Imagine this:
Your phone rings.
It’s a potential customer.
But you miss the call.
In the home services industry, this isn’t just a missed call—it’s a missed opportunity. A potential $1,000 job gone in seconds.
Now, multiply that by ten missed calls a week. That’s $10,000 slipping through your fingers.
Over a month? $40,000.
In a year? Nearly half a million dollars.
All because of missed calls. (searchlightdigital.io)
This is the harsh reality many home service businesses face. But it’s not just about missed calls; it’s about not measuring what truly matters.
In the competitive world of home services, understanding and tracking the right Key Performance Indicators (KPIs) can be the difference between thriving and merely surviving.
Let’s dive deep into the essential KPIs that can transform your business.
The Top 10 Home Services Marketing KPI’s
Top 10 Marketing KPIs for Home Services Businesses
1. Customer Acquisition Cost (CAC)
Formula: (Total marketing + sales expenses) ÷ (Number of new customers)
This KPI tells you how much it costs to acquire each new customer. If your CAC is too high, you may need to optimize your marketing spend, improve conversion rates, or increase referrals. The goal? Lower CAC while maintaining quality leads.
2. Lead-to-Close Conversion Rate
Formula: (Total number of leads ÷ Number of leads that become paying customers) × 100
This measures how efficiently you turn leads into paying customers. If your conversion rate is low, look at your sales process—are you responding to inquiries quickly? Are your sales scripts optimized? Are you tracking objections and refining responses?
3. Cost Per Lead (CPL)
Formula: (Total marketing spend ÷ Total number of leads generated)
CPL helps you understand the efficiency of your marketing efforts. Compare CPL across different channels (Google Ads, Facebook Ads, SEO, referrals) to see where your highest ROI comes from.
4. Return on Ad Spend (ROAS)
Formula: (Revenue generated from ads ÷ Ad spend)
Are your ad dollars actually generating revenue? A ROAS of 4:1 means that for every $1 spent on ads, you generate $4 in revenue. If your ROAS is too low, optimize your targeting, ad copy, or landing pages.
5. Lifetime Value of a Customer (LTV)
Formula: (Average revenue per customer × Average customer lifespan)
LTV tells you the total revenue a customer generates over their lifetime with your business. If your LTV is low, consider upsells, cross-sells, and repeat business strategies to increase the value of each customer.
6. Lead Source Performance
Which marketing channels bring in the most valuable leads? Track where your best customers come from:
- SEO – Are organic search leads converting?
- PPC – Are paid ads profitable?
- Referrals – Are past customers bringing in new business?
- Social Media – Are leads from Facebook, Instagram, or LinkedIn high-quality?
7. Google Business Profile Metrics
Your Google Business Profile (GBP) is a major driver of calls and leads. Track:
- Search views
- Website clicks
- Calls
- Reviews
If your GBP isn’t performing, you may need better reviews, more photos, or more engaging content.
8. Website Conversion Rate
Formula: (Total conversions ÷ Total website visitors) × 100
How many website visitors actually take action (call, book, or fill out a form)? If your conversion rate is below 3%, your website may need better CTAs, more trust signals, or better page load speeds.
9. Referral Rate
Formula: (Number of referred customers ÷ Total new customers) × 100
A high referral rate indicates strong customer satisfaction. Encourage referrals with incentives, loyalty programs, and exceptional service.
10. Customer Review Score & Volume
Why it matters: Online reviews are today’s word-of-mouth. Track:
- Average review score (Google, Yelp, Facebook)
- Total number of reviews
More (and better) reviews mean more trust and higher conversion rates. Implement a system to request reviews from happy customers after service.
How to Track KPIs for Different Home Service Businesses
Tracking these KPIs effectively depends on the tools and software you use. Many home service businesses rely on industry-specific software to streamline operations, track leads, and manage customer relationships.
For Plumbers & HVAC Companies
- Housecall Pro and ServiceTitan are two of the most powerful platforms for tracking leads, job conversions, revenue, and customer reviews. They provide dashboards that track call volume, booking rates, and even technician performance.
- These platforms integrate with Google Business Profile, allowing you to measure call rates and customer engagement in real-time.
- Set up automated reporting to monitor CAC, ROAS, and conversion rates weekly.
For Roofing Companies
- AccuLynx and JobNimbus are leading software solutions tailored to roofers. They track lead sources, estimate conversions, and job profitability.
- Job tracking features help monitor the close rate on estimates and ensure no lead is lost.
- Use CRM reporting tools to track marketing performance, review acquisition, and customer referral rates.
For All Home Service Businesses
- Call tracking software (like CallRail) helps measure lead quality and response times.
- Google Analytics monitors website conversion rates and user behavior.
- CRM integration ensures marketing and sales teams work from the same data, improving efficiency and accuracy in KPI tracking.
Take Control of Your Growth
If you’re not tracking these KPIs, you’re flying blind. Knowing your numbers helps you make data-driven decisions, cut waste, and double down on what’s working.
Missed calls, poor lead tracking, and inefficient marketing aren’t just small issues—they’re revenue killers. Set up a dashboard, monitor these KPIs, and refine your strategy weekly. The difference between a struggling home services business and a thriving one? Knowing and acting on the numbers that matter.
