Video Transcription

Mike Callahan here with a question that was submitted – What is a CRM and I wanted to add upon that question and why would you need a CRM for service business and particularly what are the four main functions of a CRM for a service business? As we dive into it and pop over the screen here and I’ve got basically a quick cheat sheet so if you’re looking at a software platform to run your service business whether it’s lawn care, pest control, home cleaning or any other service business there is four distinct functions that a CRM will actually accomplish for you and then obviously there’s some more additional things such as automations but there’s four different areas that we really need to look at of a CRM and probably before we dive into what is the CRM. As we look at this you’re gonna pop the screen open here and break this down for you kinda see it but for functions with CRM a what is a CRM probably to begin with is a CRM is a customer relationship management software so the acronym stands for customer relationship management software. In a CRM basically once we have a customer relationship software the one that we actually use predominantly is Service Autopilot is the first thing we’re looking at capturing leads we want to store the information about our leader cup or our customer in one place and how we’re getting that information about the lead or that customer in one place is we want to add the information hopefully automatically through a form so if you’re using a form in most CRMs customer relationship management softwares there’s things called custom fields and these custom fields will track things such as first name last name address cell phone number landline and all the other information needs so the pertinent information that you need will be saved in a custom field through a form and then automatically entered into the software of your choice. Now the second option is to manually answer these when a phone call comes in so you pick up the phone in the office and we’re manually entering these in now as we manually enter in these informations we probably want to somewhat standardize the process so one of the things we found very successful in my service business is taking an additional internal form and creating more custom fields soas we enter this information this basically standardized phone intake form ask for certain questions like first name, last name, service address, what services are you interested in, what’s the last time is your property been serviced, have you ever worked with another lawn care or home cleaning professional before so we’re qualifying the customer but by using a form internally we can also use custom fields to enter all that information into the CRM and create a standardized intake of our clients. Now the next thing we’re looking at here as we go through here is number two we want to track this sales pipeline so can we track the opportunities as they move through the sales pipeline so in Simple Growth and my businesses we call this twenty days to close so basically as soon as we have a lead come in they are in here and basically from one to twenty days we’re gonna track that sales pipeline so are they on the day one phone call they on the day two automated texts day three phone call day five email whatever that may be but we can see historically or actually in real time where they’re at in the sales pipeline and then it the ability this is gonna increase our visibility and reporting to allow our sales team to forecast the buying behaviour so traditionally where is the drop-off in that twenty days to close so traditionally is there a certain point where those leads drop off and go cold or traditionally is there a certain hot spot in there and where we close predominantly most of the lead. So what we’re finding in our twenty days to close sales pipeline when you see that forecasted behavior is the forecast the behavior is between one in three days we have our biggest spike of sales and then we have another spike of sales between seven and ten days and believe it or not we actually have another set spike of sales for that forecasted sales behavior between eighteen and twenty days and what happens there most people don’t believe is they’ve actually gone out and hired your competitors and they haven’t given you the benefit of the doubt ontology they’re not buying your services but when that current competitor actually drops the ball those constant communications via email which is automated text message which automated in phone calls yes believe it or not phone calls via phone call scriptor if you don’t have the bandwidth of desire to make those phone calls we do a thing called a ringless voicemail bomb so it hits the cell phone on file looks like a missed call it leaves a pre-recorded message that’s automated but personal based on where they’re at in that sales pipeline something the fact it’s like hey Mrs Smith this is Mike from Callahan’s, sorry we missed you but I wanted to leave you this voicemail we dropped off an estimate three days ago and if you have any questions regarding that estimate or please give us a call at this number otherwise feel free to accept the online estimate so what we’ve done has been able to forecast the predictable behavior we’re going to see the the buying habits of one – three days, seven – ten days or eighteen – twenty days so statistically 80 percent of all sales are made on five they heard it right five or more touches so if you’re not following up on yoursales and your estimates at least five or more times you are missing out on 80% of the sales so the biggest gripe I hear in the service industry is that we’re getting crushed by low ballers “low ballers” people who are going out with lowball prices in in losing work because they have no idea what they’re doing but let’s let’s take those low ballers out of the equation is it possible your competitor down the street is following up five or more times consistently via email text and phone calls and hitting those multiple communication channels and they are there and present five or more times which means they are statistically grabbing 80% of the sales in your market and if you’re only following up once or twice you’re losing out on those sales so maybe it’s not a lowball but maybe you don’t have a sales pipeline with hopefully an automated follow up with accountability to hit five or more times. So outside of forecasting those behaviors of in the beginning of the first three days seven – ten and 18-20 we could prioritize your head so big shout-out to Dillan on the Simple Growth team but Dillan crushed it this month because he was able to at the end of the month in order to hit his sales goals prioritize his leads and by going in and prioritizing these basing on a lead scoring or ranking of hot, warm or cold he was able to work those leads in a systematic way from the most qualified to the least qualified and close those leads and hit best sales goals. Not only does tracking yourself pipeline give you a forecasted behavior where those leads are gonna sales are gonna happen but you can prioritize those leads if you’re trying to hit those end of the month goals or crush you out before the sales season starts to evaporate in your seasonal business such as lawn care. Next thing is streamlining context and I got a quick shout out to Jeremiah if he’s still watching the sales shark and in this gentleman has taught me some definitely some sales skills i want to give a shot out to the shark if he is still watching. The third thing is to streamline your contact so we want to avoid sticky notes Excel spreadsheets in notepads and anything else you may be doing maybe a note with a pen on your hand um I’m getting these contacts information in but if we streamline our contacts we can get the contact information we can track the communications so did we leave a voicemail did we have a phone call did they respond did they have questions or anything else in between so if you are the main salesperson and somebody is following up behind you and you’re not in that day what has happened with the communication where are they at the sales pipeline. Next thing we want to talk about is customer service all the interactions sales, revenue, tracking so did they buy one of our gateway services potentially and those are gonna be things that you can sell over the phone very quickly. So a lawn care example would be your lawn mowing, fertilizing something measured online and we sell them and then we systematically go out and upsell our ancillary services that potentially could be measured or sold in person after going to the property or is that in the home cleaning industry a gateway service such as a top-to-bottom deluxe that we give a high low price range so we can’t we’re not committing to an exact price but we’re saying you’re top to bottom lock your initial cleaning before the maintenance clean is going to be between three and maybe three fifty based on how many people are living in the home and the square footage in the home and how many pets and then we go in and give them an exact price for a recurring maintenance clean or weekly bi-weekly every three or four week cleaning. Both industries have these gateway services and the ancillary recurring services it can be added on to raise that client lifetime value once we streamline those contracts we can go in and do some tracking of the sales what is the client acquisition cost per marketing source what is the client lifetime value and several other things we want to know those different stats as we go out to build our marketing and sales pipeline and diving back into reporting so now that we’ve got this reporting with those contacts can go in and say okay what is the outcome of job costing report so we got our start and stop times of every job we’ve done we have a budget of time versus actual. Through reporting we can say is this client profitable so if my goal is to make fifty dollars per man-hour and I’m only making forty five what should I charge to get this individual client up to fifty or if my goal is fifty dollars per man-hour and I’m making a hundred dollars an hour well I don’t want to raise that price so this gives you the ability for an-emotional way to raise your prices based on the data in a streamline contact in your CRM your customer relationship manager and software so by reporting in tracking we take the emotions out of it and we can raise our prices on our least profitable clients and our most profitable clients we leave the same so if you don’t do that you raise your prices say three to four dollars per visit or a percentage across-the-board well you’re in essence is doing is not looking your tracking not look at your reporting and pricing out and creating your most profitable clients to go out and shop you. The final thing is analysis so we can go in and do some a-b split test marketing so maybe we’re doing email marketing or text marketing or phone calls and we can say okay based on this marketing campaign versus this marketing campaign what copy worked the best so this is what exactly what we did in my business Callahan’s we had our second email that went out and we had 15 may be 12 to 15 versions of this email that went out and the winner was an email that looked like it was sent from somebody in there in the office’s iPhone it wasnt it was automated but it looked like it was personalized from somebody’s iPhone but what we did is we had long copy text we had two to three paragraphs we had logos we had pictures leaked out to videos you name it we tried it but what happened is this two line email that literally said hey Mrs. Smith I’m just checking in and see if you’re interested in getting on our list this season if you are please let us know have a great Saturday whatever it was it merged a day the weekend, secret sauce is ahead a little misspelling on Mike on the bottom so the M was lower cased so it look like a typo look personal didn’t look automated in at the bottom we put in sent from my iphone just like it does from your phone but so it looked personal . The ability to have an analysis and run a a-b split test was the ability to go in and say this is the overall winner and lo and behold that one email that looks like it was sent from our iPhone on average right now closes 20% of all our sales without ever talking to the consumer so reporting and analysis in a CRM is essential if you utilize it. Fourth and final thing delivering and sharing information so if you have a reporting center we can organize the information and potentially automate the delivery of that information to the specific people on your team when they need it so the way we utilize this is in Service Autopilots report center wecreate automated delivery to the manager or the team or the crew whoever that is when it needs to be delivered automatically so it’s not if it’s going to happen it happens when it should without the business owner or manager babysitting or physically managing or going in and doing that so we’re able time the repetitive information tasks each and every time and it happens the way it should each and every time without having to manage it or physically do it. Hopefully this makes sense but I wanted to go in and kind of demystify what a CRM is a customer relationship management software the four things that a customer relationship management software does for a service business and they are capturing leads, tracking the sales pipeline, streamlining context and delivering and sharing information so you’re taking that knowledge silo that’s in the owner’s heads and disseminating it throughout the organization for content information and if you’re solo entrepreneur there’s nothing wrong with that but what it’s going to do is organize the information and deliver it to you in a repetitive and automated fashion so you forced to look at it and see where you’re at from a day-to-day basis. As we close this up as always want to say what’s up – Jeremiah the sale shark what’s up – Lisa Todd Goodrich that’s watching but the pro tip is do not try to use all these tools at first evolve into the system the customer relationship management software that you’re using and address the biggest needs if they arise and utilize the tools that are needed for that stage of your business and it’s a sequential building when you try to eat the elephant all at once it’s not gonna happen you want to eat it chunk by chunk so what is the the issue and how do we solve it and these are the four main areas before we can completely automate a business that a customer relationship management software will tackle. Now obviously in a service business we’re gonna have our services, a pricing matrix, and estimate process as well built within these four areas but on a high level without diving into the weeds these are the four things you need to be looking at when you go in and evaluate a software for a service business for success. Hopefully this is helpful if somebody told me this seven or eight years ago when I evolved into other platforms and then eventually moved into SA it would have been helpful because the analysis of these four main things are not existent on a lot of softwares for the service industry. Comments or questions dropped below hopefully this helpful CRM customer relationship management if you’re in pen and paper in your service business highly recommend diving into these four functions and finding a solution that’s right for your service business to create predictable results and start to pull back your time in your life from your service business