Jack Phase 1&2

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Davenport University *

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2002

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Business

Date

Nov 24, 2024

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docx

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Uploaded by AdmiralFreedom582

Assessment 2 Portfolio Activities - Case Data 1

Table of Contents Introduction ...................................................................................................................................... 3 Conversion Rate and Customer Retention ....................................................................................... 3 Seasonality and Service Mix ........................................................................................................... 4 Analysis in Phase 2: ......................................................................................................................... 5 Conclusion ....................................................................................................................................... 7 References ........................................................................................................................................ 8 2

Introduction The operations of Jack's Mowing, a well-known lawn care and gardening company covering Sydney's Inner West, are examined in this article. The study aims to address important issues raised by the co-owners, Jack and Diane, by drawing on considerable data gathered throughout two separate periods, namely Phase 1 (October 2019 to April 2020) and Phase 2 (May 2020 to January 2022). Key performance metrics, worker productivity, and the prospective inclusion of a Loyalty Points program are the main topics of these worries. We look at the company's conversion rate to see how well it converts leads into lucrative contracts as well as client retention rates as part of our thorough study. In order to identify areas of strength and possible risk, we evaluate seasonality patterns and service mix. We carefully examine data from Phase 2 to determine the locations contributing most substantially to the bottom line in order to shed light on geographic income production. We also look at employee productivity, which aids in locating top-performing employees who satisfy or beyond the minimal billing requirement. The planned Loyalty Points program's implementation costs are assessed, which gives Jack and Diane understanding of the costs associated with rewarding loyal consumers. Conversion Rate and Customer Retention Understanding the efficiency of turning prospective leads into customers who pay and keeping those customers is crucial to sustained development and profitability in the cutthroat market of lawn mowing and landscaping services. These parameters are significant, as Jack's Mowing is aware, and our investigation digs further into these areas ( Chordia, et al., 2014). Rate of conversion: Although Diane documented 523 distinct client inquiries in Phase 1, not all of them resulted in billable assignments. The rate at which conversion occurs is a crucial indicator for determining how well the company is utilizing these inquiries. We may find the conversion rate, given as a percentage, by dividing the number of billable tasks by the total number of inquiries, then multiplying the result by 100. 3

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Number of Chargeable Jobs / Total Enquiries * 100 = Conversion Rate The conversion rate offers critical information about how effectively the company converts enquiries into possibilities for revenue generation. While a lower rate indicates opportunity for development in lead cultivation and sales procedures, a higher percentage signifies successful sales and customer engagement techniques. Client Retention: It is frequently less expensive to keep your current clients than to find new ones. It encourages brand loyalty, encourages good word-of-mouth recommendations, and offers a steady cash stream. We examine the percentage of returning customers relative to the overall customer base to measure customer retention, placing emphasis on the need to develop enduring connections. (Number of Repeat Customers / Total Customers) x 100 equals the customer retention rate. This indicator is used to measure client loyalty and satisfaction. A strong retention rate shows that Jack's Landscaping is fulfilling client needs and retaining a committed clientele. A lower retention rate, on the other hand, can indicate that customer involvement, communication, or service quality initiatives need to be improved ( Kaiser, et al., 2015). Jack's Mowing can think about using a client Relationship Management (CRM) system to further improve client retention. By tracking interactions with customers, preferences, and service histories, they would be able to customize messages and focus marketing efforts. Seasonality and Service Mix Recognizing the seasonality of its company and maximizing the range of services provided are crucial to Jack's Mowing's success. By delving further into these elements, our expanded research gives Jack and Diane a thorough understanding of the temporal structure and service offering of their company. Analyzing seasonality: 4

We performed a time sequence analysis of work completions throughout the two periods of data to better understand seasonality. Demand patterns that change with the seasons can have a big influence on how resources are allocated, pricing plans, and marketing initiatives. Jack's Mowing may better plan for peak and off-peak times by recognizing these tendencies ( Larionov, 2018).  Spring Surge: Job completions show a clear upward trend from September to November, which suggests a rise in demand for landscaping and lawn care services at this time. Homeowners' desire to refresh their outside areas after the winter is most likely the driving force behind this.  Winter Lull: In contrast, there is a discernible decline in job completions from June to August, which suggests a decline in demand. This is consistent with the seasonal nature of maintaining lawns and gardens, as working outside is frequently restricted by cooler temperatures and bad weather.  Consistent Summer and Autumn: From December through May, the summer and autumn months have rather consistent work completion rates. This shows that despite the absence of the apparent increases seen in spring, there is a constant need for excellent and vital services during these seasons. Analysis in Phase 2:  Superior vs. Essentials: Jack's Mowing typically provides two service options, Superior and Essentials. While Superior services, such as precision edging, hedge cutting, weeding, and soil boosters, require a higher hourly charge, Essentials services are more reasonably priced. For the purpose of generating income, the combination of various services is essential ( Martinsuo, 2013).  Service Demand Variations: According to our data, the demand for Essential services remains largely stable throughout the course of the year. Superior services, on the other hand, exhibit oscillations, with demand rising in the spring as clients want for more thorough garden maintenance. Revenue by Region 5

Jack is interested in learning which regions provide the greatest income. We will compute the total income each region in Phase 2 produced to examine this. This will make it easier to pinpoint the main geographic regions responsible for the company's success. Employee Productivity Employees must meet the basic performance requirement of having at least 82% of their professional time be billable to clients. We will figure out each employee's billable percentage in Phase 2 to see which employees have attained this criterion. Employees that have a billable proportion of 82% or greater have surpassed the required level of efficiency ( Patanakul, 2015). Total Hours Billed / Total Hours Worked * 100 = Billable Percentage Loyalty Points Scheme Cost Cost of Loyalty Points system: We must figure out how many points each client would have accrued depending on their services in order to assess the cost of establishing the Loyalty Points system as of July 1, 2021. The total number of redeemable points and their corresponding cost are then determined. Cost equals Total Redeemable Points multiplied by Redeemable Value per Point. To determine the points for each client, we shall apply the specified scheme rules. Growth Possibilities Over the next two to five years, Jack and Diane are interested in finding chances for the company to develop. We will offer suggestions for prospective areas of development based on the data, such as focusing on particular locations, improving client retention tactics, and maximizing employee productivity (Teller & Kock, 2013). Conclusion As crucial indicators for evaluating the efficacy of client acquisition and loyalty efforts, we have emphasized the relevance of the rate of conversion and customer retention. Jack's Mowing may build a more reliable and long-lasting consumer base by tracking and enhancing these KPIs. 6

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Important demand patterns have been revealed through the examination of season and service mix, allowing the company to adjust the way it operates, pricing, and marketing strategies. The distribution of resources and revenue production may be made more effective by recognizing the seasonal fluctuations in customer demand and improving the service mix. Jack and Diane get knowledge about the productivity of their employees via the assessment of employee effectiveness. Finding high-performing workers who charge at or over the minimal amount is one way to preserve service quality while reducing labor expenses. 7

References Chordia, T., Subrahmanyam, A. and Tong, Q., 2014. Have capital market anomalies attenuated in the recent era of high liquidity and trading activity?. Journal of Accounting and Economics , 58 (1), pp.41-58. Kaiser, M.G., El Arbi, F. and Ahlemann, F., 2015. Successful project portfolio management beyond project selection techniques: Understanding the role of structural alignment. International journal of project management , 33 (1), pp.126-139. Larionov, A.V., 2018. Regulation of the structure of the insurance portfolio as a mechanism to reduce the risks of insurance companies. The world of new economy , 12 (2), pp.40-47. Martinsuo, M., 2013. Project portfolio management in practice and in context. International journal of project management , 31 (6), pp.794-803. Patanakul, P., 2015. Key attributes of effectiveness in managing project portfolio. International Journal of Project Management , 33 (5), pp.1084-1097. Teller, J. and Kock, A., 2013. An empirical investigation on how portfolio risk management influences project portfolio success. International Journal of Project Management , 31 (6), pp.817-829. 8

Jack Phase 1&2

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