HubSpot Reports Every Roofing Company Needs to Hit $670,000 Monthly Run Rate

Foreign, You have three metrics to track. You have the volume of things you want, you have the percentage rate in which you want to get them, and you have the delta of time in which you may want to make them. Said another way, revenue is vanity, profit, sanity, and cash flow is reality. Right? We all understand that there's a volume, I want to make $10 million, but really you want a percentage which is 40% gross profit. You want to make $4 million gross profit. But if it takes you two years to get the work, but you have you pay your overhead costs, well, then the cash flow is a reality. So it's the delta of time, right? There's the volume, amount of money you want to make, the percentage, the actual profit you want to make, and then the delta of time, how fast you want to make it, you have. So once you've got the metrics to track this, then you can measure it and improve it. So service level objectives are essentially saying, okay, we want to do something in a certain amount of time. Because yes, part of the customer experience is the time. Who, who here in the room has ever had a sales rep lose a deal because they didn't get the quote to the customer in time? But customers will say, hey, I never got my quote. And that should almost never be the thing. The customer should not be pursuing us to pursue them for the business should never happen. So what they want to do is track the time. So there's two pieces of information that need to be known, which is that there's the inspection date, right? So the minute the deal moves into the inspection completed, which is triggered by the completion of a task in arriving, right? Is how we do it, right? You can do it however you want. You have your own CRM, you can track this however you want. But we basically say we don't want a person to do a thing and then also have to say they did a thing. That's part of our design philosophy behind CRMs is that if you do a thing, you shouldn't have to check a box saying you did a thing, you should just have the box checked because you did the thing. So when the inspection is complete, we finish it in arrive, we complete that task, it goes back to HubSpot and moves the deal to inspection complete. Well, then we track the time that that happened. Then the same thing when we complete a sumo quote and send it to the customer, then it moves the deal from insp complete to contract sent and we mark the time that that happens and we measure the delta of time between those Two things. And we set a goal, right? So we measure this in seconds. We use something called UNIX timestamps. So when we say okay, we have a goal, if the time is exceeded past the goal, we give that deal a score of negative one if we adhere to it. So if we come in under the time, it gets a score of positive one. So then we say, all the deals that these salespeople did in the last 30 days, what is their average score? And we basically anchor it around zero. And so these guys were failing most of the time because most of them were like half, half, half half the time. This guy's all the time. But if this guy has never followed the process properly and just skips from inspection complete to job sold and never moves it to contract sent because he's manually sending the sumo quote by downloading the PDF and emailing it, this won't work. And I've seen this happen, right? It's like, well, the reports aren't working. It works just fine. Your people aren't working. And so then, but what this allows us to do is say, okay, then we can say, how do we get this faster? How do we get this to happen faster? In this particular company, the building standards of their market are very, have a huge variance, right? They've got like ratchet old houses that would be condemned by most people's standards. And then you have like mansions, right? Like absolutely beautiful mansions. Well, the ratchet houses have toxic paint. They have roof deck that's made from sugar cane that's got asbestos in it, right? And then the mansions have flat roofs that have slope roofs that have tile roofs that metal on them. Like they have all these different things. So the time to get people their quote was high. And so what a lot of companies in their market do is just do their best guess and change, order the hell out of them. And so what this company suffice to do is said, no, we don't want to do that. But they hired estimators and those estimates, all they do is listen to Joe Rogan and pound out sumo quotes all day. Like if you hope you like my sound effects. But what that allowed them to do is say, hey, we, we're not going to give any change orders over 5% or 2% of the deal or something like that. So then what they're able to do is say, hey, we're going to give you a super accurate quote, but it's going to come within six hours. And that's the service level objective that they set. And then they realize that they could get more predictability. The names are blurred out. They can get more predictability in that from there. So then they had to say, okay, we have an extra step which is where we gather the estimating assets and send those assets up to the estimating department. So then when we did that, again, same thing. If it's over time or under time, they get a negative score. Well, 100% of the people were above zero on this. So once we implemented that, the time to estimating was faster and the time to quote given was faster and they were all, they were hitting their goals and the way that they measured this effectiveness, because again, it only matters to the eye of the customer, was on that same dashboard. If we look at the top on that same dashboard, they, they measure every step, but they have feedback surveys. So they look at what is our average score and what is the volume of feedbacks that we get. Green is good, yellow is average, red was bad. So they got 29. They had a bunch of these that were good or bad. But then they're able to say, okay, well our score went down, we did this, it went up and then it went back and kind of settled. Right. But they're, they continuously are trying to improve this every single month using their service level objectives. But again, none of it works if we don't follow the process. I got 20 different reports I could show. I got to know where to jump from. What is their qualification rate? Right. The rate at which marketing qualified leads come in. And those are actually sales qualified. They book an appointment for them. This was 91.4%. The nice thing about HubSpot reports is that you can use AI to generate a summary of what this report is. So it just makes it a little bit easier to like know what these reports mean. But then, yes, we can break that down by inside sales to see is somebody doing anything better? Because sometimes you want to know, like do we need to take somebody out behind the woodshed or is there somebody in the company who's doing a great job and we want them, we don't feel what are they doing? And a great example of that comes on this next one, which is where we looked at the close rate individually of our sales team. So we had 1%, 40, 36, 29, 29, 25, 22, 18. Well, what's going on with this person that's at 18, right. Does that person need to be brought up behind the woodshed? Well, remember, we got to go, Rex. Results come from effort, knowledge and skills. So were they putting in the effort Right. So how do we measure effort? We look at, are they doing their post inspection call? Do they have a 70% of their photos annotated? Did they arrive most of the time on time or were they late? And if they're late, are they still leaving on time? So are they skipping steps and going too fast? What does our follow up look like? What does their role play? See what their presentation looks like. Right. How is their presentation? Because then we can determine do they have the knowledge and has those knowledge turned into skills? Right. Because if you ask them a question they might. Do you know you're supposed to annotate 70% of your photos? Yep. Do you know why JF is a good alternative to an Owens Corning even though the Owens Corning has a Chernell strip? Yes. Okay, how do you explain that? And that's a skill. So results come from effort, knowledge and skills. Start at effort, then check knowledge, then check skills. And if they can't be fixed, then yes, take them behind the woodshed because they're just not, they don't care. And there's got to be a reason for that. But yes, this can get broken down. So I'm going to jump through a few reports because this is commercial, this is their year to date. Ah, this is something nice about reporting is that when you're looking at reporting it's not enough to just see the counts of things. One thing that drives us a little crazy about some CRMs is the reporting is the inability to click on something and look at it. What we like about HubSpot is the ability to say, oh, we got six commercial leads. That was pretty low. Why is it low? And is there anything good in those leads? Like is there a big volume deal? So then we can click on that and drill down and go look at more of it and see the actual leads that came in and see what happened with them. So skip through a couple more. The other thing is, yes, goal attainment, being able to set goals. Right. And build towards those goals. Right. And understand where you are relative to those goals at over time. Another thing is being able to split your close rate out by lead source. Right. So you can see here, we can highlight over this and we can see the revenue generated from each of these lead sources but then also see the close rate by lead source. Now this only matters again if we follow the process because the close rate is determined by the. This deal has a close rate of zero. When it goes to this stage it has a close rate of 1. And when it's signed the Sumo Quote sends back the signature date. So then we can filter by the amount that's put in from Sumo Quote the close rate moving from 0 to 1 and then the date when that sold date happened, and then being able to say, okay, those deals were signed and sold on this date. But we also have to have the lead source filled out and has to be accurate, right? Some of those are human efforts, some of those come through from the marketing channels that we have. And then because we have a zero close rate and a one close rate, we can say all the deals in this frame. Now, is it all the deals that were created that month? Because it might. Because if you're saying all the deals created that month and closed that month is different than the total volume of deals that existed that month relative to the number of deals that were sold that month, it's important to know the difference between what if a deal is created last month and closes this month, that can change your reporting. So understanding how you do a report is important as well because you're relating to certain things. But that's where we get this really awesome ability. If we understand what's in a report, then we can try and say, okay, at least it's consistent. What I mean by that is like a body fat percentage, right? There's lots of ways you can measure calipers, these electronic pools that you can sit in. There's these things you can stand on. Zap you, right? There's all kinds of ways to determine your body fat. If you go from the calipers to the body fat thing to the pool thing, it might get a different response every time. The more important thing is to understand which one you're going to use and use that one consistently. Because whether you're 31% or 26% body fat does not matter so much as is the number going down over time, right? And the same thing exists in reporting, right? Is having the same qualification metrics and then just saying, okay, that tells us something, what can we do about it? And usually it comes down to that CSM audit view. What objections are we getting? How are we trained to overcome them? How are we presenting ourselves? How do we measure how we're presenting ourselves through role play? How often are we following up? How often is this view filled out correctly? Who is our low hanging fruit of people that we can fix? Who do we need to take behind the woodshed? So all of this is what comes together in a great reporting.