Welcome to Tod Novak Group

CASE STUDY 1

Franchise Sales Outsourcing and Sales Training

ServiceMaster (Franchise)

Industry: Commercial Janitorial

The Novak Group provided sales outsourcing and sales training to increase sales through key commercial accounts.

Business Need : increase sales by acquiring large key accounts.

ServiceMaster Clean sought to increase the market share of commercial janitorial key accounts. The motivation of the CEO was to increase profits and market share sales over a 3 year period by increased sales. The goal of the CEO was to grow the business substantially, allowing him to sell the business and retire in 3 years.

Key Challenges

A very competitive market exists with large accounts seemingly happy with their service.

Delay in collection from new account: after closing new accounts there was often a waiting period for previous contract to expire so new account could be serviced and billed.

The competitive market was influenced by smaller janitorial companies that would cut costs to win contracts.

New clients had to be sold on the impeccable quality of servicemasters service compared to competitors to justify price of service.

The CEO had excellent management skills, but had little knowledge of communication and selling skills resulting in a poor sales history for the company.( 42 sales calls resulting in only 2 sales)

Solution: The Novak Group provided sales outsourcing and sales training to
increase sales by acquiring key commercial accounts.

Sales Force Outsourcing initiated:

Sales outsourcing improved focus of ServiceMaster management team.

ServiceMaster gained access to first class sales capabilities that were not available internally.

the cost of training internal sales force was eliminated

The cost ofpaying for employee benefits for a sales force was eliminated

Market analysis Revealed a weakness in the quality of work generally provided from the competition. For every potential client, a complimentary walk through analysis of their business was done free of charge. At this time comparisons were noted to the potential client comparing the current level of service compared to what they would receive from Servicemaster, Employees were interviewed regarding current level of service and satisfaction rating.

Sales Force Outsourcing was implemented and targeted the following areas:

Importance of a clean business environment
The cost of time factor: in most cases Servicemaster prices were higher than the potential client was currently paying. This issue was addressed by calculating the cost of time factor. The time spent by the employees checking and touching up the inferior service of the current janitorial service(complaints ect) was calculated into time. Their time spent was converted into actual dollars spent on employees completing services that should have been done by current janitorial service. After this calculation process, the potential client was shown how they would be saving money by hiring ServiceMaster.( no need to use employee time with extra cost).

Results
The Novak Group increase sales significantly and acquired 12 new accounts. CEO was able to retire in 1 ½ years rather than initial goal of 3 years. The business was sold for the projected amount as a result of The Novak Group sales training and outsourcing.