3 Men Movers 2016 Recap, Q1 areas of opportunity, Q1 Rocks and Drivers App Preview

2016 Recap

Where are we?

What does our market share look like?

Why?

Marketing is flat YOY so we look at the sales floor

Area of Opportunity

1. Conversion (Will revisit at the end)

After May 2016 we see a drop of almost 2% in overall conversion from 32% to 30%. This translates to roughly 2000 Jobs: Roughly $1,600,000 in lost revenue over the course of one year if the trend continues.

Incoming calls saw a drop of 2% in conversion from 35% to 33% after May 2016

Upsells continue to trend in the right direction, but low performers are skewing our view of how well we can convert upsells

Area of Opportunity

2. Upsells

  • 2015 we were at 15% upsell
  • 2016 we hit 19% upsell
  • 4% increase lead to 700 more upsell jobs: $500,000 in revenue gained
  • We have agents preforming well over 19%, we can get this average up to 23% with call flow control and better agents
  • 23% will bring another $500,000 in revenue without increasing opps or gaining market share

2. Call Flow Spread

I ran through a ton of data last night. I stayed away from marketing and operations to focus on finding what was broken. I wanted to find a deadweight loss: Revenue we can gain internally and immediately by fixing broken processes.

Our largest area of opportunity comes from micromanaging the distribution of opportunities amongst our agents.

During an analysis of November '15 vs November '16 I noticed that the % of opportunities that Panama was taking had increased from 25% to 33%.

Panama also converted on average 7% lower than Houston on average. This translates to around 490 jobs over the course of a year and around $400,000 in revenue. When you account for the drop in Houston's average conversion due to low performers it doubles to $800,000 in revenue.

We can gain $400,000 in revenue with Low performers (Panama) still taking 24% of our opportunities.

$400,000 is big, but I see an opportunity to gain $1,400,000 if we can reduce and consolidate all opportunities to a Houston team converting at 36%. This allows for new hires and low performers on the Houston team.

The grand slam here would be to consolidate all leads to Houston & to remove Houston low performers. If we do this and get Houston conversion back up to 42% like it was last year we stand to double that $1,400,000 over the course of 12 months: $2,800,000. This is ambitions, but achievable with better hiring practices. This does not even account for Sean's Training expertise or for any lift in # of opportunities that Marketing produces.

Take Aways

  1. Remove everyone who is not a Houston agent from the sales queues
  2. Staff for Saturdays and Sundays, the employment costs are worth it if we prevent any roll over of opportunities
  3. Build second shift team
  4. Remove all low performers from the sales team now while the we are in the slow season
  5. Proactive hiring practices for Qualifiers and Sales Agents
  6. Create an intense environment for qualifiers and hold them to strict web conversion standards
  7. Focus on the people and not the reporting or the comp plan: These are tools to view trends. We have a people issue not an incentive issue for most of our sales team.
  8. Revamp comp plan to weed out low performers and to incentivize top performers. I view our low performance and the comp plan as two separate issues.

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