Review from the Summit: Industry Cautions
Day 1 of the Summit continued with a breakdown of some of the cautions and concerns that the home improvement industry is currently facing.
Brian Smith began with an overview of the issues and concerns which included:
- Traditional advertising sources are producing less leads per dollar invested
- Changes in lead sources require modification of the sales model
- Effective marketers reduce costs by implementing more creative lead distribution and instituting revised sales models
- Increased marketing costs are a major contribution to lower profitability
- A key ingredient in a successful home improvement marketing/sales plan is: The quality and quantity of leads generated measured against the quality and quantity of the salespeople who are issued the leads which were generated
- The cost of a lead is increased (or reduced) by the efficiency and sales ability of the person to whom it is issued
He then proceeded to demonstrate the efficiency of a sales organization in this economy who made some slight changes to increase revenue by over $2 million while decreasing marketing costs by over 4% (for more information on this case study e-mail firstname.lastname@example.org).
David Alan Yoho then touched on the conditions in the marketplace that are having a direct impact on the failure of some companies including:
- Failure to understand the customer’s decision making process
- Misunderstanding between coaching and training
- Hiring the wrong people
- Confusing management and leadership
- Improper compensation
In the next posting the Lead Paint Regulations presentation will be reviewed.