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5 Vital Metrics that Affect Your Business Growth

Access to ample data and important information can help you transform and redefine your business for enhanced growth, but only if you know which metrics you should pay close attention to. There’s a downside to excess data collection – it requires spending too much time analyzing and sorting all the information, which leads to unnecessary clutter and poor data application. This is why you need to know which metrics to focus on.

What metrics should I review to keep growing my business?

There are numerous options that help business owners collect real-time data on their various business processes. However, all this data means little without a clear method for prioritizing this information into categories that most affect your company growth. Try to focus on analyzing the following macro metrics for your heating and cooling business. 

Sales revenue

This is probably the most important metric to keep in mind, as it illustrates the amount of money you’re earning from selling all your services and products. This metric allows you to adjust inventory, hire new staff, remain profitable, and look for other opportunities for growth. 

You should start by identifying trends in the sales revenue. This means looking at spikes and slow periods, looking into your most popular services, and identifying the times of day your customers are most active. Anticipating and distinguishing trends allows you to retain competitive pricing and keep making informed long-term business decisions. 

Monthly losses and profits

Determine your monthly profits or losses to keep better track of your company’s efficiency and profitability. First, calculate your fixed and your variable monthly costs by combining: 

  • Fixed costs:

    • Advertising

    • Salaries

    • Utilities

    • Rent

  • Variable costs: 

    • Fuel usage

    • Repairs

    • Sales and promotions

After adding both the variable and fixed costs, subtract them from your total monthly revenue to clearly identify room for improvement and areas where you can save some money each month. This way, you will lead a more profitable business and have enough funds to grow it. 

Service metrics

Another key area to pay attention to is your service metrics. Service metrics refers to varied aspects of your services – from the time necessary to install or repair an HVAC system to the number of times you sell each service every month. Some of the most important key service metrics to keep track of are: 

  • Average response time

  • Mean repair time

  • Mean job completion time

  • First-time service rate

  • Repeat visit monitoring

  • Technician utilization during billable hours

  • Contract uptime

  • Contract attach rate

  • Client acquisition cost

  • Revenue per each lead

Tracking each of these submetrics helps you determine where you can make improvements and where you should cut down on costs and create a more successful business capable of rapid growth. 

Customer retention

Customer retention is one of the most important aspects of every thriving business. Having more returning clients will drastically impact your revenue opportunities and ensure you have enough funds and demand to expand your business. It is difficult to sustain, let alone grow, a business that relies on a constant influx of one-time customers without strategies for retaining them. Gustave-A-Larson-Company.jpg

ROI from advertising

Finally, you need to make sure you’re receiving return on investment from putting money towards advertising. Implementing customer surveys will allow you to identify where your clients are coming from and whether or not your advertising costs are paying off. 

If they are, doubling down on advertising can help you attract more customers and expand your company. If not, you should look for other sources of new customers to sustain your business. 

The Gustave A. Larson Company can help you grow your business

Keeping close track of your vital business metrics is paramount for the success and the expansion of your heating and air conditioning company. However, you shouldn’t stop there, and you should also attract new and prospective HVAC employees, learn how to efficiently combat inventory shortages, and properly manage your online reviews and reputation. It sounds like much, but there’s one company that can help you – Gustave A. Larson.

We are more than just your trusted wholesale distributor of cutting-edge HVAC systems, parts, and equipment. We offer ample training opportunities that will help you successfully deal with the different aspects of your business. We offer continual education and support to all our partners and we’re there with you every step of your road to success. Reach out to us today!