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KPIS & METRICS
The Essential KPIs Every Remodeler Should Track for Growth
Empower your remodeling business with data-driven decisions by tracking the metrics that matter — from project profitability to client satisfaction.

by Grant Fuellenbach

Table of contents
  • TLDR
TLDR
Key Performance Indicators at a Glance
Average Revenue per Project
Monitor how much revenue each job brings in on average. This reveals your typical project size and helps with forecasting and goal-setting.
Lead Conversion Rate
Measure the percentage of leads that turn into paying projects. A higher rate means your sales process is effective; a low rate flags lost opportunities.
Marketing ROI
Track the return on investment for each marketing channel. Know which advertising dollars bring revenue and which don't, so you can spend wisely.
Job Costing Accuracy & Predictability
Compare estimated costs vs. actual costs on each job. Tight control here means fewer budget surprises and protected profit margins.
Gross Profit Margin
Calculate the percentage of revenue left after direct project costs. This core profitability metric should be high enough (aim for ~30% or more) to sustain your business's growth.
Client Satisfaction (NPS & CSAT)
Use surveys to quantify client happiness. High satisfaction (e.g. a strong Net Promoter Score) leads to repeat business and referrals, fueling growth.
Sales Pipeline Conversion Rate
Analyze conversion at each stage of your sales pipeline (inquiry, proposal, contract). Identify bottlenecks and improve your process (e.g. through a structured sales approach) to close more deals.
INTRODUCTION
In the remodeling and construction business, gut instincts and experience are invaluable—but data is the secret weapon that can truly drive sustainable growth. Key Performance Indicators (KPIs) turn the day-to-day operations of a remodeler into measurable insights. By tracking the right KPIs, remodelers and builders can pinpoint what's working, what's not, and where to focus their efforts for maximum payoff.
This guide outlines the essential KPIs every remodeler should monitor to keep their business on a growth trajectory. We'll explain why each KPI matters, how to track and interpret it, and what tools or technology can help streamline the process. From financial metrics like profit margins to customer-centric measures like satisfaction scores, these indicators provide a 360° view of your company's performance.
Importantly, this isn't just theory—industry-leading remodelers use these KPIs to make informed decisions. Whether you're looking to boost your marketing effectiveness, tighten up project budgeting, or improve your sales close rate, focusing on these metrics will give you the clarity needed to take action. Let's dive into each KPI and see how it can guide your remodeling business toward greater growth and profitability. (Throughout this post, we'll also highlight some interactive tools and best practices—like accessible design and even a printable PDF version—to ensure you get the most value out of this guide.)
AVERAGE REVENUE PER PROJECT (ARPP)

What is it?
The average dollar amount earned per completed project
Why it matters
Influences resource planning and growth forecasting
How to calculate
Total revenue ÷ Number of completed projects
"Average Revenue per Project" (often called average job size) is the average dollar amount you earn for each completed remodeling project. To calculate it, take your total revenue over a period (say, a quarter or year) and divide it by the number of projects completed in that time. For example, if you brought in $500,000 from 10 jobs last year, your average revenue per project is $50,000.
This KPI tells you the typical size of the jobs you're doing. It's a critical growth metric because it influences how you plan and allocate resources. A higher average project value can mean more complex projects or upscale clients, which often lead to higher profits. Increasing your average project revenue (either by taking on larger projects or upselling more services) can boost your total income without needing to sign more contracts.
Tracking revenue per project is straightforward with good record-keeping. Use your accounting software or project management system to pull revenue totals and project counts. A tool like QuickBooks (with classes or jobs set up per project) or a construction management app will let you run reports on total revenue by job and time period.

TOOLS & TECHNOLOGY FOR TRACING PERFORMANCE

Accounting Software QuickBooks with job tracking capabilities provides detailed revenue reports by project Project Management Construction-specific tools that integrate with accounting for seamless tracking Business Intelligence Visual tools to create charts of project revenues over time KPI Dashboards GO First's KPI Scorecard template for tracking average project size and trends As mentioned, accounting and project management software are your friends here. Construction CRM systems (Customer Relationship Management) that track project details can often report on average project value automatically. If you prefer visuals, you might use a business intelligence tool to create a chart of project revenues over time. Also, consider using an interactive KPI dashboard – for instance, GO First offers a KPI Scorecard template where you can input each job's revenue and it will display your average project size and trends. This kind of interactive scorecard (potentially available on our website as a calculator) can make it easy to play with "what-if" scenarios, like "What if we only did projects above $100k?" Lastly, remember to tag or categorize projects by type in your system; you might find your kitchen remodels average one figure and bathroom remodels another. Such insights can guide you on what project types to emphasize for growth.

LEAD CONVERSION RATE

1

1
Definition
Percentage of leads that become paying projects
Calculation
(Projects signed ÷ Number of leads) × 100%
Target
Varies by business model (10-30% is common)
Lead Conversion Rate measures how effectively you turn initial inquiries or leads into signed remodeling contracts (i.e., paying projects). In simple terms, it's the percentage of leads that become customers. To calculate it, take the number of new customers (or projects signed) and divide by the number of leads in a given period, then multiply by 100%. For example, if you had 50 inquiries and 10 of them turned into booked projects, your lead conversion rate is 20%. This KPI is sometimes also called sales conversion rate or close rate, especially if you measure from formal proposals to deals closed.
A remodeling business lives or dies by its ability to convert interested prospects into actual jobs. You might have a healthy number of leads coming in (from your website, calls, referrals, etc.), but if only a small fraction become clients, you're bleeding out opportunities and marketing dollars. A high conversion rate means you're doing something right: your marketing is attracting qualified leads, and your sales process (from the initial consultation to the proposal and follow-up) is persuasive and effective.

TOOLS & TECH FOR LEAD CONVERSION

CRM Systems Customer Relationship Management tools like HubSpot, Salesforce, or construction-specific CRMs automatically track leads through the sales process and calculate conversion rates. Call Tracking Software Logs phone leads and can sometimes track if a call lead converted, providing valuable data for phone-based inquiries. Website Analytics Implement analytics event tracking on contact forms to count how many people showed interest, which you can compare to closed deals. Sales Training Tools GO First's consulting includes role-playing sales calls and proposal templates to help improve close rates. As mentioned, a CRM is almost essential for tracking conversion rates efficiently. Even a simple, affordable CRM like Pipeline CRM or a spreadsheet template is better than nothing, but the goal is to automate the tracking. CRMs can also automate reminders for follow-ups (so you don't forget to call a prospect back—crucial for conversion!). Many CRMs will generate a report showing your conversion rate and even break it down by stage (lead to appointment, appointment to proposal, proposal to win). Additionally, integrate your CRM with your website lead forms (using webhooks or Zapier) so leads flow in automatically.

MARKETING ROI
Marketing ROI (Return on Investment) measures how much return (usually in revenue or profit) you get for every dollar spent on marketing and advertising. It answers the question: "Are my marketing efforts actually paying off?" There are a few ways to calculate ROI, but a simple formula is: (Revenue from marketing campaign – Cost of campaign) ÷ Cost of campaign. Multiply by 100 to express it as a percentage.
For example, if you spent $2,000 on a Google Ads campaign and it directly led to $10,000 in remodeling jobs, the ROI would be ($10,000 – $2,000) ÷ $2,000 = 4 (or 400%). In other words, you got $5 back for every $1 spent. Marketing ROI can be calculated per campaign, per channel (e.g., ROI of all your social media advertising), or overall for all marketing efforts.
In a growing remodeling business, marketing is crucial for feeding your sales funnel with leads. But not all marketing is equal—some channels or campaigns might be bringing you profitable projects, while others are a drain on your budget. Tracking Marketing ROI lets you identify which marketing efforts actually generate profitable business.

TOOLS & TECHNOLOGY FOR MARKETING ROI

Google Analytics (GA4) Set up conversion tracking for form submissions and use UTM links for campaign attribution Ad Platform Analytics Use built-in analytics and conversion tracking pixels in Google Ads and Facebook Ads Call Tracking Services Assign unique phone numbers to different campaigns to attribute phone leads ROI Calculator Use a Marketing ROI Calculator to plug in spend and revenue per channel Marketing Analysis Programs like GO First MAP help set up tracking systems and interpret data Google Analytics (GA4) is a must-use for any remodeler with a website; set up conversion tracking (for form submissions, brochure downloads, etc.) to measure leads. Pair this with UTM links for any digital campaigns. If you run Google Ads or Facebook Ads, use their built-in analytics and conversion tracking pixels to attribute leads. Many remodelers integrate their website forms directly with their CRM (so a lead from the site automatically appears in the CRM with source info attached). Some all-in-one marketing platforms (like HubSpot or Marketo, though those might be overkill for a small business) will trace a customer's entire journey from click to sale.

JOB COSTING ACCURACY & PREDICTABILITY
Create Detailed Estimate
Labor, materials, subcontractors
Track Actual Costs
Real-time expense logging
Calculate Variance
Compare estimate vs. actual
Analyze Patterns
Identify consistent issues
Job Costing Accuracy refers to how close your estimated costs for a project align with the actual costs incurred upon completion. In other words, it measures the precision of your budgeting and the predictability of project expenses. If you estimated a kitchen remodel would cost $80,000 and it ended up costing $82,000, that's fairly accurate (only $2k over). But if it ended up at $100,000, there was a significant miss.
Many remodelers quantify this with metrics like cost variance (actual minus estimated, sometimes as a percentage of estimated) or track slippage, which is the percentage of expected gross profit lost due to cost overrun. Predictability comes into play when you look at this across projects: are you consistently on target, or are final costs all over the map relative to estimates? Ideally, you want a predictable outcome – projects coming in at or under budget, with minimal surprises.

TOOLS & TECHNOLOGY FOR JOB COSTING

Construction Management Software Platforms like Buildertrend, CoConstruct, or JobTread combine project management with budget tracking. Input your estimate, and as you mark purchases or time, it updates cost-to-date and variance. Accounting Software Integration QuickBooks with Projects feature or Classes attributes expenses to specific jobs. QuickBooks Online Advanced has a Projects center showing profitability per project. Mobile Field Apps Mobile expense logging or timesheet apps (like TSheets/QuickBooks Time, or Expensify for receipts) linked to projects ensure you're capturing all costs in real time.

GROSS PROFIT MARGIN (GPM)
Revenue
Total project income
Direct Costs
Materials, labor, subcontractors
Gross Profit
Money left to cover overhead
Gross Margin
(Gross Profit ÷ Revenue) × 100%
Gross Profit Margin is one of the most fundamental financial KPIs for any business, and it's particularly telling in remodeling. It represents the percentage of revenue that remains after you've paid all the direct costs of completing a project. In formula terms: Gross Profit Margin = (Revenue – Cost of Goods Sold) ÷ Revenue × 100%.
In remodeling, the "Cost of Goods Sold" (COGS) includes your direct project costs — materials, subcontractor fees, direct labor wages, and any other costs that can be tied to a specific job (often also called job costs). It does not include your overhead expenses like office rent, marketing, or your salary (if you're not working directly on the tools for that job).
For example, if you remodel a basement for $50,000 and the lumber, drywall, fixtures, labor, and subs for that project cost you $35,000, then the gross profit is $15,000 and the gross profit margin is $15k/$50k = 30%. Gross profit margin can be calculated per project, but also for your business as a whole over a period of time.

TOOLS & TECHNOLOGY FOR GPM

Much of the tracking overlaps with job costing tools, since accurate job costing feeds gross margin data. Here are some specifics: Accounting Software Reports: QuickBooks Profit & Loss by Job is extremely useful. Also consider using something like Fathom or Spotlight Reporting (add-ons that integrate with accounting software) to visualize margins and create nice KPI reports. Estimating/Proposal Software: When you create estimates in tools like Clear Estimates or ProEst, they can show you the expected gross margin on that job (based on your markup). This helps ensure you price jobs to hit your target margin. Benchmarks & Templates: Use industry benchmark data to set your goals. The NAHB or Remodelers Advantage often publish typical margins. We at GO First may provide a Gross Margin Worksheet where you can plug in your numbers and see how your margin compares to industry standards.

CLIENT SATS
NPS
Net Promoter Score
Measures likelihood to recommend on 0-10 scale
CSAT
Customer Satisfaction
Rates overall satisfaction on 1-5 scale
9-10
Promoters
Very satisfied customers who will refer you
0-6
Detractors
Unhappy customers who may deter others
Client Satisfaction Metrics are measures of how happy your customers are with your services and the overall remodeling experience. Two of the most common metrics are NPS (Net Promoter Score) and CSAT (Customer Satisfaction Score).
Net Promoter Score (NPS): This is a popular metric obtained by asking clients a simple question near the end of a project: "On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?" Responses are categorized: 9-10 are "Promoters" (very satisfied, loyal customers likely to refer), 7-8 are "Passives" (satisfied but not enthusiastic), and 0-6 are "Detractors" (unhappy customers who could deter others). NPS is calculated by taking the percentage of Promoters minus the percentage of Detractors, giving a score between -100 and +100.
Customer Satisfaction Score (CSAT): This typically involves asking customers to rate their satisfaction, often on a scale (for example, 1-5 or 1-10) for the project or certain aspects of it. You might simply ask "How would you rate your overall satisfaction with the project?" and get an average score, or the percentage of respondents who gave a high rating (like 4 or 5 out of 5).

TOOLS & TECHNOLOGY FOR CLIENT SATISFACTION

Survey Tools General survey platforms like SurveyMonkey, Typeform, or Google Forms work well for collecting client feedback. If you want to automate, some CRMs or email marketing tools can send a survey email template when you mark a project completed. There are also NPS-specific tools (Delighted, for instance) that automate NPS collection and calculation. Customer Feedback Platforms GuildQuality is one that caters to home builders/remodelers. They will handle surveying your clients via phone or email and provide you with satisfaction reports and badges you can use in marketing. HomeAdvisor and Houzz also collect client reviews if you use those platforms, which indirectly give you a satisfaction gauge. CRM Integration Some CRM systems (or project management systems like Buildertrend) have client survey modules or can integrate with one. If your CRM has this feature, use it to keep all customer data in one place. Net Promoter Score Tracker You might use a simple spreadsheet to track NPS over time, but there are also dashboard tools that can display NPS trends. GO First Support We encourage our clients to implement feedback loops. As part of programs like our MAP or consulting services, we sometimes help develop survey processes and even provide templates for questions to ask.

SALES PIPELINE CONVERSION
Inquiry/Lead
Initial contact from potential client
Consultation
In-person meeting to discuss project
Proposal/Estimate
Formal quote and project plan presented
Contract Signed
Deal closed, project begins
Sales Pipeline Conversion Rate refers to the rates at which prospects move through the stages of your sales process, ultimately converting from initial contact to signed contract. While "Lead Conversion Rate" (discussed earlier) gives a broad-strokes view of lead to customer, pipeline conversion breaks it down by stages.
For a remodeler, a typical sales pipeline might include stages like: Inquiry (lead comes in), Initial Consultation/Meeting, Design & Proposal, Contract Signed (deal closed). You can measure conversion from one end to the other (overall pipeline conversion = percentage of inquiries that become signed contracts, which is essentially the lead conversion rate). But more insightfully, measure stage-to-stage conversion: e.g., what percentage of inquiries schedule a consultation? What percentage of those consultations lead to a proposal? What percentage of proposals result in a signed contract?

TOOLS & TECHNOLOGY FOR SALES PIPELINE CONVERSION

CRM Pipeline Tools Systems like HubSpot, Pipedrive, Zoho CRM, or industry-specific ones like MarketSharp or Buildertrend's CRM module, allow visual pipelines. They often can produce funnel reports showing drop-off at each stage. Google Sheets Funnel Template If not using a CRM, you could maintain a Google Sheet where each row is a lead and you mark which stage they reached. Then use simple formulas to count how many Y/N in each stage column to get counts. Follow-up Automation Tools that send automatic emails or texts after certain stages can improve conversion. Software like Outreach or simple email scheduling in Gmail/Outlook can implement this.

CONCLUSION & NEXT STEPS
Track KPIs
Establish baseline metrics for all seven essential KPIs
Set Goals
Choose 1-2 KPIs to focus on improving each quarter
Implement Tools
Adopt the right software to streamline tracking
Seek Support
Consider external resources like GO First services
Tracking these essential KPIs—Revenue per Project, Lead Conversion Rate, Marketing ROI, Job Cost Accuracy, Gross Margin, Client Satisfaction, and Pipeline Conversion—gives you a powerful, data-informed grip on your remodeling business. It's a lot of information, but the payoff is clarity. Instead of guessing what to improve, the numbers will illuminate your path to growth. For instance, your KPIs might reveal that you need to raise prices or control costs to fix a margin problem, or perhaps invest in sales training to boost your conversion rates, or maybe ramp up a referral program because your customer satisfaction is stellar. Remember, improvement starts with measurement.
IMPLEMENTING YOUR KPI STRATEGY
However, don't get overwhelmed by trying to tackle all metrics at once. A good approach is to establish a baseline for each of these KPIs first. Where do you stand today? Maybe your average project is $30k, conversion rate 15%, marketing ROI 200%, gross margin 25%, NPS +50, etc. Write those down and then pick one or two KPIs to focus on for the next quarter. Set specific goals (e.g., "Increase gross margin to 30% by end of Q3" or "Improve lead conversion to 20% by implementing a new follow-up system").
Also, consider leveraging external resources. GO First offers several services tailored to help remodelers and builders in exactly these areas. Our 10-Step Sales Process training, for example, is designed to systematically improve your sales pipeline conversion and lead conversion rates by providing a clear roadmap from first contact to signed contract. Clients who have implemented it often find they close more deals (and even do so faster) because nothing gets missed in the client courting process.
ADDITIONAL RESOURCES
Interactive KPI Scorecard Calculator
Use our online tool to plug in your numbers and benchmark against industry norms
Print-Optimized PDF Download
Keep a clean, formatted copy on your desk for reference during meetings
Community Discussion
Share which KPI you're focusing on and learn from other remodelers' experiences
KPI Priority Poll
Vote on "Which KPI is your top priority for the next 6 months?" to see how you compare
Need to share or save this? There's a print-optimized PDF download available, so you can keep a copy on your desk or in a meeting (all the formatting is cleaned up for printing, and it won't waste your ink).
Lastly, we want this to be a conversation, not a lecture. Your feedback matters – not just as a metric, but as a way for us to improve and tailor content to what you need.
Now it's your turn: Take a moment to evaluate your business with these KPIs. Which one do you think is your strongest, and which one needs the most work? We'd love to hear from you. Feel free to leave a comment below sharing one KPI you plan to focus on and why. Or if you have questions about how to track or improve a specific metric, ask away – we or someone from the community will be happy to help. We've also included a one-question poll: "Which KPI is your top priority for the next 6 months?" – let us know by voting, and see how you compare with other remodelers who are tuning into their numbers.
By consistently tracking and improving these KPIs, you'll be steering your remodeling company with a reliable dashboard, not a blindfold. Growth becomes a calculated journey, not a shot in the dark. Here's to building not just beautiful homes, but a stronger, smarter business. Happy tracking, and may your next quarter's numbers be your best yet!
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