Category: Case Study

Challenge:

This professional service firm (CPA/Accounting) had a good reputation and revenue showed consistent growth. However, profit margins were declining due to client mix changes and inefficiencies within the operation.

Our Goal:

To increase net profit by increasing team productivity, improving systems for efficiency, and refocusing marketing on higher margin clients in strong niche areas.

Actions Taken:

• Analyzed and modified critical systems and procedures, including service delivery and billing, to improve quality assurance, customer satisfaction, and profitability.

• Revised organization structure for optimal efficiency.  Developed position descriptions, clear team goals, performance bonus program, and an employee appraisal system that supports team development.

• Clearly defined ideal market segments and services. Then built delivery procedures with service level requirements and marketing to support each segment.  Walked away from some business.

• Established procedure to bring on new clients and get them started right.

• Developed method to stay connected with clients and prospects throughout the year.

• Updated website to reflect new focus, provide resources and support for target customers, and generate new quality leads for the business.

Results Achieved:

Within 12 months, realized revenue increased 11% and profit increased by 18%. In addition, the employee satisfaction scores increased 5.3% over the prior year.

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Challenge:

Revenue for this wholesaler (distributor) was relatively flat. They invested a lot of money to generate quality leads for the sales organization; however, the sales team was only converting 11% of their leads to customers.

Our Goal:

To improve our sales conversion rate and increase revenue without discounting or eroding margins.

Actions Taken:

• Clearly defined ideal customers and established criteria for screening quotes from new prospects.

• Modified marketing and sales communications to reinforce benefits and value instead of features like everyone else.

• Developed and consistently implemented a multi-touch sales system that incorporated the quote process.

• Used tracking system for leads from new and existing customers.

• Created quarterly campaigns to stay connected with and nurture warm leads – those that had a potential need, but didn’t buy earlier.

Results Achieved:

Within 8 months, the conversion rate on new leads increased from 11% to 27% – more than double – without discounting.  By focusing on ideal prospects, turning down sales where appropriate, and consistently using the sales process, the average sale per customer increased 43% and overall revenue increased 22%.

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Challenge:

This small manufacturer had an excellent reputation for quality and on-time delivery. While they generated over 250 NEW leads per year, they were only converting 6% of those leads to actual sales – a waste of time and money.

Our Goal:

To increase sales conversion rates without discounting or sacrificing profit margins.

Actions Taken:

Clearly defined our ideal customers and specific criteria based on customer needs and company strengths. Made the decision to turn down (say no) to prospects who didn’t meet our criteria — saving time preparing quotes that weren’t likely to convert.

Developed compelling reasons (benefits) to choose the company and reinforced this within all our marketing and sales efforts.

Modified the advertising and re-allocated dollars to other tactics improve lead quality.

Developed and implemented a multiple-touch sales system which included adjustments to our quote process.

Our Results:

Within 3 months, the sales conversion rate increased from 6% to 16% and the average customer transaction increased from $710 to $1,161, indicative of the higher quality customers they were attracting. Overall sales increased 14% during this period without discounting or eroding margins.

Challenge:

Sales were relatively flat at this electronic supply distributor. While some customers purchased multiple times, many purchased only once. Customers averaged 1.4 transactions per year. The company had a database of over 1,000 customers that they did not maintain or use it to generate repeat business.

Our Goal:

To grow sales through existing customers by improving the frequency and average sales amount per customer.

Actions Taken:

• Cleaned up the database and removed 300 dead accounts.

• Established a customer value criteria based on revenue and profitability. Assigned value codes to all customers in the database.

• Established guidelines for contact frequency and method based on value code. Then began implementing phone follow-up calls at the designated frequency.

• Developed a quarterly program to stay in touch. Used the program to promote the full range of products and exclusive, customer-only offers.

• Systematized the blanket order process for easy follow-up and re-ordering.

Our Results:

In 6 months, the average number of transactions increased 25% and the average sale increased 11%. Without increased spending on marketing, revenues increased 21%.

Bonus:

A few months later, when a key supplier notified the company of a pending price increase, the company had a simple, easy way to quickly email a “Buy Now Avoid the Price Increase’ offer. This effort generated over $50,000 in incremental sales and demonstrates the value of a well-maintained database.

Ready to Create Your Own Success Story?

Are you ready to move your business in a better direction and wonder if working with a business coach can make a difference? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Challenge:

This general contractor focuses on major remodeling and renovation projects. Construction projects drop off between November and February due to weather and holidays. This impacts cash flow and requires employee layoffs.

Our Goal:

To generate high quality leads for basement remodeling during the winter months. These projects can be completed in short periods of time and are not impacted by the weather.

Actions Taken:

• Defined our new ‘basement remodeling’ service and developed positioning and pricing strategy to begin marketing.

• Created template for easy quoting to save time and money.

• Developed checklists for technicians to efficiently and consistently deliver the service to our customers.

• Created flyer with compelling reasons, strong offer and call to action to market the new service

• Developed a list of target communities, near their former customer homes, for distribution into the neighborhoods.

• Distributed 500 flyers in 4 communities.

Results Achieved:

The campaign generated 4 leads and 3 sales for revenue of $43,000. The investment was only $180 to produce the flyer we used to market the service and a few bucks for his kids to distribute them.

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Challenge:

This small plastics manufacturer is recognized for quality and on-time delivery, yet new and repeat sales to existing customers (highly profitable) were relatively flat and gross profit margins were declining.

Our Goal:

To generate new sales and repeat business through existing customers and improve gross profit margins.

Actions Taken:

• Analyzed estimated versus actual costs for materials and labor hours for past jobs to identify gaps and improve quote assumptions and realized profit margins.

• Streamlined and systematized purchasing of raw materials; established multiple suppliers in all key areas.

• Refocused sales efforts on ideal target customers, higher margin products and repeat orders from existing customers.

• Developed and implemented an account management process for all existing customers; monitored sales by customer on a monthly basis.

 Our Results

Within 6 months, material costs were reduced by 17% and profit increased 26% without any additional spending on marketing and lead generation. Revenue from existing customers increased 22% versus prior year. By year-end, net profit margins were 2 times the industry average.

Challenge:

Standing out in the financial services industry is always a challenge.  As a relatively new professional in the field, my client struggled to attract and convert new customers for the business.

Our Goal:

To generate high-quality leads for financial services, increase the number of face-to-face meetings and improve conversion rates to build sales.

Actions Taken:

Defined ideal clients and created a niche market that she was passionate about and a stronger USP for services so she could stand out in a crowd of many

Developed strategy and tactics to expand alliances and strategic partners to support her niche market. Modified messages and expanded alliances and strategic partners to support her niche market

Modified messages for both consumers and alliances — with an emphasis on benefits.

Created and consistently implemented a multi-touch sales process to nurture leads and move prospects from interest to meetings to sale.

Implemented a quarterly stay connected program for warm leads in her pipeline — both customers and alliances.

Established and tracked goals for both activities and results.

Our Results:

Within 3 months, leads doubled and conversion to face-to-face meetings increased 35%. First quarter revenue/sales increased 51% versus prior year.

Challenge:

This medical practice (specialist) has a great reputation for quality patient care and expertise in their specialty area.  The practice showed consistent revenue growth; however eroding industry margins, employee turnover, and operational issues were consuming too much of the physician’s time – hindering long-term opportunities and impacting profit.

Our Goal:

Improve efficiency and reduce employee turnover in order to increase revenue and profits without sacrificing quality patient care.

Actions Taken:

• Analyzed and modified systems, including patient intake and care, billing and office administration procedures to facilitate training and delegation to staff.

• Revised position descriptions with clearly defined roles, skills, and associated measures for success.

• Developed and implemented a recruiting and hiring system to attract and bring in quality people — with an emphasis on clinical skills and technology required for EMR.   Replaced poor performers who did not meet these criteria.

• Shared business goals with the team in conjunction with performance bonus program to create more engagement and focus on continuous improvement.

• Implemented an employee appraisal system that supports employee personal and professional development.

 Our Results:

Within 12 months, the number of patient visits increased 22% without expanding the hours of operation or sacrificing patient care. The employee turnover is no longer a problem and the staff continues to take on and manage more day-to-day responsibilities.  This allows the physician to focus on patients and other growth opportunities within the practice.

Challenge:

To bring in new students and keep classes full as students move up, this gymnastics facility offers a free trial class for parents considering gymnastics for their children. Conversion rates from free trial to class enrollment were 57% — leaving potential sales and profit on the table.

Our Goal:

To improve sales conversion rates of free trial classes to increase student enrollment and recurring revenue.

Actions Taken:

• Analyzed sales conversion rates by coach and class to uncover gaps and opportunities.

• Communicated results and re-trained all coaches on the process for free trial students. Reinforced the importance of free trials to continuously bring in new students and keep classes full.

• Implemented office follow-up process for those who did not enroll immediately following the trial class.

• Reviewed results monthly with the entire team.

Our Results

Within 6 months, the sales conversion rate increased from 57% to 69%. The 12% improvement generated an additional 49 new students, representing annual sales of $25,000. The cost to the owner was negligible – it was simply a matter of retraining the team, follow-up by office staff and tracking and reporting results.

Challenge:

This residential and commercial cleaning service business was experiencing a decline in sales and profit within the residential segment due to margin erosion, turnover, and inefficiency. The time invested by the owner in this segment was hindering growth in the more lucrative commercial market. We needed to fix the problem or eliminate residential service and focus on commercial only.

Our Goal:

To simplify and grow revenue and profit in the residential market through improved service levels and efficiency.

Actions Taken:

• Analyzed current customer base, pricing strategy and cost related assumptions.  As a result, modified pricing and packaging for residential services.

• Clarified ideal customers and modified messages to reinforce benefits and attract target customers.

• Re-allocated marketing dollars to improve return on investment.

• Developed and implemented checklists and systems for daily operations and service delivery.

• Developed job descriptions, goals and training for crew leaders and teams to get everyone on the same page and establish standards for all.

• Hired a part-time assistant to help the owner with residential sales and daily administration, so he could focus more on commercial growth and building the business.

Our Results:

Within 6 months, residential 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 increased labor from hiring a part-time assistant. The owner was now able to focus on other business development opportunities.