THE CHALLENGE
In late 2007, 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. Company X knew they offered better customer service than their competition but were looking for ways to replace the revenue they had lost. Additionally, Company X 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
Over the past two and a half years, Performance Matters has continued to be immersed in Company X's business strategy. PM's first project created additional revenue for Company X 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
Over the past two years, Performance Matters assisted directly in creating gross profits of $1, 173,906 for Company X 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 represents a substantial top line improvement with 72.3% of project revenue going to the bottom line. During this time, Company X's customer satisfaction index improved 7.2% and the Company X's 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,” said Company X's president. “We used consultants in the past but have never seen the dramatic results that we've garnered with the Performance Matters team of experts.”
(Performance Matters takes the confidentiality of its clients very seriously. The name of the company has been kept anonymous to protect their identity.)
