In any business, income is key. You want to establish goals that foster high growth. Not only does this enhance opportunities for your company and employees, but it also enhances your reputation and customer service. These seven tips will help you to increase revenue and profitability for your pest control company.
Improving Your Business With The Right Goals
Generating revenue and profit for your pest control business requires understanding key areas that need fine-tuning. Investing time in the following components can set you on the road to achieving the right results.
1. Fostering A Customer-Centric Business Through Word-Of-Mouth
As you have probably heard many times, the customer is king. Roughly 84 percent of companies that work to improve their customer experience report an increase in their revenue. Moreover, 96 percent of customers have said that customer service is important in their choice of loyalty to a brand.
For any changes or updates, you incorporate, think about how they will affect your customers. Will these changes improve the quality of their life and will they stay loyal to your business? You want to make sure that your services foster customer retention. Greater retention will increase your revenue and help optimize your profits.
Incorporating customer reviews is another way to boost revenue. According to research, 93 percent of consumers have expressed that online reviews influence their purchasing decision. When you invest time and effort in customer experience, it can lead to word-of-mouth referrals, which can lead to more business. This is a cheaper way to retain business than seeking out new opportunities.
Business software today often provides simple and efficient features such as review tools that encourage customers to leave reviews and provide real-time feedback. It also offers you the opportunity to filter their positive reviews into your social platforms. Not only does this help initiate and maintain a healthy feedback loop between the company and customers, but it provides opportunities to look for ways to enhance your services and maintain a positive reputation.
Another great way to utilize word-of-mouth marketing is through referral discounts. Research has shown that 92 percent of consumers trust referrals from people they know. Referrals produce higher conversion rates and revenues. In fact, companies with referral programs experienced 86 percent more revenue growth over the past two years. Incentives provide a great way to sustain loyalty among your customers. Your loyal customers are crucial to maximizing your business.
2. Embrace New Technology
Many businesses are often afraid to transition to using new technology. It can be scary, and it may be a challenging adjustment at first. But, once things start to move along, updated technology can produce compelling results.
Many companies have incorporated new technology into their services that have increased profitability and revenues. As revenue increases, IT budgets often increase with them. One of the top factors that have led to an IT budget increase in 2020 has been due to business revenue increases.
When it comes to choosing digital tools, it’s important to not simply focus on how much extra money you generate through technology, but also on how the specific tool will affect employee morale and productivity. In a survey, more than half of the respondents expressed that technology makes companies better, yet only 48 percent said they are aware of their company’s digital transformation strategy.
As a business leader, you must seek out employee feedback on their workflow needs—what is currently inhibiting efficiency among teams, and what kinds of tools do they need? Encourage your employees to share their thoughts when it comes to integrating the right technologies. These tools can garner efficiency, communication, and collaboration, which in turn can help generate revenue and profit. After all, incorporating new technology can bring better productivity and work-life balance to businesses.
3. Improve Billing Methods
The digital age that we live in has brought rapid advancements to the way we execute and process transactions. Businesses must keep up with these tides to increase profitability.
MONTHLY SUBSCRIPTION SERVICES
Offering a monthly subscription has several benefits such as fewer customer cancellations, more revenue, and fewer issues with payment collections. You can offer different tier levels of subscriptions that involve various types of services (home interior/exterior, treatment types, frequency of inspections, etc.).
Several pest control companies still accept checks as payment for their services. Initiate a paperless billing route by implementing autopay into your business. Autopay provides the following benefits:
- It reduces late or delayed payments from customers (which also decreases the potential for debt).
- It makes customers’ lives easier by saving time and not having to purchase checks and stamps.
- Since a lot of energy and resources go into paper production, printing, handling, and delivery, providing autopay services reduce expenses on paper bills/notices.
- It saves your company time to focus on other aspects of your business.
In a survey of 2,500 consumers, 56 percent of their bills are paid online via a biller, bank, or third-party website. As the way we spend money is changing, businesses must keep up with these methods to provide convenient services to customers.
4. Frequent Employee Syncs
Your employees are the heart and soul of your pest control business. As a business leader, it’s crucial that you connect with them by understanding their day-to-day workflow through in-person interactions. For example, check-in with your staff daily to see if there are any issues that may be delaying productivity and their goals.
It’s also a good idea to train your employees to be more customer-focused. This will encourage them to foster connections and create opportunities to generate more business.
For your onsite technicians, go out on the field with them. Encourage your team to take advantage of the facetime they get by taking time to understand customers’ needs and concerns. This can potentially bring the chance to sell them another service. Perhaps you can offer bundling services to maximize your revenue and profit potential.
5. Establish A Schedule For Price Increases
To stay competitive and consistently improve your business, you should execute annual price adjustments for your services. Things such as inflation, utilities, insurance, and other business expenses increase. As operating costs rise, companies need to keep up with current profit margins.
Though you might be concerned that you may lose customers, by promising better quality with higher prices, this can be mitigated. Quality matters and 68 percent of consumers are willing to pay up to 15% more for the same product or service if assured they will have a better experience.
6. Financial Goals And Reviews
You must keep up-to-date on your financial status. Consistent monitoring will help you alleviate issues quickly and maintain an overall healthy business.
REGULAR FINANCIAL REVIEWS
It’s important to remember that profit does not necessarily equate to cash or revenue. While revenue is the amount of income generated through the sales of your services, profit is the amount of remaining income after all expenses and debts are taken into account.
Hold quarterly or annual meetings to analyze the progress of sales goals, revenues, and profits. Use these sessions to figure out how much profit was gained and what areas you may want to invest less or more in the next quarter or year. Not only will this help you stay on track, but also you and your team will be accountable for each other and the business.
MONTHLY SALES GOALS
Goals drive productivity and growth. Be sure to establish realistic sales goals each month with your employees. Each goal should come with specific milestones that will help the team stay on track. This keeps everyone accountable for their goals and allows you and your team to stay consistently focused on marketing.
7. Eliminate Bad Debt
It’s important to note that not all debt is bad—there is good debt and bad debt. Good debt is an investment that allows your business to develop long-term growth. Bad debt is debt that cannot be repaid, like borrowing money to purchase depreciating assets.
Delayed customer payments also create bad debt. It’s important to catch this debt early and collect the money owed before collection gets lost in other operations of your company. You want to properly track these payments to take the right action.
Establish a reliable process to reduce bad debt, such as:
- Training your employees to be part of the invoice dialogue; have them follow up frequently to alleviate money issues quickly.
- Incorporating autopay to lessen payment delays and/or slow-paying customers.
- Hiring a debt collection agency. There are debt collection agencies specifically for the pest control industry that assist with recovering money from past-due accounts. They can help you reduce delayed payments, reduce bad debt, and improve cash flow.
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Improving Your Business Takes Time And Patience
Increasing revenue and profitability is a gradual process that requires time, effort, and patience. Remember to think of ways to leverage customer and employee loyalty to power your business. By incorporating these key components into your company, you’ll carve out a more promising and profitable journey.
See What The Right Tools Can Do For You
Briostack understands that building a successful company requires using the right tools to conduct business among employees and customers. We supply pest control businesses with easy-to-use software that will help drive revenue and profits. Learn more by requesting a free demo to see how you can work smarter and more efficiently.