This residential and commercial cleaning service business was experiencing a decline in sales and profit within the residential segment due to margin erosion, turnover, and inefficiency. The time invested by the owner in this segment was hindering growth in the more lucrative commercial market. We needed to fix the problem or eliminate residential service and focus on commercial only.
To simplify and grow revenue and profit in the residential market through improved service levels and efficiency.
- Analyzed current customer base, pricing strategy and cost related assumptions. As a result, modified pricing and packaging for residential services.
- Clarified ideal customers and modified messages to reinforce benefits and attract target customers.
- Re-allocated marketing dollars to improve return on investment.
- Developed and implemented checklists and systems for daily operations and service delivery.
- Developed job descriptions, goals and training for crew leaders and teams to get everyone on the same page and establish standards for all.
- Hired a part-time assistant to help the owner with residential sales and daily administration, so he could focus more on commercial growth and building the business.
Within 6 months, residential cleaning sales increased 15% and average customer retention increased from 3.9 to 5.2 months. The increased sales and improved efficiency (systems) generated a net profit improvement of 56% — even with the increased labor from hiring a part-time assistant. The owner was now able to focus on other business development opportunities.
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