As the owner of a lawn care business, you already know that the earth’s foundation supports and feeds the beautiful foliage and flowers that are easily seen. Just as healthy soil is needed for optimal growth of a lawn, shrubbery or flowers, measuring certain metrics in your lawn care business will lead to better business outcomes. To measure metrics, you’ll want to review your business plan. If you don’t yet have a business plan, use this lawn care business plan as a comprehensive guide.
The following essential metrics will inform your steps to improve and grow your lawn care business:
1. Customer Retention
Customers indicate their satisfaction with your business by the continuance of their requests for service. Measure the retention rate, noting the percentage of customers who retain your services and those who cancel services.
2. Customer Satisfaction Score
Customer satisfaction ratings measure how satisfied clients are with the quality of service they receive from your business. This metric is an important indicator of whether clients will retain your service and recommend your lawn care company to others. Surveys of your customers on a quarterly basis can be offered, with responses tracked over a period of time. The results will offer an understanding of satisfaction levels overall.
3. Referral Rate
Referrals received per month are a measure of how often existing customers are referring friends and family to your business. This metric can help you understand the effectiveness of your current referral programs and encourage more word-of-mouth marketing for your lawn care business, as needed.
4. Customer Lifetime Value (CLV)
The customer lifetime value measures how much revenue will be generated over the lifetime of the company-customer relationship. This metric is a forecast; however, it can be used to measure past and present sales, as well.
5. Average Number of Customers Per Day
Knowing the number of customers your lawn care business has serviced each day indicates whether your team is working efficiently and effectively or could use further training to service additional customers per day.
Each of these key performance metrics affords an overall view of the financial health of your lawn care business. With these metrics in hand, you’ll be able to make informed decisions and create better efficiencies for improvement. Improvements will lead to your goal, which is that of maximizing profits while providing superior service for customers.