Today’s plumbing contractors have greater information access than ever before. Whether in their online accounting platform or their field service management dashboards, contractors have ample opportunity to run reports and keep a close watch on key metrics.
If anything, the sheer glut of key performance indicators (KPIs) may seem overwhelming. Contractors can’t align their operations with every available number, which raises the question: which metrics matter most?
Five essential KPIs that separate top teams from their competition
Some of the most essential KPIs are obvious; any contractor knows that total jobs and total revenue are important indicators. However, there are also some critical data points that often go overlooked. These KPIs can reveal a lot about the company’s longevity and success, and keeping tabs on them can distinguish the truly high-performing contractors.
Emergency service revenue ratio. After-hours service is about more than customer convenience; it’s usually a high-margin revenue driver. Tracking the ratio of emergency service revenue helps contractors understand how well their marketing campaigns and call-handling processes perform outside normal business hours. Since urgent plumbing issues demand immediate attention, homeowners are less price-sensitive, making this a key opportunity for growth and profitability. However, promoting emergency services typically involves a separate marketing campaign, making it essential for plumbers to track this after-hours revenue as its own distinct category.
Same-day close ratio. In plumbing, speed is a huge competitive differentiator. Most customers are unwilling to wait days to fix an issue, so being able to close jobs same-day is essential. Top-performing contractors aim to close around 90% of the work they intend to win on the first visit. Monitoring this KPI ensures that the company is appropriately staffed to handle the volume of calls they receive.
Open calls/backlog/pipeline. Given the high volume and quick turnaround of plumbing jobs, it’s critical for contractors to have workflow visibility. Tracking open service calls (dispatches not yet completed), backlog (unfinished install work), and pipeline (outstanding quotes) provides a real-time snapshot of operational health. Reviewing these numbers on a weekly basis enables contractors to better understand workload, ensure adequate staffing, prevent bottlenecks and forecast revenue.
Options quoted per job. The most successful plumbers don’t just fix problems; they empower their customers to choose from a few different options. Measuring how often technicians offer multiple options (Good, Better, Best, Fantastic) ensures customers receive value-based solutions, and increases the odds of customers opting for mid-range options or higher. As such, this metric speaks directly to average ticket size and reveals whether pricing strategies and technician training are effective. It may also illuminate opportunities to coach and mentor underperforming team members.
Inventory tracking. Without proper accountability, small parts can create big problems. Plumbing companies rely on hundreds of fittings and materials, and failing to track them accurately can erode profit margins over time. Monitoring whether materials are properly recorded for each job helps contractors maintain cost control, ensuring they’re not stockpiling costly and redundant items on each truck.
A More Precise Understanding
There are many top-line metrics that plumbers should keep tabs on, but these operational KPIs can provide a more precise understanding of how the company is faring. Consistently tracking these metrics can help contractors build a truly standout business.
