Welcome to the July 14th Coaching Conference™

for the Web-Learning BETA Test

*6 to Mute your Phone

Net.Prophet

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Net.ProphetYour Hosts for Today’s Conference are:

Gary Elekes in Burlington, Vermont

& Dean Ferrara in Burlington,Vermont

Please be sure your phone is muted!

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Net.Prophet

Creating More

Leads from your Service Department

About This Coaching Conference™

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Net.ProphetSite & Conference Reminders:

1. Site* 6 to MUTE your phone

2. Chat Function is available to you

3. Through chat function, ask your questions

Read and Understand your Pre Conference Materials

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Net.ProphetGetting Started Assumptions:

1. Service Department is an area of leads.

2. Service Department is weaker creating leads than you want.

3. This is not how to GET more demand service, but how to create more leads from the demand service that you already have.

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Net.ProphetPolling Questions:1. What % is your total service and maintenance revenues of your company sales?

2. Do you track your leads by lead source, service being a separate lead source ?

3. Do you know your cost per leads in each lead source, including service?

4. Do you get at or above 75% of leads from service and maintenance department?

5. Do you have a formula, a system, to create buy-in from Technicians, or when and how to create leads out of service or maintenance?

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Net.ProphetCoaching Conference Agenda Today

1. The Service & Replacement Business Model

2. Lead Budget & Lead tracking

3. Lead Source Analysis and Sales Tracking From Leads Granted

4. Lead Creation – How To - from Service & Maintenance

5. Company Training on Lead Creation & Tracking

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Residential Replacement & Service Business Model

Performance Planning Having a System of Forecasting and Adjustment is crucial to growth

System Selling Including Accessories, and IAQ, Maintenance Agreements

People Focus MoreUnderstand PerformanceMore AccountabilityNo Surprises

Same Day InstallsQuality – Minimize CallbacksTechnician Generated LeadsMaximize Sales processes – Value100% Maintenance Agreement New Sale

Culture and Focus forPrecision Tune-Ups and

Maintenance Agreements

70% conversion of PTU’s to full Service Agreements (up to 95%)Each New Demand Service Call = 25% conversion Rate to Maintenance Agreement100% Offer Rates on all DS Calls90 % Renewal on Existing SA’s85% Closures on SA CustomersHigher Margin – Value SellingReduced Marketing Expenses

New Customer Demand Service Processes

Flat Rate – Debrief Every Call65% Conversion Rate to SA’s100% Offer Rate for SA’s15-20% repair Calls turn to Retrofit Leads

Accessories Sales & Existing Customer Marketing Processes

Lead Generation Existing CustomersFuture Accessory Sales Each Maintenance customer = $650. in Yearly Sales

Priority #1 Priority #2

Priority #3

Priority #4Priority #5

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Net.ProphetLead Budget & Lead Tracking

• Define a Lead Budget from a Sales Plan (Estimate)

• Define the number of Leads I need from Service

Account Description % Budget Total Jan Feb Mar8.0% 5.0% 6.0%

3005-20 Sales Residential Service 150,000$ 12,000 7,500 9,000 4001-20 Cost of Sales-Parts 0.0% -$ - - - 4100-20 Cost of Sales-Equipment 0.0% -$ - - - 4002-20 Cost of Sales-Labor 0.0% -$ - - - 4103-20 Cost of Sales-Subcontract 0.0% -$ - - - 4104-20 Cost of Sales-Permits 0.0% -$ - - - 4105-20 Cost of Sales-Warranty (Non Labor) 0.0% -$ - - - 4106-20 Cost of Sales-Buydowns 0.0% -$ - - - 4107-20 Cost of Sales-Rebates Received 0.0% -$ - - - 4110-20 Cost of Sales-Allocated Fringe Benefits 0.0% -$ - - - 4402-20 Cost of Sales-Warranty Labor 0.0% -$ - - - 4600-20 Cost of Sales-Support Wages 0.0% -$ - - - 4650-20 Cost of Sales-Sales Commisions 0.0% -$ - - -

Total Cost of Sales -$ - - - Total Gross Margin 150,000$ 12,000 7,500 9,000 Gross Margin % 100.0% 100.0% 100.0% 100.0%

Number of Service Calls #REF! #REF! #REF! #REF!Number of Service Techs Needed 0.0

From the budget, calculate the number of service calls, then use this figure to calculate the number of leads from service.

Tie back to number of total leads needed.

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Net.ProphetLead Budget & Lead Tracking – Replacement Leads Required

Account Description % Budget Total Jan Feb Mar3.0% 5.0% 7.0%

3101-21 Sales-Residential Replacement 800,000$ 24,000 40,000 56,000 4001-21 Cost of Sales-Parts 7.0% 56,000$ 1,680 2,800 3,920 4100-21 Cost of Sales-Equipment 25.0% 200,000$ 6,000 10,000 14,000 4002-21 Cost of Sales-Labor 9.0% 72,000$ 2,160 3,600 5,040 4103-21 Cost of Sales-Subcontract 1.0% 8,000$ 240 400 560 4104-21 Cost of Sales-Permits 1.0% 8,000$ 240 400 560 4105-21 Cost of Sales-Warranty (Non Labor) 1.0% 8,000$ 240 400 560 4106-21 Cost of Sales-Buydowns 2.0% 16,000$ 480 800 1,120 4107-21 Cost of Sales-Rebates Received 0.0% -$ - - - 4110-21 Cost of Sales-Allocated Fringe Benefits 2.2% 17,280.00$ 518 864 1,210 4402-21 Cost of Sales-Warranty Labor 0.0% -$ - - - 4600-21 Cost of Sales-Support Wages 0.0% -$ - - - 4650-21 Cost of Sales-Sales Commisions 0.0% -$ - - -

Total Cost of Sales 385,280$ 11,558 19,264 26,970 Total Gross Margin 414,720$ 12,442 20,736 29,030 Gross Margin % 51.8% 51.8% 51.8% 51.8%

Number of Leads from Techs 0 0 0 0Marketed Leads needed 619 19 31 43Total Leads needed 619 19 31 43Number of Install Techs needed 2.0Number of Fulltime Sales People 0.0

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Net.Prophet

• Actual Costs of Media/Advertising/Marketing – Costs per lead

• Leads coming in by Medium

• Leads run as a Sales Call and Disposition

• Total Dollars of Sales Estimates by Medium (Lead Source)

• Total Dollars Sold by Medium (Lead Source)

• Total Dollars outstanding by Medium (Lead Source)

• Total # of Sales Made by Medium (Lead Source)

• Total Sales Closure Rate by Medium (Lead Source)

Lead Source & Sales Tracking – Replacement Leads

What you should be Tracking Weekly

All of these Sum into

1. Monthly Report Cumulative

2. Yearly Cumulative

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Net.ProphetLead Source & Sales Tracking – Report

Month to Date Totals

Lead Tracking SystemMonth Monthly Budget Yearly Existing Brand New Total Cost Per Lead Cost Per Lead Total CostWeek Totals % Mix Customer Customer Leads New Customer Existing CustomerPer LeadInternal Lead Generation Service Leads -$ 0% 10 6 16 Precision Tune Up Leads -$ 0% 5 2 7 Proactive Service Agree Leads -$ 0% 4 3 7 Assigned Departmental Leads -$ 0% 1 0 1Internal Lead Totals $0 0% 20 11 31 -$ -$ -$

Broadcast Television $0 0% 0 0 0 Radio $0 0% 0 0 0 Cable $3,000 100% 0 10 10 Internet Co. Web Site $0 0% 0 0 0Broadcast Totals $3,000 100% 0 10 10 300.00$ #DIV/0! 300.00$

Direct Marketing Direct Mail Letters $0 0% 0 0 0 Door Hangers $0 0% 0 0 0 Flyers/Inserts/Coupons $0 0% 0 0 0 Newspaper $0 0% 0 0 0 Telemarketing $0 0% 0 0 0Total Direct Marketing $0 0% 0 0 0 #DIV/0! #DIV/0! #DIV/0! Yellow Pages $0 0% 0 0 0 #DIV/0! #DIV/0! #DIV/0!

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Net.ProphetLead Source & Sales Tracking – Report

Lead Tracking SystemMonthWeekInternal Lead Generation Service Leads Precision Tune Up Leads Proactive Service Agree Leads Assigned Departmental LeadsInternal Lead Totals

Broadcast Television Radio Cable Internet Co. Web SiteBroadcast Totals

Direct Marketing Direct Mail Letters Door Hangers Flyers/Inserts/Coupons Newspaper TelemarketingTotal Direct Marketing

Sales Quotes Total Sales Total $$ Total Open Average Average Average Lost ClosureClosed Open $$ Amount Quoted Quotes Sale Open Quote $$ Sales Rate

0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!

0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!

0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!

0 0 -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! - #DIV/0!

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Net.Prophet

1. Establish the lead goals for Service/Maintenance (Dept/Techs)

2. Establish Lead Accountability (to Dept./Techs)

3. Tie Pay/Rewards Systems to KPI’s – as a measure

4. Create a technician standard (4K Model – Repairs x age of Equip)

5. Use Key Influencing Technicians to design standards (buy-in)

6. Align the reward System to provide incentives for KPI’s

7. Set-up tracking and measurement systems for leads

8. Train the technicians weekly – even daily – customer service, presenting options, using invoices, selling Service Agreements

9. Communicate with employees – feedback – reviews – company sessions – the lead sources, and the role of service based leads and why

10. Champion the initiative – nothing happens without desire + execution

Lead Creation from Service – For Replacement Leads

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1. Establish your goals – financial and operational (Leads from Service)2. Assess where you are against the KPI’s in the business model3. Determine if there is a gap – where is the gap4. Establish the priorities – where are you going to apply focus/training5. Set-up the standards – training can only be developed after standards6. Work with your team on what training they want – knowing the strategy/goal is more

service leads – ask them what they need?7. Develop any operational processes align the process with goal (Example is service and

maintenance forms – sales option materials)8. Training to support technicians – customer friendly (Perfect Service)9. Training for Admin (Answering phone and leads)10. Have the training plan written and published11. Create accountability – test, role play, random selection, have fun!12. Make training accomplishments and KPI achievement part of Performance reviews for

promotions, raises, awards, feedback.

Company Training – Service generated leadsNet.Prophet

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Net.ProphetSite Resources to Support Implementation:1. Lead tracking Spreadsheet and Article

2. Service Invoices and Maintenance Agreement forms

3. Article on Developing Leads from Service departments.

4. Article on Converting to PTU and Service Model from Marketing Model

5. Budget Template – to create lead budgets for each department

6. Article on the Perfect Service Call

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Net.ProphetResults Expected if Implemented:

50-75% of company leads should come from Service Department

1. Gross Margin on Sales from Service Leads at 42-45% which are 5-10% greater than a standard marketing lead.

2. More Accurate Lead Source Tracking

3. More Knowledge of Lead Production Where/How/How Much by Lead medium.

4. An Accurate Lead Budget to meet sales, and where service accountability falls into this lead budget.

5. Overall Marketing Expense below 3% of company sales

6. Higher Closing ratio for company in sales (Lead Quality)

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Net.ProphetPolling Question:

Rate the quality and learning experience of this coaching conference on a scale of 1-100, 100 being the best, how would you rate the overall experience?

95-100

90-94

85-89

80-84

70-79

Below 70

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Net.Prophet

This concludes our Coaching Conference today, THANK YOU for your participation, and we welcome any added comments via

e-mail to us from the site.

Pay for this time and Conference by using the information and implementing these concepts