While some may understand the importance of a structured sales program, others may not know how crucial sales can be to the success of a company, let alone the value of a structured program. Generating leads can be frustrating, and when the leads aren't being contacted, they can easily fall through the cracks. This was our challenge with PropertyADVANTAGE.
PropertyADVANTAGE is a property management company based in San Diego that focuses on residential property management and Homeowner Association or HOA management. Founded in 2007, the PropertyADVANTAGE team have been consistent in their business, but failed to grow much farther than just word of mouth referrals. The company decided, in 2015, it really needed help if they wanted to grow, so they contacted us.
The 41 Orange team was brought in to help the company figure out how to grow its business without relying on purchasing contracts. With a well-researched inbound marketing strategy and a tailored sales program, 41 Orange was able to help PropertyADVANTAGE achieve a 319 percent ROI by the end of the first year, projecting a 1,089 percent ROI by year two. However, the success wasn't easy to achieve. To learn more about our challenges and how we manage to grow the company despite those challenges, read on.
One of the biggest challenges we had to overcome was convincing our client that investing in a dedicated sales process was a worthwhile effort. Up until we met, Jim Mott, the CFO of PropertyADVANTAGE, didn't have a dedicated sales team or member working to help convert the leads. Instead, its COO was working leads only when she had the opportunity to get to them.
They were having trouble figuring out why they weren’t growing and they brought us in to help. At this time, their business was completely stagnant and wasn’t growing at all. They were receiving only two leads a month -- with no conversion.
Their goal was simple: to grow PropertyADVANTAGE aggressively.
Thinking Outside the Box
By analyzing their current Close Rate, at that time, the average value of each of their deals, and the lifetime value of a customer: we came up with a monthly target of 10 new customers per month.
Generate 25 qualified sales leads per month to generate 10 new clients per month by month 3.
We knew that inbound marketing would be the easiest and most cost -effective route to generate new and qualified leads. We used HubSpot’s marketing tool to help us create:
- Tailored Customer Personas
- Search Engine Optimized (SEO) Blog Content
- Regularly Scheduled Social Media Content
- Landing Pages
- Nurturing Workflows
But there was a problem. Approximately two months into our program, we were getting leads—and they were good leads—but the only person to handle them was the current COO, who was way too busy to handle them in a way that could guarantee conversion. Dozens of qualified prospects were falling through the cracks without getting called...
Our new problem:
How do we prove that creating a sales program is worthwhile when none of the leads we're generating closed?
We encouraged the client to hire a dedicated staff member to work the leads we generated through inbound marketing. We needed someone actively calling and following up with leads to make sure that no one went unnoticed by staff. And that’s when we went from simply running an inbound marketing program to being hands-on 'sales enablement coaches,' despite only being contracted to help implement their marketing campaign.
Discovering that we were missing a key component to our pipeline threw a wrench into our initial goals. But we didn’t let that get us down! We knew that the best way to close leads was to train our new property manager turned salesperson into the best salesperson they could be with the tools we had available, namely HubSpot Sales & Marketing.
- Created Cohesive Inbound Marketing Strategy
- Trained New Candidate for HubSpot Sales & HubSpot CRM
- Researched Competitors
- Implemented 10 Touch 20 Workflow
Step 1: Prove the Value
After we had conducted research, and created a full inbound marketing strategy—including personas, content strategy, promotion strategy and nurturing workflows— we needed a sales strategy and process to close leads more effectively.
Based on market research, we discovered that the average property management company’s Close Rate was approximately 12 percent. At this point in time, our client wasn’t closing any deals, so we needed to prove the benefit of having a dedicated sales person.
If we could start closing leads, even at a mediocre close rate, we’d start bringing in revenue immediately.
Step 2: Evaluate the Competition
To backup our research, we went through the sales process of their major competitors, as a fake potential client, to compare their sales strategies. We found that out of 10 different local property management companies, six of the companies contacted us personally, and four of them we never heard from. We used this research to help further our sales strategy for our client.
Step 3: Set Up a Repeatable Sales Process
We knew HubSpot would be the cornerstone technology of this project. With the integrated sales and marketing dashboards, we were able to show PropertyADVANTAGE how to use the 'sales deal dashboard; and established a protocol for moving leads through the sales funnel, while simultaneously using the marketing workflows to nurture leads which may be less qualified.
The 'deals dashboard' became our go-to tool within HubSpot to understand how sales were moving. We kept track of the source of every lead and provided a breakdown each month on what was on the board, how much money was in the pipeline and where these leads came from.
Once we knew we could easily beat out the competition by simply being the fastest one to reach out ,as well as the most comprehensive with the info we provide, we decided to use HubSpot workflows to setup an internal follow-up process.
Our strategy was to implement a 10 Touch 20 workflow for every new lead. This means that every lead would receive at least 10 different messages within the first 20 days of them coming into contact with our client. This workflow is set into motion from the moment someone becomes a marketing qualified lead (MQL). As time goes on, the workflow assigns tasks to our designated sales person to follow-up. We also set up templates in HubSpot, so that their salesperson could have easy access to canned responses to leads. Once that potential lead becomes an opportunity, they graduate from the workflow.
We worked with their newly appointed salesperson on how to recognize and work leads, including setting up templates for her to use for future leads. By implementing a cohesive sales program, training a dedicated salesperson, and implementing a cohesive inbound marketing campaign, we were able to ensure that good, qualified leads didn’t fall through the cracks again.
By our first month of having both a functioning inbound marketing funnel and a well-tailored sales program, we were able to prove to the client the amount of growth they’ve achieved. After the first month, we generated $2,261.50 in monthly recurring revenue (MRR) from inbound marketing alone. By the end of the sixth month, this revenue grew exponentially to $11,080.50 MRR ,with the help of our inbound marketing strategy and our dedicated sales program.
Total Recurring Revenues from Inbound
Our client began without a dedictated invdividual focusing solely on sales and, therefore, missing out on two months of us helping them generate leads quickly transforming to an impressive 67 percent Close Rate!
By the end of our first year of working together, we helped our client generate $256,415.20 in revenue. By the end of the second year, they are projected to generate $637,881.80 for a grand total of $895,297 since we started with them.
- $2,261 in recurring revenue by Month 1
- $11,080.50 in recurring revenue by Month 6
- 319% ROI by Month 12
- 1089% ROI by Month 24
This project was a big challenge for us, mainly because there were several gaps in both marketing and sales affecting PropertyADVANTAGE’s growth, yet we managed to help them find and tie off all of those loose ends.
When we started with this client, they were losing 10 percent of their customers every year, and now they’re growing exponentially. After laying the groundwork for their newly appointed salesperson, they now have the means to teach future sales people its process and expand into new, local markets.
In addition to helping them achieve accelerated growth, we were able to prove to them the importance of marketing, and show them exactly where to invest their marketing budget.
41 Orange will be assisting PropertyADVANTAGE in expanding the existing marketing campaign to increase revenue even more in 2017.
If you're interested in achieving this kind of growth for your business, request a consultation with us: