A.R.C.U.SEarly-Season Revenue generation

ClientInterest TimeframeBased On Web Leads

We Want To Improve Efficiency Here

What We See…Example: 10,000 post cards or doorhangers• Response Rate 50-100% greater on Nov. 7

versus October 7.• Mailing/distribution costs are the same

We must begin generating revenue, but money is best-spent during peak times!

YOU CAN’T WAIT!

Today’s Consumer Is On Their Own Timeline, and Makes Decisions Based On THEIR NEEDS, Not Yours!

Seasonal?Not Any More!» Best Practices» Customer Behavior» Outside Forces

For Best Results, Christmas Decor must be recognized as a business that requires year-round activity!

What Are We Facing?» Veteran Franchises

˃ Diminishing Returns On Marketing˃ Less “Low-Hanging Fruit”

» Market Changes˃ More Options˃ Consumer Comfort˃ Ambiguity

EmbracingThe Changes» Adding Revenue & Profit vs. Adding Clients

» Heading Losses Off At The Pass˃ Timing Is Everything˃ Become Less Dependent On New˃ Protecting Your Client Base

+ From Competitors+ From Service Issues

A.R.C.U.S» Represents A Change Of Mindset» A System Of Best Practices» ESPECIALLY Effective For Veterans

CAPITALIZING ON OPPORTUNITY!

The Problem,At A Glance» $200,000 Franchise» 65% Retention

THIS FRANCHISE MUST REPLACE $70K IN LOST CLIENTS EVERY YEAR!

A.R.C.U.SA.R.C.U.S give you steps and considerations to follow to ‘get ahead’ of non-renewals, competitors, lost revenue,

and peak-season stress.It takes the devotion of time, money and other resources at a time of year you are not used to.

Assessment

Retention

Cross Selling

Upselling

Salvaging

Assessment» The First Step» Face Reality

˃ Evaluate where you are as a company˃ What you REALLY are willing to do˃ If you can’t/won’t, don’t, but don’t expect a result

AssessmentThe Questions:1. Have I been aggressive in my revenue generation

efforts in the past?a. Have I effectively targeted key neighborhoods with my lead generation

activity?b. How long have I done it?c. Do I still have untapped areas?

AssessmentThe Questions:2. Is my market familiar with me as a holiday decorating company?

2a. Is my market familiar/comfortable with the concept of hiring a professional?

AssessmentThe Questions:3. Am I willing/able to devote the necessary time / money / focus to my Christmas Decor business throughout the year?

AssessmentObjective

Determine how effective peak season efforts will beDetermine market receptiveness/auxiliary tacticsDetermine the possibility/effectiveness of A.R.C.U.S efforts

RetentionIt’s Important Enough For The Effort!» Why People Leave» Timing» Touches=Retention» You Can Impact Your Number» There Are Tools To Use

RetentionKey Service Components» ANNUAL Consultation-earlier the better» Follow Up After Install» Proactive Service Visits (2 is best)» Incentives for Add-Ons» Follow Up After Takedowns» Custom Design/Install» Service Included» Clean Up After Removal (Spring, If Necessary)

RetentionExecution of Key Service Components

3 Or Fewer 4 5 6 7 to 90%

10%

20%

30%

40%

50%

60%

70%

80%

90%

52% 56%62%

75%

85%

Retention Tools» Service Commitment Checklist

˃ Guide Your Service˃ Quantify The Experience˃ Promise

Retention Tools» Early Renewals

˃ Beat competition to the punch˃ Address service issues˃ Save Time During Peak Season

Retention Tools» Client Life Cycle

˃ Schedule of Annual Contacts˃ Outlines Client ‘Touches˃ Training

Retention Tools» Service Door Hanger

˃ Proof of Visit˃ Quantifies Service˃ Referral Card

Cross Selling» Often Overlooked» Sales Presentations BEFORE Busy Season» Works Both Ways (CD to Core, Core to CD)» Ignore The Myths - Clients Want To Know

Cross Selling» Incorporate CD into core business sales

˃ Trifolds

» Identify Clients who ‘fit the profile’» CALL THEM

˃ Script

» Mail Them˃ Free Rider

» Ask for referrals˃ Scratch Off Cards

Cross SellingService Tri-fold» Present at core business sales calls

Cross Selling1/3 Page Free Rider» Insert In All Billing Statements

Cross SellingReferral Scratch Off Card» Serves as a reminder (for you and them)» Makes it easy for client

Cross SellingCD Gift Card» Special Incentive For Crossover

Upselling» Only 10% Max Out» Opportunity To ‘Touch’ Client

˃ Get Early Commitments˃ Reinforce Service

» Profitable Revenue˃ Not Just Core Items

Upselling» Set Appointments

˃ When Experience Is Fresh˃ Get In Front Of Them˃ Incentives

» Work From Last Year’s Proposal» Don’t Expect 100%

˃ 15% Is A HUGE Win

» Show Them Their Options

Salvaging» Why Did They Leave?

˃ Calls or at non-renewal˃ Condition Versus Objection

SalvagingUnclosed Proposals» 48%, on average

Expectation: 3-12%

Non-renewed Clients• 28%, annually

Expectation: 2-5%

Phone CallsMailingLetterFlyer

ProposalGift Card

Salvaging» Salvage Letter

˃ Invites them back˃ Offers Incentive

SalvagingCD Gift Card» Extra ‘nudge’

Case Study2012 SeasonSample Franchisee» Franchisee since 2003» $162,000 in Gross Residential Sales» 132 Residential Clients» $1,227 Average Residential Sale» Historic Retention Rate: 62%» 520 clients, Just over $500K Core Business

Case Study2012 SeasonAssessment» Sent Out Renewals In September» Moderately Aggressive With Lead Generation» Two Formidable Competitors, Several Others» Frustrated With Results, Diminished Returns» Frustrated With Lack Of Growth» Spent Marketing Budget Getting Back To Prior Year’s

Numbers» Willing To Change

Case Study2012 SeasonAssessment» Market Somewhat Familiar With Him» Market In-Tune With Holiday Decorating» 20% Of Territory Untouched

Case Study2012 SeasonRetention» Goal - To Get Retention Rate To Average» Implemented Service Commitment Checklist» Tried To Execute All Areas, About 60% Effective in his

assessment» Began Calling Clients in Feb. 2012 for Renewals

Case Study2012 SeasonCross Selling» Identified 120 Landscape Clients To Call» Called Between February and June 2012» Offered $100 Gift Card» Presented CD Trifold During Spring Sales Calls

Case Study2012 SeasonUp Selling» Began Calling Clients In February, soliciting for early

renewals» Attempted to set appointments» Focus On Items Not Selected Previous Year» Asked For Referrals From Clients

Case Study2012 SeasonSalvaging» Mailed approximately 250 letters to unclosed

prospects, some were 4 years old» Mailed approximately 150 letters to non-renewed

clients» Made NO phone calls» Included $50 CD Gift Card

Case Study2012 SeasonResults

Retention - Improved retention to 68%, a difference of $9,720.Cross Sales - Closed 6 sales for $8,130 in revenue, received 5 referrals, closed 4 for $4,900Upselling - 26 clients added $157 avg, for $4,100Salvaging - closed 9 clients for $10,197

Case Study2012 SeasonResults

Added or Kept $37,047 by Oct. 15Within $25K of 2011 total by Oct. 15 (committed)

Gained Extended Results From Budget - Added Almost $50K to 2011 totalFinal 2012 Sales over $240K

Update» Improved Retention to 73%» Cross Sales - 9 clients for $11,944» Upsells - $3,900» Salvaged 8 more clients for $7,200» Reported Over $285K in Sales