Case Study - Cleaning Service
Issues:
Sales, margins and profits were declining and customer turnover in the residential market was high.
Our Goal:
To grow sales and profits in the residential market, improve service levels, efficiency and customer retention rates.
Actions Taken:
- Analyzed current customer base, pricing strategy and cost related assumptions; modified pricing.
- Clearly defined ideal customers and modified messages to reinforce benefits, not features.
- Re-allocated marketing dollars to improve return on investment
- Developed and implemented checklists and systems for operations team - to insure consistent service delivery
- Developed job descriptions, goals and training for crew leaders and teams to get everyone onthe same page and establish standards for all
- Hired a part-time assistant to help owner with residential sales and daily administration, so he could focus more on commercial growth and building the business.
Results Achieved:
Within 5 months, house cleaning sales increased 15% and average customer retention increased from 3.9 to 5.2 months. The increased sales and improved efficiency (systems), generated a net profit improvement of 56% - even with the new part-time assistant.
