Where to Invest in Sales & Service to Achieve Maximum Results

Welcome!

Where To Invest Within Sales and Service To Achieve Maximum Results

Pros Elite Group Results

• Currently Representing 72 Markets in North America and Select International Countries Generating Over $ 1.5 Billion in Annual Revenue

• $22 Million in Bottom Line Service Profit Improvement

• $80 Million in Increased Equipment Sales

• 150,000 MPS Printer Devices Under Contract

• Elite Prospect Magnet (Industry First Automated Prospect Development Tool)

Generates 20% more Qualified Prospects Than Traditional Methods

Copyright 2009 Pros Elite Group, Inc.


Focus on the Three I’s

• Investment Where should I invest my time to achieve the maximum return?

• Involvement What key areas do I need to focus on to achieve the desired results?

• Inspection What should I inspect to ensure the actions I take are paying off?


Service Investment

Current State of Many Service Organizations

• Managers are in a reactive mode

• Wearing multiple hats to deal with the day to day challenges

• Employee moral is often low due to inefficiencies in service

• Lower than benchmark financial performance in Service

• No plan exists to improve financial & operation performance in Service

• Lack of accountability and follow-up to specific performance expectations


Service Investment

What I Must Understand To Determine Where I Need To Invest My Time

• Do I know my Service Financial Performance to the model?

• Do I understand how my service inefficiencies create a high salary expense?

• Do I know what key performance indicators to review in order to receive an effective snapshot analysis of my service organization?

• Based on the Answers to the Questions Above, What key areas do I need to Involve myself in and Inspect in order to correct the opportunity areas that I discover.


Service Involvement

Objectives:

•You must Involve yourself in the areas that drive operational and financial performance in service.

• To do this you must develop and work your plan.

• Stop reacting to the day to day and strategically execute a plan of improvement.

Where Do You Start ?

First We Must Understand Why Managers Hire Techs

• High Call Activity

• Lower than desirable Response Times

• Customer Complaints

Let’s Look At The Root Causes of The Above Challenges

and Discuss how Service Inefficiencies tie to Financial Performance

BUT FIRST THE MODEL AND CURRENT PERFORMANCE


Financial Model Old Versus New

OLD NEWSalaries 27.5% 25.5%

Parts 16.0% 16.5%

Auto 3.5% 4.0%

Training/Other 1.0% 2.0%

COGS 48.0% 48.0%

G.P. 52.0% 52.0%


Financial Model Old Versus New

Typical Dealer Performance

Benchmarks Typical

• Salary 25.5% 27-35%• Parts 16.5% 20-30%• Vehicle 4.0% 4-5%• Training 2% 1-3%

• GP 52% 28-45%

ALLOCATIONS ARE WRONG IN 70% OF VISITS


Let’s Look At Our Workload Requirements Based on our Current Customer Base

First Check Your Current Salary Expense To Revenue

1. Is Your Service Salary Expense To Revenue Greater Than 25.5% ? If The Answer Is Yes Then

We Need to Dig Deeper 2. How Do You Determine The Approximate # of Techs Needed To Support The Dealer’s Base ? - Total Annual Company Revenue / $900K - Total # of Monthly Clicks / 1.8M

3. Also you will want to look at your Revenue Per Service Employee /150K – 180K annually Benchmark Companies Perform at 200K plus


SALARIES

Reason

- Higher Than Benchmark Call Activity

Causes: These Should Be your Core Areas of Involvement BM Typical Performance

- Call backs – 10% 15% - 24%

- Incompletes – 8% 14% - 22%

- Accountable Time – 7.5 Hrs. Per/Day 5.0 – 6.5 Hrs. Per/Day

- Carry Over Per/Tech Per/Day – 2 Calls Per/Tech 5 - 7 Calls Per/Tech

BEING OUTSIDE OF BENCHMARK ON THE ABOVE CAUSES US TO HIRE MORE TECHS THAN WE NEED

Did You Know That A Typical Dealer Is Overstaffed By 20%?


Let’s Look At The Impact That Callbacks, Incompletes & A.T. Have On Our Salary Expense

• Salaries

ASSUME 1,000 Gross Calls per month

20% Callback Rate (10% BM) – 100 calls per/mth by achieving BM

Average tech will take 80-100 gross calls per month (90 is average)

100 calls saved per/mth on callbacks / 90 = 1.1 workloads saved in efficiency improvements.


• Salaries


15% Incomplete Rate (8% BM) – 70 calls per/mth by achieving BM

Average tech will take 80-100 gross calls per month (90 is average)

70 calls saved per/mth on incompletes / 90 = .8 workloads saved in efficiency improvements.



• Salaries


6.0 hrs per/day accountable time(7.5 hrs per/day BM) – 1.5 hours per/day per/tech gained by achieving

BM

1.5 hours per/day per/tech gained X 10 tech = 15 hours per/day gained

15 hours per/day divided by 8 hours = 1.9 saved in productivity improvements



• Salaries

SUMMARY

Callbacks – 1.1 lost workloads

Incompletes - .8 lost workloads

A.T. - 1.9 lost workloads

Total Lost workload 3.8 lost workloads

We Have To Staff Up With Additional Techs To Compensate for the

Inefficiencies Within Service



• Salaries

• By correcting the inefficiencies surrounding callbacks, incompletes and accountable time we can absorb 3.8 additional workloads with no additional labor (in our example).

• This represents approximately 6.8 M monthly copies we can absorb in net new business with no additional labor.

• This represents approximately $47,880 in monthly revenue we can absorb in net new business with no additional labor.

• Get aggressive on service pricing in competitive net new deals. (already paying for the labor component)

Goal Is To Correct Inefficiencies & Move Into a Workload Absorption Mode


• Parts3 Primary Drivers for this areas being outside of BM

- Ineffective Warranty Management a. Prefer an automated method to capture pre-mature replacements

b. Need to setup High Mortality Parts to be flagged

- Ineffective or No Strip & Salvage Process a. Not a warehouse with used machines where a tech can pull parts b. Establish a process to bring used parts into inventory

- No Spending Plan Established at the Tech Level a. Need territories established at the model/serial level b. Territories must be tested to ensure Territory Integrity can be maintained. c. Establish a spending plan based on 16.5% of territory revenue

How Service Inefficiencies tie to Financial Performance


CRITICAL ONGOING INSPECTIONS REQUIRED

- Call Backs measure machine reliability. Perform CQA’s to ensure compliance to a total call process.

- Accountable Time is a measure of Cust. Hrs. + Travel Time between 8am- 5pm. AM/PM checks are critical to ensure you receive a full day of productivity from each tech.

- Parts Spending Plan should be in place and based on 16.5% of allocated service revenue for each territory.

- Incomplete analysis should be performed and adjustments made to ensure car stock effectiveness (territory integrity critical).

Service Inspection


CRITICAL ONGOING INSPECTIONS REQUIRED

- Inventory Variance - Weekly Reconciliations need to occur on all parts used and transferred to control this area.

- Ongoing Call Activity Analysis – Daily analysis of call carryover and specific actions to take if you exceed the threshold.

- Churn Document – used to track net new revenue and click activity.

Service Inspection


A Dealer Principals

approach to

Inspecting the Sales

Management Process

Your Expectations of a Sales Rep?

1. Make Calls

2. Achieve Quota

3. Develop Net New Business

4. Conduct Demos and trials

5. Develop and close MPS opportunities

Expectations of a Sales Rep

• Meet or exceed your assigned sales quotas.• Makes prospecting contacts daily either by phone or in

person that result in one addition to your pipeline every day. • Conduct 10 net go forward appointments each week in

customer’s offices.• Conduct 35 targeted mailings each week that are followed

up by phone contact during the following week.• Conduct 2 demonstrations a week.• Achieve 40% of all equipment sales as net new or add on

business each quarter.• Visit every current customer every 90 days.• Insure that Managed Print Services is presented in every

proposal and demonstration.

Expectations of a Sales Rep

• Insure that all client information is updated in the company’s CRM daily.

• Develop an upcoming week strategy that insures proper levels of selling activities are achieved. This will be communicated at weekly rap up meetings on Friday afternoon.

• Develop a strategy, one year in advance of expiration, to insure all expiring leases are upgraded or renewed.

• Insure daily and weekly entries to Sales Activity tracking system are completed and submitted on dates required

Cultural / Behavioral Expectations of a Sales

Professional• You will report to work at 8:00 A.M. each day and be

prepared to leave the office and be in your assigned territories by 9:00 A.M.

• You will return to the office each day no earlier than 4:00 PM and commence tele-selling for appointments to prospects you identified during daily cold calling activity until 5:00 PM.

• All sales administrative activity will take place before 9:00 AM and after 5:00 PM.

• All phone calls will be returned within 2 hours

Cultural / Behavioral Expectations of a Sales

Professional

• If for any reason you are not going to be able to report for work, you should inform your Supervisor/Manager prior to 8:00 AM.

• Adhere to a professional dress code. You are expected to be dressed neatly in business suits unless otherwise informed.

• Our reputation is built on integrity. You will always take the most ethical path to any business destination with your fellow employees or our suppliers.

One more Expectation

Minimum Expectations

1. $51,000 in equipment revenue / quarter

2 2 qualified Prospects added to 90 day or 180 pipeline/ week

3 Average of 5 net move forward appointments / week

Do Not Command

What you do not consistently

Enforce

Sophocles

Rolla’s Rules of Sales

1. Find prospects who want something

2. Get them to buy it!

Leadership Skills, Goal Setting and Strategic planning

• The current leaders inventory of skills to a defined identification process of the future leaders of the organization

• Achievement of Personal and Professional Goals

• Operational objectives to financial objectives

The new 80/20 Rule

• 40% of your time with Employees

• 40% of your time with customers

• 20% of your time with Stuff.

The focus of the 40 % of employee time

• Investment – your time and energy to their development

• Involvement – In what they do.

• Inspection - of the results they report (asking great questions)

Great President’s / Dealer Principals do not know all of the

answers !

They ask Great Questions !

Greatest of All Questions

Can you show me that Please?

Involving yourself in the Inspection of your Sales Management process

1. Finding prospects who want something

2. Getting them to buy it!

Elite Sales Activity Benchmarks

• 4 Decisions Identified each week that will be added to the 90 / 180-270 day pipeline

• $25,000 added to the equipment pipeline weekly • 10 Net Move forward appointments• 30 % of your equipment business from Net New

customers• 50% of your deals with a MPS component• 100% of your deals with a MPS survey

Finding a prospect who wants something

• Find a Decision a Day that gets added to the 90 day or 180 day pipeline

• Make it Mandatory 4 out of 5 workdays• Create an input document and mandate that it is

complete• Audit 20% every week• Set minimum expectations, terminate if not met• Number of accounts and the dollar volume of each

pipeline should increase by 4 and approximately $24k each week.

DECISION A DAY

• Date the Discovered _________________• Company Name ___________________________________________• Decision Maker name ___________________________________________• E Mail address ___________________________________________• Address and Phone ___________________________________________• ___________________________________________• Make and Model ___________________________________________• Monthly Volume ___________________________________________• (If owned) Purchased date _________________________________• (If leased) Lease End date _________________________________

• Note: All of the information requested on this form must be complete for this to be

counted as a DAD for the week.

Getting them (Prospects) to Buy

• Expect 10 Net move forward appointments a week• Move forwards limited to Initial Contact, Qualifying,

Information Gathering or analysis, MPS snapshot, Proposal Presentation, Demo, Trial, Closing appointment.

• Net Move forward appointments = all move forward appointments – Initial contact calls.

• Categorize the appointments in two categories, Net New Business or Current Customer. ( Simple rule: If you want 30 % net new business at least 30% of your Net move forward appointments should be with Net New Business prospects.)

What’s the Dealer Principals role

• Get a one page tool that tells you everything you need to know to ask great questions about Pipeline growth and Move forward appointments.

• Spend the 40% of your time with employees in scheduled weekly conversations about results. (How many Dads added to the pipeline (4), how many dollars added to pipeline ($25,000), (4) how many Net move forward appointments 10, how many Net move forward appointments are Net New customers)

The Role of CRMs

• Best for Storing information on qualified prospects. Set criteria that must be met for entry

• Should be used to track the completion of the 5 criteria for forecasting:

1. Credit Approval

2. Delivery date (other than the last day of the month)

3. In house Demo or trial

4. MPS survey

5. Articulation of your competitive advantage

Your Reward

Whatever you Invest in, Involve yourself in, and

inspect… you get !

Where to Invest in Sales & Service to Achieve Maximum Results

Business

Transcript of Where to Invest in Sales & Service to Achieve Maximum Results