Working with top service contractors around the world, we always discuss that staying on top of your financial and operational metrics is not just good practice — it is absolutely a game changer.
Why is having and reviewing Weekly Metrics so important?
Tracking your key metrics weekly allows you to maintain a clear picture of your business's financial health. Key metrics such as backlog, deals accepted, hours scheduled, time tracked, invoices, expenses, profit margins, and cash flow provide a snapshot of where you stand financially. This weekly habit helps in:
- Enables you to quickly spot discrepancies or unexpected expenses early can prevent small issues from snowballing into significant financial problems.
- Weekly tracking ensures you stay within budget, preventing overspending and aiding in resource allocation.
- Real-time financial data allows for better decision-making regarding investments, hiring, and other critical business decisions.
Tracking operational weekly metrics is equally important for your business to thrive! This includes metrics like new leads, estimates completed, estimates accepted, job completion rates, employee productivity, and customer satisfaction scores. These metrics help you:
- By understanding weekly productivity, you can identify bottlenecks and streamline operations.
- Regularly monitoring customer feedback and job completion times ensures that your services meet or exceed customer expectations, fostering loyalty and repeat business.
- Daily time and expense tracking supports weekly performance tracking and helps in identifying top performing projects and team members and also those who may need additional management, training or support.
Different companies track different metrics or KPI’s (Key Performance Indicators) depending on the size of their business and the stage their business is in. Your CRM/Project Management system should provide access to many of these vital metrics. Some examples include:
- Website visits
- New Leads added
- Lead Source statistics (Ad performance, referrals, repeat business)
- Estimates Scheduled
- Estimates Completed (Proposals Sent)
- Estimates Accepted (Deals closed)
- Work Scheduled, dollars and hours
- Work Completed, dollars
- Invoices sent
- Invoices Payments (Cash receipts)
- Work Hours tracked for payroll
- Accepted Backlog dollars
In the service industry, we know 1st hand that the competition is tough. Knowing your numbers can give you a significant edge over competitors who may only review their metrics quarterly or annually.
- With a clear understanding of your cost structures and profit margins, you can price your services competitively while ensuring profitability.
- By continuously improving operational efficiency and customer satisfaction, you can differentiate your services from those of your competitors, attracting more clients.
- Being in tune with weekly metrics allows you to respond swiftly to market changes, such as adjusting your service offerings based on customer demand or emerging trends.
Implementing Daily Tracking - Tools & Technology
To effectively track your numbers daily, investing in the right tools and technology is essential. Accounting software, customer relationship management (CRM) systems, and project management tools can automate data collection and reporting, making it easier to stay informed.
Developing a Routine
I would highly recommend establishing a routine for reviewing your numbers weekly is crucial. This can be done through:
- Daily and Weekly Reports: Generate and review daily reports from your software tools to keep track of key metrics.
- Team Meetings/Huddles: Hold brief daily meetings with your team to discuss performance, address any issues, and plan for the day ahead.
Speaking from 20+ years of experience, knowing your numbers daily will absolutely transform your business and eliminate long term stress. By investing in the right tools and establishing a daily routine for tracking key metrics, service contractors can ensure their business not only survives but thrives in a competitive market. Don’t wait, get started today!