In this article, we will cover how Revenue Per Appointment (RPA) affects your rankings in homeowner search results, and how you can control your RPA.
First, we must explain how homeowners choose their pros and book their estimates online. After filling out their zip code and trade information, we match homeowners with their top 3 local pros through our Contractor Matching Tool (Match.CostGuide.com). Below is an example of the results page:
With only the top 3 ranking pros visible in any zip code/trade, it is vital to understand how to rank within the top 3, and understand the importance of each position.
Position #1: To receive the most lead volume it is imperative to be ranked #1. Ranking first puts your company's calendar prominently on the results page and shows you as the preferred pro. This is especially important because homeowners often choose to book only 1 or 2 estimates on their projects.
Positions #2 & #3: Offered to the homeowner after their first appointment is booked as a comparison OR are manually selected after bypassing the Pro in position #1.
Ranking below #3: Will result in little to no volume.
How You Control Your Ranking With Revenue Per Appointment (RPA):
The great news is that YOU have 100% control over your rank in the search results and your Revenue Per Appointment.
Revenue Per Appointment boils down to a simple calculation:
Fees Paid (Your Cost) / Total Appointments Delivered
Please note: This is calculated per trade category. You may have ranked higher in one trade vs. another.
Control Your RPA With Pay-Per-Appointment:
Your Cost Per Appointment
You can choose your cost per appointment with or without returns.
Your Return Rate
The more appointments you return, the lower your Revenue Per Appointment. For example: If you receive 10 appointments at $350 Per Appointment but return 50% of them, your RPA would be $175.00 RPA. The Average return rate is 40%, so your ranking will be affected if you return more than average over a 90-day period.
Only return appointments where there is no potential opportunity and fall within the eligibility guidelines: Cancellation, No Show, Out of Scope, Wrong Phone/Address.
If opportunities are saved/rescheduled in the future, let us know!
Control Your RPA With Pay-Per-Sale
Your Total Sales Fees / Total Appointments Received
Some companies may choose to increase their price or % to gain a competitive advantage.
Only companies closing consistently at a high rate will compete.
Update All Hired Projects Daily
Ensure you mark appointments as "Hired" as soon as the Contract is Signed, Past Rescission, and Financing Approved.
Follow up and rehash past appointments that were either “No Bid” or “Bid Lost.”
National Minimum RPA And Benchmarks:
Revenue Per Appointment requirements in each region and each trade will vary due to project sizes and the competition in a market. However, here are the absolute minimum benchmarks we require nationally:
$165.00 RPA on all roof replacements, bath, siding, or windows 3+ replacements.
$75.00 RPA on all gutter install/replacements, repairs, or 1-2 window projects.
Please note: We expect these RPAs to increase Q3 2024.
What Happens If You Fall Below The Regional Or National Benchmarks?
You will start to receive fewer or no appointments.
Don't worry, we're here to help - please reach out to Customer Service or your Account Manager. Let's work together to help you succeed!