Our booking rate is strong but revenue is flat. Where is it going?
Somewhere between the booking and the invoice. Check five places in order: bookings never scheduled inside the window the customer would accept, scheduled…
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Revenue Intelligence
Connecting marketing activity to revenue that actually landed.
Should I judge lead sources on revenue or on profit?
On margin, once you can measure it honestly. Revenue per lead ranks sources by top line, and job types differ enough in margin that the ranking can invert…
How fast do unsold estimates go cold?
Faster than most owners expect, and the shape is specific to your business and job type. Build the curve from your own records: for every estimate present…
How long does an open estimate stay worth chasing?
Longer than most shops assume, but the value falls on a curve rather than a cliff. Build the curve from your own history: for every estimate that eventual…
How do I know whether I have a demand problem or a capacity problem?
Look at what happens between the phone call and the truck. A demand problem shows fewer inbound opportunities, a stable booking rate, and open slots on th…
What does days-to-schedule tell me that revenue does not?
It tells you today what revenue will tell you in three weeks. Days-to-schedule is the gap between when a job is booked and the first slot you can actually…
How do you calculate cost per booked job, and why is it better than cost per lead?
Divide a source's media spend by the number of jobs that source actually booked, with the lead-to-booking lag accounted for so the numerator and denominat…
How do I compare revenue across locations fairly?
Normalize for the three things that differ most: capacity, market size and job mix. Raw revenue ranks locations by how big they are. Revenue per technicia…
Should revenue be reported by the date the lead came in or the date the job was invoiced?
By lead date for marketing decisions and by invoice date for financial ones, and you need both. Lead-date cohort reporting attaches revenue to the spend t…
Why does our close rate change depending on who calculates it?
Because the denominator changes. Counting by estimate document divides sold estimates by all estimates, and good-better-best quoting inflates that denomin…
How do I tell if I am capacity constrained or lead constrained?
Look at what happens to the leads you already have. If a rising share of calls go unanswered, appointments push further out, or estimates wait days to be …
Should callbacks, warranty work and refunds change how I report revenue by source?
Yes, whenever they differ by source, and they usually do. Gross invoiced revenue counts work you performed twice and work you later gave back. Net revenue…
How can I tell if a channel is creating revenue or just capturing revenue I'd have gotten anyway?
Not from attributed revenue. Any channel that touches an already-decided customer will report revenue, and reporting it does not mean it caused it. The te…
What is the difference between booking rate and close rate?
Booking rate is the share of bookable inbound opportunities that become scheduled appointments. Close rate is the share of presented estimates that become…
How do I tell whether a gap between booked revenue and completed revenue is a cancellation problem or a scheduling problem?
Follow the same jobs, not the same weeks. Pull every job booked in a period and check where each one ended up: completed, still scheduled, rescheduled, ca…
Is my average ticket up because of pricing or because of job mix?
Separate them arithmetically. Take last period's job mix, re-price it with this period's per-job-type averages, and the resulting change is the price effe…
Our average ticket is up but revenue is flat. What is going on?
Revenue equals completed job count times average ticket. If the ticket rose and revenue did not, job count fell by roughly the same proportion. The usual …
Our average ticket went up but revenue didn't move. What does that mean?
Almost always it means completed job count fell by about as much as ticket rose, and both moved for the same underlying reason. Average ticket is a ratio.…
Should I manage to booked revenue or completed revenue?
Manage to completed revenue and watch booked revenue as the leading indicator. Booked revenue is work sold or scheduled. Completed revenue is work finishe…
What is a good booking rate?
There is no universal figure worth quoting, because booking rate depends entirely on what goes in the denominator. Build your own baseline instead: classi…
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