The Service Business Metrics You Should Really Care About

If you run a plumbing, HVAC, electrical or roofing company, you know that leads, jobs and revenue matter. But are you tracking the right numbers to grow consistently? Many home-service businesses focus on vanity metrics—website visits, social media likes—but miss the data that actually drives decision-making and ROI. According to the industry, the metrics that matter most are those linked directly to profitability, efficiency and repeat business.   At FRM, we advocate a “less is more” metric strategy: pick a core set of KPIs, watch them weekly, take action on dips. In the Colorado market, where competition is fierce and margins tighter, you need numbers you can act on—not just dashboards you glance at. Below are the five primary metrics every home-service business should track — plus what to watch and how to leverage them for growth.

1. Cost Per Lead (CPL) & Customer Acquisition Cost (CAC)

Why it matters: Without knowing how much you pay for each lead (CPL) and each acquired customer (CAC), you’re flying blind on your marketing spend. If CAC > lifetime revenue of a customer, you’re losing money. 

What to track:

• Total marketing spend ÷ number of leads = CPL.

• Total marketing + sales costs ÷ number of new customers = CAC.

  What to aim for: For Colorado service companies doing $2–5M, a good CPL varies by channel (Google vs Meta vs referrals). CAC should be low enough such that the new customer’s first-job profit plus lifetime value covers that cost with a margin.

  Takeaway: If marketing spend rises and CPL or CAC go up without matching job volume/profit growth, pause and analyze channels.

2. Lead-to-Booked Job Rate & Job Conversion Efficiency

Why it matters: Generating leads is only half the battle. Converting them into booked jobs and then into completed jobs is where the money is made. As one source puts it: track “percentage of booked calls” and “cancellation rate”. 

What to track:

• Number of qualified leads ÷ number of booked jobs = booking rate.

• Booked jobs ÷ completed jobs = completion rate (or 1 – cancellation rate).

  What to aim for: A booking rate of 60-70%+ and cancellations as low as possible (single digits-if possible).

  Takeaway: If your funnel is clogged—lots of leads, few bookings—you’ve got a process problem (CSR script, tech availability, follow-up). Fix process before pouring more ad spend.

3. Average Revenue per Job (Average Ticket)

Why it matters: One job could be a $79 drain cleaning or a $4,000 system replacement. Knowing your average ticket helps you forecast revenue and set marketing budgets appropriately. 

What to track:

• Total revenue ÷ number of jobs = average job value.

• For new customers vs repeat customers separately.

  What to aim for: Raise average ticket over time via upsells, maintenance plans, bundled services.

  Takeaway: If ticket size is shrinking, you’ll need to increase volume or raise prices—either way you must know the number.

4. Customer Lifetime Value (CLV) & Retention/Referral Rate

Why it matters: Acquiring a customer is just the first job. If they never come back and never refer, you’re always chasing new leads. CLV flips that by valuing long-term. 

What to track:

• Average spend per customer x average number of jobs over time = CLV.

• Percentage of customers who book a second or third job (retention).

• Percentage of new customers from referrals = referral rate.

  What to aim for: Increase retention and referrals so your CLV grows—then you can afford higher CAC.

  Takeaway: If your retention is low (<20-30% repeat within a year), fix service experience and follow-up before expanding ad spend.

5. Return on Marketing Investment (ROMI) & Return on Ad Spend (ROAS)

Why it matters: You must know what every marketing dollar returns in profit, not just “we got leads”. For home-services defining ROMI/ROAS keeps you accountable. 

What to track:

• ROAS = revenue from ads ÷ ad spend.

• ROMI = (revenue from marketing – marketing cost) ÷ marketing cost.

  What to aim for: A ROAS of e.g. 4:1 or better in many service businesses; ROMI should show positive return after cost of sale and service.

  Takeaway: If you can’t compute ROAS or ROMI by channel, stop spending until you can. Blind spend kills profit.

Common Mistakes & Pitfalls

• Focusing on traffic, likes, or impressions (vanity metrics) without conversion.

• Ignoring job-completion/cancellation rate and blaming lead quality.

• Neglecting repeat customers and referrals—assuming new leads are the only path.

• Spending more to scale before your funnel/process is proven and efficient.

• Not aligning marketing metrics with operations (tech capacity, scheduling, service quality).

Bottom Line

If you want growth (not just more noise), focus on the handful of metrics that tie marketing spend to booked jobs, revenue and customer value. For Colorado home-service companies: track CPL/CAC, booking conversion, average ticket, CLV/retention, and ROMI/ROAS. With these in place you’ll know what works, what doesn’t, and where to invest next. At FRM we help service companies build this metric framework, tie it into media buying and automation, and scale profitably.

References

• “12 Key KPIs for the Home Service Industry” – Plecto. 

• “Top Home Services Marketing KPI’s To Track and Manage” – Hook Agency. 

• “Metrics That Matter: Cutting Through the BS for Home Service Marketing” – NoBullshitMarketing.