Refinements of service (waste oils, fat and grease

Refinements

Monitoring
Product/Service Success

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            Introducing this
new line of service (waste oils, fat and grease collection) to local businesses
as well as recycled product (filtered waste oil) to new customers in the
biodiesel industry, the recycling company can evaluate new income and sales
data gathered over stipulated time stretches to gauge success. These
assessments will be made as follows; at 1 month, 3 months, 6 months and 1 year
marks respectively following product/service introduction. All consecutive
assessments will consider the data gathered from the previous assessment while
considering new data points. 

Assessment at 1 month

Following
the first month of collection and sale, the recycling company will consider
data points gathered around the following; 1. Efforts during marketing launch
2. Collection and Sales feedback 3. Inventory turnover

Efforts
during marketing launch

“Be
vigilant about keeping track of what efforts are starting to lose effectiveness
so that you can make the appropriate changes. (Heather, 2015)” Being watchful
and monitoring the effective advertising tools (media or post) were most useful
in changing potential consumers into final sales will indicate a good measure
of where the recycling company needs to focus its efforts moving forward. Minimizing
resources spent on ineffective advertising tools will mean that we can focus on
the more productive efforts increasing overall customer awareness and potentially
improving sales.

Collection
and Sales Feedback

Feedback
will be collected for the entire duration of the product/service launch from
collection employees to gauge on the collection front, our restaurant customer’s
perceptions of our service and where applicable some concerns or objections.
For instance, restaurant customers may want to increase the frequency of waste
oil collection or decrease collection volume in the slow seasons. Also, the
sales team will collect feedback information from the end use customers
(customers in biodiesel industry). For instance, a demand for an increase or
decrease in the filtration steps used to recycle waste oils. All collected
feedback information will be analyzed for possible ways to ensure product/service
improvements and information relayed to the appropriate marketing, collection
and promotions teams. The collection team for example can offer free
collections on a stipulated day to increase overall waste oils collected.

Inventory
turnover

One
way that the recycling company will assess product success will be to measure
the rate of inventory turnover considering both raw materials collected (waste
oils fat and grease) and recycled refined product sold (filtered oils). We will
also be assessing how our products/services meets the available market demand,
and how our overall sales stack up to other products/services in its class. The
recycling company will gather data on the total number of gallons of recycled
oils sold measured against the total number of gallons of waste oils collected.
This data gathered will be measured against other recyclable materials the
recycling company have previously sold.

 

 

Assessment at 3 months

Following
the first 3 months of product/service launch, the recycling company will
consider previous information as well as; 1. Income generated 2. Average
Revenue per Account (ARPA) 3. Retention rate

            Income generated

Sales
information and revenue data will be important in the evaluation of success. To
assess this factor correctly the recycling company will need to consider all
losses suffered from credit it has issued its customers with regard to this
product/service. These credits issued were given to earn customers while
drawing them in and improving retention rates. The recycling company will also
measure income generated after product/service launch to previous income
generated to gauge product/service success.

Average
Revenue per Account (ARPA)

Average
revenue per account takes into account the worth of pre-negotiated monthly
contracts with our customers. Simply put, ARPA is how amount of money the
recycling company earns from an average paying customer every month. With our
prices being stable a growth in ARPA translates to high efficiency on the part
of the collection and production teams to ensure customers are provides with
more value thereby generating more revenue. All relevant teams will also find
ways to increase ARPA without any significant changes in product/ services
rendered and their corresponding prices.

           

 

Retention
Rates

This
considers the amount of effort the marketing team does to earn and retain
customers. A deeper understanding of retention rates will allow the recycling
company understand customer purchase habits allowing us to tailor experiences
that turn one transaction into multiple purchase deals. The recycling company
will measure this by reviewing new product/service customer information for the
past 3 months measuring the total number of repeat customers weighing this
number against our marketing efforts for the product/service. To also drive
repeat customer rates the sales team can implement a “thank you” initiative
which would involve sending a thank you note to encourage first-time customers
to return.

Assessment at 6 months

Following
the first 6 months of product/service launch, the recycling company will
consider churn and growth rates as well as all previous information. The churn
rate is the rate at which customers discontinue their subscription to a product/service
within a given time. The growth rate on the other hand tracks new customers who
recently began purchasing from the company. For the recycling company, we’ll consider
the number of customers who discontinued our product/service within the time
span of 6 months. To ensure that the recycling company expands and drives up
its growth rate, the number of new customers for the new product/service must
always exceed the churn rate.

Assessment at 1 year

A
year after product/service launch, the overall success of the recycling company
in this new area will be evaluated comprehensively by extensively reviewing all
previously listed factors. Using the information supported by data from one
year of sales, the recycling company will be able to gauge the total amount of
gallons of recycled oils sold measured against the total amount of gallons of
waste oils collected in a year. Revenue and total costs of goods sold will also
be considered against values from the previous fiscal year. If the recycling
company suffered too much loss in launching the new product/service it’ll have
to consider an exit strategy from the product/service. If, however, the
product/service showed significant growth in the company’s revenue and income
stream then the recycling company will proceed with an expansion strategy.

Feedback Loops

            As mentioned above the collection and sales teams will
regularly solicit feedbacks from customers. This feedback will be separated by
the sources, being the restaurant customer and on the other side the end
customer. This will create two feedback loops; the internal feedback loop made
up of the biodiesel industry client and the external feedback loop made up of
the restaurant customer these two feedback channels will vary greatly with
regard to information received. Identifying, categorizing and analyzing these
feedbacks appropriately will benefit the recycling company greatly. Information
sharing and transfer will happen continuously between both internal and
external loops, addressing patterns and trends noticeable as well as figuring
out possible root causes.

External
Feedback Loops

For
this product/service launch the external feedback loop, would start at the
source of the primary raw material (waste oils, fat and grease) they are first
customer contact therefore they start the loop by providing information
pertaining to raw material collection and other relevant information. The external
feedback loop will involve the following parties; 1. Restaurant customer 2.
Collection crew 3. Public relations 4. Marketing 5. Research and development

This
loop focuses on the information relayed to the colletion
crew by the restaurant customers as well as public relations teams. All collected
information would be recorded in real-time and analyzed for possible common
variables and obvious trends. The flow of information within this loop
is quick as all teams work closely and efficiently to satisfy the front-end
customer. The collection crew relays detailed relevant information to the
public relations and marketing teams, while the research and development teams
work to ensure a seamless and much easier collection and pick up setup where
applicable.  

Internal
Feedback Loops

For
this product/service launch the internal feedback loop, would start at the end
of the filtration and recycling of the waste oils, fat and grease collected. The
first contact would be the biodiesel industry client as they start the loop by
purchasing our product therefore they provide the information necessary to
begin this loop. The internal feedback loop will involve the following parties;
1. Biodiesel industry client (end customer) 2. Sales 3. Process development 4. Executive
management.

This
loop allows for lateral communication between all parties involved to ensure continued
product growth rate and success. Process development, design filtration
procedure and upscale to the client’s specific requirement, they also relate
information to executive management to determine path forward for production and
the sales team addresses product presentation to client. This loop allows the
application of both numerical and reported feedback data to assess and refine
the sales methods. Ensuring an open line of communication between process development
and client will guarantee clients that their needs regarding product
specifications are being met, ensuring return customers and higher sales.

Other Factors

Examination
of all the factors, data and feedback loops does not account for competition
from other companies and organizations following in the recycling company’s
footsteps and entering the filtration and recycling of waste oil, fat and
grease market due to our success. For the recycling company this means staying
aware of possible competition within this market and staying abreast of the technological
changes and advancements. In doing this the recycling company will always will
remain on the forefront of this field and will be able to retain customers if
any competitors rise.

            The recycling company will also consider unforeseen
factors such as the “elimination of the middle-man”. This would be a situation
where the biodiesel industry client communicates and negotiated a contract with
the restaurant customer to collect their waste oils, fat and grease eliminate the
need for our product/service. To guarantee that this does not happen and the recycling
company remains relevant in this process as the “middle-man” we’ll focus on customer
satisfaction on both fronts offering very competitive deals to please both
customers. Although extensive industry research may point to success, the product/service could be rendered
irrelevant and obsolete in the face of more unforeseen and unknown variable.
The resultant impact of said unforeseen factor has a potential minimized by
more evaluations and feedback incorporation into our processes.

 

 

References

Heather McCloskey. 2015.
How to Measure Product Launch Success. Retrieved on January 12,

2018 from

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