The right data can help you make better business decisions and improve your processes. The more you understand about 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, 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, as well as 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 make adjustments to your personnel and your sales strategy as needed.
#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.
#4: Average Time in Process
How long does it take for a job to move from initial lead to final invoice? Assessing the average time a job spends in process will help you determine whether work is being completed efficiently, something which is essential to grow your business. If the average time in 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 the coming year.
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?
One way to make sure that you stay on top of your roofing KPIs is to automate your reporting. In AccuLynx, you can set up reports to capture these KPIs and get the reports delivered to you on a weekly or monthly basis. This helps you keep track of these essential metrics without adding more work to your plate. You’ll see trends as they happen, and be able to make smarter business decisions armed 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 perspective 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 to check KPIs on a regular basis, you can maximize the benefits of data for your roofing business.