Video Transcript

00:00
You’re listening to the Simple Growth Podcast, the show that
00:03
helps business owners get their life back. Here’s your host,
00:07
Mike Callahan. Welcome back to the SA Weekly Talk Show your
00:11
host right here, Mike Callahan going in and diving into this
00:15
week’s episode of Good Data with no emotions. So, a lot of
00:19
people in the service industry, especially the service
00:21
autopilot ecosystem are talking about what kind of data points
00:25
do I need in my business to create a non emotional business
00:29
and drive business growth and success and accountability
00:33
based on non emotional Data. So, the old saying, Data walks
00:37
Emotions” talks. That is exactly what we’re talking
00:39
about. So, I’m going to be diving in here over the next
00:42
twenty or 30 minutes inside service autopilot. how to
00:44
actually break down and track certain data points that I
00:47
think are key and fundamental to the scaling and success of
00:50
your business this year and many years to come. So, with no
00:54
further delay, I’m going to open up the screen here and
00:57
share a little presentation I put together for the SA Weekly
01:01
Talk Show community. So, we’re going to be talking about good
01:04
Data and no emotions and how do we set up those data points
01:07
along the way. So, as we’re diving into this year, this is
01:12
going to be applicable to any service business, lawn care,
01:15
home cleaning, pest control, the like. So, the first thing I
01:17
really want to start in and look from lead acquisition is
01:22
going in is our estimate one and loss ratio. So, under the
01:27
gear icon, the upper right hand corner right here, we’re going
01:30
to go in and take a look at our estimate reasons and these
01:34
estimate reasons are going into the drive why people hired us
01:38
or didn’t hire us so they are really important stats in my
01:41
opinion that as we’re going out building a marketing plan and
01:44
looking at our product to market fit why one of the
01:48
reasons that people are hiring us and when we figure out what
01:51
they are, we want to go into double down on those stats and
01:53
the first thing if you’re watching this live recorded, I
01:56
suggest get a pen and paper or watch the recorded version of
01:59
this but first part of homework here to get good data in for
02:02
good data out with non Emotions” is setting up your
02:04
gear icon estimate one and lost reasons. Next thing we’re going
02:09
to be looking at is cancellation. So, no matter how
02:11
good your service is, we want to be able to go in and see why
02:15
are the people cancelling? Is it COVID, are they moving out
02:18
of town? Were they dissatisfied? Did they hire a
02:21
cheaper alternative? So, you’re going to start to see some
02:25
trends here but unless we track this each and every time
02:28
someone cancels our services, your virtual assistant or your
02:30
office should be tracking a cancellation reason and once
02:33
again, that is going to be right here up on the gear icon
02:37
cancellation reasons we need to go in to define these and
02:40
systematically add these to our accounts for accountability and
02:44
data coming in. So, these obviously are probably not the
02:47
most exciting as we go in. We’re going to really dive into
02:49
this If I want to start at a high level and dial into
02:51
literally going out raising your prices with no motion and
02:54
several other things especially the closeout day scream. what
02:57
is the data that is essential for your business to success
03:00
when you close out the jobs and each and every day before you
03:02
build them out? I’m going to go through the three keys to
03:05
dispatch order close out day screen for success as well. So,
03:09
next thing we’re looking at is why do estimate won and lost
03:12
cancellations reason for 2120 or 2021 success? Well, we need
03:16
to know the trends why people are hiring us, why they’re not
03:20
hiring us and any new market trends are very similar to
03:23
Wayne Gretzky. He wanted to be where the puck is going to be
03:26
not where it is. These are things basically online versus
03:30
offline buying habits. So with COVID and kind of post COVID
03:33
Times now, the acceleration of on demand buying and online
03:37
buying through and several other avenues is absolutely
03:41
accelerated. so the consumer will no longer wait for you to
03:45
get out and do an estimate when it’s convenient for them. Most
03:47
consumers are going to go online and continue to their
03:50
online buying search until they find a service provider that’s
03:54
willing to do so. So, these are some of the things as I was
03:57
looking at my service business that we started to notice when
03:59
we’re using Bots five to 6 years ago, our conversion ratio
04:02
and where people buying habits started to shift, gave up us
04:07
the the inclination that we should shift more focus to
04:10
online than offline estimating and sales. So, these things
04:14
will help you as you want to evolve and out adapt your
04:17
market. So, action items for success is we want to go in and
04:20
add those cancellation reasons. So, we’re going to add those in
04:25
and why standardization workflow will create
04:28
predictable 2021 success. Well, there’s certain things we need
04:32
to know based off these stats. So, it’s not only enough to
04:36
build out estimate in loss and cancellation reasons we needed
04:39
the number of leads that were generated. the number of leads
04:41
that converted into a client or didn’t convert. what’s the
04:44
conversion percentage, the closing ratio, termination
04:48
cancellation or basically churn and why are we losing these
04:51
clients? Is it out of our control? Maybe they’re leaving
04:53
our market and buying a house in another area that is out of
04:57
our control but what we can do is use those numbers and
05:00
forecast ahead in our marketing plan that on average 10% of our
05:05
client base will actually leave the market So, we need to add
05:08
at least another 10% of our client base to account for the
05:12
cancellation of people leaving our market. We can’t control
05:14
that. That’s just the number that we need to look at. Other
05:17
thing is is the average percent of net new growth for our 2021
05:21
projections or any year moving forward. So, the things that
05:24
I’m going to be tracking in my business is number of clients,
05:28
number of new clients, number of cancelled, and a number of
05:32
net new. Once again, that number of cancelled is going to
05:35
include people moving out of your market. Maybe a low price
05:38
option is option. Maybe it’s a national competitor coming in
05:41
and trying to dominate and buy their work these things happen
05:44
but if we’re not watching the data and adjusting and
05:47
forecasting off it, we don’t know where we are. We don’t
05:50
know where we’re going and we don’t know kind of the in
05:52
between turmoil that we’re stuck in but if you can see the
05:55
screen here, we’ve got some fictitious data in this test
05:58
account but we’ve got our our figures here from 2015 was 33
06:03
or 34 Prospects 2016 at 101 2017, 271 461 in 2018, 2019 had
06:11
eight 169 and 1142 prospects. Those prospects are people that
06:16
requested an estimate. So, I’ll show you where this is but in
06:19
the report center, there’s a little toaster icon. It looks
06:22
like toaster icon and you can download some of these reports
06:25
with no configuration. So you have a non emotional way of
06:28
driving this non emotional Data but the data is only as good as
06:31
the data goes in and sometimes some of the things we’re going
06:34
to show you is especially in service autopilot. No Data in
06:37
no Data out. Let’s not worry about bad data in bad Data out.
06:40
No Data in means no Data out. So, a lot of times you have a
06:44
lot of these dots in the software but they’re not
06:46
connected for systematic workflow that creates and get
06:49
you a insight into your business. So, obviously the
06:54
prospect conversion in this example looks really good but
06:57
what we see here is our conversion ratio. The the
06:59
percentage of closing sales makes sense. If we’re just
07:02
starting out, we get, we closed 100%, we’re probably
07:05
underpriced our jobs 95%. now, we’re getting down to 57%.
07:10
that’s probably about where you’re at at that point and
07:12
then it’s going down to 51 to 41 to 35. So, as you raise your
07:15
prices and you learn how to price jobs not emotionally to
07:19
make sure hear your hourly goal with your projected profit
07:22
margin. Your closing percentage will probably go down and
07:26
that’s like that Thirty-five to 55% range is what we see with a
07:30
good price company but if they’re automating their follow
07:33
up they’re going through, you may see it as high as 64 to 65%
07:36
even being one of the higher priced service providers in the
07:39
local area. Now, we have terminations here across the
07:44
board and we have net gain new clients. So, we’ve got AAA
07:48
interesting stat statistics. So, our net new gain. so the
07:53
total number of clients is growing right up through 2018.
07:56
Now 2019, we had 212 which is great. almost doubled again but
08:01
then wait a minute, we get to 2020 that net new gain is 141.
08:05
It’s gone down significantly. So now, we can go in and see
08:08
the increase year net new clients and it’s actually gone
08:13
down but why did it go down? so churn increase year to year, we
08:17
can see the cancellation or churn and in that we can dial
08:20
into those cancellation reasons and if we’re losing seventeen
08:24
to 20% of our client base because they’re not happy.
08:26
that’s a data point. Me as a business owner would want to
08:29
know and I believe you as a business owner would also want
08:30
to know. So it’s very very important that emotionally you
08:33
may say it’s the low baller down the street or it’s COVID
08:37
related or whatever that is. It’s the no one can find help
08:40
it’s unemployment. it’s driving it but those things may be all
08:44
applicable when you got hard fast Data numbers in the
08:47
system. it lets you to dial into the the success issue or
08:51
the the non success issue immediately with no emotions.
08:54
So, these are the things that are essential to set up in your
08:57
service business to really run your business on Data and not
09:00
Emotions”. So as we go in, do lead sources matter for 2021
09:05
success? Absolutely they do and we’ve kind of just discussed
09:08
that. So, the things you’re going to want to know is the
09:10
number of leads per lead source. So, each marketing
09:12
source, door hangers, Facebook, Seo, whatever that is number of
09:16
leads that convert into a client per marketing source,
09:20
client acquisition cost or in the sales word. it’s SA SA cost
09:25
client acquisition cost per lead source. So, I would say
09:28
maybe a Facebook ad is driving $100 lead acquisition cost us
09:31
for every $100 you’re throwing out, you’re getting a new
09:34
client, maybe home advisors twenty to Thirty-five bucks.
09:38
That’s a cheaper lead source. Maybe we should double down on
09:40
that but before we do that, we need to know the client
09:43
lifetime value per lead source. So, I’m guessing in most
09:46
markets maybe that home advisor ad for Twenty-five bucks is
09:48
going to net maybe two to $300 in client lifetime value but
09:51
that Facebook client or lead acquisition for say $100 may
09:55
end up being 910. 1520, $1000. so you all lead sources are not
10:00
created equal. It may cost more or less to create them but your
10:03
client lifetime value may I guess suggest that you should
10:10
go out and maybe spend more money on a more expensive lead
10:12
if the client lifetime values indeed larger. So, this is that
10:16
non emotional Data that we’re looking at. How do we look at
10:19
that and build that marketing plan in that health cadence?
10:23
checking that every week or at least every month or every
10:25
quarter. So, how do we access these reports in service
10:30
autopilot now that we’ve set up our cancellation reasons and
10:32
our estimate won and loss reasons and our office is
10:35
diligently entering that data in each time. Data points
10:39
happen. Well, we’re going to go up to the right here in reports
10:42
and I’m going to go to the report center in that little
10:46
right there, that little toaster icon. we’re going to go
10:48
in and pull out that report and that report is going to be sale
10:55
summary by Source. You can kind of see it here at the top of
10:58
the screen. so, I want to go sell summary by source and that
11:01
is really a screenshot of I just showed you of the number
11:05
of new leads, number of leads, converted conversion ratio, and
11:10
new open leads and total leads so that we’ve got that up top
11:13
and then on the bottom, we’ve got our sales lead source. So,
11:16
in this example here, Google was now over 500 leads and on
11:24
average and 34% of those converting creating 191 new
11:28
clients that year. So, what we can do is drive that non
11:31
emotional Data down in that report and make some marketing
11:35
decisions on it and sales decisions. So, next thing is
11:39
we’re looking at what is it costing us to actually go to a
11:44
job site that non billable drive time and shop time and
11:47
drive time or on site. So, our what’s our labor cost with
11:51
labor and labor burden versus our non billable drive time
11:54
labor and labor burden. So, if you’re unfamiliar with labor
11:57
Burden, your company Fike unemployment, state
11:59
unemployment workers, comp liability, vacation holiday
12:02
pay, and a few of the other ones listed on the screen. Now,
12:04
some of these may not apply and that’s totally fine but the
12:07
idea is in the yellow area, you would fill in on this sheet
12:10
here up on this part here. you’re going to fill that in
12:15
and put your numbers in. It’s a percentage of the dollar call
12:17
your payroll and insurance company. They can give you
12:19
these numbers and this fictitious example. Our labor
12:22
with Labor Burden is 19%. So, we had an hourly guy on the
12:26
team making sixteen bucks an hour. The hourly labor burden
12:30
would be 904 and say we put the hourly rate rate here under the
12:36
payroll job costing. We want our labor with labor burden for
12:39
straight time and overtime. Most companies that we go into
12:42
and we do hundreds of these a year literally have your $16 an
12:46
hour and the sixteen with overtime over here but where
12:50
this costing information is going to go into is when we
12:52
drive these reports, it will give you a non emotional Data
12:54
point of your labor labor burden cost per employee slash
12:58
team on each and every job you do for on site and drive time.
13:02
So, if you’re not using these mobile app. Highly recommend
13:05
it. Get the Legacy app where you’re clocking in and out of
13:07
the drive. Time to get that non emotional Data. So, employee
13:13
job costing Data. I was just talking about it and you want
13:16
to know what it is. So, let me actually flip the screen here
13:20
open so I can show you but right here, I have our labor
13:24
cost effect. La Labor Burden was $10.47 on site for that
13:30
job. Now, the other one right here is our drive time cost
13:33
effects. It’s costing us at a dollar ninety based on the
13:36
people that are on that job that day. So, we’ve got all of
13:40
the data points of start and stop time for the job start and
13:43
stop time for the drive time and then if we have our job
13:46
costing information from the last sheet or from the last
13:49
screen here filled out that’s going to drive that data into
13:54
that report. So, that is what we’re looking at as a direct
13:58
effect of good data points inside your software system.
14:05
Now raising prices. are you looking at your client’s
14:08
profitability per service at least twice a year? I’m
14:10
recommending November, December, and just after the
14:13
fourth of July. If you’re doing so, how are you doing it? Are
14:15
you doing is that percentage of increase or a dollar amount
14:18
across the board? Well, with good Data inside your software,
14:22
you can create non emotional pricing so I don’t ever suggest
14:24
raising your prices $3 per visit across the board or four
14:28
or 5% across the board. What we’re going to do is create a
14:32
desired dollar per man hour say fifty or sixty bucks per labor
14:36
or technician in the field and we are going to probably
14:39
include our credit card processing fees in there. So,
14:42
it’s part of our overhead recovery per man hour. We’re
14:45
charging that out to the folks that we’re doing work for.
14:47
Then, we’re going in and running a off the toaster of
14:52
the job costing report. So, this is a direct export out of
14:56
service autopilot right here on this lawn mowing job. We’re
15:00
charging $54.28 here on this actual revenue per man hour.
15:05
we’re generating $54.28 and $60.31. So on average, we’re
15:12
averaging $57.30 per man hour. Okay, so if our goal is $60 per
15:18
man hour, we should be charging on average an extra $2.56 per
15:24
cut raising our price from 5428 to 5684. Once again, this is
15:30
non emotional price raising based on data in It’s good and
15:35
this is what is driving success in service Businesses that are
15:38
taking the emotions out of their head and all the math out
15:40
of their head and driving it with real-time data from the
15:43
software. So, we need to make sure we got all that data in
15:46
there so we can get the data out for these approaches. So,
15:49
there is a new version two KPI and accountability report that
15:54
is made by simple growth here as a certified advisor and this
15:57
is something we do in our KPI and accountability package but
15:59
that hard copy report I was just showing you is Right now,
16:04
what we’ve done is we do a daily weekly report. So, the
16:06
report automatically Emails you says, hey, did you hit your
16:09
hourly goal as a percentage? So, right here as a percentage,
16:14
if you hit your budget, the time might be 100% and 125%,
16:18
you’re 25% under budget which is good and if you’re under
16:21
like say ninety, you can have a conversation with your team.
16:24
say, hey, you only gave 90% with a quality standard. So,
16:28
that is really important. I think in my opinion that we
16:30
need to hold somebody on a daily cadence in your business
16:32
response. To report this out every day for each crew and the
16:36
company as a whole and then the following Monday, we review the
16:39
last week so we’re not waiting to make decisions of how
16:42
financially profitable we are until the end of the season
16:46
when it’s too late. In addition, a lot of us business
16:49
owners in the early days at least and a lot of people
16:52
probably watch us are running their business success as their
16:55
business bank account balance. What I mean by that is if
16:57
there’s money in the bank, they must be making money but in
17:00
reality, you may not be making money or you have some crews
17:03
that are carrying the company on its back and other ones that
17:06
are bleeding. it dries. We need to make sure we are going in
17:09
with non emotional approaches as our profitability for these
17:13
jobs. So, what we’ve done in our example here is we’ve
17:16
created some Data here for these green cells. So, is there
17:18
a price? Is there budget time? Is there a good clock in and
17:21
clock out not under a minute where the guys or girls got to
17:24
the job? Did the job got to the job and we’re like oh **** we
17:27
didn’t clock in clock out. we gotta clock in and clock out to
17:29
get the next job. So, this is going to ensure those data
17:31
point are good. So, in the next sheet, you’ll see there are
17:34
some red boxes in here. So, this is just another example of
17:37
how much we need to raise our price for the year. We have a
17:40
statistical mean to say twenty to 25 stocks for that service
17:44
but the way we built this report is an idea is these red
17:47
cells. There’s no actual hours clocked in and clocked out so
17:51
you need to go back and fix those before you can actually
17:54
go in there. Now, a lot of people will try to suppress bad
17:57
data but whether it’s good or bad, you need to know that so
18:00
you can bait your financial decisions on there. So, the
18:03
idea of this automated report with the logic of red or green
18:07
is a Vi clue that somebody in the team needs to fix that
18:10
before we go out and make a financial decision to raise
18:12
that price or keep it the same. So, the last thing I’ve got for
18:17
you is I’m going to actually dive into essay and talk about
18:18
the dispatch and close out day screen and why it’s going to be
18:22
so essential to your success of good data in good data out and
18:26
data with no emotion decisions. So, as we dive into my test
18:30
account here we are on the closeout day screen dialed into
18:34
one crew. Now, there’s three or four different things you need
18:38
to be looking at but before we look at them, I’m going to
18:41
highly recommend that if you’re watching this recorded you is
18:44
this open up essay. I’m going to show you how to open this up
18:47
and create data points for success. I’m going to go up to
18:50
the upper right hand corner and I am going to go to columns and
18:54
I am going to go in and top end variants product total and
19:01
actual hours. Now, there’s no product on here but what this
19:04
will do refined if you’re using products for design build or
19:07
other product based services is it will take your later
19:11
separately in your product. So, you have a clearly defined
19:14
number of well your grossing based on per man hour and not
19:18
just your product lumped in there. So, main things is we
19:22
want to make sure is we have a time start and stop down the
19:25
line. That makes sense budgeted time. Now in this test account,
19:29
this job here has no price that’s not uncommon when we go
19:32
in. So we obviously want to make sure we’re billing it out.
19:34
If it’s part of an installment contract where we get build out
19:37
the same amount each month for all the services. it should add
19:41
up to what that part of that lawn mowing includes in that
19:43
maintenance contract and then under the contracts whether
19:46
it’s Vtwo or Vthree, you can put that included inside the
19:49
contract and associate this service to the track so it
19:52
doesn’t double bill. Once again, no data in no Data out
19:54
so we need good start and stop times budgeted time and a price
19:58
for every job that’s in the system and in addition, we want
20:03
to see that budget versus actual. So if you look just at
20:05
ours 8.74 hours and we’re budgeted twenty-one. well, they
20:09
must have crushed it. Well, that’s only based on one
20:12
person. So we look at the two men times 8.74. we actually
20:16
have 17.48 Man hours and we’re budgeted 21.6 still a win under
20:21
budget but we don’t have that data that a look at it without
20:25
actually opening that up. So, and we want to have the product
20:28
total and the other things with variants in here. Now, the
20:33
second thing is you don’t want to go out and have to recreate
20:35
the wheel every time you open the screen up. So, I’m going to
20:38
recommend is you go out here, click on the closeout day
20:41
screen, create a view, and call this the close out day screen
20:45
with actual hours slash budgeted or actual hours and
20:49
product and now we just click on that view and it pulls that
20:52
up each and every time. So, these are just a few of the
20:55
things that I am going to highly recommend. That you look
20:59
at in your service business when you’re going out to create
21:03
good Data in there to create non emotional decisions. So,
21:07
Data talks emotion walks So we are going to need to go in and
21:10
create those cancellation reasons. Estimate one reasons
21:14
every job should have a budgeted time with projected
21:18
profit per man hour and we’re also going to go in and utilize
21:22
the reports once we have good data in there and make non
21:25
emotional decisions on price raising not certain amount of
21:28
dollars across the board or percentages you’re going to
21:30
what you’re doing there is you’re alienate your most
21:31
profitable clients. So, if I’m making $100 an hour and I only
21:35
why would you ever change the price on that? I wouldn’t, I
21:38
don’t think you would either. Why don’t you think about it
21:40
that way? So, we want to go in and dial that in and service
21:43
autopilot will be our tool to collect those non emotional
21:46
data points and then under reports, we run some of the pre
21:49
can reports under the little toaster oven and drive those
21:52
reports for financial success and accountability within your
21:55
office and management team. So, hopefully you found that
21:59
helpful in creating a cadence for 2021 success in creating
22:04
data points inside service, autopilot, and proper setup.
22:07
So, we’ll see you again next week. 1 PM Eastern 12 PM
22:11
Central right here on Facebook. SA Weekly Talk show your host
22:15
Mike Callahan helping you go out and outlet and out dominate
22:19
your competition and this week, we’re going to go out and do
22:22
that through non emotional Data. Making decisions on data
22:26
not emotions and service autopilot once set up correctly
22:29
and utilize with accountability will be just that tool. We’ll
22:31
see you again next Friday, 1 PM East or 1 PM Eastern 12 PM
22:35
Central. Mike Callahan, your host of the SA Weekly Talk
22:38
Show. If you like this show, you might want to check out our
22:42
resources at WWW dot start simple Growth.com. While you’re
22:48
there, enter to win an estimator Chatbot Mike Callahan
22:52
is available for private coaching.