2011 Vegas Profitability Summit


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The 2011 home improvement profitability summit featured 18 of the foremost experts in the industry presenting on a wide array of topics ranging from recruiting and hiring salespeople to Internet marketing.

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  • These are the 8 core housing consumer groups (9 th is renters). So, who wants to guess which three are most important for Remodeling? Get this right and I will give you some insights…
  • Key to understanding why location matters is understanding consumers, the differences among them, and how that relates to remodeling. Our research in this area goes back many years and leverages best in class primary and secondary research. It was first based on understanding how the types of new households being formed impact new home sales. We’ve extended that understanding to now include how households differ in doing remodeling projects. Key finding: three groups of household segments have been found to explain market differences in remodeling activity. These key households are 50% more likely to do a major remodeling project in a year. More than 25% of these households report doing a home improvement project in any given year. While these households represent less than a quarter of all households they are responsible for 40% of remodeling activity. We can identify these folks at the household level, nationwide. In the next slides we will summarize them and show you where they live in one market.
  • 05/11/11
  • Go to Live SERP When a person searches for a local product or service on a search engine like Google, Yahoo, or Bing there are typically three sections on the SERP that show up: ‘Ads’ (also known as “paid search” or “sponsored listings”), the “free” listings in the center of the page (called ‘organic’ or ‘natural’ listings), and the map listings. It’s estimated that in any given month there are over 3 billion searches which are local in nature – consumers looking for relevant services in specific locations. Given this enormous number, it’s no mystery why search engines, and by extension the three main sections of the SERP (ads, organic, and maps), hold the key to a strong online presence and ultimately more new customers. We’ll be touching on each of these sections and more as we discuss: The Top 5 Ways to Outrank Your Competitors Online. So let’s dive in!
  • Paid search advertising is one of the quickest ways to get in front of potential customers. After you set up your campaign, select what keyword searches you want to show up for, and write your compelling ad copy; high placement on the search engine can be just a click away. In fact, for most searches relevant to your business, paid search listings will be at the top of the SERP above all organic results. While paid search listings typically only get 25% of all clicks, studies suggest that people who do click on paid search ads are far more likely to buy (and buy soon) than people who click on organic listings.   If you aren’t showing up when a search is performed for the services your business provides, those aforementioned pesky competitors who are showing up are winning that business. Additionally, with paid search advertising you have a ton of control as to what you tell potential customers about your business, when you show your ads, and where your ads are shown. These three aspects of paid search help you ensure that you are generating the most qualified traffic to your site – traffic with the potential to turn into real sales. Bottom line, if you’re not using paid search for your business, you could be missing out on a BIG opportunity.
  • After this slide: Show SERP for Audience interaction: Do you think that this is a good Places page? (Poor Version) http://maps.google.com/maps/place?hl=en&biw=1280&bih=551&prmd=ivnscm&um=1&ie=UTF-8&q=Plumbers,+Scottsdale+AZ&fb=1&gl=us&hq=Plumbers,&hnear=Scottsdale,+AZ&cid=7200813453468525312 How about this one? Do you think this is better? Why? (Better Version) http://maps.google.com/maps/place?cid=13381679677903774229&q=Scottsdale+Plumbing+Co&hl=en&sll=33.487627,-111.919644&sspn=0.006295,0.006295&ie=UTF8&ll=33.492985,-111.92929&spn=0,0&z=16 With that said, how does placement in these important sections work? Here are the basics:   In order to show up for map listings, businesses: Claim the page and create relevant keyword content on the respective local listing. This helps search engines view a business’s local listings page as credible – and therefore more worthy of incorporating into that search engine’s “maps” section. Ensure information is accurate and consistent across Internet directories and IYP sites. This serves to further verify the existence of your business and provide correct information to people across the internet that are looking for your services.
  • Pain Point: SEO best practices take a lot of work to implement and maintain
  • After this slide: Show source code for one of our client websites: http://www.scottsdalegroutdoctor.com/ “ Organic” search results refer to those results on a search engine results page that are not paid for, but rather are organized by the search engines themselves according to what it deems is most relevant to a particular search. The question though is how do search engines determine that one website is more relevant than the next (and therefore how do you improve your ranking)? In an ideal world, the search engines would be able to employ an army of people to read and sift through websites to determine which ones are the most relevant vis a vis a particular search. However, with millions and millions of websites out there and an infinite number of potential searches, using people really isn’t feasible. Instead the search engines use something called a “bot” to read through the backend (coding) of sites on the Internet and determine what sites are most relevant. One of the main things these bots - which lack the nuance and smarts of people - look at is the content on a particular site. In the case of a bot though, the “content” of your site is not just the visible text on your website, but also the content on the backend code of your site called “tags.” For example: all things equal, a site that talks a lot about bankruptcy attorneys in Austin, TX (and uses the words “bankruptcy”, “attorney”, “Austin”, and “Texas”) has a much higher probability of showing up for searches that also use those words than a site that talks a lot about criminal defense in Dubuque, IA (one caveat here is that technical problems and a bad site structure can confuse those bots and put a major cramp on your rankings regardless of the words you use). So what’s the moral of the story? Basically, when your website is created, it’s not just important to think of how nice it looks to the human eye, but also how it looks to those “bots.” If you don’t do this, you may have a great looking website, but unfortunately, few people will actually see it.
  • Content, keywords, and coding are only pieces of the organic puzzle. Those search engine bots we were just talking about also try to assess how useful, authoritative, and trustworthy a particular site is. After all, there may be a lot of websites talking about plumbers in Oshkosh, Wisconsin, but which one should be ranked first, second, third? Basically search engines try to determine this by the number and trustworthiness of other sites who point to your site in the form of a link. Think of it this way, would you trust someone more who came to sell you something if they had 100 recommendations versus no recommendations at all? Of course you’d be more apt to trust the person with recommendations. Furthermore, what if one of those recommendations was The New York Times ? The same idea goes for search engine bots and websites: the greater the number, and the stronger the recommendations (a.k.a. links) are, the better. So what does this mean? In order to get ahead in the crowded online space, it is important that a website align with other trusted sites. This strategy, if done correctly, should be ongoing and will take time and energy – but the payoff comes with maintained placement and therefore incremental traffic and qualified leads to your site.
  • Audience Interaction: Let’s see if we can name 15 different types of online directories in one minute. Let’s shout them out! If you had to pick a single place to promote your business’s website online, the search engines are it; however, you don’t have to pick a single place (in fact, you shouldn’t!) – there are a host of other sites besides search engines that can also be extremely valuable to your business. Many of these sites you’ve heard of – from yellowpages.com or superpages.com to citysearch, yelp, and others. Just remember, if you don’t make sure that consumers searching on those sites find you , they will likely just end up finding your competitors.   So fix it! Investigate which Internet Yellow Pages or directory sites are most relevant for your business and consider advertising on some of these sites. In many cases these sites offer free profiles to claim similar to the local listings on search engines.
  • Everything we talked about seems like a lot of work, right? It can be, but growing your business online is critical! Local online advertising has many components that should be taken advantage of to grow your business. To be successful it is important to dedicate the time, energy and resources into a sustainable strategy and be able to measure the return on your investment. The 5 tips we gave you will help you design a strategy and get you started. All that said, it’s going to take time and dedication. If you go at it alone, just remember:
  • Imagine yourself in your customers shoes What else does that sound like? One night stand analogy. This one thing… this one little thing sets you apart from your competition. This makes your company a “world class” organization
  • Who thinks that with a system like this you’d get more repeat business and more referrals? Who wants to get signed up without knowing how much it costs? So then follow me to the back of the room and let’s get you signed up for the program Here’s what you get…
  • “ There are only 1 or 2 benefits of social media marketing” Others include: create positive content to combat detractors, inbound links, network with other like minded companies/people
  • http://www.convinceandconvert.com/social-media-marketing/the-6-dangerous-fallacies-of-social-media/
  • http://www.socialmediaexaminer.com/8-hot-social-media-tips-from-eight-industry-experts/ Don’t overload your contacts on marketing Research what your customers are saying Share the knowledge of experts with your audience Do unto others… Offer live events on facebook Hire correctly and train properly Integrate into website then build into corporate culture Build an army of unpaid advocates Invest in scalable systems Invest in advertising
  • http://www.socialmediaexaminer.com/8-hot-social-media-tips-from-eight-industry-experts/ Don’t overload your contacts on marketing Research what your customers are saying Share the knowledge of experts with your audience Do unto others… Offer live events on facebook Hire correctly and train properly Integrate into website then build into corporate culture Build an army of unpaid advocates Invest in scalable systems Invest in advertising
  • Background created by m62 Visualcommunications, visit www.m62.net for more information
  • 2011 Vegas Profitability Summit

    1. 1. The Home Improvement Profitability Summit The entire contents of this material is copyrighted by and is the intellectual property of Dave Yoho Associates. No reproduction is permitted without the express written permission of Dave Yoho Associates.
    2. 2. The Efficient & Profitable Company
    3. 3. The Home Improvement Business <ul><li>Marketing creates leads – The salesperson sells – Production installs </li></ul>
    4. 4. Errors & Enigmas <ul><li>Errors: Misinformation – Misjudgments – Mistakes – Mismanagement – Unwise practices </li></ul>Enigmas: Puzzling – Difficult to explain – Complex to comprehend – Unmeasured consequences
    5. 5. Common Errors Made By Most Home Improvement Companies <ul><li>Lack of (or outdated) business plan and operational model </li></ul><ul><li>Improper pricing formulas </li></ul><ul><li>Direct costs not clearly defined </li></ul><ul><li>Fully loaded marketing costs not defined, allocated or managed </li></ul><ul><li>Insufficient safeguards to ensure net profitability on each contract performed </li></ul><ul><li>Lack of cash flow management </li></ul>
    6. 6. <ul><li>Poor distribution and control of leads </li></ul><ul><li>Failure to maintain adequate internal records and accounting </li></ul><ul><li>Failure to understand personal exposure (liability) in ongoing business transactions </li></ul><ul><li>Outmoded (often risky) sales compensation methods </li></ul><ul><li>Lack of information regarding federal and state laws (Frequent failure to conform) </li></ul><ul><li>Failure to examine the law of “cause and effect” </li></ul>Common Errors Made By Most Home Improvement Companies
    7. 7. The Home Improvement Company GOALS Sales Volume Net Sales Installed Sales BUDGET Marketing Sales G&A Net Profit Gross Margin Sales Control PRICING The System General Manager Accounting/Legal OWNER(S) Board of Directors
    8. 8. The Home Improvement Company LEADS Intake Distribution Control MARKETING Sources Lead (Database) Management Control SALES DEPARTMENT Sell By The System Self-Generated/Referrals Maintain Quota (Goals) Efficiency Rating PRODUCTION Budget Management (Goals) Efficiency (Turn) Staffing Repair/Service Issues SALES MANAGEMENT Staffing Maintain Model Train Manage Inspire/Motivate
    9. 9. Business Plan Sales Model Production Model Controls Balance Sheet Operating Statement Marketing Plan Sales Staffing G&A Controls Net Profit GOALS Sales Volume Installed Rev. Net Profit Gross Margin Operating Profit Pre-Tax Profit Net Profit PRICING FORMULA Marketing Sales G&A Net Profit BUDGET
    10. 10. MARKETING Sources Lead (Database) Management Control The Plan Managing The Plan Boosting Confirmation (And Issue Rate) The People (Select/Train/Manage) Efficient Database Management LEADS Intake Distribution Control
    11. 11. Make vs. Take Marketing <ul><li>Marketing is defining how to sell the right product (service) in the right markets at the right time in the right quantities to the right customers at the right price. </li></ul>
    12. 12. <ul><li>Simply stated 'take marketing' enables the seller of goods and services to analyze the market, then design a program which will enable the marketer to sell a satisfactory percentage of that market. </li></ul>Make vs. Take Marketing
    13. 13. <ul><li>Those who offer goods in those markets will decide how to “take” the piece of that market which their product can accommodate by price, quality, and similar factors. </li></ul>Make vs. Take Marketing
    14. 14. <ul><li>The make marketer finds ways to stimulate prospects by offering them an opportunity to look, preview, see a demonstration, get free estimates and other similar tactics. </li></ul>Make vs. Take Marketing
    15. 15. <ul><li>Interacting with prospects who are not yet committed </li></ul>Make vs. Take Marketing Make Marketing:
    16. 16. <ul><li>Approximately 22 million windows for new construction and 33 million were used in replacement. Approximately 60% of the latter came because of make marketing which also drives and stimulates the market for others. </li></ul>Make vs. Take Marketing
    17. 17. Enigma <ul><li>Recent Survey Data: </li></ul><ul><li>90% of all canvass programs fail </li></ul><ul><li>Canvass leads average 40% issued </li></ul><ul><li>50% sit rate = 20% of original leads </li></ul><ul><li>Close: Average 4 to 5 sales </li></ul><ul><li>Less credit rejects & rescission: Net 2 to 3 sales </li></ul><ul><li>Fully loaded costs 20+% </li></ul>
    18. 18. <ul><li>What is a lead? </li></ul><ul><li>How did it originate? </li></ul><ul><li>Nebulous leads </li></ul><ul><li>What is an appointment? (issued lead) </li></ul><ul><li>Standards </li></ul><ul><li>How did it convert? </li></ul>Enigma
    19. 19. <ul><li>What is a presentation? </li></ul><ul><li>Sit rate? </li></ul><ul><li>Close rate? </li></ul><ul><li>Efficiency rate? </li></ul><ul><li>What is - - </li></ul><ul><li>Database recovery </li></ul><ul><li>Rehash </li></ul><ul><li>Referral program </li></ul>Enigma
    20. 20. OPERATING STATEMENT (PART 1) PLAN ACTUAL Y.T.D. PRIOR YEAR MO. Y.T.D. (1) Leads issued # (2) Working days in month # (3) Leads issued per day # (4) Average reps working # (5) Average leads issued per rep # (6) Total presentations # (7) Presentation (%) to leads issued % SALES (8) Closed first call # (9) Total sales closed # (10) Sales to leads issued % (11) Sales to presentations % (12) Total volume sales closed $ AVG. SELLING PRICE PER SALE (13) Windows (A.S.P.) $ (14) Sunrooms (A.S.P.) $ (15) Siding (A.S.P.) $ (16) Average selling price all products $
    21. 21. PART 2 PRIOR YEAR Y.T.D. ACTUAL PLAN $ Total marketing costs (34) % Marketing cost vs. net sales (35) $ Cost per lead issued (36) MARKETING COSTS $ Cost per lead - net sales (37) $ Efficiency rate all products (33) $ Efficiency rate siding (32) $ Efficiency rate sunrooms (31) $ Efficiency rate windows (30) $ Net average selling price (29) % Net closing to leads issued (28) % Net closing to demos (27) $ Sales pending (26) # Sales pending (25) % Retained sales ($) vs. ($) sold (24) $ Retained sales (net business) (23) % Retained sales (22) # Retained sales (21) $ Sales lost n.g. credit (20) # Sales lost n.g. credit (19) $ Sales lost to cancellations (18) # Sales lost to cancellations (17) Y.T.D. MO. RETENTION * SALES PENDING: CONTRACTS SOLD, PAST RECISION, NO CREDIT APPROVAL OR NOT OTHERWISE APPROVED † EFFICIENCY RATE: NET SALES ($) ÷ LEADS ISSUED * †
    22. 22. Jim Cory, Editor Replacement Contractor Magazine [email_address] Jim Cory is the editor of Replacement Contractor, a Hanley Wood publication for roofing, siding and window contractors. Prior to the launch of Replacement Contractor, in the fall of 2002, he was Senior Editor at Remodeling, another Hanley Wood publication. He currently contributes to both Remodeling and Replacement Contractor as well as the respective Web sites. He organizes the Replacement Contractor Executive Conference, an annual event focusing on sales and marketing in the home improvement industry.
    24. 24. Take vs. Make Marketing <ul><li>Recession and recovery </li></ul><ul><li>Shift to direct marketing </li></ul>
    25. 25. Watch Your Back <ul><li>Consumers doing more online research </li></ul><ul><li>Complaint and review sites proliferate </li></ul><ul><li>Digital dirt </li></ul>
    26. 26. Drill Down <ul><li>Who’s buying home improvements </li></ul><ul><li>Where are they </li></ul><ul><li>Local market demographics </li></ul>
    27. 28. Get Ahead of Demand By Understanding It <ul><li>3 types of households drive remodeling activity </li></ul><ul><li>These key households are 50% more likely to do a major home improvement project in a year </li></ul><ul><li>More than 25% of these households report doing a home improvement project within a given year </li></ul><ul><li>Collectively they represent less than 24% of all households but they are responsible for 40% of remodeling </li></ul><ul><ul><li>We know where they live, and where they are buying… </li></ul></ul>
    28. 29. Tim Musch, Dir. Of Bus. Development MarketSharp Software [email_address] Tim Musch is Director of Business Development for MarketSharp Software located in Lacrosse, WI. Prior to that, he spent 15 years gaining experience in a family owned remodeling company in Central Wisconsin. MarketSharp has supplied computerized marketing solutions to over 2000 of the country’s most successful remodelers. Tim has spent the last 18 years developing and refining computerized database marketing systems for the remodeling industry.
    29. 30. 2011 Trends Embassy Suites – Convention Center – Las Vegas, NV – May 4, 2011 Tim Musch – Director of Business Development – MarketSharp Software
    30. 31. 3 Compliance Management
    31. 33. “… the best way to put distance between you and the crowd, is to do an outstanding job with information (data). How you gather , manage , and use information will determine whether you win or lose.“ - Bill Gates Good Advice!
    32. 34. Yesterday’s Leads vs Today’s Inquiries
    33. 35. Two Strategic Schools of Thought… Transaction Based Relationship Based
    34. 36. Now Buyers Future Buyers
    35. 37. Your Database... Prospects Leads Customers
    36. 38. Asset Recovery The Ongoing Process of Converting (Recovering) Unsold Leads ( assets) to Profitable Sales!
    37. 39. The Conversion Potential of Your Leads (10 Leads) 30% (now) + 42% (later) = 72% Conversion Potential! Buy Now 3 Don’t Buy Now 7 4.2 2.8
    38. 43. How?
    39. 44. Compliance Management
    40. 45. Regulation Compliance
    41. 48. Industry Alert Regulation Compliance
    42. 49. Regulation Compliance
    43. 51. “ Look into the future and imagine what your industry will look like in 5 years?” And Do It NOW !
    44. 52. Terry Ferrero, President/CEO Pro Materials Direct [email_address] Terry Ferrero is President and CEO of Pro Materials Direct, a distributor of specialty products to home improvement companies. They currently serve over 40% of Replacement Contractors’ (magazine) top 100. Since 1975, when he first joined Alside, he has dedicated his career to the industry. His distribution company, American Wholesale Supply, has branches in 7 southeastern states. He is a founder and director of EBank and a founder of Magnolia Windows and Gutter Protection Products of America.
    45. 54. Trend 1 <ul><li>The “Home Energy Retrofit” will become the fastest growing segment of the Home Improvement Industry. </li></ul><ul><li>Prediction: Contractors who move slow will simply miss an incredible opportunity to expand their business. </li></ul>
    46. 55. 100 million homes are currently in need of some type of energy improvement “ The market for housing energy retrofits is HUGE, with an overall potential estimated at 400 Billion Dollars ”.
    47. 56. Energy retrofit leads are your “ENTRY” into the home to do a needs analysis. Energy retrofit leads create window, siding and other energy related product sales. eShield Energy Retrofit Products: eShield Air Sealing, eShield Blow Insulation, eShield Reflective Insulation, Whole House Energy Controls, eShield Home Energy Tracker, eShield Rewards
    48. 57. Trend 2 Home Energy Tracking will become a significant component of energy conservation Microsoft and Google will drive publicity and consumer awareness.
    49. 58. Prediction: <ul><li>Home renovation contractors that adopt this trend now will have a huge competitive advantage by including this technology with all related energy saving products (ex: insulated siding, energy retrofits, insulated windows). </li></ul>
    50. 59. Trend 3 <ul><li>Technology for in-home presentations will give those contractors who move quickly a tremendous competitive advantage. </li></ul>Apple has sold over 50 million iPads and 84 million iPhones
    51. 60. Mark Berch, President/Chairman Service Finance Company [email_address] Mark E. Berch is Chairman & President of Service Finance Company, a nationally licensed FHA Title I Lender. They are a third party servicer with the ability to conduct business in all 50 states and the District of Columbia. He has spent the majority of his adult life in and around the home improvement industry. He has been a principal in several companies who made rapid expansion and were nationally recognized. He was co-founder and president of an HVAC company with 42 locations in 17 states. He was also founder of a home security company which operated in California, Georgia and Illinois. His background and experience enables him to effectively marry his in-depth knowledge of the home improvement industry with his expertise in financing. Thus creating the best financing options for both the home improvement retailer and the consumer.
    52. 68. Ron Sherman, President Ron Sherman Productions [email_address] Ron Sherman is the President of a multi-million dollar ad agency headquartered in Little Rock, Arkansas. He specializes in producing programs for the home improvement industry. He acts as producer and spokesperson for many of those in the room today. In any given time, throughout the US, you can count on running into a Ron Sherman production television program. He has dedicated his business and his modern production studio to the art of – producing leads.
    53. 69. Advertising (An Overview)
    54. 70. Brian Smith, Senior Account Executive Dave Yoho Associates [email_address] Brian Smith joined Dave Yoho Associates as part of a “turn-around team” after almost 20 years experience in sales management with some of the largest and most successful home improvement retailers in the US. He now practices as a Senior Account Executive working on a broad range of consulting assignments throughout the home improvement/remodeling industry. He has developed programs for large and mid-size home improvement companies covering almost all products which are sold directly to home owners.
    56. 72. THE WELL MANAGED LEAD <ul><li>All fall off is measured and benchmarked! </li></ul><ul><li>Companies calculate and know precisely the fully loaded cost of a lead! </li></ul><ul><li>Companies understand the asset value of leads. </li></ul><ul><li>Companies have an efficient asset recovery program. </li></ul><ul><li>Companies do not allow the salesperson too much latitude in the handling of leads. </li></ul><ul><li>Companies place huge value on face-to-face marketing. </li></ul><ul><li>Management takes responsibility to “develop” the sales staff! </li></ul>
    57. 73. A “90 DAY CASE STUDY” CASE STUDY WDT-41 Projected annual volume (based on annual average by month) as of June 1st - $9,283,817 Projected annual volume as of September 1st - $11,245,262 SALES ISSUES Prior @90 Days Increase Demo rate - vs. leads issued 68% 75% 11.5% 1st call close rate - vs. leads issued 10% 19% 90% 1st call close rate - vs. demos 17% 30% 76% Close rate (2nd call, etc.) - to leads issued 10% 11% 10% Close rate (2nd call, etc.) to demos 17% 18% .06% Average net sales per month $812,040 $1,026,437 $214,393
    58. 74. * Increased earnings (4.05% decreased marketing costs) - - $123,172.44 A “90 DAY CASE STUDY” CASE STUDY WDT-41 MARKETING ISSUES Prior @90 DAYS INCREASE DECREASE Marketing Costs 17.01% 12.96% N/A 4.05%* Efficiency Rating $2,351 $2,673 $322 N/A Average Leads Issued Per Mo. 408 386 N/A 24
    60. 76. THE MARKETING/SALES MODEL <ul><li>Rehash </li></ul><ul><li>- </li></ul><ul><li>Database </li></ul>SALES DEPT. (NO REQUALIFICATION) SALES PERSON (NO REQUALIFICATION) <ul><li>Confirm </li></ul><ul><li>- </li></ul><ul><li>Reconfirm </li></ul><ul><li>Process </li></ul><ul><li>- </li></ul><ul><li>And Set </li></ul>Incoming - - - - - - LEADS - - - - - - Not Home - - No Presentation Presentation - - No Sale Presentation - - Sale 1 2 3 2 3 CONTRACT PROCESSING 1
    61. 77. ASSET RECOVERY <ul><li>Timely “resulting” including paperwork </li></ul><ul><li>Rehash </li></ul><ul><li>The property is the prospect </li></ul><ul><li>Establish a profile (property data) </li></ul><ul><ul><ul><li>Design & dissatisfaction data </li></ul></ul></ul>
    62. 78. <ul><li>Impress and disarm prospects with evidence </li></ul><ul><ul><ul><li>Original source </li></ul></ul></ul><ul><ul><ul><li>Results and notes from previous contacts </li></ul></ul></ul><ul><ul><ul><li>History of demos, purchases, cancels, declines </li></ul></ul></ul><ul><li>Enforce contact frequency </li></ul><ul><li>A production model </li></ul><ul><li>A financial model </li></ul>ASSET RECOVERY
    63. 79. David A. Yoho, Senior Account Executive Dave Yoho Associates [email_address] David Yoho was raised in the industry beginning as an installer and then progressing to telemarketer, canvasser, sales rep, manager and corporate trainer for what was then the largest home improvement company in the US. He joined Dave Yoho Associates in 1978 and has provided consulting services for more than 350 companies including many of the country’s largest and most successful contractors. He’s delivered thousands of speeches and seminars on sales, negotiation, lead management, hiring, training, managing and profitable business operations to every kind of small business up through Fortune 500 companies.
    64. 80. THE CANVASS LEAD
    65. 81. CANVASSING PRIORITIES <ul><li>Control the herd </li></ul><ul><li>Find and keep the lead dog </li></ul><ul><li>Recruit (the right people) continuously </li></ul><ul><li>Establish a methodology based on the customer’s decision-making process </li></ul>
    66. 82. CANVASSING PRIORITIES <ul><li>Establish profitable measurements </li></ul><ul><li>Compensate based on cost (hours to demo) </li></ul><ul><li>Train every day – Regulate the baton pass </li></ul><ul><li>Enforce minimum standards </li></ul>
    68. 84. Todd Bairstow, Founding Partner Keyword Connects [email_address] Todd Bairstow is a Founding Partner at Keyword Advisors, a lead generation company specializing in home improvement leads and appointments. They currently work with large home improvement brands in the gutter protection and one day bath categories. Their programs have generated tens of thousands of high quality home improvement leads and appointments via the Internet in the last 3 years. Todd has a background as a copywriter and associate creative director at Arnold Worldwide, one of the largest and most successful ad agencies in the US.
    69. 85. The Google Universe Changes <ul><li>Well respected, popular brands </li></ul><ul><li>Both spent millions per year with Google </li></ul><ul><li>Quality content and offerings </li></ul><ul><li>BUT…they bought large quantities of links to their site… </li></ul>
    70. 86. And They Got Caught
    71. 87. Overstock’s Rankings Tank! <ul><li>Lost 10 million visitors per month </li></ul><ul><li>Ranking for “bunk beds went from #3 to #70 overnight </li></ul><ul><li>They will never recover </li></ul><ul><li>Once you’re in Google’s headlights, you never leave </li></ul>
    72. 88. What this Means to You <ul><li>Many dealers are optimizing their sites </li></ul><ul><li>The temptation to cheat is tremendous! </li></ul><ul><li>Don’t give in… </li></ul><ul><li>Insist on “white hat” only techniques </li></ul><ul><li>Never encourage “black hat” or “grey hat” tactics </li></ul><ul><li>Don’t buy links - - It’s short-term thinking </li></ul><ul><li>Make sure your team understands - no shortcuts! </li></ul>
    73. 89. Google Changes Yet Again <ul><li>The “Panda Update” demotes dozens of sites </li></ul><ul><li>Many of which are “content farms” </li></ul>
    74. 90. Google Makes More Room for Quality Sites <ul><li>Google appreciates good content </li></ul><ul><li>More content on your site works in your favor </li></ul><ul><li>The demotion of low quality sites benefits you </li></ul><ul><li>Google gets better at local </li></ul><ul><li>Emphasize local content and local keywords </li></ul><ul><li>“ Dayton cabinet refacing” </li></ul>
    75. 91. Responding to Offline Media: Before <ul><li>TV campaign for regional bath remodeling company </li></ul><ul><li>Typical 800# response </li></ul><ul><li>Only 1 call center rep taking calls </li></ul>$$$ Marketing Cost Per Sale: 16.86%
    76. 92. Responding to Offline Media: After <ul><li>Added a web address to the call to action </li></ul><ul><li>Multiple call center reps taking calls </li></ul>1) $$$ New Marketing Cost Per Sale: 13.6% 2) Improved media ROI by 19.2% 3) More appointments at a lower cost 4) Online component is important
    77. 93. Keywordconnects.com/blog [email_address] Todd Bairstow Founder
    78. 94. Jesse Cory, CEO Ohm Creative Group [email_address] Jesse Cory is the CEO of Ohm Creative Group, a marketing and public relations firm. With a lifetime of achievements in motion pictures, New York’s fashion industry and digital marketing, Jesse has become an expert at bringing all his talents together to manage a diverse client base, including CBS Radio & Detroit Public Television. He has utilized his vast professional experience to turn results and profits for numerous clients.
    79. 95. LEADS
    80. 96. More LEADS
    81. 97. Internet LEADS
    82. 98. #1 Question How Do I Get More Internet LEADS?
    83. 99. Prep the Battlefield
    84. 100. “ Your Website has to Look Professional”
    85. 101. “ Your Website Needs to Ask the Right Questions ”
    86. 102. “ Your Website Needs Multiple CALLS TO ACTION”
    87. 103. “ USE Traditional Media and Internet Advertising To DRIVE Traffic and Conversions”
    88. 104. Data CAPTURE
    89. 105. - Free No Obligation Estimate - Consumers Guides - Sweepstakes - Contact Us – Ask a Question - Live Chat - Landing Pages - Social Media Landing Pages
    90. 106. “ Many ways to ask for the same info The visitors personal contact INFO”
    91. 107. What is an Internet Lead?
    92. 108. - Direct Mail - Exhibition Collateral - Email Marketing - Search Advertising / PPC - Organic Search Engine Optimization - Google Local - Maps - Social Media Advertisements - Print Advertisements - TV - New Rich Media Opportunities - Mobile and QR Scan Codes
    93. 109. Online Traffic Into a potential LEAD! There Must be a Closed Loop Marketing Approach to Convert
    94. 110. Your Website MUST Convey the Same Special, Promotion or Offer when the visitor Arrives to your Website from an Advertising Source.
    95. 111. How to ENGAGE each segment of the Consumer Buying Cycle?
    96. 112. Multiple Calls To Action Different Offers to Engage Visitors In Each Phase of the Buying Cycle Equates to Additional Opportunities to Increase Online Conversions
    97. 113. There are many ways to Accomplish the #1 Goal of Home Improvement Remodelers… More INTERNET Leads!
    98. 114. Are you ready for the visitors to arrive?
    99. 115. Ari Katz, National Account Director Yodle [email_address] Ari Katz is a National Account Director at Yodle, a “local online” advertising company headquartered in New York City. Yodle specializes in creating online marketing programs with Home Improvement companies to help establish a dominant online presence for their business. Ari works closely with the owners and managers of many medium to large size companies to oversee the program as Yodle provides support on everything from building a website, running a pay-per-click (PPC) or SEO campaign, to monitoring the results and making the necessary changes and optimizations in order to achieve the strongest ROI. In his activities as National Accounts Director, Ari works directly with home improvement retailers and manufacturers who utilize Yodle's outstanding online marketing tools. In 2010, Yodle was named the 35th fastest growing company in the US and published the Local Online Advertising for Dummies book.
    101. 117. Your Competitors Are Taking Your Potential Customers… So Fix It! <ul><li>Google’s new SERP Layout </li></ul>
    102. 118. Tip #1: Invest in Paid Search
    103. 119. <ul><li>How? </li></ul><ul><li>Google AdWords, Yahoo Search Marketing, Bing AdCenter </li></ul><ul><li>Determine which search engines work best for business </li></ul><ul><li>Create a list of keywords for services you provide </li></ul>Tip #1: Invest in Paid Search Studies suggest that people who click on paid search ads are far more likely to buy (and buy soon) than people who click on organic listings
    104. 120. Tip #2: Optimize Your Online Maps Presence
    105. 121. <ul><li>How? </li></ul><ul><li>Claim your business page and create relevant keyword content on the respective listing </li></ul><ul><li>Ensure information is accurate and consistent across Internet directories and IYP sites </li></ul>Maps sections of search engines have become increasingly important as search engines realize how much local information consumers search for online Tip #2: Optimize Your Online Maps Presence
    106. 122. Tip #3: Design website with organic listings in mind
    107. 123. <ul><li>How? </li></ul>75% of clicks for any given search are from organic listings. Think of the traffic you might be missing out on! <ul><li>Design your website with strategically chosen keywords </li></ul><ul><li>Create content that is relevant to the services you offer </li></ul><ul><li>Continuously update webpage content </li></ul><ul><li>Always adhere to SEO best practices </li></ul>Tip #3: Design website with organic listings in mind
    108. 124. Tip #4: Get Links from Other Reputable Sites
    109. 125. <ul><li>How? </li></ul><ul><li>Create a strategy to reach out to reputable sites for links </li></ul><ul><li>Develop an ongoing plan to keep your links “fresh” </li></ul>Search engine bots assess how useful, authoritative and trustworthy a website is. Building inbound links on relevant sites increase your site’s “credibility” and “authority”. Tip #4: Get Links from Other Reputable Sites
    110. 126. Tip #5: Attract Customers Through IYPs, Online Directories & Local Sites And more! And more! And more!
    111. 127. <ul><li>How? </li></ul><ul><li>Consider advertising on IYP’s and directory sites that are most relevant for your business </li></ul><ul><li>If possible, claim your business listing on these sites </li></ul>There are a host of other sites besides search engines that can also be extremely valuable to your business Tip #5: Attract Customers Through IYPs, Online Directories & Local Sites
    112. 128. Beat your competition: It can be done! <ul><li>#1: Invest in paid search </li></ul><ul><li>#2: Optimize your online maps presence </li></ul><ul><li>#3: Design your website with organic listings in mind </li></ul><ul><li>#4: Get links from other reputable sites </li></ul><ul><li>#5: Attract customers through IYP’s, online directories & local sites </li></ul>
    113. 129. The Top 5 Local Online Marketing Mistakes <ul><li>MISTAKE # 5 : Trying to build a website on your own </li></ul><ul><li>How to avoid : Become an expert or hire one! </li></ul><ul><li>MISTAKE # 4 : Creating a site no one visits </li></ul><ul><li>How to avoid : Create strong online marketing campaigns! </li></ul><ul><li>MISTAKE # 3 : Not knowing if your marketing is really working </li></ul><ul><li>How to avoid : Implement lead tracking technology! </li></ul><ul><li>MISTAKE # 2 : Using directory services only </li></ul><ul><li>How to avoid : Run PPC & SEO campaigns to drive direct leads! </li></ul><ul><li>MISTAKE # 1 : Not turning calls into sales effectively </li></ul><ul><li>How to avoid : Attend Dave Yoho’s webinars! </li></ul>
    114. 130. Marketing: Before, After & In Addition To The Lead
    115. 131. Ken Greene, Vice President Bring Me My Leads [email_address] Ken Greene is Vice President of Bring Me My Leads located in Indianapolis, Indiana. Prior to that, Ken owned a home improvement company for over 35 years that did over $20 million annually with multiple locations. He also was recognized as a “Legend” in the home improvement industry. Bring Me My Leads is an integrated internet marketing company that enables dealers in the home improvement industry to plan and execute a profitable internet marketing campaign thru cost-effective internet lead generation. Using their affiliated company, Bee Window as a benchmark, they are able to share what is working and not working in order to grow your internet business to 30% of your volume while maintaining a marketing cost of 10% or less. Bring Me My Leads strategies have proven successful for home improvement dealers regardless of their size.
    116. 132. ON TARGET To Increase Internet Revenue with Integrated Internet Strategies
    117. 133. <ul><li>Continued communication – Increase database through email append/email marketing </li></ul>Increasing Internet Revenue <ul><li>Capital asset – Website is an online showroom & lead generator </li></ul><ul><li>Generating traffic – More traffic, more leads </li></ul><ul><li>Return on investment – Tracking </li></ul><ul><li>with Integrated Internet Strategies </li></ul>
    118. 134. Capital Asset <ul><li>Online showroom vs. brochure </li></ul><ul><li>Online capital asset </li></ul><ul><li>Does your website convert? </li></ul>
    119. 135. Generating Traffic <ul><li>Driving traffic is critical to increasing leads </li></ul><ul><li>Can be accomplished a variety of ways depending on your company culture </li></ul>
    120. 136. Continued Communication <ul><li>Increase the size of your database </li></ul><ul><li>- Email append </li></ul><ul><li>Email marketing </li></ul><ul><li>- BEST return on investment when using benchmark strategies </li></ul><ul><li>Necessary to maintain top of mind awareness </li></ul>
    121. 137. Return on Investment Analysis <ul><li>Tracking leads </li></ul><ul><li>- Various Internet categories </li></ul><ul><li>Conversion rates </li></ul>
    122. 138. Integrated Internet Strategies
    123. 139. Brian Kaskavalciyan, President g|Four Marketing Group [email_address] Brian Kaskavalciyan is a marketing strategist and is an expert on relationship marketing in the home improvement industry. His company, g|Four Marketing Group, specializes in working with home improvement companies to grow sales, profits and equity value. Brian is the creator of the award winning 1-into-5 Program; a “turnkey” and “Done For You” marketing system designed to aid home improvement companies develop “Customers for Life”, a program which increases referrals and repeat business. Brian has a successful background as an entrepreneur, he has owned 5 different home improvement companies, one of which he developed into a multi-million dollar national franchise. Having provided services for over two dozen industries from start-ups to $50 million enterprises his program is rated as an “unqualified success”. He and/or his companies have been featured in magazines such as Inc, Entrepreneur -- and -- Qualified Remodeler. He has been highlighted on HGTV, ABC News and The Oprah Winfrey Show.
    124. 141. <ul><li>Your 5-Step Action Plan For Creating “Customers For Life” So You’ll Get More Referrals & Repeat Business Than Ever Before! </li></ul>
    125. 142. Your Commitment to Creating “Customers For Life” <ul><li>Understanding the business we are all really in... </li></ul>STEP 1: <ul><li>No More ‘Love Em & Leave Em’ </li></ul><ul><li>Your business must be designed around your customer. Their experience & their relationship with you. </li></ul><ul><li>This MUST become part of your company culture... led by YOU </li></ul>
    126. 143. Earn the Right to Referrals <ul><li>In the “New Economy” it’s no longer acceptable (or enough) to just do a “good” job... </li></ul><ul><li>A completely satisfied customer should be your MINIMUM acceptable standard. What we must all strive for are Raving Fans. </li></ul>STEP 2: <ul><li>Make your customers feel confident they made the right choice with you </li></ul><ul><li>Create Magic Moments v. Tragic Moments </li></ul><ul><li>Pay attention to details </li></ul><ul><li>Be EXCEPTIONAL at every point of interaction </li></ul><ul><li>Create WOW’s </li></ul><ul><li>Be MEMORABLE! </li></ul>
    127. 144. Demonstrate Your Appreciation <ul><li>Everybody wants to be that “special” customer including YOU! </li></ul>STEP 3: <ul><li>Demonstrate your sincere appreciation for their business (the trust and confidence they placed in you) </li></ul><ul><li>Write THANK YOU notes </li></ul><ul><li>Make “Happy calls” </li></ul><ul><li>Make personal visits </li></ul><ul><li>Send a gift </li></ul>
    128. 145. Gather Feedback <ul><li>You’ve got to know about your customers experience from THEIR point of view </li></ul>STEP 4: <ul><li>Survey your customers for their honest feedback </li></ul><ul><li>Use a third party for added credibility </li></ul><ul><li>Use their feedback for process improvement </li></ul><ul><li>Use their feedback & testimonials in your sales process </li></ul>
    129. 146. Build Loyalty With Follow Up STEP 5: The majority of referral opportunities come long after the sale has been made. So the key is to consistently stay in front of past customers to build Top Of Mind Awareness and build lifelong relationships. <ul><li>Implement a system of interesting and informative on-going communication including postcards, letters, emails, newsletters (email and print) and phone calls to stay ‘Top of Mind,’ promote other services and continually ask for referrals </li></ul><ul><li>Become your customers “TRUSTED ADVISOR” For any home improvement project </li></ul><ul><li>Acknowledge and REWARD every referral </li></ul>
    130. 147. <ul><li>Do Nothing </li></ul><ul><li>Create, Implement & Manage a System Like This Yourself </li></ul><ul><li>Outsource It </li></ul>
    131. 148. Brad Yoho, Director of Marketing Dave Yoho Associates Brad@DaveYoho.com Brad Yoho grew up in a sales and marketing oriented business.  He graduated from Penn State University with a major in Business Management and has an MBA in Marketing from American University.  He is the Director of Marketing for Dave Yoho Associates and is pivotal in the development of all marketing tools used by the company including social networks.  He is the direct marketing contact for the company’s client base and the numerous affiliates who interact with the “Window Help Book” lead producing program.  He is a freelance writer for several sports blogs.
    132. 150. 2011 Social Media Industry Report, Social Media Examiner, 2011.
    133. 151. 2011 Social Media Industry Report, Social Media Examiner, 2011.
    134. 152. 2011 Social Media Industry Report, Social Media Examiner, 2011.
    135. 153. <ul><li>Social media marketing is free </li></ul><ul><li>Social media marketing is fast </li></ul><ul><li>The results cannot be measured </li></ul><ul><li>Social media is an optional marketing tool </li></ul><ul><li>Participating in social media is difficult </li></ul>
    136. 154. <ul><li>Start small </li></ul><ul><li>What are industry experts doing? </li></ul><ul><li>Don’t annoy your connections (don’t over-market) </li></ul><ul><li>Don’t obsess over your follower/connection count </li></ul>
    137. 155. <ul><li>Add widgets to your site and e-mail signature </li></ul><ul><li>Test your widgets! </li></ul><ul><li>Find people within your niche to connect with </li></ul><ul><li>Don’t procrastinate! </li></ul>
    138. 156. Tom Audette, Business Development Dir. Three Deep Marketing TAudette@ThreeDeepMarketing.com Tom Audette is the Business Development Director for Three Deep Marketing; a digital marketing agency that does search engine optimization, paid search management and email marketing. He has over 17 years of direct industry experience as a sales rep, sales/marketing manager, business executive and as VP of Marketing for a large home improvement company where he generated over 30% of revenues via the Internet with marketing costs under 10%.
    139. 157. Why Internet Marketing Isn’t Working For Your Home Improvement Business…
    140. 158. Internet Marketing 101 <ul><li>Get prospects to find your company online </li></ul><ul><li>Have content that engages the prospect </li></ul><ul><li>Have calls to action that stimulate prospects to contact you </li></ul><ul><li>Handle those inquiries effectively and efficiently to set into appointments </li></ul>Why Isn’t This Happening For My Company?
    141. 159. Biggest Reason You Aren’t Getting Leads: Ineffective Website <ul><li>Over 80% of all product and service inquiries now start online </li></ul><ul><li>50% of visitors to any given website leave within 8 seconds </li></ul><ul><li>If you haven’t updated your site since 2001 – it shows! </li></ul>
    142. 160. <ul><li>Most websites are poorly designed, confusing to the visitor and have no call to action </li></ul><ul><li>Content is king when it comes to SEO </li></ul><ul><li>If you don’t have inbound links and anchor text the search engines likely won’t find you! </li></ul>Biggest Reason You Aren’t Getting Leads: Ineffective Website
    143. 161. This Site IS Effective…
    144. 162. This Site IS Effective… Strong Offers Great Product Visuals Interruption Tactic Clear Response Paths Simple Navigation
    145. 163. Website Strategic Considerations <ul><li>Can prospects find your website in search engines? </li></ul><ul><ul><li>Search engine optimization </li></ul></ul><ul><ul><li>Local search </li></ul></ul><ul><ul><li>Paid search </li></ul></ul><ul><ul><li>Social media / Blogging </li></ul></ul><ul><li>Does your site have a call to action? </li></ul><ul><ul><li>Does it speak to both now and future buyers? </li></ul></ul>
    146. 164. Website Strategic Considerations <ul><li>What other sites are linking to your site? </li></ul><ul><li>Does your site have Google Analytics? </li></ul><ul><ul><li>Who is monitoring that data? </li></ul></ul>
    147. 165. Local Search Is Critical for Local Business Google Places Listings
    148. 166. Why Reviews Are Important <ul><li>90% of shoppers use reviews to make purchase decisions (Jupiter Research) </li></ul><ul><li>Google Places factors the number of reviews in rankings! </li></ul><ul><li>Other factors: </li></ul><ul><li>Completeness of listing </li></ul><ul><li>Business proximity to searcher </li></ul><ul><li>Number of inbound links to site </li></ul>
    149. 167. Is Your PPC Program Hemorrhaging Money? <ul><li>Paid search can work if deployed correctly </li></ul><ul><li>Biggest mistake: Sending PPC traffic to your website home page </li></ul><ul><ul><li>Lousy content </li></ul></ul><ul><ul><li>No call to action </li></ul></ul><ul><ul><li>No analytics tracking </li></ul></ul><ul><ul><li>Remember the 8 second rule! </li></ul></ul>
    150. 168. Paid Search Must Be Actively Managed Infinity from Marvin 8 out of 10 Customers Who Compare Chose Us Over Vinyl Windows. Find out Why! www.windows.infinitywindows.com Keyword List Management Bid Management Ad Management Conversion Optimization
    151. 169. Your Website Should Be The Center Of Your Marketing Effort! Canvass Shows / Events SFI TV / Radio Leads Direct Mail Job Signs
    152. 170. Marketing: Diversification & Adaptation
    153. 171. Michael Redman, Nat’l. Manufacturer Rep. TEMO Sunrooms [email_address] Since 1993, Michael Redman has been the National Manufacturer Representative for TEMO Sunrooms. His responsibilities include leading the team of manufacturer's reps in recruiting, training and servicing their national network of dealers. Under his supervision, each rep is required to have a successful background in in-home selling and the ability to provide “hands-on” training for the salespeople representing the dealer. He is a graduate of Purdue University, with a degree in communications and business. He has a national reputation as an efficient trainer. In addition, he interacts with the dealers on their activities as SFI providers to brands such as Home Depot and Sam's Club.
    154. 172. Diversification <ul><li>Thinking outside of the box </li></ul>
    155. 173. Efficiency is the Key to Success! <ul><li>Marketing costs are skyrocketing as high as 30% </li></ul><ul><li>Consumers are more educated than ever </li></ul><ul><li>Lead generation is key </li></ul>
    156. 174. Single Product Line Dilemma <ul><li>Product diversity can turn a one time sale into a lifetime customer </li></ul><ul><li>Over 30% of your business could be referral or repeat </li></ul><ul><li>Lead cost could be reduced by over 20% by working your base </li></ul>
    157. 175. <ul><li>Cross marketing increases overall volume </li></ul><ul><li>NSLI can be dramatically increased due to a higher average sale </li></ul><ul><li>Increase closing due to a variety of products to meet consumer needs </li></ul>Single Product Line Dilemma
    158. 176. Generating Incremental Sales <ul><li>Don't stop what you are doing - add to it </li></ul><ul><li>Separate your sales and installation </li></ul><ul><li>Offer only specialty products </li></ul><ul><li>Focus on selling the add ons at re-measure </li></ul><ul><li>Keep your average sale under $25,000 </li></ul>
    159. 177. Expand Your Marketing & Increase Your Leads <ul><li>Always look for new marketing opportunities </li></ul><ul><li>We are not construction companies, we are marketers </li></ul><ul><li>Generate non-competitive leads thru diversity </li></ul><ul><li>Set a reasonable goal for lead cost (10%) </li></ul><ul><li>Financing is great - go back to marketing payments </li></ul>
    160. 178. Marketing Diversity <ul><li>Contact past customers with new product availability </li></ul><ul><li>Easier to sell new products to existing customers than to sell existing products to new customers </li></ul><ul><li>New things create energy throughout the organization </li></ul><ul><li>Add products that are sexy - not unwanted need items </li></ul>
    161. 179. Successful Marketing Campaigns <ul><li>Internet - SEO/PPC </li></ul><ul><li>Rehash </li></ul><ul><li>Face to Face </li></ul><ul><li>SFI </li></ul><ul><li>DIY Programs </li></ul><ul><li>Job Site Radiation </li></ul><ul><li>Direct Mail </li></ul><ul><li>Referral Programs </li></ul><ul><li>Canvass </li></ul><ul><li>Text Marketing </li></ul>
    162. 180. <ul><li>Parent Update </li></ul><ul><li>April 8, 2011 </li></ul><ul><li>From the Office </li></ul><ul><li>ZCHS is teaming up with the Ford Motor Company and Pearson Ford for a special Test Drive Event that will benefit our school’s activity fund. </li></ul><ul><li>ZCHS will receive $20 for each test drive taken during this special event. Please plan to join us in the St. Vincent Health Stadium parking lot between 1 p.m. and 6 p.m. to take your test drive. Pearson Ford will be providing Little Caesars pizza, drinks, and balloons for the little ones. Test drivers must be at least 18 years old to participate. Thanks for helping us to raise money to support our student activities! </li></ul><ul><li>Attention all ZWMS athletes- Important information! </li></ul><ul><li>If your son/daughter has any interest in playing a sport in the 2011-12 school year, please be aware of the following information: </li></ul>Network To Increase Leads
    163. 181. Adaptation or Extinction?
    164. 182. Chris Ripley, Owner Smart Permanent Coating System [email_address] Chris Ripley has been involved in the Home Improvement Industry for eleven years, eight as a manufacturer. With dealers from coast to coast covering 26 states, Chris has a birds eye view of consumer trends. As a member of the Society of Industry Leaders, private equity firms and hedge fund managers have relied on Chris's insight to plan multi-million dollar trading strategies in the remodeling field. Chris owns Smarter Coatings, a Boston based coatings firm.
    165. 183. Diversity in HIP: The opportunity to use your CURRENT customers to increase your bottom line.
    166. 184. <ul><li>The art of the “foot in the door” sale </li></ul>Diversity in HIP: The opportunity to use your CURRENT customers to increase your bottom line. Products that can be installed quickly and easily Price should be less than $1000 ROI should be very provable with outside information Choose a product that can be bid on the spot and closed over the phone
    167. 185. <ul><li>Every profit dollar counts - now more than ever! </li></ul>The number one reason for failure is early abandonment Weatherization can be bid on the spot by a canvasser and installed in less than a day. Sales staff is used to pick up the check and do a full and comprehensive inspection. Sales staff gets “trusted” access to the home and is allowed to position the companies other products that best fit the customers needs.
    168. 186. Every profit dollar counts - now more than ever! The number one reason for failure is early abandonment The opportunity itself to earn a 20% commission is perceived as a huge bonus to a salaried employee. Put the plan to work and perfect your product, price, and personnel choice before the coming government stimulus Higher success with “non-sales” types
    169. 187. <ul><li>Large multi-product firm with several branches </li></ul>Mid-Size single product firm $712 (Average job) - $117 ( Cost of material and labor) - $75 (Commission) = $520 (Real profit) Use in place staff to call on current customers First 8 days of the program saw ~ $15,600 in net sales Close rates above 55%, average jobs size of $850 Developed a program utilizing a proven product/system Program has current net sales of ~$10,000 Close rates above 45%, average ad on of $675
    170. 188. Frank Farmer, President/Founder American Metal Roofs [email_address] Frank Farmer is the founder and president of American Metal Roofs located in Flint, MI. In 2007, his company was recognized by Inc Magazine as one of the fastest growing in the United States. Frank attended Michigan State University, College of Osteopathic Medicine. Prior to entering the metal roofing business, he built an apartment locator business, was a salesman then sales manager for a prominent window replacement retailer and he developed a tax business with 12 franchises throughout Michigan. His reputation as an innovator and creative marketer has made him a recognized “guru” in the metal roofing industry.
    171. 190. <ul><li>Michigan's unemployment rate the highest since 1983 - Detroit Examiner </li></ul><ul><li>Michigan's unemployment worst in the nation </li></ul><ul><li>- Grand Rapids Press </li></ul><ul><li>Automobile industry collapses…takes MI with it </li></ul><ul><li>- Detroit News </li></ul>
    172. 191. <ul><li>Diversify </li></ul><ul><li>Take advantage of incentives </li></ul><ul><ul><li>Federal </li></ul></ul><ul><ul><li>State </li></ul></ul><ul><ul><li>Local </li></ul></ul><ul><ul><li>Utility companies </li></ul></ul>
    173. 192. <ul><li>Government’s push to decrease the dependence on foreign oil </li></ul><ul><li>High utility bills </li></ul><ul><li>Shortage of electricity </li></ul><ul><li>Stressed electrical grids </li></ul>
    174. 193. <ul><li>Demand for solar is dependent on increased cost of petroleum* </li></ul><ul><li>* Deutche Bank – Oil at $175.00 per barrel by 2016 </li></ul><ul><li>Decreased cost of solar </li></ul><ul><li>* Solar has decreased in cost by 33% in the last 24 months. </li></ul>
    175. 194. <ul><li>President Obama: </li></ul>Will spend over the next 6 years developing alternative energy such as solar.
    176. 195. <ul><li>American Recovery and Reinvestment Act of 2009 </li></ul><ul><li>* 30% Tax Credit with no cap until December 31, 2016 on all the homes </li></ul>
    177. 199. <ul><li>Solar industry caters toward engineered commercial systems: </li></ul><ul><li>Site plan evaluation and measure the roof </li></ul><ul><li>Physical design </li></ul><ul><li>Electrical engineering </li></ul><ul><li>Spec sheets and certification </li></ul><ul><li>Didn’t fit the 1-call-close model </li></ul>
    178. 200. <ul><li>The Goal: </li></ul><ul><li>Take the mystery out of solar </li></ul><ul><li>Design a system people liked </li></ul><ul><li>Make it easy to sell </li></ul><ul><li>Make it easy to install </li></ul>
    179. 201. <ul><li>Works with all roofing materials </li></ul><ul><li>5 minute site evaluation to determine the size </li></ul><ul><li>Utilize a return on investment and payback program for 1 call close sales </li></ul>
    180. 204. <ul><li>Plug and play installation system </li></ul><ul><li>Installed by average installers </li></ul><ul><li>Simplified ordering and simplified delivery </li></ul><ul><ul><li>Everything comes in a crate turnkey </li></ul></ul>
    181. 209. <ul><li>“ The only difference between a rut and a grave is their dimensions.” </li></ul><ul><li>- Ellen Glasgow </li></ul>Someone is going to sell 10 Million Solar Roofs!
    182. 210. CASE STUDY BP-71 2010 Primary Lead Sources Sam’s Club, Shows, Media, Internet 2011 Primary Lead Sources Sam’s Club, Shows, Media, Internet, Database, Rehash
    183. 211. CASE STUDY BP-71 * Company operates in 2 locations in the south central United States * Added walk in tubs to bath division & set up separate window/insulation division 2010 2011 Increase (%) Leads Issued (Jan-Apr) 2112 2795 132.34% Net Volume $2.43 Million $4.05 Million 166.79% Efficiency Rate 1151 1450 125.98% Profitability 3.40% 10.40% 305.88%
    184. 212. VISIT OUR WEBSITES FOR FREE BUSINESS INFORMATION www.DaveYoho.com www.DaveYoho.com/wordpress www.PowerLinguistics.com Follow us on Twitter: @daveyoho
    185. 213. Hiring The Right Person (Avoiding The Wrong Ones)
    186. 214. 10 IMMUTABLE LAWS FOR HIRING SALESPEOPLE <ul><li>Self-starters - - - Seldom do </li></ul><ul><li>After numerous interviews, less qualified candidates look better </li></ul><ul><li>The ideal candidate - - - isn't </li></ul><ul><li>Resumes seldom match the job description in your ad </li></ul>
    187. 215. <ul><li>Poor performers seem to surface after the 60-day probation period </li></ul><ul><li>Hiring the right person takes twice the time you expected and much more time than you have </li></ul><ul><li>&quot;What ever happened to what's his name&quot; is the sequel to last year's great hiring story </li></ul>10 IMMUTABLE LAWS FOR HIRING SALESPEOPLE
    188. 216. <ul><li>Candidates seldom show up with their poor habits on display </li></ul><ul><li>“ Gut feelings&quot; work best when they indicate its time for lunch, and seldom when it comes to choosing the best candidate </li></ul><ul><li>The best resumes are frequently a product of creative writing and vivid imagination </li></ul>10 IMMUTABLE LAWS FOR HIRING SALESPEOPLE
    189. 217. 3 HIRING CONSIDERATIONS <ul><li>Can they do the job? </li></ul><ul><li>Will they do the job? </li></ul><ul><li>Do they fit? </li></ul>
    190. 218. CONSIDERATIONS FOR THE COMPANY <ul><li>Recruiting Methods: </li></ul><ul><li>Sources </li></ul><ul><li>Interviewing process </li></ul><ul><li>Measuring (selection) devices </li></ul><ul><li>Concerns: </li></ul><ul><li>E.E.O.C. </li></ul><ul><li>Licensing (where applicable) </li></ul><ul><li>Employment agreements </li></ul><ul><li>Hiring from competitors </li></ul>
    191. 219. CONSIDERATIONS FOR THE COMPANY <ul><li>Legal Issues: </li></ul><ul><li>Employee vs. independent contractor (value of 3508) </li></ul><ul><li>Bonding </li></ul><ul><li>Drug testing </li></ul><ul><li>Exposure & liability of company </li></ul><ul><li>Compensation: </li></ul><ul><li>Clearly defined (written/signed) </li></ul><ul><li>Avoid: misuse – misinterpretation </li></ul>
    192. 220. CONSIDERATIONS FOR THE COMPANY <ul><li>The Model For Your Business: </li></ul><ul><li>Products sold </li></ul><ul><li>Market (territory) </li></ul><ul><li>Compensation method </li></ul><ul><li>Marketing methods & costs </li></ul><ul><li>Sales Methods: </li></ul><ul><li>Teachable, provable & measurable </li></ul><ul><li>Consistency & effectiveness </li></ul>
    193. 221. CONSIDERATIONS FOR THE COMPANY <ul><li>Sales Training: </li></ul><ul><li>Step system </li></ul><ul><li>Replicable </li></ul><ul><li>“ Consumer value” oriented </li></ul><ul><li>Continuous (on-going) </li></ul><ul><li>Evaluation & appraisal </li></ul><ul><li>Sales Management: </li></ul><ul><li>Managing people (not sales) </li></ul><ul><li>Retention & growth </li></ul><ul><li>Review & appraisal methods </li></ul><ul><li>The Job Description: </li></ul><ul><li>Consistent with the model </li></ul>
    194. 222. The True Cost of a Mis-hired Salesperson
    195. 223. MEASURING THE TRUE COST OF A MIS-HIRE <ul><li>Basic Costs Associated With Hiring Salespeople: </li></ul><ul><li>Classified (recruiting) advertising cost(s) for year $_________ </li></ul><ul><li>Cost of hours for interviewer (38 hrs. x $30/per hour) $_________ </li></ul><ul><li>Miscellaneous expenses for interviewer </li></ul><ul><li>(out of town travel, lodging, etc) $_________ TOTAL $_________ </li></ul><ul><li>Divide by # of persons hired (started) ÷ _____ </li></ul><ul><li>equals average cost of hiree at start . . . . . . . . . (A) $_________ </li></ul>3760 1140 470 5370 8 671
    196. 224. <ul><li>Basic Costs Associated With Hiring Salespeople: </li></ul><ul><li>Indoctrination (basic training) hours of trainer X avg. </li></ul><ul><li>hourly rate equals $________ divided by # of trainees </li></ul><ul><li>in specific group (8) equals avg. training cost per hiree $_________ </li></ul><ul><li>Payment advance (if applicable to individual trainee) </li></ul><ul><li>total amount $_________ </li></ul><ul><li>TOTAL (B) $_________ </li></ul><ul><li>Avg. (per hiree) cost at end of training - (A) + (B) = (C) $_________ </li></ul>MEASURING THE TRUE COST OF A MIS-HIRE 525 4200 275 800 1471
    197. 225. <ul><li>Leads (Appointments Issued): </li></ul><ul><li>30 Days: </li></ul><ul><li>(No.)____/ leads issued at cost of $_____ each . . . . $_________ </li></ul><ul><li> Plus (C) $_________ </li></ul><ul><li>VS. Amount of net good business sold </li></ul><ul><li> ($________) TOTAL $_________ </li></ul>MEASURING THE TRUE COST OF A MIS-HIRE 24 212 5088 1471 6559 18,430 35%
    198. 226. <ul><li>Leads (Appointments Issued): </li></ul><ul><li>60 Days: </li></ul><ul><li>(No.)____/ leads issued at cost of $_____ each . . . . $_________ </li></ul><ul><li> Plus (C) $_________ </li></ul><ul><li>VS. Amount of net good business sold </li></ul><ul><li> ($________) TOTAL $_________ </li></ul><ul><li>Commissions (10%) $_________ </li></ul><ul><li>TOTAL $_________ </li></ul>MEASURING THE TRUE COST OF A MIS-HIRE 29 212 6149 6559 12,708 (29%) 43,030 4300 17,008 (40%)
    199. 227. The Behavioral Profile
    200. 228. INSTRUMENTATION Empirical Vs. Theoretical <ul><li>Four Possible Outcomes (Without Selection Devices): </li></ul><ul><li>Accept someone who will succeed </li></ul><ul><li>Reject someone who will fail </li></ul><ul><li>Accept someone who will fail </li></ul><ul><li>Reject someone who will succeed </li></ul>
    201. 229. GENERAL RULES <ul><li>The behavioral profile is not a test </li></ul><ul><li>The behavioral profile is not a clinical instrument </li></ul><ul><li>The behavioral profile does not measure personality </li></ul><ul><li>Individual profiles are neither good nor bad </li></ul><ul><li>Behavioral profiling works best when management has taken the profile first </li></ul><ul><li>Applicants are not asked to change </li></ul><ul><li>Behavioral profile is developed with a forced choice format </li></ul>What Works Best???
    202. 230. ADVICE <ul><li>“ The profile is not a test. There is no ‘ pass ’ or ‘ fail ’ . Relax and enjoy the discovery process. ” Then add – “ Do not ruminate over your responses or pause and continue later – this, plus those who take more than 10 minutes to complete the profile, often creates a malfunction which in turn could create a disqualification. ” </li></ul>
    204. 233. PERSUADER PROFILE The Persuader has ideal behavioral traits for creating new business, reviving old business and direct “in home” selling (short-cycle closing). The presence of high (I) INFLUENCING patterns denotes a skill in the use of language. The dominance (D) factor being above the mid-line (light gray area-4) indicates the ability to &quot;ask for the order&quot; and deal with the consequence. PERSUADER value to the Organization may overuse influences others by goal(s) emotions judges others by under pressure fears supervisory technique Seller - closer - delegates responsibility - poised - confident - competitive Enthusiasm - oversells - optimism Ability to develop rapport - friendly manner - openness Recognition - authority and prestige - a variety of status symbols Trust others - enthusiastic Ability to verbalize - flexibility Becomes soft and persuadable - organized when desires to look good A fixed environment - too much structure challenging assignments varied activities assignment changes mentoring (support) opportunity to shine
    205. 235. INSPIRATIONAL PROFILE Salespeople with the Inspirational pattern tend to INFLUENCE others by controlling them. Their technique can be highly effective in aggressive selling situations. They are usually strong closers, particularly if the (I) and (D) are in the 6th or 7th segment. They enjoy the contest of &quot;resistance&quot;. Inspirational persons consciously attempt to modify the thoughts and actions of others through the manipulation of motives toward a predetermined end. In short, they know what they want and how to get others to do it. They are quick and astute in identifying the motive structure of those around them; they seem to know what other people need or want. They use this knowledge to elicit the desired response. INSPIRATIONAL value to the Organization may overuse influences others by goal(s) emotions judges others by under pressure fears supervisory technique Initiates - demands - overpowers objections - high need to win Ends justify the means - manipulation Direction - intimidation - charm - power persona - unique knowledge Controlling the environment - being in charge Accepts aggression - tends to outwardly reject affection - enjoys confrontation How they project strength and power -how they react to dire circumstances Becomes quarrelsome - belligerent Being too soft - dependent - losing status avoid prolonged confrontations control(s) in meeting environment encourage personal development stimulate optimism
    206. 237. RESULT-ORIENTED PROFILE Result Oriented individuals fit well into aggressive industrial sales and direct selling organizations. They command attention, they demand respect and they are not confused when they hear a &quot;no&quot;. They know it is a signal for them to go into action. Result Oriented salespersons have value to organizations because of a &quot;show'em attitude&quot;. This is not a hollow stance full of posturing but a pragmatic attitude fueled by determination and intensity. Result Oriented salespersons project confidence and assurance in mastering the situation. The attitude of Result Oriented salespersons is so forceful and direct that it establishes their credentials to take charge and be heard. RESULT-ORIENTED value to the Organization may overuse influences others by goal(s) emotions judges others by under pressure fears supervisory technique Show ‘em attitude - get it done - wants to win Impatience - my way or the highway attitude Force of character - persistence - willingness to risk Dominance and independence - leadership High ego strength - displays irritation and independence - coolness under fire Ability to accomplish the task quickly - strong work ethic Becomes critical and faultfinding - resists participating in a team - may overstep prerogatives - creates issues Others will take advantage of them - slowness - being too jovial - compromise verbalization of reasons for conclusions people concerns brief factual reasons for decisions some confrontation
    207. 239. PROMOTER PROFILE Promoters gravitate towards sales roles and are usually well liked equally by associates and customers. They have a high need to interact with others. They openly convey their acceptance of others and find it easy to maintain eye contact during interactions. They have a pleasant countenance, smile easily and light up the room. The Promoter's need to please is exemplified in their desire to praise and shower favors on others. Customers tend to like and enjoy their presence over a long haul. They adjust easily to those with differences in speech, style of dress, race, ethnic or religious patterns and look past poor personal habits in others. PROMOTER value to the Organization may overuse influences others by goal(s) emotions judges others by under pressure fears supervisory technique Promotes customer satisfaction - expresses positivity - relieves tension - likes being with people, customers Praise - need for approval and popularity Doing favors - giving a hand - eager to please style - receptive manner - praise Approval - popularity - being good team member Willingness to accept others - high energy - high need to express themselves Verbalization skills - willingness to cooperate Becomes careless and sentimental - disorganized in getting “things” done Loss of social recognition - non acceptance by peers - not being recognized Requires mentoring in: control of time - objectivity - sense of urgency - techniques for speeding up the sales cycle
    208. 241. COUNSELOR PROFILE The personality of a Counselor is deceptive. They appear to be just what the doctor ordered for the sales role. They are likeable, responsible; they look for the good in people; they like keeping people happy, and the customers satisfied. The majority of Counselors don't adapt well to short sales cycle closes. They see it as destructive to their image. The lower placement of the DOMINANCE (D) dimension in the Counselor pattern is reflected in their indirect approach. Counselors with the lower &quot;D&quot; seldom push aggressively for a decision, an order, immediate action, or a firm commitment from others. COUNSELOR value to the Organization may overuse influences others by goal(s) emotions judges others by under pressure fears supervisory technique Stable, dependable - wide range of friendships - good listener Indirect approach - tolerant - wait and see Personal relationships - non pushing attitude - genuine friendliness Maintain friendships - keep people happy and satisfied Likeable - affectionate and understanding Positive acceptance - generally looking for the good in people Becomes intimate - too trusting of those with fewer scruples Closing with aggressive tactics – dislikes openly “asking for the order” Initiative in getting the task done Support techniques Skill implementation
    209. 242. NEW – ANALYSIS OF 15 PROFILES Persuader Pattern Emotions: High degree of trust in others – faith in personal abilities - enthusiastic – seldom expresses cynicism, apathy or boredom Judges others by: Verbalization skills – ability to interact with varied personalities – ability to see the big picture - flexibility Under pressure: May become easily persuadable – may accent the positive, avoid / ignore examining negatives – may “mask” with attempts to appear more organized Value to the organization: Seller, closer - appears poised, confident when presenting - strong competitive spirit - can learn to delegate responsibility Fears: Being hemmed in - a fixed environment with little flexibility - too much structure – burdening paperwork May overuse: First person references such as “I”, “we”, “me” - enthusiasm – “oversells” – optimism – anecdotal material Supervisory technique: Challenging assignments, varied activities, assignment changes, mentoring (support), opportunity to shine
    210. 243. NEW – ANALYSIS OF 15 PROFILES Persuader Pattern The Persuader has ideal behavioral traits for the sales role.  They work well at creating new business or reviving old business.  Usually ideal candidates for direct selling (short-cycle closing).  The high (I) INFLUENCING pattern denotes a skill in the use of language and interactive skills with others.  The dominance (D) factor being above the mid-line (light gray area-4) indicates the ability to &quot;ask for the order&quot; and deal with the consequence.  While many individuals falter at this point, the Persuaders are able to, &quot;close the sale&quot;.  They take that crucial step when they say, &quot;Well, I’m pleased to hear that you're as excited as I am about this project and what it can do for you.  Now the earliest delivery date is . . . “
    211. 244. NEW – ANALYSIS OF 15 PROFILES Persuader Pattern Persuaders are equally adept at selling products or ideas.  They tend to believe that they have the ability to sell almost anyone.   Occasionally, this may lead to overselling.  Their ability to project optimism and create enthusiasm may turn into a weakness when the premise is over-used or they are under-managed.  In their zeal to persuade others, they may rave too long, inject too much anecdotal material, extending their presentations.  When they are carried away by their own zeal and ego, they may be tempted to exaggerate.  
    212. 245. NEW – ANALYSIS OF 15 PROFILES Persuader Pattern Persuaders are capable of developing rapport rapidly, even with complete strangers.  They possess qualities which engage their prospect and create a desire to listen.  They act as a stimulus to sales with their abundant optimism and enthusiasm.  It has been said that they pierce the gloom with their optimism like a shaft of sunlight. Persuaders enjoy being the center of attention and when called upon to recite a case history, they tend to overcomplicate and over verbalize, thus making their actions appear more significant.  The Persuader's level of optimism is outstanding and frequently calls others to question whether or not they are in touch with reality.
    213. 246. NEW – ANALYSIS OF 15 PROFILES <ul><li>Complete Analysis </li></ul><ul><li>83 pages on effective use </li></ul><ul><li>6 CD’s for easy listening </li></ul><ul><li>Hundreds of hiring takeaways </li></ul><ul><li>Special attendee pricing </li></ul>Persuader Pattern In supervising the Persuader , a manager has to exercise caution in two areas (1) that the Persuader in the &quot;over sell&quot; mode does not extend commitments which jeopardize the project or the company's reputation and (2) to carefully modulate the supervision so as not to hamper or diminish the Persuader’s level of optimism. Suppose the Persuader is being considered for a sales management position because of their selling ability.  It is important to remember that sales managers manage “people” not sales.  If the (D) is close to the mid-line (the gray area), caution needs to be exercised.  Management roles usually require that the (D) be above the mid-line.  The Persuader manager may tend to hire (or give special attention to) those who are very much like themselves, often missing opportunities.