The right data can help you make better business decisions and improve your processes. The more you understand key aspects of your business, the more you’ll be able to respond to trends and make sure you’re on the path to greater success. These important metrics are known as KPIs or key performance indicators. But with so many possible data points, how can you be sure you’re focusing on the right metrics? Here are 5 roofing KPIs that every company should measure, and some strategies for making sure you stay on top of performance on a regular basis.
5 Roofing KPIs to Measure the Success of Your Business
While there are many different metrics that can help your business, these 5 KPIs will give you the most comprehensive understanding of your business performance and help you keep a pulse on some of the most essential areas for success.
#1: Accounts Receivable and Accounts Payable
Accounts receivable (A/R) refers to the money owed to you by customers for the services you perform. Accounts payable (A/P) is the money you owe to other businesses, such as material suppliers. By keeping track of A/R and A/P with software with reporting capabilities, like AccuLynx, you’ll have a clear picture of the financial health of your business and be able to stay on top of outstanding invoices more easily.
#2: Sales Revenue
When looking at sales revenue as a KPI, it’s important to break it down further and see how much sales revenue each salesperson is responsible for and which lead sources are producing the most sales revenue. This will give you context for your sales performance. You’ll be able to better understand which salespeople are your top performers and which lead sources are most valuable, so you can adjust to your personnel and your sales strategy as needed.
With the Closing Percentage Report in AccuLynx, you can see the percentage of leads that converted to jobs, broken down by sales representative. You can then set up this report to automatically send to your teams on a weekly or monthly basis.
#3: Number of Leads in Pipeline
Looking at the number of leads in your pipeline is a simple way to assess your marketing strategies and see if you have enough work coming in to financially sustain your business. If you have too few leads, it’s a signal that you need to rethink your lead generation; if you have a ton of leads in the pipeline that you can’t manage, it might be time to hire more staff.
If you find that the number of leads in your pipeline is low, it may be time to rethink your marketing strategy. The marketing spending report in AccuLynx provides information that can help you make more informed decisions about how and where to spend your marketing dollars. For example, presume you want to compare the effectiveness of two marketing strategies, such as social media and customer referrals. In that case, you can run the marketing spend report to see how much you spend for each program, how many leads it produces, and how many leads your sales team closes. From there, you can make the decision that is right for your business.
#4: Average Time in Process
How long does it take for a job to move from the initial lead to the final invoice? Assessing the average time a job spends in the process will help you determine whether work is being completed efficiently, something which is essential to growing your business.
With the Time in Process report in AccuLynx, you can track how long it takes for a job to move through the pipeline. If the average time in the process is longer than it should be, you may need to find ways to speed up the various components of your process.
#5: Weekly Cash Flow
When it comes to assessing the financial health of your business, it can be helpful to look at a granular roofing KPI like this one. Looking at your cash flow week by week will give you a more complete picture of the money coming into your business and help you budget for future jobs.
With the profitability report in AccuLynx, you can compare the estimated profit with the actual profit of each job. This report drills down into the reasons why a job was more or less profitable than expected. Giving you the crucial information you need to make informed financial decisions on future jobs.
How to Monitor Roofing KPIs Regularly
Too often, the busy day-to-day schedule of a roofing business makes it difficult to keep up with KPIs. Now that you’ve identified KPIs that will help you keep your business on the path of success, how can you make sure you’re keeping track of them on a regular basis, no matter how busy your schedule gets?
Automating your reporting is one way to ensure that you stay on top of your roofing KPIs. Utilizing AccuLynx’s ReportsPlus reporting feature can help you streamline your data and help you better understand your business’s performance. With over 20+ customizable reports, including the ones mentioned in this blog, you can keep track of your essential metrics without adding more work to your plate. You’ll see trends as they happen and be able to make smarter business decisions with real-time data. AccuLynx also allows you to view and customize reports in the reporting dashboard. You can get granular details as well as big-picture perspectives on a wide variety of metrics. Using AccuLynx to keep track of KPIs will help you measure business success more effectively.
The 5 KPIs mentioned in this blog post can help you gain a better perspective on your business performance and help you adjust your processes for greater growth. With a focus on these metrics and the right plan in place, you can maximize the benefits of data for your roofing business. Schedule a custom demo and check out how AccuLynx can help your roofing company.