Latest / Results Driven / Episode 187: How One Sales Mistake Nearly Cost Us $200K a Month

Transcript

Episode 187: How One Sales Mistake Nearly Cost Us $200K a Month · Results Driven

• 0:00
  SPEAKER_00: So let's just say you have a pipe underneath your sink and you pour a gallon of water down the pipe.
• 0:04
  SPEAKER_00: If there was a bucket underneath, you should get a gallon of water into the bucket.
• 0:09
  SPEAKER_00: But if there is a leak, right, the first thing you're going to do is call a plumber.
• 0:13
  SPEAKER_00: The plumber is going to come out, and what they're not going to do is they're not going to take duct tape and duct tape the whole thing, hoping that they fix the problem, right?
• 0:23
  SPEAKER_00: That's what a lot of investors are doing right now.
• 0:25
  SPEAKER_00: If they have inconsistent deal flow week to week, month to month, they just guess.
• 0:42
  SPEAKER_00: I'm Tiffany High.
• 0:44
  SPEAKER_00: And I'm Josh High.
• 0:45
  SPEAKER_00: And this is the Results Driven Podcast, where we share proven strategies to build systems, master sales, grow your team, and create a self-sustaining business with predictable income.
• 0:56
  SPEAKER_00: Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset shifts you need to succeed.
• 1:05
  SPEAKER_00: Let's dive in.
• 1:16
  SPEAKER_00: And in the first week, we decided to survey some folks and ask them how they're tracking KPIs.
• 1:23
  SPEAKER_00: So what are you tracking now?
• 1:25
  SPEAKER_00: What is it telling you?
• 1:26
  SPEAKER_00: And what are you doing about it?
• 1:27
  SPEAKER_00: Because I quickly learned how many people in the industry are not tracking numbers.
• 1:32
  SPEAKER_00: And I thought that this was so critical.
• 1:34
  SPEAKER_00: I decided to create some KPI guides.
• 1:37
  SPEAKER_00: So I'm going to walk through some of them that I made for the community.
• 1:41
  SPEAKER_00: And if this sounds like something you're struggling with, I recommend you jump in.
• 1:46
  SPEAKER_00: It's only a couple hundred dollars a month.
• 1:49
  SPEAKER_00: And just learning this one individual topic will give you a hundred X ROI on your year.
• 1:56
  SPEAKER_00: And I can tell you one thing over the years is that if you are not tracking KPIs, you are 150% blowing money and you're losing deals and you're already cue right now.
• 2:08
  SPEAKER_00: And I would just want to show you why I say that.
• 2:11
  SPEAKER_00: All right.
• 2:12
  SPEAKER_00: So these are just some of the answers on one of our school posts.
• 2:15
  SPEAKER_00: Our community is hosted in school.
• 2:17
  SPEAKER_00: And the post was basically just saying, hey, what are you tracking?
• 2:20
  SPEAKER_00: What is it telling you?
• 2:21
  SPEAKER_00: And as you can see, like every single comment was like, no, I'm not tracking.
• 2:25
  SPEAKER_00: And so I wanted to just walk through, let's start with acquisitions, right?
• 2:30
  SPEAKER_00: Because why do we want to spend more money on marketing if we can't even convert every lead that comes in?
• 2:35
  SPEAKER_00: And so I'm not going to go through this whole guide.
• 2:37
  SPEAKER_00: By the way, this is inside the community.
• 2:39
  SPEAKER_00: So if you want it, you're welcome to go in there.
• 2:41
  SPEAKER_00: But ultimately, guys, think about this like a pipe.
• 2:44
  SPEAKER_00: And if you've seen me go over this before, I always give a comparison of like a plumber and a pipe.
• 2:50
  SPEAKER_00: So let's just say you have a pipe underneath your sink and you pour a gallon of water down the pipe.
• 2:55
  SPEAKER_00: If there was a bucket underneath, you should get a gallon of water into the bucket.
• 3:00
  SPEAKER_00: But if there is a leak, right, the first thing you're going to do is call a plumber.
• 3:04
  SPEAKER_00: The plumber is going to come out.
• 3:05
  SPEAKER_00: And what they're not going to do is they're not going to take duct tape and duct tape the whole thing, hoping that they fix the problem, right?
• 3:13
  SPEAKER_00: That's what a lot of investors are doing right now.
• 3:16
  SPEAKER_00: If they have inconsistent deal flow week to week, month to month, they just guess.
• 3:21
  SPEAKER_00: So they're like they blame a marketing channel, or they see that a friend or a guru in the industry is doing something else.
• 3:28
  SPEAKER_00: So they drop what they're doing, do the next thing.
• 3:30
  SPEAKER_00: And that's probably not even the problem.
• 3:34
  SPEAKER_00: And so ultimately the plumber will find the exact leak, what caused it, and fix that leak.
• 3:40
  SPEAKER_00: What's in really important when it comes to systems and processes is that you can track from left to right.
• 3:48
  SPEAKER_00: If you cannot do that, then there is no way that you are properly onboarding training or managing another human being.
• 3:56
  SPEAKER_00: Okay.
• 3:56
  SPEAKER_00: Because they need to be graded against a process.
• 4:00
  SPEAKER_00: So for example, a lot of times in the industry, we hear a lot of like one-man shows that can't seem to get out of their own way.
• 4:07
  SPEAKER_00: They're like, well, no one can close as good as me.
• 4:10
  SPEAKER_00: Or if I'm like, hey, what if I pulled your last 10 calls with sellers?
• 4:14
  SPEAKER_00: Would they all follow the exact same process?
• 4:17
  SPEAKER_00: If the answer is no, then this is not teachable or repeatable in order to grow a lean small team.
• 4:24
  SPEAKER_00: And a lot of people will say, Well, I don't know if I want a team.
• 4:28
  SPEAKER_00: Well, if you want to go on vacation and not be tied to your phone, or if you have kids and you don't want to miss their stuff, or you spend money on marketing and you don't want to miss a deal because you're out in the field or doing other things, you want at least one closer, right?
• 4:42
  SPEAKER_00: Because we need to have somebody dedicated to revenue.
• 4:46
  SPEAKER_00: Without revenue, we cannot fix the problems in our business with money.
• 4:50
  SPEAKER_00: Without consistent revenue, we tend to have anxiety attacks and panic.
• 4:53
  SPEAKER_00: We don't invest into the right things because our revenue is inconsistent.
• 4:57
  SPEAKER_00: So we need someone so focused on it.
• 4:59
  SPEAKER_00: And when we bring that human being on, we need to be able to onboard them, train them properly, track their metrics every day, and then hold them accountable based on numbers and not feelings.
• 5:10
  SPEAKER_00: And so inside of that pipeline, we have to go left to right.
• 5:13
  SPEAKER_00: So when the lead comes in, the first thing we do is dial it.
• 5:17
  SPEAKER_00: Then we either connect or we don't.
• 5:19
  SPEAKER_00: Then they either want to sell or they don't.
• 5:22
  SPEAKER_00: Then we either qualify them or process them out or we don't.
• 5:26
  SPEAKER_00: Then we make an offer or we don't.
• 5:27
  SPEAKER_00: And then we get a contract or we don't.
• 5:29
  SPEAKER_00: Those are like the most fundamental basic KPIs that we should be tracking from left to right.
• 5:35
  SPEAKER_00: Because a lot of times when someone's not performing, we blame the wrong things, where our metrics will tell us exactly what is off.
• 5:45
  SPEAKER_00: So obviously, you know what a dial is.
• 5:48
  SPEAKER_00: Connection is are they actually picking up the phone?
• 5:51
  SPEAKER_00: If you have a phone system, just be careful that they're not tracking like voicemails as connections because that's not a connection.
• 5:58
  SPEAKER_00: We track quality conversations.
• 6:00
  SPEAKER_00: Quality conversations for us is defined by they either want to sell or they don't, right?
• 6:06
  SPEAKER_00: Like someone might just be calling you from direct mail saying, take me off the list.
• 6:10
  SPEAKER_00: That's not a quality conversation.
• 6:11
  SPEAKER_00: A process call, some people call that qualification calls.
• 6:15
  SPEAKER_00: That's where we go through the entire like discovery and property condition, all that.
• 6:21
  SPEAKER_00: And then we either make an offer or we don't.
• 6:23
  SPEAKER_00: You guys know what an offer is, or making a verbal offer on price.
• 6:28
  SPEAKER_00: And then we either lock up the contract or we don't, right?
• 6:31
  SPEAKER_00: And there can be other metrics, but these ones are the most fundamental ones that drive to a behavior that is causing deal flow to be consistent or inconsistent.
• 6:41
  SPEAKER_00: So here is a PowerPoint that I did for a different presentation.
• 6:45
  SPEAKER_00: I thought I'd share some of the slides.
• 6:46
  SPEAKER_00: So this is what this looks like, right?
• 6:48
  SPEAKER_00: Here's the plumber example.
• 6:50
  SPEAKER_00: Lee comes in, we dial it, connect.
• 6:53
  SPEAKER_00: It's either they either want to sell or they don't.
• 6:55
  SPEAKER_00: We qualify them, we make an offer and we get a deal.
• 6:57
  SPEAKER_00: And the red line in between each one of these is what we will call a KPI.
• 7:02
  SPEAKER_00: So this is a dummy scorecard with dummy data, but this scorecard is also tracking left to right.
• 7:09
  SPEAKER_00: And the benchmark rates, again, this is dummy data, it's not our numbers, are up here on the left.
• 7:14
  SPEAKER_00: And then if the KPI is above or below it in a bad way or a good way, whatever, it's green, yellow, red.
• 7:21
  SPEAKER_00: So obviously, if it's red, we call that a red flag indicator.
• 7:26
  SPEAKER_00: So what happens is I'll give you an example.
• 7:30
  SPEAKER_00: We had a closer one time who was like one of our top closers, and for two weeks her performance tanked.
• 7:36
  SPEAKER_00: It used to be one of every two offers, and then it went from one of every two offers was a deal to one of six.
• 7:42
  SPEAKER_00: To put that into perspective, right?
• 7:44
  SPEAKER_00: So all these KPIs weren't off, just the offer to deal was.
• 7:48
  SPEAKER_00: So some owners who aren't tracking would blame the marketing channel or the person or something that has nothing to do with it, right?
• 7:57
  SPEAKER_00: And people are gonna have gaps, everyone's gonna have gaps in the business.
• 8:00
  SPEAKER_00: It's about finding them and closing them.
• 8:01
  SPEAKER_00: That doesn't mean the person sucks.
• 8:03
  SPEAKER_00: So we realized we followed what we call our six-step KPI framework when uh a KPI is off.
• 8:10
  SPEAKER_00: So step one is there's a red flag.
• 8:13
  SPEAKER_00: So the scorecard said red because she went from one of two to one of six.
• 8:17
  SPEAKER_00: By the way, guys, our average profit per deal is$25,000 a deal.
• 8:21
  SPEAKER_00: So that's two deals a week based on KPIs that she should have been getting.
• 8:26
  SPEAKER_00: That's$50,000 a week,$200,000 a month that that KPI is worth to me to fix the KPI and have the skill set to one track it, identify it, and fix it.
• 8:39
  SPEAKER_00: Okay, that's how important this is for you guys.
• 8:41
  SPEAKER_00: And if you guys don't have this down, I really recommend you jump into our growth track community.
• 8:48
  SPEAKER_00: And I'll put the link in the description because this alone is costing you a lot of money to not understand.
• 8:54
  SPEAKER_00: Okay.
• 8:55
  SPEAKER_00: So we saw that it was a red flag.
• 8:57
  SPEAKER_00: Step two of our six-step KPI audit is we go to the CRM, we pull all of the calls she made offers on that did not get accepted, and we audit them.
• 9:07
  SPEAKER_00: Now we used to physically audit all of these.
• 9:10
  SPEAKER_00: We developed an AI bot that does at least the first reference of seeing if it sees a common trend.
• 9:16
  SPEAKER_00: But in this example, we actually listened to all of those individually and did our KPR call audit review.
• 9:22
  SPEAKER_00: So we did a report and we realized that the ones that did not get accepted over the two weeks all had the exact same problem.
• 9:31
  SPEAKER_00: She wasn't overcoming one specific type of objection and just needed training to get back on track with that.
• 9:37
  SPEAKER_00: So once we identified that, we also did manager follow-ups and brought back a couple of those deals to life.
• 9:43
  SPEAKER_00: We have a whole process for manager follow-up.
• 9:45
  SPEAKER_00: And then what we decided to do is we diagnosed what the problem was and we created a training plan to role-play and teach her that objection for 14 days straight and gave her an expectation that she had to be back on track within 14 days.
• 10:00
  SPEAKER_00: And she was.
• 10:01
  SPEAKER_00: So after diagnosing it, creating a plan, and executing on that plan, we took her from one of six back to one of two.
• 10:07
  SPEAKER_00: Guys, that is how powerful tracking these KPIs are.
• 10:11
  SPEAKER_00: Now, when one of these KPIs is off, it's really important to understand what do I look at first?
• 10:18
  SPEAKER_00: And so this guide walks through each one of those KPIs and says, hey, if this is off, here's the SOP to look at.
• 10:25
  SPEAKER_00: And I'll just give you a couple of examples, right?
• 10:28
  SPEAKER_00: The first one, if we dial and our connection rate is low, we need to do what?
• 10:34
  SPEAKER_00: Right?
• 10:34
  SPEAKER_00: We need to look at the data integrity.
• 10:36
  SPEAKER_00: Do we have a bad list, an outdated list?
• 10:38
  SPEAKER_00: Is it the wrong targeting?
• 10:40
  SPEAKER_00: We need to look at our number health.
• 10:41
  SPEAKER_00: We need to verify did our number get spammed?
• 10:44
  SPEAKER_00: Do we need to rotate the phone number?
• 10:46
  SPEAKER_00: Is it anything inside of our dialer settings or quality of the dialer?
• 10:51
  SPEAKER_00: Timing, right?
• 10:52
  SPEAKER_00: Is are we noticing that that's happening like at 9 a.m.
• 10:55
  SPEAKER_00: or at 6 p.m.?
• 10:56
  SPEAKER_00: Maybe it's a timing of the day thing and we need to review over the course of a week and verify that.
• 11:02
  SPEAKER_00: Is it a compliance issue?
• 11:03
  SPEAKER_00: Like, did our numbers start getting blocked within the iPhone with all their new settings?
• 11:09
  SPEAKER_00: Or is it like a closer's behavior?
• 11:11
  SPEAKER_00: Is it how they're dialing, when they're dialing?
• 11:15
  SPEAKER_00: Are they not following some type of process, etc.?
• 11:18
  SPEAKER_00: Another one that's not on here is skip tracing.
• 11:20
  SPEAKER_00: We see this as an ongoing trend.
• 11:22
  SPEAKER_00: Maybe we've recently changed skip tracers.
• 11:25
  SPEAKER_00: Maybe, yeah, like there's a whole SOP of checklists, right?
• 11:29
  SPEAKER_00: And then every one of those metrics has an SOP just like this.
• 11:34
  SPEAKER_00: And we review that in all of these metrics.
• 11:37
  SPEAKER_00: Okay.
• 11:38
  SPEAKER_00: We also give you a formula for each of them so that you can understand the benchmarks and whatnot.
• 11:45
  SPEAKER_00: But, anyways, I wanted to jump on.
• 11:47
  SPEAKER_00: I'm going to do another video on marketing KPIs.
• 11:49
  SPEAKER_00: And if you guys want me to spend more time around these KPIs, can you do me a favor?
• 11:55
  SPEAKER_00: Jump into our free community and just let me know.
• 11:57
  SPEAKER_00: I'll try to go through every single metric on different videos if you want, because it's really important to understand how to fix these metrics when you have them.
• 12:06
  SPEAKER_00: And again, we just launched group coaching and growth track.
• 12:09
  SPEAKER_00: Guys, the first hundred people are$197 a month.
• 12:11
  SPEAKER_00: And then the price is inching up a bit.
• 12:14
  SPEAKER_00: We do two live classes every week on Tuesdays, Thursdays.
• 12:18
  SPEAKER_00: We also have an onboarding and an entire classroom of all of our onboardings, our foundations, our scorecards, calculators, underwriting, rehabbing, raising money, you name it.
• 12:30
  SPEAKER_00: We teach it inside of this community for less than your dinner tonight, right?
• 12:34
  SPEAKER_00: So until next time, I plan to make a marketing KPI one too.
• 12:38
  SPEAKER_00: So be on the lookout for that.
• 12:41
  SPEAKER_00: This episode has come to an end, but your journey continues.
• 12:45
  SPEAKER_00: Subscribe to the podcast so you never miss an episode.
• 12:48
  SPEAKER_00: If you want direct help from us, join our free community by visiting the results driven podcast.com.
• 12:54
  SPEAKER_00: That's the results driven podcast dot com.
• 12:58
  SPEAKER_00: We'll see you next time on the results driven podcast.
• 13:01
  SPEAKER_00: We'll see you next time on the results driven podcast.