Business Goals: Building a Better Business
It’s a new year and everyone’s talking about their New Year’s resolution. You may have even set one for yourself or your family. But did you set one up for your business? Maybe you haven’t thought about goal setting in your business because you’re not sure what goal to set, how to measure the success of it and how to keep employees on board. In this blog post I will provide you two great business goals and discuss how you can measure the success of your goals within Evosus!
Basic Goal Setting For Pool, Spa and Hearth Businesses
First, let’s start with the basics. Have you ever heard of a KPI before? If not, that’s ok! KPI’s are a measurable value that demonstrates how effectively a company is achieving key business objectives. Basically, it’s a goal that can be measured to gauge success and Evosus is the tool you use to measure.
When thinking about what types of goals you want to set, you need to be consider your Key Performance Areas in your business. Key Performance Areas are the areas in your business that contribute to the overall success of the business, also known as a key business driver. Once you identify a Key Performance Area in your Pool, Spa or Hearth business, such as your service department, you’re ready to create a KPI.
Identifying Your Key Performance Area KPI’s (goals)
When choosing a KPI, make sure you identify how you can measure the success and ensure the goal drives your business forward, increasing your bottom line. There is no employee drive to achieve a KPI that ultimately cannot be measured for success or that cannot be acted upon to improve the business.
Since Service and Retail departments are Key Performance areas for many of you, I have included two KPI examples below that include the Key Performance Area, Key Performance Indicator (the goal), how to measure the success of the goal, and what action you could take depending on the KPI success or failure.
Example 1: Key Performance Area – Service Department
KPI/Goal: Increase billable service labor by X% year over year.
How to Measure: Run the Evosus Money Tree Report with a year over year comparison. Administration > Reports > Sales > Orders and Invoices > Evosus Money Tree.
Action to Be Taken: If you met or exceeded your goal try and pinpoint why. Was it weather? A new marketing initiative you tried? Was it due to better trained field technicians?
If you didn’t hit your goal ask yourself the same sort of questions. Did you break even from last year or did you actually sell less billable hours? Was this due to a lack of marketing efforts? Did staff bill appropriately? Do the field technicians need additional training?
Example 2: Key Performance Area – Retail Department
KPI/Goal: Have a 70% Water Test Conversion Rate. Meaning 70% of people who receive a free water test from us purchase items for their pool or spa before leaving the store.
How to Measure: Use the Evosus Water Test Performance Reports, available for dealers who use: ClearCare Expert by Arch, ALEX Millennium, Datamate by POOLCORP, or Waterlink by LaMotte. Go to Administration > Industry Integrations > Water Test Performance Reports.
TIP: You can run this report by salesperson too! ahhh!
Action to Be Taken: Check out the right side of the report where the Convert % is listed. If you notice a few salespeople who are consistently below a 70% conversion rate while another salesperson had a much better conversion rate, this may call for an employee training event! Have the employee who does a great job with converting water tests into real sales transactions help the rest of your team with some advice and guidance.
These are just two simple examples of KPI’s your pool and spa or hearth business can set up and measure within Evosus software. However, there are countless other key performance areas and indicators for you to work towards. To help get you started to a great 2019 we’ve collaborated with others and have put together an exciting webinar that is happening soon that covers the what, why, and how of KPI creation as well as specific goals you may want to keep in mind for your sales or service departments. This webinar includes a live demo inside the software, where we will show you the locations that help you set and track specific KPI’s.
Space is limited so register today! No matter what goals you set this next year, we wish you a fresh start and great success!