Locksmith
LOCKSMITH
Before galt
The Customer
The Company was on a consistent downward spiral, forcing the owner to personally pour in $60k/month to break even. In less than two years after Galt Strategies was hired, the company was not only saved from foreclosure but experienced over 344% increase in revenue and 308% increase in profit margin. The new structure of the company made the company profitable and self-sustaining under proper management by the employees, with decision-making needed from the owner on a rare, instead of consistent, basis.
The Challenge
- Owner was personally investing $60,000/month into company to sustain company
- Company had a consistent downward spiral of revenue for three years
- Company’s average job sale was less than $75 with a average job cost of over $100
- Company experienced mass layoffs
- Owner started planning to shut down business, financial reporting indicated imminent bankruptcy
- No clearly defined departments or managers, showing a lack of structured organization
Summary
Company lacked structure, profitability and future.
After galt
Galt Strategies’ Results in First Year
- Developed SEM Strategy, coordinating efforts with SEO, PPC,
Website design and Web development - Doubled daily incoming calls 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% (Figure 1)
- Increased revenues from $5,000-$6,000 per day to
$15,000-$16,000 per day (Figure 2) - Increased profit margin from a -24% to an 11% (Figure 3)
Galt Strategies’ Results in Year 1-3
- Introduced new products and established new product pricing program
- Performed personalized training with each sales technician for increased job revenue
- Hired and trained sales technician for a 300% increase in gross sales
- Built an online marketing campaign for an increase from 30-40 jobs/day to 150-180 jobs/day (Figure 2)
- Increased sales team from 40-50 sales/day to over 200 Sales/day with a 76% closing ratio (Figure 2)
- Increased average job sale from less than $75 to $300 (Figure 3)
- 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%
- Increased company revenues from $250k-$300k/month to an average of $1,300,000/month.
- As of March 2012, company revenues went from $3,600,000 per year to $16,000,000 per year (Figure 4)
Galt Strategies, Inc. built a financially stable company with a solid foundation and structure for sustained profitability.
High performance delivered
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 the employee to gain a better understanding of their individual contribution to the company.
Online Markeeting
Galt’s marketing team supplied 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 built a Fortune 500 style 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%.
Department Restructuring
After bringing in more customers than the company could handle, Galt turned their focus on restructuring the company. The first step taken was to separate the company’s operation into distinct departments and designate managers. Clearly defined employee roles offered relief as they finally understood what they were going to be responsible for. As a result, employees took more pride in their individual contributions to the company once they understood their specific responsibilities. In turn, they easily gave up the pressure of the decisionmaking 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 incentives.
Developing Sales Process
After extensive market research to determine the customer value proposition and the current marketplace gaps, Galt developed scripts for the sales team. The scripts were designed to target the customers’ needs while educating them on their situation. The sales technicians were also trained to connect with their customers on a personal level but maintain professionalism to develop a sense of trust. Incentives were created to motivate the sales team to operate at their utmost on every call. Through various commission structures, contests, and cross-training, the sales department pushed toward individual and group goals as a unit.
Developing Sales Process
After extensive market research to determine the customer value proposition and the current marketplace gaps, Galt developed scripts for the sales team. The scripts were designed to target the customers’ needs while educating them on their situation. The sales technicians were also trained to connect with their customers on a personal level but maintain professionalism to develop a sense of trust. Incentives were created to motivate the sales team to operate at their utmost on every call. Through various commission structures, contests, and cross-training, the sales department pushed toward individual and group goals as a unit.
Dispatch Systems
Dispatch was expanded from simply dispatching sales technicians 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 informing the sales technicians of the customer needs before they reach the jobsite. Working together to meet the customer needs on each job, dispatch walked the sales techs through various company procedures and pricing structures, dependant on the nature of each type of job. Walking the techs through each job created a direct line from company head-quarters to each jobsite, increasing customer satisfaction and company benefit. Additionally, customer satisfaction dramatically increased when Galt created a position in dispatch to handle customer status calls.
Strategic Hiring Systems
As the number of jobs began to rapidly increase, the Galt team hired more sales technicians and trained them oneon-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 sales technicians had increased revenue by 300% over untrained sales technicians. Galt deploys strategic hiring that filters out poor candidates prior to interviewing by focusing on specific behavior characteristics that have proven to increase revenue. Once high quality sales technicians have been hired, they go through a rigorous training program to ensure continued success during the sale.
Forensic Accounting & Development
Galt then turned to the accounting department, who was several months behind on their books. Structure was introduced to the department by dividing responsibilities to create an internal control system and to increase productivity through a sense of ownership. By streamlining processes and eliminating unnecessary procedures, the accounting department increased the efficiency, making it possible to catch up on their books. As Galt better defined the employee roles, the staff was able to take ownership of their work, which resulted in a fulfilling sense of accomplishment.
Human Resource
With an increase in staff and growing employee concerns, Galt then began building 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. As a result, both the company and its employees felt that their best interests were being protected.
Data Management Systems
In order to improve congruency and efficiency between departments, the Galt team implemented a Customer Relationship Management (CRM) system that tracked sales, dispatch, tech, accounting, and the human resources department. Through implemented checks, balances, and uniformity with the CRM system, the Galt team was able to track the following: • Improved the information quality in the company’s records • Improved transparency and accountability for each specific department to managing partners • Improved individual responsibility for the quality and quantity of work performed Once the CRM system was implemented, each department began to see the ripple effect that their actions had on other departments. With increased awareness, employees were motivated to work harder to assist their coworkers. Employees were more eager to offer assistance as they saw themselves working as a unit toward a common goal instead of as a group of individuals struggling to survive under their own work load.
Increased Products
Additionally, Galt introduced supplementary products to offer customers while on the job site, which were branded specifically for the company. Dispatch took the time to understand the customer needs, communicated this to the sales technician who was able to offer it to the client on the job site. This was a source of significant revenue for the company since the “add-on sale” was a high margin product. This profitable revenue stream was further refined as the marketing, sales, dispatch, and tech departments worked together to make customers more aware of these additional products and services. Sustainable growth Over the period of two years that Galt worked at the company, the team saw tremendous growth in the company and staff. Profit increased as unnecessary procedures were eliminated, pricing structure was improved, and responsibilities were defined. As profit and job security increased, performance also improved as workers felt their daily efforts not only had a purpose but were also appreciated. Managers began 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 the company.
For the first time in 27 years, the owner was able to step down and hand over the reins to a managing CEO, pursuing his passion of exotic golf courses while traveling with his wife.