Service Business Benchmarks 2025: How Do You Compare?
Industry data on missed calls, close rates, response times, and more. See where your business stands against other contractors.
How do you know if your business is performing well? It's hard to improve what you can't measure—and even harder when you don't know what 'good' looks like.
We've compiled data from hundreds of service businesses across HVAC, plumbing, electrical, pest control, landscaping, and other trades to create these 2025 benchmarks. Use them to assess your performance and identify opportunities.
Phone Performance Benchmarks
Your phone is the front door to your business. How well are you answering it?
Call Answer Rates by Industry
| Industry | Average | Top Performers | Bottom Performers |
|---|---|---|---|
| HVAC | 77% | 95%+ | 60% |
| Plumbing | 75% | 94%+ | 58% |
| Electrical | 79% | 96%+ | 62% |
| Pest Control | 82% | 97%+ | 68% |
| Landscaping | 76% | 93%+ | 55% |
| Handyman | 72% | 91%+ | 52% |
Key insight: Top performers answer 95%+ of calls. If you're below 80%, you're leaving significant revenue on the table.
Response Time Expectations
- Customer expectation for callback: Under 30 minutes
- Average contractor callback time: 3.2 hours
- Top performer callback time: Under 15 minutes
- Impact of speed: Responding within 5 minutes makes you 21x more likely to qualify a lead
Sales Performance Benchmarks
Close Rates by Lead Source
| Lead Source | Average Close Rate | Top Performers |
|---|---|---|
| Referrals | 65% | 80%+ |
| Repeat customers | 70% | 85%+ |
| Google LSA | 35% | 50%+ |
| Google organic | 30% | 45%+ |
| Website forms | 25% | 40%+ |
| Social media | 15% | 25%+ |
Key insight: Referrals and repeat customers convert at 2-3x the rate of cold leads. Building systems to generate referrals and retain customers pays huge dividends.
Estimate Follow-Up Impact
- Estimates with no follow-up: 25% close rate
- Estimates with 1 follow-up: 35% close rate
- Estimates with 3+ follow-ups: 45% close rate
- Automated follow-up sequences: 50%+ close rate
Operational Benchmarks
No-Show Rates
- Industry average no-show rate: 12%
- With 24-hour text reminder: 6%
- With 24-hour + day-of reminder: 3%
- Top performers (full reminder sequence): Under 2%
Technician Utilization
- Average billable hours per technician day: 5.2 hours
- Top performer billable hours: 6.5+ hours
- Industry standard drive time: 25% of day
- Top performer drive time: Under 15% of day
Customer Retention Benchmarks
Maintenance Agreement Metrics
| Metric | Average | Top Performers |
|---|---|---|
| Agreement renewal rate | 65% | 85%+ |
| Customers on agreement | 15% | 40%+ |
| Agreement customer lifetime value | 5x higher | 7x higher |
| Agreement customers who buy replacement | 60% | 80%+ |
Key insight: Maintenance agreement customers are dramatically more valuable. Top performers have 40%+ of customers on agreements.
Review Performance
- Average Google rating for service businesses: 4.3 stars
- Rating needed to maximize visibility: 4.5+ stars
- Average monthly reviews (no system): 2-3
- Average monthly reviews (with automated requests): 8-12
- Review response rate (industry average): 35%
- Top performer review response rate: 95%+
Financial Benchmarks
Revenue per Employee
| Industry | Average | Top Performers |
|---|---|---|
| HVAC | $180K | $250K+ |
| Plumbing | $170K | $230K+ |
| Electrical | $175K | $240K+ |
| Pest Control | $140K | $200K+ |
| Landscaping | $90K | $130K+ |
Profit Margins
- Average net profit margin: 8-12%
- Top performer net profit margin: 18-25%
- Gross margin on service work: 50-60%
- Gross margin on installations: 35-45%
Marketing Benchmarks
Cost Per Lead by Channel
| Channel | Average CPL | Expected Close Rate | Effective Cost Per Customer |
|---|---|---|---|
| Google LSA | $45 | 35% | $129 |
| Google Ads (Search) | $65 | 25% | $260 |
| Facebook Ads | $35 | 15% | $233 |
| SEO (organic) | $25 | 30% | $83 |
| Referral program | $20 | 65% | $31 |
Key insight: SEO and referrals deliver the best cost per customer. LSAs are expensive but fast. Facebook is challenging for service businesses.
How to Use These Benchmarks
- Identify your biggest gaps: Where are you furthest from top performer numbers?
- Prioritize high-impact areas: Phone answer rates and estimate follow-up typically deliver the fastest ROI improvements.
- Set realistic targets: Don't try to jump from average to top performer overnight. Aim for incremental improvement.
- Track your progress: You need to measure what you're trying to improve. If you don't know your current close rate, start tracking it.
- Compare to your own past: Beating the benchmark is good, but beating your own previous numbers is what matters most.
Get Personalized Benchmarks
See how your business compares with a free analysis from the Local Business Pro team.
Request AnalysisThe Bottom Line
The gap between average performers and top performers in service businesses is wider than most people realize. A top-performing HVAC company isn't just a little better than average—they're capturing 2-3x more revenue per lead, retaining far more customers, and operating at nearly double the profit margin.
The good news? Most of the improvements that separate top performers from average come from systems and processes, not talent or luck. Phone systems, follow-up automation, review requests, and maintenance agreement programs are all implementable regardless of your current size.
Pick one benchmark where you're underperforming and make it your focus for the next 90 days. Then tackle the next one.
About Local Business Pro Team
The Local Business Pro team combines decades of experience in service businesses, technology, and customer success to create content that helps contractors grow.
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