Presentation on theme: "Client Case Study. Company’s gross averaged $250,000 per month. Company operated on a -24% profit margin. Owner was depositing $60,000 per month into."— Presentation transcript:
Company’s gross averaged $250,000 per month. Company operated on a -24% profit margin. Owner was depositing $60,000 per month into company from his personal finances to keep the company alive. Company had a consistent downward spiral of revenue (both in profit and gross) for the 3 years prior to Galt Strategies' hire date. Company’s average job revenue was $71.20 while the average job cost was $103.60. Company had laid off multiple employees until the company was operating with only 17 techs and 15 office personnel. Owner spoke to several key players in the company about closing down the business. The accounting records said that bankruptcy was imminent. There were no clearly defined departments or managers, showing a lack of structured organization.
Doubled number of calls coming in daily from marketing efforts. Built large website and marketing presence. Built a sales team from 2 techs to 7 highly-trained salesmen. Increased closing ratio on sales from 17% to 65% *Please note that the information in the above and following charts reference the timeframe between Galt Strategies' hire date and contract signature date.
Increased revenues from $5,000-$6,000 per day to $15,000-$16,000 per day.
Cut costs on pre-existing PPC by 26.9% Took profit margin from a -24% to an 11%
Came up with new product pricing program that increased profit. Trained every tech how to increase job revenue and profits. Hired and trained techs that grossed 300% more monthly than preexisting techs. Developed marketing and online supremacy to take company from 30-40 jobs per day *Please note that the information in the following charts reference the timeframe between Galt Strategies' hire date and his termination
Took average revenue per job from &71.20 to $300 Took sales team from 40-50 sales per day to over 200 sales per day with 76% closing ratio
In less than a 2-year period of time, set up a consistent upward trend of revenue. Increased profit margin by 308% from -24% to 42%
Took company revenues from $250,000-$300,000 per month to $1,200,000 (during low months) and $1,400,000 (during high months).
As of March 19, 2012, company revenues went from $3,600,000 per year to 16,000,000 per year
In less than two years, the Galt Strategies team made tremendous changes in the client’s marketing, systems, and organizational structure, increasing the number of staff, the profit and gross revenue, and the employees’ satisfaction their job and job security. As they moved through the company developing the marketing, sales, dispatch, tech, accounting, and human resources departments, the team focused on bringing definition to each employee’s role and helping those employees gain a better understanding of the importance of their contribution to the entire company. Galt created a marketing department that brought all graphic design, web design, web development, social media, and online paid marketing in-house for optimum control and budget management. After increasing the number of pages on the website, the team closely monitored customer’s reactions to each change, continually improving the performance of the website until the visitor conversion rate increased from less than 12% to over 60%. Galt also took the reins of the online marketing campaign, optimizing it for appeal, quality, and low cost. The number of weekly visitors increased by over 400%, while the cost per visitor decreased by over 25%. After bringing in more customers than the company’s systems could handle, Galt was then granted permission to begin work on the structure of the company. The first step taken was to separate the company’s operation into distinct departments and designate managers over them. Defining these lines relieved employees throughout the company as they began to understand what they were and were not being held responsible for. As they were then allowed to focus only on clearly-defined responsibilities, they began to take more pride in their specific contributions to the company and give up the pressure of the decision-making as they passed the responsibility of decisions up to the managers. The managers were trained, mostly on an individual basis, in order to learn how to bring out the best performance in their employees through encouragement and appealing incentive
In the sales department, Galt developed scripts for the sales team after much research to discern what the customers valued in their lives and in the businesses they hired and how their needs/desires were not presently being met in the client’s marketplace. They trained the sales team to connect to their customers on a personal level while keeping a professionalism that developed a sense of trust. Incentives were created to motivate the sales team to operate at their utmost in every call. Through various commission structures, contests, and cross-training, the sales department pushed toward individual and group goals as a unit. Dispatch was expanded from simply dispatching techs to including various other responsibilities. Galt implemented new pricing structures and focusing on highly-profitable products/services that gave customers better value, and the dispatchers became responsible for focusing the tech on these changes out on the jobsites. They worked to meet both the customer’s and company’s needs on each job as they walked techs through various company procedures and pricing structures, due to the nature of each type of job. Walking the techs through their jobs created a direct line from the company headquarters to each jobsite, increasing customer satisfaction and company benefit. Customer satisfaction was also improved when Galt created a position in dispatch strictly to handle any status calls that came through from customers. As the number of jobs began to increase at a rapid pace, the Galt team hired more techs and trained them one-on-one by riding out with them to their jobs. Galt taught them to focus on three things: quality of work, customer education, and customer satisfaction. The techs were also taught that the quality of a job benefited both the customer and the company more than the volume of jobs performed. In less than two years, trained techs were bringing in 300% more revenue than the untrained techs had been.
Before Galt came in, the accounting department was weeks behind in its work, and many people were sharing the same several jobs. The Galt team began bringing structure to the department by dividing responsibilities to create an internal control system and to increase productivity through a sense of ownership. The team also began to cut out old, unnecessary procedures. With the increased efficiency of the new systems that cut down on their work time, the employees eventually were able to catch up on weeks of work. They became happier at work as they were able to see production from their efforts and be able leave work feeling a sense of true accomplishment for the day. Galt also created a human resources department to handle employee concerns, issues, and benefits. Having a dedicated human resources department enabled the company to stay abreast of continual changes in employee laws and provided a place in which employees felt comfortable confidentially relating any concerns they had with management or coworkers. Both the company and its employees began to feel safer and more protected. In order to improve unity and efficiency between the departments, the Galt team implemented a CRM system that spanned the sales, dispatch, tech, accounting, and human resources departments. Through implemented checks, balances, and uniformity with the CRM system, the Galt team vastly improved the quality of information in the company’s records and kept departments and their individuals more responsible for the quality of their work and the amount of work performed. As the system was put in place, each department began to see more clearly the effects their actions had on other people down the line. As their awareness grew, employees began to work harder and more cheerfully on their tasks as they saw the relief they were providing for their coworkers. Employees became much more eager to offer their help to each other as they saw themselves working as a unit toward a common goal instead of as a group of individuals struggling to each survive under their own work load.
One of the many things that Galt put into the company to reposition them in the market was to brand their auto keys and programming service. This created a tremendously profitable revenue stream as the marketing, sales, dispatch, and tech departments began making the customers more aware of these services. Over the period of two years that Galt worked at the company, the team saw tremendous growth in the company and its staff. Profit increased as unnecessary procedures were cut out, pricing structure was changed, and responsibilities were defined at a corporate and individual level. As profit and job security increased, performance greatly improved as workers felt their daily efforts not only had a purpose but were also being greatly appreciated. Managers had learned to show their appreciation for their staff through public praise, competition prizes, staff parties, and special bonuses throughout the year to recognize hard work; and the workers learned to rely on the wisdom and authority of management to guide the company. Employees’ pride in their company rose, as they watched the staff all working to create the rise in profits that was growing their company. For the first time in 27 years the owner has been able to step down and hand over the reins to a managing CEO. The owner is currently traveling the world with his wife and pursuing his passion of exotic golf courses.