Training

» What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where can this information be obtained?

» We live in an information driven society. » Knowledge Economy- Billion $ Economy » Companies like Google, Intel, & Ericsson value their data as much as service/product they provide. » AT&T

» Data is Valuable For These Reasons ˃Data Aggregation ˃Risk Management ˃Digital Experience ˃Operational Agility ˃Cross Selling

Christmas Decor’s Key Indicators (Metrics) » Marketing ROI » Retention Rates » Sales Closing Percentage » Average Sale » Gross Profit » Average Daily Production What

Christmas Decor’s Key Indicators (Metrics) » Marketing ROI ˃Measures how effective your marketing campaigns are +Individually +Collectively ˃Provides intel for future campaigns +Content +Timing +Targets » System Avg is $10:$1 What

» Retention Rates ˃Identifies rate of returning business- LIFEBLOOD of Christmas Decor +Year Over Year +Can be measured by count +Or by dollars ˃Provides info for budgeting ˃System Average is 73% What

» Sales Closing Rate ˃Measures how efficient your sales efforts are +Are you missing too many opportunities +Gauge of sales cycle +Identifies top/low performers +Allows for adjustments – Marketing Target – Presentation – Pricing +System Average is 52% What

» Average Sale Amount ˃Average of all sales to date +Useful for budgeting going forward +Useful in conjunction with sales closing rate – Hi Closing + Low Avg Sale= Poor Outcomes +Creates Standards ˃System Average= $1389 What

» Gross Profit ˃Revenue less materials and labor (our standard definition) +Adjust ratio of these 2 components ˃Foundation for profitability ˃55% What

» Average Daily Production ˃Revenue installed per day per crew ˃Indicator of productivity ˃Directly correlates to profitability ˃Improves use of limited operation time ˃System Average= $2339 (blended average) What

» Lessens decision cycle » Increases revenue » Lowers operating costs » The bottom line IS the bottom line- Leads to profitability Why

» Marketing ROI ˃As a ratio: Total Revenue/ Total Cost +EX: $10,000 Sales/ $1,000 Marketing Cost= 10:1 ratio ˃Must track every campaign/tool and service ˃Track Lead Origination & Record +Train Staff to ask +Use campaign identifiers How

» Marketing Campaign Report ˃Quantifies campaign results for you ˃Exportable for further analysis ˃Requires front end work, but yields HUGE back end results ˃Must preserve data integrity for quality results How

» Retention Rates ˃(Current Year Sales/ Previous Year Sales)x100= Retention Rate +Customer Count +Dollars +Or BOTH ˃Requires accurate records of years being measured How

» Retention Rates ˃LightRight’s Customer Retention Report How

» Sales Closing Rate ˃(Accepted Orders/ Proposed Orders)x 100 ˃Requires thorough record of interactions +May require office to handle sales call scheduling +ALL interactions need to be recorded- even the unqualified How

» Sales Closing Rate ˃Sales Closing Report ˃Tracks sales staff progress ˃Only useable if all interactions are recorded ˃System generates accurately as long as all orders in input How

» Average Order Amount ˃Total revenue / number of orders ˃Requires meticulous record keeping How

» Gross Profit ˃Total Revenue – materials-labor= gross profit +Overall GP +By job ˃Requires detailed record of materials used, including IAC ˃Detailed Record of labor- hours worked & rates paid How

» Job Costing Report ˃Generates per job gross profit +Includes all materials +Includes all labor, including take down ˃Investment in tracking crucial info offers significant payoff! How

» Average Daily Production ˃Likely the most mis-understood metric in our system ˃Total Revenue/ total # of crew days= ADP +Total Crew Days= aggregate total of days worked per crew ˃Requires close tracking of crew activity, inside and outside of Christmas Decor business How

» Productivity Report ˃Only tracks days crew worked How

» Use systems designed to track data/yield reporting » Only complete and accurate input will yield accurate reports » Use data for operational agility and develop deeper business » Identify indicators that are important to your business Best Practices