Tracking and using KPIs to improve your pest control business

Introduction

Pest control companies need KPIs to track and measure their business performance. Tracking and calculating key performance indicators (KPIs) gives business owners the insights they need to identify areas for improvement, grow their customer base, and ultimately build a healthier business. That’s why it’s essential to identify and keep track of the most important KPIs for your pest control business.

In this article, we’ll discuss the top seven pest control KPIs, how to track and calculate them, and how to use the data to make better decisions for your business.

The seven KPIs we will discuss are:

  • Average revenue per account
  • Cost per advance
  • Average cost per pest control service
  • Target resolution time
  • Number of repeat customers
  • Net promoter score
  • Customer retention rate

Average revenue per account

Definition

Average revenue per account (ARPA) is a metric used to measure the average amount of revenue generated from each customer account in a business. This metric is an important indicator of a pest control company’s financial performance and is useful for tracking customer spending trends and evaluating the effectiveness of sales and marketing efforts.

Benefits of Tracking

  • ARPA can help companies vet the most profitable customer-fighting businesses and target them for additional marketing efforts.
  • ARPA can be used as a benchmark to measure a company’s performance against its competitors.
  • ARPA can help businesses understand customer spending habits and tailor services accordingly.

Industry Benchmarks

The average ARPA for a pest control company is around ,000 per customer account. This figure may vary depending on the type of business and the services offered. Some companies may have higher ARPA numbers, while others may have lower ARPA numbers.

How to calculate

To calculate ARPA, add the total revenue generated from all customer accounts and divide by the total number of customer accounts. The resulting figure is the average revenue per customer account.

ARPA = total revenue / total number of accounts

Calculation example

For example, if a pest control company has 10 customer accounts and generated total revenue of ,000, ARPA would be calculated as follows:

ARPA = ,000 / 10 accounts = ,000

KPI Tips and Tricks

  • ARPA can be used to identify which customer segments are more profitable than others.
  • ARPA can be used to compare the performance of different sales and marketing campaigns.
  • ARPA can be used to assess the effectiveness of customer service practices.
  • ARPA should be tracked over time to identify customer spending trends.
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Cost per advance

Definition

Cost per lead (CPL) is a key performance indicator (KPI) used by pest control companies to measure the cost of acquiring new leads. CPL is calculated by dividing the total cost of all lead generation activities by the total number of leads generated. It’s an important metric to track because it allows businesses to monitor the effectiveness of their marketing efforts and measure the return on investment (ROI) of their marketing spend.

Benefits of Tracking

Tracking and calculating CPL is important for pest control companies because it provides insight into the cost of acquiring new leads. With this information, businesses can optimize their marketing efforts and ensure that their budget is used in the most effective way to generate leads. Additionally, CPL tracking can help companies benchmark their performance against industry benchmarks and identify areas for improvement.

Industry Benchmarks

The average CPL for pest control services in the United States is around . However, this number can vary significantly depending on the service type and region. A company’s exact CPL will depend on the marketing channels and strategies used, as well as other factors such as target audience and competition.

How to calculate

CPL can be calculated using the following formula:

CPL = total cost of generation / number of leads

Calculation example

For example, if a pest control company spent ,000 on lead generation activities and generated 100 leads, their CPL would be:

CPL = ,000 / 100 =

Tips and tricks

  • To maximize the return on investment (ROI) of lead generation activities, companies should strive to keep their CPL as low as possible.
  • It’s important to measure the performance of each lead generation channel individually, as CPL can vary significantly from channel to channel.
  • Companies should track their CPL over time to identify areas for improvement.
  • It is important to compare PLC to industry benchmarks to ensure that the company is operating at an acceptable level.
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Average cost per pest control service

Definition

Average cost per pest control service (ACPCS) is a key performance indicator (KPI) used to measure the total cost of a pest control service divided by the total number of services provided. This KPI is important for measuring the financial performance of a pest control company and shows how much it costs to provide services to a client. It can also be used to compare the average cost of different services.

Benefits of Tracking

Tracking ACPCs can help a pest control company understand the cost of providing service to customers. It can also help identify areas of cost savings and identify opportunities to increase revenue. Additionally, tracking ACPCs can help identify areas where services can be adjusted to improve customer satisfaction and increase profits.

Industry Benchmarks

The industry benchmark for ACPC varies depending on the type of pest control services provided. The average cost for a single service can range from to 0, depending on the complexity of the job. Additionally, the part number may change depending on region and industry.

How to calculate

To calculate ACPCs, the total cost of all services provided must be divided by the total number of services provided. This can be done by adding the cost of each service and dividing it by the total number of services. The formula is:

ACPCS = total cost of services / total number of services

Calculation example

For example, suppose a pest control company provides 10 services per month at a cost of each. The total cost of services is 0 and the total number of services is 10. The ACPCS for the month would be :

ACPCS = 0 / 10 =

Tips and tricks

  • Regularly monitor ACPCs to ensure that services are provided at a reasonable cost.
  • Analyze ACPCs to identify areas of cost savings and identify opportunities to increase revenue.
  • Compare ACPCs to industry benchmarks to ensure services are priced competitively.
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Target resolution time

Definition

Target resolution times measure the time it takes to resolve a customer’s pest control issue. This metric looks at the average time it takes for a technician to come to the customer’s home, diagnose the problem, and complete the necessary treatment. It’s important to track this metric because it shows how effective your technicians are at resolving customer issues and how satisfied your customers are with the service.

Benefits of Tracking

  • Tracking resolution times can help you identify areas for improvement when it comes to customer service.
  • It can also help you identify technicians who excel at providing prompt and efficient service.
  • By tracking resolution times, you’ll be able to better manage customer expectations and provide better customer service overall.

Industry Benchmarks

The average target resolution time for a pest control company is around 24 hours. This means that most customers should expect to have their pest control issue resolved within 24 hours of contacting the company. However, this may vary depending on the type of pest problem and the customer’s location.

How to calculate

To calculate the target resolution time, you will need to take the total number of pest control issues that were resolved and divide that by the total time it took to resolve them. This will give you the average time it takes for a technician to resolve an issue.

Target resolution time = total number of pest control issues resolved / total time to resolve

Calculation example

For example, if your business resolved 10 pest control issues in the last 30 days, and it took a total of 240 hours to resolve them, then your target resolution time would be:

Target resolution time = 10 pest control issues resolved / 240 hours = 0.0417 days = 24 hours

Tips and tricks the KPI

  • Track resolution time for each individual technician to identify areas for improvement.
  • Monitor resolution time for each customer issue to better understand customer satisfaction.
  • Set goals for your technicians to reduce the time to resolution for each customer issue.
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Number of repeat customers

Definition

The number of repeat customers metrics is a key performance indicator (KPI) used to measure the number of customers who return to purchase from a pest control company over a given period of time.

Benefits of Tracking

  • Tracking the number of repeat customers helps a pest control company identify loyal customers and understand the effectiveness of their customer service.
  • It also allows companies to identify opportunities to increase customer loyalty and create long-term relationships.
  • Tracking this metric over time can help businesses measure the success of their customer retention strategies.

Industry Benchmarks

The average number of regular customers for pest control companies is usually around 30%. However, this may vary depending on the type of pest control services provided and the size of the business.

How to calculate

The number of repeat customers can be calculated using the following formula:

Number of repeat customers = (number of customers who bought twice or more) / (total number of customers)

Calculation example

A pest control company has 500 customers in the first quarter of the year. Of these 500 customers, 200 purchased twice or more. The number of regular customers can be calculated as follows:

Number of regular customers = (200) / (500) = 40%

Tips and tricks to improve the KPI

  • Offer incentives to customers to encourage them to come back and buy again.
  • Encourage customer feedback and use it to improve your customer service.
  • Analyze customer data to identify trends and patterns in customer behavior.
  • Create loyalty programs to reward customers for their loyalty.

Net promoter score

Definition

Net Promoter Score (NPS) is a customer loyalty metric used by companies to measure the performance of their products and services. This is a metric that ranges from -100 to +100, where a positive score indicates a customer’s satisfaction with the product or service and a negative score indicates dissatisfaction. The NPS score is calculated by asking customers, “How likely are they to recommend our product or service to a friend or colleague?”

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Benefits of Tracking

  • Provides an overall measure of customer loyalty and satisfaction
  • Helps identify areas for improvement
  • Helps understand customer needs and preferences

Industry Benchmarks

The industry benchmark for NPs is generally considered to be around 10-30. Anything above 30 is considered excellent, while anything below 10 is considered poor.

How to calculate

NPS is calculated by subtracting the percentage of customers who responded with a “dislike” or “very unlikely” from the percentage of customers who responded with a “like” or “very likely”.

NPS = (percentage of customers who responded with “like” or “very likely”) – (percentage of customers who responded with “dislike” or “very unlikely”)

Calculation example

For example, if 40% of customers responded with a “like” or “very likely” and 10% of customers responded with a “dislike” or “very unlikely,” the company’s NPs would be 30 years old.

NPS = 40% – 10% = 30

KPI Tips and Tricks

  • Be sure to ask the right questions to get accurate answers.
  • Track NPs over time to identify trends.
  • Check NPs on different customer segments to identify areas for improvement.
  • Engage with dissatisfied customers to understand their concerns and address them.

Customer retention rate

Definition

Customer retention rate is a metric used to measure the percentage of customers who remain loyal to a pest control company. It is a measure of customer loyalty and is calculated by comparing the number of customers at the start of a period to the number of customers at the end of the period.

Benefits of Tracking

Tracking customer retention rate is an important part of any pest control business, as it helps identify customer loyalty and satisfaction and can be used to develop strategies to improve customer experiences. Tracking customer retention rate also allows businesses to identify areas for improvement, such as customer service, and can help increase revenue.

Industry Benchmarks

The average customer retention rate for pest control companies is between 40-50%. However, this can vary depending on the size and type of business, as well as the industry. For example, larger businesses may have a higher customer retention rate, while smaller businesses may have a lower customer retention rate.

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How to calculate

Customer retention rate is calculated by dividing the number of customers at the end of a period by the number of customers at the beginning of the period and multiplying the result by 100. The formula is:

Customer retention rate = (number of customers at the end of the period ÷ number of customers at the beginning of the period) x 100

Calculation example

For example, if a pest control company had 100 customers at the start of the period and 90 customers at the end of the period, the customer retention rate would be 90%. The calculation would be as follows:

Customer retention rate = (90 ÷ 100) x 100 = 90%

KPI Tips and Tricks

  • Regularly analyze customer retention rate to identify areas for improvement.
  • Monitor customer retention rate against industry benchmarks to ensure your business is performing well.
  • Track customer retention rate over time to identify trends and changes in customer loyalty.
  • Use customer retention rate to develop strategies to improve customer experiences.
  • Stay up to date with industry trends and customer preferences to ensure your business is competitive.

Conclusion

When it comes to running a successful pest control business, tracking and calculating the most important Key Performance Indicators (KPIs) is essential. In this article, we’ve discussed the top seven pest control KPI metrics, how to track and calculate them, and how to use the data to make better decisions for your business.

The seven KPIs we discussed were:

  • Average revenue per account
  • Cost per advance
  • Average cost per pest control service
  • Target resolution time
  • Number of repeat customers
  • Net promoter score
  • Customer retention rate

By tracking and understanding these KPIs, business owners can find areas for improvement and create a healthier and more successful business.

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  • Average revenue per account
  • Cost per advance
  • Average cost per pest control service
  • Target resolution time
  • Number of repeat customers
  • Net promoter score
  • Customer retention rate