No two organizations are alike. While common problems exist, local complexities are invariably present and the solutions always have unique characteristics. Often these are based on the differences between personnel, opportunities, customers, routes, logistical factors and many other variables. We believe that, no matter the size or culture of the organizations we serve, success can be a constant.

TWO-YEAR 6-PROJECT CASE STUDY
THE CHALLENGE

A third-generation industrial textile rental company with 11 routes was struggling to maintain their ground against the national companies closing in on their market share. The client knew they offered better customer service than their competition but was looking for ways to replace the revenue they had lost. Additionally, they wanted to create customer-focused programs that would differentiate themselves within the market. This client was referred to Performance Matters for their expertise in increasing revenues while reducing expenses and breaking down internal silos between departments.

THE SOLUTION

For over two years, Performance Matters was immersed in the client’s business strategy. The team’s first project created additional revenue for the organization but did not burden the already stretched service team. As success continued, additional projects were added including Performance Matters locating many untapped growth opportunities within the current client base. Ineffective loss billings programs were scrapped and more efficient customer-friendly programs were implemented. Emphasis was placed on revenue generation projects to escalate profit while incurring little expense. Many Performance Matters projects are compensated upon positive cash flow based on the additional revenue generated. As a result, revenue soared with very few out-of-pocket expenses occurring outside of employee rewards based on the team’s successes.

THE RESULTS

Performance Matters assisted directly in creating gross profits of $1,173,906 for the client over the course of six projects. The initial year’s net profits were $326,341 from these projects after all expenses, including compensation for Performance Matters. The following year, net profits grew by nearly 70% based on sustained performance (including high participation rates) and the elimination of most associated expenses. This represented a substantial top line improvement with 72.3% of project revenue going to the bottom line. During this time, the organization’s customer satisfaction index improved 7.2% and their exposure on service agreement renewals eighteen months out dropped from 24% to 17%. “Not only have we made a terrific return on our investment with Performance Matters, but they have also been instrumental in helping us strengthen our internal teams,” the company president reported. “We used consultants in the past but have never seen the dramatic results that we’ve garnered with the Performance Matters team of experts.”

GARMENT OPTIMIZATION CASE STUDY

THE CHALLENGE

A recent situation at an independent, family-owned textile rental service company was brought to the attention of the Performance Matters team. The issues revolved around the stockroom, as the company realized that their efforts in addressing known deficiencies were not producing the desired effect. What made the problem unsustainable were rising garment costs. As costs continued to escalate, the need to address this area became more pronounced. Yet, the operational philosophy had adopted old habits and trends. This approach, along with unmonitored garment order request procedures and a lack of visible data, compounded inefficiencies.

THE SOLUTION

The client asked for a comprehensive assessment of all aspects of their stockroom operation. The assessment revealed a number of opportunities for cost compression could be realized by implementing a Garment Optimization methodology in a “holistic” manner. Performance Matters first created a roadmap, outlining the steps for improvement over the next 12 months. Then, the team quickly cleared out unnecessary costs up front while building the foundation for further improvement. Performance Matters and the client operated on two simultaneous tracks – 1) making cost effective moves early and 2) building a foundation for sustainability. The client clearly understood the need to “purge” their stockroom but did not understand all of the hows to accomplish this. They understood the need to invest routinely in a wearer’s/client’s satisfaction yet had difficulty doing so. The client needed savings quickly without hurting their business. Performance Matters rose to the challenge and was able to deliver all the above while also building the foundation for sustainable success.

THE RESULTS

For this client, instituting Garment Optimization resulted in savings during the first year of $293,180. As a percentage of garment weekly revenue, the garment investment in the previous year represented 22.5%. Jointly, the client and Performance Matters set what was believed to be an attainable first-year goal of reducing the investment to 18.5%. However, after the first year, the actual year-end average investment as a percentage of weekly revenue had fallen to 11.8%, and they sustained a similar percentage 17 months after initiation! Just as important, all was accomplished organically without “shocking the system.” The client was able to continue providing quality garments to their customers, without repeating inefficient spending habits that had plagued them in previous years.

MARKET BASED ENERGY CASE STUDY
THE CHALLENGE

An independent industrial laundry company was tired of struggling to anticipate the costs of gasoline, electricity and natural gas that continually swung dramatically from high to low and back again. Like many textile rental services companies, they charged their customers a fixed fee to recover energy costs but could not keep up with market changes. When energy costs soared, the company wondered if they were billing enough. When energy costs dropped, they were uncomfortable with potentially overcharging customers. They wanted a fair charge method, one they could stand behind while still being able to react quickly to changes in the market.

THE SOLUTION

The company contacted Performance Matters (after being referred by another client) and learned that the Market Based Energy program was designed to deal with these challenges. The program took into account their specific energy expenditures and calibrated national energy costs to tell them exactly how much they should be charging customers on a weekly basis. In addition, the program could be configured to account for other petroleum-based material cost increases, regional allowances and/or other factors (which some clients have used to cover the cost of the program itself). The client engaged Performance Matters to integrate Market Based Energy with their route accounting software to create a seamless billing system. Performance Matters also provided guidance on how to roll out the new program to their customers and worked with the client through successful completion. Customers were pleased to know a fair, market-driven approach had been put into place. In addition, the company received regular emails letting them know their monthly fee and the specific changes to account for the difference – whether positive or negative.

THE RESULTS

Since implementing Market Based Energy, the company has realized a $470,887 improvement and continues to report positive results, not only from a financial standpoint but also from their customers.

REVENUE GENERATION CASE STUDY

THE CHALLENGE

A mid-sized 12-route independent industrial laundry company began encountering problems as national companies started closing in on their target market. The traditional approach of putting forward their best defense to save revenue was not delivering the desired results. After an intense effort to deliver the best possible service and value to their customers, they produced slower than acceptable growth and profitability. Frustrated, the leadership recognized they needed a new approach.

THE SOLUTION

Committed to improving future results and based on a referral, the client contacted Performance Matters. After confirming culture compatibilities, Performance Matters began their examination with an on-site visit and extensive data review, along with route rides to fully understand the relationship between the client and its customers. Performance Matters’ study revealed the client had invested a great deal into their customer but missed taking credit for all the value they had created. Performance Matters helped determine the most efficient strategy to enable the company to reach their goals by presenting unique revenue-based initiatives which:

• Developed a new “customer centered” proprietary billing process

• Significantly reduced product payback time by 75%

• Provided additional benefits under a unique marketing approach

• Improved customer relations by showcasing additional value to their customers

THE RESULTS

In 52 weeks, the company retained 98.6% of the original project revenue and received $365,391 in additional revenue with no investment. The only expenses were the Performance Matters’ fee (which was earned strictly based upon the client’s positive cash flow) and employee incentives. While implementing this and two other Performance Matters programs, the client saw their customer satisfaction index improve by 7.2%, showcasing their recognition of the client’s additional value. “Performance Matters’ proven coaching techniques, tools, methods and project implementation processes ensure success for every new project,” the company controller stated.

SIMPLY SAMPLING CASE STUDY
THE CHALLENGE

Traditionally, textile rental service companies have primarily depended on their sales teams to drive new product sales. This means the weight of driving new revenue was typically placed solely on the shoulders of a few sales people while neglecting the possibility of utilizing a full service team staff who were already interacting with customers on a daily basis. To expand this thinking, Performance Matters led a two-day seminar, entitled “Simply Sampling.” A select number of service managers from non-competing markets were invited to learn how route reps can greatly affect the bottom line and to share their insights and best practices. The sessions focused on how to identify customer needs and improve sales by teaching proprietary sampling techniques that have been honed from years of experience.

THE SOLUTION

In the final session of the seminar, the Performance Matters team unveiled their proprietary “Simply Sampling” program to the attendees. While the final goal was an increased revenue stream, the program’s secondary motive was to help service teams increase their footprints within their current accounts and become a solution provider for customers to increase their loyalty, drive dependability and deepen relationships. Participants of the program were trained on how to teach route sales reps the behaviors and tools to enhance growth while driving participation. New sampling approaches were introduced along with strategies for driving customer loyalty. Results were tracked through proprietary tools and eight weekly conference calls were held to instill accountability at route sales rep, manager and department levels. Additionally, incentives were added to create excitement for the new program within each client.

THE RESULTS

After eight weeks of implementing the Simply Sampling program, the results were substantial for all participants. The highest performing service team saw an average of $28.34 in increased route sales per route each week. This 17-route team produced $3,858.80 in additional sales revenue by implementing the Simply Sampling process. Of those results, the best performing route sales rep produced a $51.68 average jump in sales. There was 100% route rep participation with a minimum route sales average of $17.23 per week. Department morale soared as the reps saw how they could drive revenue by focusing not on the actual sale, but on how to meet a customer’s needs. Through this proprietary process, customers purchased 69.7% of sampled items. Several of the service teams noted that they previously had a culture of only selling a product to a client when they asked for it. “We always had a company philosophy that the role of the RSRs was to service the customers, not be salesmen,” said the service manager of the team with the highest route sales average. “This process has changed our culture from being reactive to proactive and has had a big impact on our bottom line.”