Buyers and Builders
00:13:35 · Sam Allsopp, Mikk
Like I said, I kinda sit more on the sales and marketing side, and and so it's a lot about, like, capital allocation, how are we putting money into different lead sources, what lead sources are getting us the best return on our ad spend, how are we thinking through lead distribution with the sales team, you know, how do we get the best salespeople in the homes. And then it's it's leadership. Right? So, like, I have a a head of marketing. I have a sales director. I have a controller. So it's a lot of communicating with them day to day, and they all have their KPIs, and we can kinda get into this, but it's really just setting a goal and then dividing your way back to what the daily kind of inputs and outputs need to be for success. Right? So if you can you can model out, hey. If we wanna do 50,000,000, this is what it looks like. Let's break that down day to day. Assign those KPIs to your, you know, your leadership team, and then it's really just managing them and and helping them think through constraints and coming up with solutions, and stuff is inevitably gonna break, and you gotta rebuild it. So that's a lot of my day to day now is just working with the leadership team and kinda trying to empower them to to make decisions and and keep growing the company. [00:14:52] S0: When it comes to yourself, like marketing sales, what are the KPIs you are looking at on on day to day basis, and have these changed over over the years?
00:14:52 · Mikk, Sam Allsopp
[00:14:52] S0: When it comes to yourself, like marketing sales, what are the KPIs you are looking at on on day to day basis, and have these changed over over the years? [00:15:04] S1: Yes. They've changed. They've gotten maybe a little... We have more data now. Right? So, like, moving one KPI a few points just does a lot more than it used to. You know, when you're bringing in 10 leads a day and your booking rate goes up 2%, 3%, like it's not moving the needle a ton. Right? So maybe booking rate wasn't as much of a focus as it is now. Yeah. KPIs, I mean, you're... You need to know your average ticket, your close rate, your booking rate, your cost per lead, cost per opportunity, we call it, sits right above a demo, your demo rate, your sales capacity, how many appointments can you actually run. You wanna go do this big revenue target, but can you even run that many appointments without, you know, kinda cannibalizing your your close rate. Your production capacity, same thought process around the sales capacity, we wanna do this much revenue, can we even do it? Do we have enough field supervisors, project managers? Is our business services team built out to be able to support that. So, yeah, you're definitely getting at this stage a lot more in the weeds, and it's and it's just daily feedback and then tracking those KPIs and making sure that you're on track.
00:15:04 · Sam Allsopp, Mikk
[00:15:04] S1: Yes. They've changed. They've gotten maybe a little... We have more data now. Right? So, like, moving one KPI a few points just does a lot more than it used to. You know, when you're bringing in 10 leads a day and your booking rate goes up 2%, 3%, like it's not moving the needle a ton. Right? So maybe booking rate wasn't as much of a focus as it is now. Yeah. KPIs, I mean, you're... You need to know your average ticket, your close rate, your booking rate, your cost per lead, cost per opportunity, we call it, sits right above a demo, your demo rate, your sales capacity, how many appointments can you actually run. You wanna go do this big revenue target, but can you even run that many appointments without, you know, kinda cannibalizing your your close rate. Your production capacity, same thought process around the sales capacity, we wanna do this much revenue, can we even do it? Do we have enough field supervisors, project managers? Is our business services team built out to be able to support that. So, yeah, you're definitely getting at this stage a lot more in the weeds, and it's and it's just daily feedback and then tracking those KPIs and making sure that you're on track. [00:16:08] S0: Now when it comes to competition on this space, what maybe shows shows the the fact that the competition has been going up? Is it is it customer acquisition cost? Is it is it something else? What have you seen? Can you give us some data?
00:16:22 · Sam Allsopp
[00:16:22] S1: Yeah. I mean, like, definitely, just in general more competition. Right? There's more... I believe, I don't have the data to support this, but my my gut says that there's definitely more roofing companies out there now. Just in my market, there's some private equity comp... Backed companies. There's some companies that were maybe sub $1,000,000 in revenue for forty years, and then some guy, you know, went and bought them, and he's trying to run a playbook to grow it and then sell it to a private equity company. Right? So, like, it's definitely getting more competitive, and then inevitably, that's going to drive up, you know, lead cost and and marketing spend. You know, for us though, it just kind of forced us to get more creative and try to hold everything pretty constant. Maybe it's a little bit more work, and we have to be, like I said, a little more creative, but, you know, I'm not sitting here like... I think anything that anyone does, like, there's going to be competition. So I don't think that it's necessarily something that should deter people from doing something like this. Start a clothing company, you start a roofing company, you start an HVAC, you start a SaaS tech comp... Like, there's always gonna be competition. Do I think that it was maybe you could go get $20 Facebook leads when we first started versus now maybe a 120? Like, yeah, definitely. But, that's all all the more reason to get better with with your booking rate and increase your close rate and try to, you know, kinda neutralize that that increased cost and leads.
00:17:52 · Mikk, Sam Allsopp
[00:17:52] S0: How have been the the the marketing channels over the years? Door to door, Facebook ads, I don't know, Instagram, TikTok. Can you share more about about this? How has it changed? How many of those are you doing today? What hasn't been working well? [00:18:06] S1: You know, I I started with Facebook ads, and then I went on a little bit of a hiatus. We actually dropped it for a few years because I was just convinced that, you know, it wasn't performing as well. We actually recently brought it back and it's doing really well. It's more about the creative and the kind of nurturing process pre appointment, you know, whatever your tech stack you're using. Are you sending out confirmations? Are you sending out a VSL, videos? Are you kind of like building the hype for that appointment to get them to stick? So, I mean, that's just specific to Facebook, but, I mean, we're we're on like everything. So if you named a aggregator or, you know, whether it's PPC, LSA, Facebook ads, all the main aggregators that you can think of, we're on all of them, and that's kind of what I was saying earlier. It's like a lot of it is just looking... Because it changes month over month a ton, so it's really just making sure that you're allocating your advertising budget properly into channels that are getting you the best return on your ad spend. But it's it's everything, man. It's it's... We're we're literally on every channel, and we're constantly looking for new channels to add and test out.
00:19:15 · Mikk
[00:19:15] S0: I was doing a bit of research. Maybe I was right. You mentioned something that once a lead comes in, takes it thirty seconds for your team to get back to them. Has it always been like this? Is it is it required in order to grow for you so fast? And and maybe you can overall explain once a lead comes in, maybe you can walk us through what's... What happens next.