven KPIs outlined in this article—such as number of paint jobs completed, average paint job cost, and average customer satisfaction score—are valuable metrics for painting contractors to measure and guide their business performance. .

Regular monitoring of these metrics will regularly help contractors identify areas where performance needs improvement and shape strategies for business growth and success.