In regards to general household pests (GHP), what influences bottom-line profit? The answer cannot fit into one sentence. In fact, it could take several pages to fully describe the relationship between bottom line profit and the variables that regulate/influence it. So let me refine the question: What is the main fundamental component of recurring revenue? I say customer retention. How do good companies maintain customer retention? Quality customer service.
Callbacks are a fundamental component of quality customer service. Although callbacks cause headaches for many pest management professionals, the truth is that proper re-treatment will gain a customer's loyalty more so than any other part of the service. Callbacks are a vital component of the business because they influence recurring revenue and bottom line profits. Recurring revenue and ultimately bottom line profit are significantly correlated with customer retention. Customer retention is maintained by quality service, and callbacks are a component of quality service.
This article briefly discusses four methods for reducing the number of callbacks needed to increase customer satisfaction and retention: 1) product rotation, 2) multiple product use, 3) pest pressure prediction, and 4) technician involvement in cost of service.
PRODUCT ROTATION. Rotate your products! Quit using the same product service after service. For example, use a product containing fipronil every other quarterly service in place of a synthetic pyrethroid. This has reduced the percentage of call backs in my territory. In 2005 fipronil was used on a bi-quarterly service. As customer growth increased, callbacks dropped ¡ª you can't ask for better than that! In addition, chemical use also decreased.
Furthermore, when re-treats were due to ants or roaches, I used a transference product in specific pest point areas instead of applying another perimeter treatment around the home. I am not saying that a specific product fails if one receives a callback associated with use of that product (improper application by technician aside). However, by rotating your products, even if they are different pyrethroids, then one can have variations of mode of actions or variants of the same mode of action, which will increase the probability of control. Remember ¡ª different pyrethroids are effective in different ways.
MULTIPLE PRODUCT USE. Another IPM strategy is to use a variety of products. For example, include a slight application of a granular formulation of a pyrethroid in conjunction with the transference product to help maintain low pest pressures from other occasional invaders. When conducting service on a monthly basis, switch between a transference product and a pyrethroid on a bi-monthly rotation. One branch in Orlando used this approach and it resulted in a 9.5 percent decrease in call- backs between FY05 and FY06! I suspect the other branches will follow suit. Use it!
PEST PRESSURE PREDICTION. What were your worst pest scenarios last spring/summer? Prepare in advance for similar pressures. Were your main problems occasional invaders such as earwigs and spiders in porous environments such as in mulch and thick sod? If so, then perhaps a wettable powder for those environments is necessary. If ticks and fleas were the issue in garages or other smooth surfaces, then use an emulsifiable concentrate. By studying the history of insect problems over the past few years, I have been able to forecast what products to use in the future for particular problem accounts. Integrate multiple product use and rotation in anticipation of expected pest pressures.
In this connection, which technicians finish their routes and have fewer callbacks on a continual basis? Most likely those technicians with a history of properly containing the pest situation. What did they use and how much for past problems? Incorporate their more ¡°out of the box¡± proactive methodology, if need be, to other less talented technicians. If a problem is unique then perhaps a customized approach should be used. For example, we had a customer with a recurring big-headed ant problem. I solved it by down-rodding with fipronil or imidacloprid every third quarterly service. For the other three quarterly services I used a conservative amount of granular product around the perimeter of the home, and liquid product for spot treatment of pest entry points and plumbing pipes inside the house.
sErvice teCHNICIAN INVOLVEMENT. As an industry, legitimate companies should have an unwritten agreement amongst themselves to charge the customer what is fair and appropriate for quality service. Companies compete in some fashion. However, poor companies that compete by offering cheaper and poor quality service tarnish the reputation of the industry as a whole. Accounts that are accurately priced produce happy technicians, and technicians are the front line of defense for the industry. If one services a new account and notices that the price is too low, then the technician should have the right to talk to the customer and explain the discrepancy in the sales price. The technician should explain the discrepancy to middle management or whichever department is best suited to handle such a situation, and also educate the customer that management personnel might contact them about the initial sales price.
However, based on the level of communication between the office and service departments, this component might not work well in particular branches. This platform does work well in one branch in Florida ¡ª the communication design is: technician ¡ú customer service representative¡ú service manager (for verification). Good technicians do this well, with little negative reaction from the customer. Satisfied technicians usually complete their routes and conduct excellent service. I guarantee that your best technicians are your happiest technicians. Most technicians are willing to spend the time to solve difficult problems if properly compensated. Furthermore, they usually communicate with the customer on a professional level, thereby educating the customer about potential future problems.
The author is a regional technical director with HomeTeam Pest Defense. He can be reached at ripser@giemedia.com.
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