Some people think you should have between three and five key performance indicators. But did you know that some people recommend as many as 27?
But what exactly are key performance indicators, and why are people talking about them? Once you understand key performance indicators, you can use this powerful tool to take your business to the next level!
So read on to learn everything you need to know about them, whether it be add on sales or time spent on sales follow-up!
What Are Key Performance Indicators?
Key performance indicators are also called KPIs. They are measurements of what’s going on inside of your business. They allow you to get a crystal clear map of what your business is really made of.
Your results may not be what you think. For example, a business might think of itself as a service that people come to when they want someone to help them mow their lawns. But if you design a KPI series to measure how you obtain customer leads, you might find that actually, your business goes out to find customers, they don’t come to you.
What Are Add On Sales?
Add on sales is a specific key performance indicator. It is also known as upselling. A lot of people have misunderstandings about this part of the business.
One thing that people get wrong about add on sales is that they think that it is a small, side part of any business that uses it. In fact, depending on the specifics of your business, add on sales could be a significant chunk of your revenue. It could even be the majority in some cases.
Another thing that people misunderstand about add on sales is that they think of it as annoying to the customer. This can be true when a customer already knows exactly what they want, and someone is trying to get them to buy something else. This sometimes happens at restaurants or movie theaters.
But in the HVAC business, the customer rarely knows everything there is to know about the business. Hearing the tips of HVAC business owners can be a great help to customers, not an annoyance.
Try creating a KPI for add on sales, or IAQ per job, or word of mouth leads. Measure it over time and notice which actions you take affect it.
Once you have that clear understanding of this KPI, you may suddenly see several obvious ways you could try to increase it. That’s how KPIs can help guide your business strategy!
Make the Most of Add On Sales for Your Business
We hope you learned something useful about add on sales from this brief article. There are so many tools and concepts that can help you take your business to the next level.
To learn more about how you can help grow your HVAC business, reach out to us to ask about our free demos!