Your Annual KPIs in Review — What Worked, What Didn’t

Every month, HVAC business owners track their company’s financial and operational progress using key performance indicators (KPIs) to understand company successes and missteps. Ultimately, however, monthly KPIs aren’t enough.

If you’re not scrutinizing your year-end numbers, you’re missing the bigger picture. Year-end KPIs show what worked, what didn’t and what’s needed to prepare for the upcoming months. 

Business experts agree the most useful KPIs follow the SMART acronym: Specific, Measurable, Achievable, Realistic and Timely. With the information, business owners can make vital decisions to improve their company’s health. 

The EverRest Group took the SMART theory one step further by identifying KPIs specific to successful HVAC companies and individual technician performance. Before we discuss why annual KPIs are so important, let’s review what we’ve identified as the essential EverRest KPIs:

  • Replacement sales and equipment costs (monthly and annually) 
  • Group technician conversion rates (monthly and annually)
  • Individual technician conversion rates (monthly and annually)
  • Customer care call performance
  • Sales, costs and overhead 
  • Energy savings

Since EverRest already encourages companies to track important monthly KPIs, you may wonder why an annual review is critical as well. Consider the following:

Annual KPIs Help with Planning

A look into the past will help with the future. By reviewing annual KPIs from previous years, HVAC company owners can pinpoint fluctuations in the business and prepare for future changes. 

Annual KPIs are a Great Marketing Tool

You can tell your customers your HVAC company is the best in the area, but words are meaningless without facts to back them up. With annual KPIs, you have documented proof of your company’s success. Annual KPIs are a great way to market your company to new customers and win new business. 

Annual KPIs Identify Accomplishments and Setbacks

KPIs that measure progress determine if the work is yielding positive results.  From this, business owners can decide if extra efforts are needed in specific areas. 

Annual KPIs are a Great Teaching Tool

Annual KPIs help business owners determine which technicians reached the goal of being in 4 to 5 homes a day and which technicians need additional training. KPIs with specific goals also help motivate technicians and other employees. 

In the end, the point of using both monthly and annual KPIs is to ensure your company reaches EverRest’s 5 Critical Components of Success:

  1. Reach a sales mix of 80% replacements and 20% service
  2. Ensure technicians implement lead-generation tasks on every call 
  3. Keep technicians in 4 to 5 homes a day
  4. Maximize replacement gross margins and increase closing rates
  5. Work with a strong sense of purpose and urgency

By using the EverRest method and annual KPIs, business owners can overcome the doubt and uncertainty of poor planning and operational errors. Companies can avoid snowballing problems that can sink a business. 

If you haven’t been tracking your KPIs, there’s no better time to start than today! Jumpstart 2022 by using EverRest’s Peak Performance Tracking spreadsheets.