REVENUE STUDY
THE CHALLENGE
In late 2007, 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 circling the wagons and putting forward their best defense to save their revenue was not delivering the desired results. After an intense effort to deliver the best possible service and value to their customers, they produced a slower than acceptable year of growth. Frustrated, the leadership recognized they needed a new approach and perhaps even some outside support.
THE SOLUTION
Committed to improving 2008 results, they engaged the services of Performance Matters. After confirming culture compatibilities, Performance Matters began their examination with an on-site visit and extensive data review, followed by going on daily route rides. After their in-depth on and off site assessment, Performance Matters was able to identify revenue gaps and training opportunities as well as uncover several exciting revenue prospects. Performance Matters study exposed the client had invested a great deal into their customer, but missed taking credit for all the value they had created. Their customers were willing to pay for the value once it was properly explained. Performance Matters determined the most efficient strategy in getting them to their goals by presenting unique revenue-based initiatives.
The major problem exposed by Performance Matters was the discovery of numerous items being dramatically under-billed or not billed at all. The client was shocked to learn that 79% of their customers had these uncharged and/or under-charged items on their invoices. The Performance Matters’ solution began with creating a collaborative cross-functional team, which led to:
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Creating a new “customer centered” proprietary billing process
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Significantly reducing product payback time by 75%
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Providing additional benefits under a unique marketing approach
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Improving customer relations by showcasing additional value to their customers
THE RESULT
“Performance Matters’ proven coaching techniques, tools, methods and project implementation processes ensure success for every new project,” stated the client’s controller.
In 52 weeks, the company sustained 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.
$290,564 Project to Date Contribution
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