Model Metrics Case Study

Model Metrics Case Study

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Company:
HomePro Holdings

CRM Project Elements:
Custom application development and Salesforce.com implementation
Business Process Improvement
Financial tracking and analysis
Lead tracking
Training
Reports and Dashboards

Client Background
HomeVestors of America, Inc is a unique business that assists more than 280 independently owned and operated franchises, within 30 states, with the purchase and repair of single-family properties.  It is the largest and most successful franchise company of its kind.  They teach franchisees how to recycle single-family homes in their communities by utilizing a “We Buy Ugly Houses” system, which includes financial assistance and creative, aggressive marketing campaigns.  Their efforts have earned them national recognition as one of the fastest-growing franchises in the nation. 

HomePro Holdings LLC has been in business since June of 2002, and is considered to be HomeVestors’ largest and most successful franchise.  They have 15 employees, working in five different markets including Minnesota, Texas, Arizona, Colorado, and Oklahoma.  Collectively, the offices purchase and repair approximately 80 homes annually. 

Customization Of Salesforce
HomePro realized it was becoming increasingly difficult to run a capital intensive business without having real-time information.  All five offices needed to standardize their data collection, integrate their financial systems, have immediate access to their files, establish business process best practices, and increase communication between the corporate office and each other.  Overall, these changes would help them stay on top of profitability and make better business decisions.  Support for the implementation of an internet-based platform that could accomplish those objectives was very high. 

Many representatives already had a vision of what they needed.  One of HomePro’s investors suggested they consider using salesforce.com.  He knew from experience how this best of breed, On Demand CRM solution had tremendous capabilities.  By leveraging salesforce.com as a web-enabled custom development platform, he was convinced HomePro could better track core business processes and yield tremendous benefits for every office.

Introduction to Model Metrics
In early February 2006, HomePro began talking to Model Metrics, one of salesforce.com’s key implementation partners, about the parameters of this project.  They were impressed by the consulting company’s knowledge and extensive experience with business process improvement, CRM and salesforce.com.  By the end of the month, they signed a proposal for the development of a custom system that was later named Tracking Real Estate Events (TREE).  At that point, things started moving very quickly.

Model Metrics led multiple conference calls with representatives from each HomePro office.  This gave them an opportunity to share their ideas and concerns from the standpoint of system users.  They also participated in online demonstrations where their input was instantaneously implemented.  This type of collaborative process is important because it significantly impacts a company’s user adoption rate.

The Creation Of Tracking Real Estate Events (TREE)
HomePro decided they wanted real-time data, accessible through detailed dashboards, to focus on four key areas: 1) activities and completed sales; 2) sales pipeline; 3) purchase pipeline and inventory; and 4) leads tracking.  Essentially, they envisioned an easy-to-use, systematic process that would streamline the way they managed their business.  This was particularly important when juggling multiple houses because they couldn’t afford to overlook any details.

The online TREE system tracks all of the data elements of the home recycling process including buying, rehabilitating, and reselling a house.  Extensive, built-in analysis features everything from profit and square foot costs, to inventory and investment tracking.  HomePro’s representatives can gain admittance to everything from files needed for auditing purposes, to daily holding costs such as inventory, interest and utilities.  Model Metrics even created formulas to come up with daily averages, which eliminated the guesswork surrounding so-called “invisible” costs. 

The development of a leads tracking system was critical to the TREE system because HomePro relies on aggressive marketing to buy and sell homes.  They want to ensure every inquiry is recorded and acted on.   The system tracks inbound calls from various marketing initiatives, and over time it helps identify which ones were the most cost-effective. That type of information is valuable when creating marketing plans. 

The representatives of HomePro realized the TREE system offered other benefits, too.  Because the system is easy to navigate, data entry is completed quickly, and real-time reports can easily be generated by anybody who needs to see them.  This keeps everyone aware of long- and short-term activities at each office.  It also helps increase communication between all of their locations. 

A calendar prevents important dates, such as closings, from being forgotten.  It eliminates duplication of efforts on the part of the HomePro representatives, which results in increased employee productivity and enhanced time management abilities.  Additionally, in a person’s absence, all of the representatives can access their files and ensure there is no disruption of the workflow. 

Another important feature of the TREE system is that it tracks the costs and quality of work performed by subcontractors.  Evaluations can be made regarding their fees and services compared to others in their field.  Only the top performers will be awarded more jobs.  High quality contractors will quickly be identified and representatives of HomePro can focus on strengthening those particular relationships.

Training Support
Model Metrics structured a training approach that included training scenario based documentation, salesforce.com provided on-line training, and instructor-led web-based training sessions for all HomePro employees.  Training focused on how-to track incoming calls from various lead sources and converting them to “house buys”, which is the process of purchasing a home.  This process is long, extensive, and involves several specific data elements and activities.  All of them were covered, as well as the use of reports and custom-built dashboards.

Documentation was created of HomePro specific training scenarios, featuring the most common activities that a HomePro representative might need to do using the TREE system.  They were the basis of user training, and subsequently were also made available from a link on the application home page.  Here, they provide a quick refresher for those who may need assistance.  Users have the flexibility to review them from any computer, anytime, anywhere.  

Conclusion
By mid-March TREE was implemented in every HomePro office, and in the first week of April they had 100% user adoption—which is phenomenal.  This can largely be attributed to the involvement of the stakeholders in the development stage and the expert assistance and implementation methodology of Model Metrics.  HomePro stakeholders were excited to utilize a system they helped create.

HomePro has already identified the next phase of this project.  It will include having Model Metrics create automated integration with their financial systems so nightly updates of actual costs can be imported into the House accounts.  This will result in more accurate profit numbers, and valuable resources will be better utilized by eliminating the need for weekly data entry.

As the representatives of HomePro become more familiar with the system, subsequent phases will emerge.  Eventually, they will start identifying additional features to be added and TREE will continue evolving to meet their needs.

HomePro’s long-term business goals are to continue operating efficiently, increase sales, and open 25 more offices across the country.  The implementation of the TREE system will help them manage that type of growth, train new representatives, monitor each office’s operations, and be ready to step in and help if necessary.