ProSource 2015 Winter Convention
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- Beverly Ira Young
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1
2 Growing Your Member Base and Expanding Untapped Sales Opportunities Steve Edelstein & Eileen Zelazny PSN Field Business Group 2
3 This morning is about 1 Focus MEMBERS 4 Words SALES, PEOPLE, TRACTION & TRIAGE 3 Numbers BLEEDING, NEW, TOP 150
4 Purposes of Session Kick-off 2015 FBC Major Focus Roll-out Triage Tools Action planning & execution: Next 45 days 4
5 Outcomes Productivity opportunities for your AM teams Need for Additional AMs Set priorities for 2015 Action process for next 6 months Action steps for next 45 days 5
6 Format for session Recap/exec ute! Introducti on/set context Present Triage areas x 3 Report out/complete action plan x 3 Workshop x 3 6
7 On your table 7
8 TRIAGE tri age trēˈäzh, noun: triage 1. (in medical use) the assignment of degrees of urgency to wounds or illnesses to decide the order of treatment of a large number of patients or casualties. the process of determining the most important people or things from amongst a large number that require attention.
9 Today s focuses Bleeding Members New Members sales contribution & penetration Win Back FRESH Lapsed Members 9
10 What is the importance? Bleeding Members 86 on average; 14 bleeding more $20K or $504, are lapsed and represent $439,000 New Members 11% of our sales; $416,000 $247,000 left on the table; 51 Not Converted Members 27 New Members w/1 purchase Top 150 Members (79% of sales) Top 50 Members (53% of sales) 10
11 How do we impact these areas Triage our Members Use START Take immediate action Partner with your FBC 11
12 Simple Triage And Response Treatment TODAY!!! 12
13 TRIAGE Report Suite 3 Focuses on a 8 ½ x 11 sheet 2 levels = SR + AM 15 Drill-down reports: ALL ACTIONABLE Updated monthly through Compass
14 Introduction of Triage Report & Tools 14
15 Where is it? COMPASS 15
16 How to use it 16
17 Focus #1: Bleeding Members Triage identifies those Members with a sales decline of $5,000 Triage includes FRESH Lapsed Members with 0 sales in the last 12 months Triage assists you identify Pre-Lapsed Members (no purchase in 9-11 months) 17
18 Bleeding Members Bleeding Member Type Showroom Average # Showroom Average $ TOTAL 86 $1,200,000 >$20, $508,000 >$10,000 <$20, $368,000 18
19 Who are they? 19
20 Dash read & drill downs 20
21 Determining value Drive a stake into the 30% win-back >$20K = = $152,000 >$10K<$20K = = $110,000 Total win-back = $262,000 Does not include FRESH Lapsed Members (later) 21
22 Focus #1 Workshop 10 minutes Define value, goal point(s), milestone, resources & responsibility Use Triage Action Plan Worksheet 22
23 How to use it 23
24 Focus #2: New Members Focus on SIGNED vs. RECRUIT New View: Contribution & Frequency Previous View: Number & Conversion Two challenges: Convert Not Converted Drive next purchase(s) 24
25 Focus #2: New Members New Members Converted Not Converted * $416,000 $4,840 $155,000 11% of Sales 63% 63% = 32 additional Buying Members 25
26 Converted New Members: Sales Contribution Purchase TOTAL # of Members Total $ales $52,955 $65,015 $297, ,000 % of $ales 12% 16% 72% 100% Average Spend $1,961 $2,827 $9,312 4,700 26
27 To the Triage Report 27
28 Determining value Action Value calculation Total $s Boost ½ the 1 Purchase Members to next purchase Boost ½ the 2 Purchase Members to next purchase Move ½ of 3+ Purchase Members by 1 purchase Convert NOT 63% 13 x $1,961 $25, x $1,413 $15, X $2,328 $37, x $4,840 $155,000 Sub-TOTAL $233,000 (56%) Current contribution $416,000 TOTAL 11% to 16% $649,000 28
29 Focus #2 Workshop 10 minutes Define value, goal point(s), milestone, resources & responsibility Use Triage Action Plan Worksheet 29
30 Make a decision 30
31 Focus #3: Reactivating Lapsed Members 4 Categories of Lapsed Members 9-11 Months No Purchase (Pre-Lapsed) Months No Purchase Months No Purchase >36 Months No Purchase Our focus will be on FRESH Lapsed Members who have not purchased in months 31
32 Determining Value Lapsed Members Continue to Outpace New/Reactivated Members Utilizing the Triage Report The FRESH Members Represent Significant Sales Dollars to Your Showroom Average showroom has 38 recent/fresh lapsed members Average spend was $11,500/Member 32
33 Determining Value to YOUR Showroom Average Annual Purchases = $11,500 If Each Showroom re-activated 10 Lapsed Members by February 14, 2015 ~$115K increase in Annual Sales/Showroom ~$38,130 in incremental Gross Margin $$$$ 33
34 Tools and Resources Triage Report One on One Meetings with SRMs/AMs Field Business Consultant D&B Scrub Utilize report and develop task list for AMs for the next 45 days to reactivate 10 members Conduct weekly meetings to assign tasks and review action plans (One on One Agenda) Discuss plans and objectives with FBC in days Will cover those members that have not purchased in over 25 months 34
35 Focus #3 Workshop 10 minutes Define value, goal point(s), milestone, resources & responsibility Use Triage Action Plan Worksheet 35
36 Make a decision 36
37 Recap/Going Forward Action Plan Partner with your FBC 3 phases of triage 37
38 3 Phases of Triage Phase I Phase II Phase III Mobilize & QuickStrike January to mid-february Organize & Execute Mid-February to EO April Integrate, Measure & Modify May to EO June 38
39 Phased Triage Work to be done Phase I Phase II Phase III Tourniquet Bleeding Red Zone NMs Pre- & month Lapsed Members Bleeding under control New Member Sales % goal Working Lapsed Members daily Pursue Findings from Scrub Top 150/50 Diversification Plan underway NM $ales goal for Showroom Monthly maintenance 39
40 Goal points Triage Area Bleeding Members >$20K Bleeding Members FRESH Lapsed Goal point 30% Win Back >$20K 30% Win Back >$10K<$20K Win Back 10 in 1Q15 New Members Sales Contribution If <11% then 15% If 11% to 16% then 20% If 17% to 20% then 25% New Members Not Converted Present % of Conversion (e.g. Average SR 63%) New Members w/1 Purchase 50% to 2 nd Purchase 40
41 Act and act now Larry Ellison, cofounder & CEO of ORACLE Corporation, $37 billion computer technology company. Winner of the 2013 America s Cup. 41
42 Tell Us What You Think Take the Survey! Open the App Dashboard Click on Agenda Click on the Session Click Take Survey Agenda Breakout Session Take Survey
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