Their main pain point was that more traffic wouldn't convert into more sales.
We tackled this problem together, overcoming a sequence of constraints step by step.
This process heavily relied on our Growth Tracking Methodology.
How did we do it?
Here are 5 main puzzle pieces of a bigger jigsaw:
Part 1. Increased traffic doesn't lead to more sales
They referred to a growth consultant, Artem Tarasenko, who has a strong marketing background and helps his clients fix their marketing operations. As a result, more leads flooded in, but then the company hit the glass ceiling: more traffic wouldn’t bring in more sales.The conversion rate dropped at later funnel stages.
A closer look at the processes revealed something curious.The trick was that in their business, salespeople also worked as surveyors. When a request came in, they took it over the phone, and then went off to the construction site to take measurements.
These employees were overloaded with work, and it was no surprise for the team.
They only had time to manage requests, not to schedule clients for measurements.
But it's a seasonal business! Their clients need their service right now.
Due to the staff overload, all the new traffic turned into nothing because they had no chance to move to the measurements’ stage.
Bottom line: When there's no one to manage the lead flow, traffic growth won't make you happy.
Part 2. Who's your ideal client?
Let's move into customer segmentation.
You need it to choose which customers you want to sell to and which ones you don’t.
Also, you must know how to pitch your product to each customer so that they buy your product.
Customer segmentation makes the sales process more efficient.
We looked inside the funnel. Most of the clients dropped off after the offer and measurements.
But which clients were dropping off?
The main reason why clients refused the service was the budget, or rather, the lack of it.
There were lots of people in the funnel who couldn't buy the service at the suggested price.
So the problem wasn’t at the funnel's end.
It was at the beginning: the “wrong clients” got into the funnel.
Part 3. Start being afraid of losing sales
Filtering customers is a natural solution to this problem, which immediately triggered the team to decline it. As a hypothesis, we suggested mentioning real prices in ad offers, and discussing the budget during their first call with the client. The lead pool, in its term, shrank a bit.
So, instead of being afraid of losing leads, the team focused on being afraid of losing sales.
They did great and managed to effectively utilize the salespeople's workforce without expanding the team.
The sales increased, and then they hit a new bottleneck.
Part 4. Time to increase prices
The next limitation was manufacturing. There was not enough production capacity. What does one do now?
Before we start the hard work of increasing production capacity, let's increase the price so that the current capacity becomes more efficient. We faced resistance, again, from the team, but eventually they agreed.
They increased the price by 10% at first, and сustomers kept buying their service.
They increased it to 15%, and the clients stayed because they’re ready to pay more and keep their place in the queue.
We stopped at a 15% increase in prices. This is significant growth for this kind of business.
With this, the company increased production capacity, hired more people, and started selling more.
Part 5. Happy End for the founder
And after going through this whole process, the growth consultant made it to the owner.
What did he find there? Classic. The owner is buried in routine operational tasks.
Together, they designed how to get out of it.
The owner was finally able to shift the perspective and have an outside look at the business.
When he saw the bigger picture, he wondered, "Why did it take me so long to do it myself?"
Summary
By going through this sequence and living through each step, the company made great progress toward the owner's goals. Each time they overcame a new limitation, the company expanded.
The sequence looked like this: Marketing -> Segmentation and Profiling -> Price -> Manufacturing -> Management and Delegation.
The owner's initial goal was to grow profits from $1.4 million to 2.3 million, and they reached it.
The company has grown over 60%.
This is how Growth Tracking works. You find a bottleneck in a business, you focus on it, and overcome it. Then the bottleneck moves somewhere else and you find it again.
If you would like to try The Growth Tracking yourself, join us for a business diagnostic session: https://growthtracking.net/ds
There, you'll discover the main constraint, the focus on which will help you accelerate your company's growth.