 The Client ResDev, LLC., a land development company located in the
state of Florida, seeks ways to capitalize on the residential
market
to maximize profitability.
Since 1997, ResDev has been helping landowners get the
fairest market value on their investment. From single-plot
acquisition
to large-scale development projects, ResDev has the experience
and ability to get the most value from land assets.
The ResDev process sets them apart from others in their
field where they have been involved in over 50 large
scale projects
in the Central Florida market. In summary:
- ResDev has an extensive background from 150 lot subdivisions
to major D.R.I.'s (Development Re Impact) with
over 17,000 lots in 10,000 acres.
- ResDev specializes in
developments for large, national, and regional home builders.
From a 20 acre
site to a 20,000 acre
site.
- ResDev services include; consulting, brokerage,
titling, and project management.
- ResDev engages with some of the top developers
in the country to assist in making their
projects successful.
The Business Challenge
ResDev’s challenge was to scale their residential scattered
lot market division by using reversed selling / buying strategies.
To purchase and develop scattered lots across the state of
Florida and turn them into developed homes, or funnel land
to other developers and investors for similar development
purposes.
The land and scattered lot development process is the cornerstone
to ResDev’s business aligned with a unique process
for data mining, acquiring, buying, selling, estimating,
and developing homes. The endeavor required the research
of scattered lot residential owners throughout the United
States using processes and procedures that could be replicated.
Salesdart was brought in as a strategic partner and vendor
to satisfy ResDev’s organizational growth by increasing
their buying and selling capacity.
Some of the key objectives were:
- To provide a streamline lead generation program with
continued database development of over a million key
land properties
using Salesdart’s US and overseas infrastructure.
- To provide methodologies and procedures for ResDev
to initiate enquiries and close contracts from a direct
buying
process,
to contract delivery, and to a post-buying support.
- To provide strategic buying and sales processes, combining
these with training and strategic planning to support
over 15 land regions.
- To calculate and report direct revenue targets and
manage internal / external sales agents. Define
targets while
monitoring return rates and market conditions to
the number of contracts
per sales teams.
- To integrate a full contract management processing
system, with tracking, monitoring, and updates
to include exports
to other applications.
The Situation
ResDev needed to establish a number of sales and technology
systems that would allow the business to scale:
- US and overseas call center sales processes and procedures
using blended learning to track certifications and assessments.
- Internet, mailing, and telephone lead management
systems.
- Contract request management and processing systems.
- Customer relationship management system.
- Sales team recruiting, development, and planning.
- Direct sales training and development of internal
personnel.
These systems needed to be intergraded within
one another to effectively manage contracts
and customers.
The Actions
Salesdart developed several key systems to achieve the
goals of ResDev:
- Sourced direct sales teams in US, India, and the
Philippines.
- Strategic and operational direct sales planning
and support.
- Sales process management and training.
- Continual improvement and development processes
to maximize revenue.
The Results
ResDev achieved ROI on its investment in several ways:
- Increase in direct sales team environment allowing
revenue turnover to be tripled within 12 months.
- Sales software systems management and support for
the processing of contract requests thus shortening the
request time from
direct sales personnel to managers by 78%. This
reduced
the sales cycle time greatly.
- Shortening time of direct sales personnel training
to be productive by 66%.
- Profit increases by nearly four times their original
amount in less than a year.
The Process
ResDev achieved ROI through a defined sales process model
developed specifically for them by Salesdart. Salesdart
reviews and refines execution strategies for each client
based on particular needs and requirements.
In the case of ResDev the following process was followed:
 1. Startup: ResDev specific needs were based around the
process model they already had in place. Salesdart did an
analysis
to define a number of ways to scale the business which
required outlining of processes, procedures, and technology
for each
neighborhood team. As a company focused on buying scattered
lots from the general public, Salesdart was faced with
a unique challenge of finding sales agents who understood
the
buying as well as selling of real estate. Salesdart hired
MBA graduates in both the Philippines and India to work
with the US based managers. Well detailed education information
and scripts were developed around loosely defined criteria
to be structured in a way to allow overseas agents to fluidly
explain the purpose of the enquiry to the customer. The
descriptive
nature of this campaign required a lot of creative explanation
on behalf of the agents to convert an enquiry into a sale.
2. Land / Contact Data Scripting and Land Value
Estimation: To target land owners, ResDev purchased lists and matched
land owners to county tax records. Salesdart streamlined
the process and reduced time and costs by using overseas
researchers and data scrapers to mine the land owners. Salesdart
trained the researchers in matching records quickly; collecting
required information, including phone records, to pre-populate
the system. ResDev used this information to do land value, “floor
and ceiling”, estimations without the need to physically
see the land site.
3. Technology: ResDev was using an internal home grown
CRM application to manage over 750,000 land properties. To
scale
the business, Salesdart defined technology process and
re-designed the application creating a system to effectively
manage all
the required information.
4. Training & Education: Clear training and education
plans were required to ensure each agent fully understood
each neighborhood specific approach as well a full concept
of sales in this environment. All training was strictly monitored
with the need for agents to pass a written and practical
examination before being allowed to work on behalf of ResDev.
After classroom based training was completed, the team managers
would carry out on the job training in order to further and
continually improve agent skills. The training and education
program reduced the training turnaround time from “initial
hire” to “on floor” by 50% and reduce the
required retrain rate by 68%. Continual pre and post shift
training created a “part of the process” initiative
that further reduced the retrain rate requirement by an additional
34%.
5. Model Analysis: ResDev’s
initial model for the process was based on onsite location
approach with agents managing
their own productivity without much interaction with other
agents. Procedures & Structure were introduced that allowed
a team model to be established whereby onshore and offshore
personnel were combined in a team/ manager scenario. This
allowed key personnel off shore to drive leads allowing the
manager onshore to concentrate on closing additional business.
By having a team of 5 to 10 agents per manager or administrator
ResDev was able to considerably cut the cost of agents and
increase the productivity of managers in closing business.
This greatly improved the lead generation process, shortened
the time of direct sales follow-up and close periods of managers
by nearly 62%. This alone allowed the productivity and output
of managers and administration to increase by 100% doubling
the amount of closed business while reducing team costs by
on average 30-40%.
6. Team Management: While managing the team remotely is
important to ResDev in maintaining the information flow,
off-shore
management is the key in making sure the cogs for the wheel
are continually oiled and maintained. Salesdart identifies,
understands and promotes the use of onsite management. Not
only does this allow for direct contact of team managers
with a manager in the field but it removes the added burden
of agent managers measuring an monitoring team targets. Based
on the principle of “measure it, monitor it, or forget
it” an onsite managers sole responsibility is to ensure
the agents are working diligently while maintaining goals
and targets, They perform before and after shift meetings
to spread the learning for the day with other agents as well
as training updates and identification of strengths and areas
of improvement to maintain consistency within the team. Team
productivity improved by 62% and was maintained over time
using this method. 7.
Reporting & Contract Management: While the technology
provided by ResDev managed the lead distribution process
the automated system access CRM system provided by Salesdart
reduced the contract request and turn around time for actual
revenue by 54%. This system allowed agents to send information
directly to managers by completing an online request form.
The automated system generated the appropriate email to the
correct manager cutting the reporting time by agents allowing
them to make more calls and enquiries and spend 15% less
time on paperwork. WE web-based nature of the system facilitated
the many geographic location of the agents and the managers
in maintaining real time information ad work flow.
8. Feedback & Improvement: Implementation of continuous
improvement programs at the team, lead management and corporate
level identified performance and process improvements that
over time led to the improvement of completion rates by 50%
and the reduction in lead drop rates of 72%. This added nearly
a 42% increase in bottom line turnover for the organization.
Our defined process for this client highlights its success.
The innovation used to on and offshore management process
defined the ability to turn multiple teams into successful
sales drivers while using minimal and more cost effective
onshore personnel. The end result is increasing revenue
at the same time reducing costs to allow increase profit
per
contract. |
