Copy This 9-Step Flywheel For Compound Growth

Many home service businesses hit a revenue ceiling and struggle to break through to the next level. One of our partner companies was stuck at $3 million in annual revenue for two years. They tried hiring new salespeople and switching marketing companies, but nothing seemed to work. However, by implementing a structured nine-step framework, they grew from $3M to $4M in just 12 months and eventually scaled to $8M in two years before successfully selling their business.

This nine-step flywheel helps businesses compound their growth systematically. Below, we break down how this framework works and how you can apply it to your business.

Step 1: Track Lead Count Year Over Year

Most businesses don’t know how many leads they generate, making it difficult to gauge growth.
Start tracking all lead sources:

• Web forms
• Calls
• Ad platform inquiries

Compare lead volume year-over-year to understand growth. If you need more leads, there are four ways to generate them:

1. Warm outreach (contacting past customers and prospects)
2. Posting organic content (social media, blogs, videos)
3. Cold outreach (reaching out to new potential customers)
4. Running paid ads (scaling awareness and conversions)

Step 2: Measure Booking Rate

Generating leads is one thing, but converting them into booked jobs is where real growth happens. Your booking rate is the percentage of leads that turn into actual appointments.

A study by ServiceTitan found the average booking rate across home service businesses is around 42%. Low-end companies book at 30%, while high-performers book at 62% or more. Here’s how you can improve your booking rate:

• Implement a standardized call script
• Set up automated follow-ups (texts, emails, calls)
• Train CSRs with experts like Power Selling Pros

One company we worked with improved its booking rate from 40% to 61%, increasing revenue by 51%—without generating a single new lead.

Step 3: Track Job Count Year Over Year

Just because you book jobs doesn’t mean they’re getting completed. Tracking job count year-over-year helps ensure growth.

To increase job count:

• Improve your booking rate
• Send appointment confirmations and reminders
• Follow up on cancellations to reschedule

Step 4: Measure Estimate Count Year Over Year

If your business provides estimates before completing jobs, tracking estimate count is crucial.
More estimates mean more opportunities to close deals.

To generate more estimates:

• Incentivize technicians to create estimates (commission-based incentives)
• Set up an automated follow-up sequence
• Make it easy for techs to submit estimates (e.g., QR codes linking to forms)

Step 5: Increase Close Rate

Close rate = Estimates provided vs. Estimates turned into sales.

A healthy close rate in home services is 40-60%. Improve your close rate by:

• Implementing a structured rehash process (automated follow-ups over 14-21 days)
• Adding an expiration date to estimates to create urgency
• Educating customers through emails and social proof

Step 6: Boost Average Ticket Price

Growth isn’t just about volume—it’s also about increasing the value of each transaction. You need a profitable pricing strategy and tactics to maximize revenue per job.

Strategies to increase your average ticket:

• Train CSRs to upsell during calls
• Provide additional service recommendations
• Use email marketing to educate customers on upsell opportunities

Step 7: Create a Campaign Summary Report

With your data in place, review where your leads and sales are coming from. Identify which channels—Google Ads, LSAs, Facebook, Yelp, SEO—are driving the best ROI.

Proper attribution is key. Without tracking lead sources correctly, you won’t know where to invest marketing dollars effectively.

Step 8: Track New Customer Growth

Returning customers are great, but new customers drive business expansion. Track new customer acquisition year-over-year to ensure long-term growth.

If you’re increasing new customer volume, your marketing efforts are working. If not, adjust strategies to attract first-time buyers.

Step 9: Calculate Customer Acquisition Cost (CAC)

CAC is the key metric that dictates marketing efficiency. It’s the cost of acquiring a new customer.

Formula: Total Marketing Spend / New Customers Acquired = CAC

A healthy CAC should be around 5-10% of a customer’s lifetime value. If your average customer spends $6,000 over their lifetime, your CAC should be between $300-$600.

Implement This Flywheel for Your Business

This nine-step framework helped one of our partner companies go from $3M to $8M in two years and successfully exit. By tracking and optimizing these metrics, you can drive predictable, scalable growth for your home service business.

If you’re running a home service company with over $1M in revenue and feel stuck, we can help. Set up a call with our team—worst case, you get some best practices to implement on your own; best case, we help you unlock compound growth!