In early months of 2016, CEO Oisin Hanrahan of Handy a popular cleaning service had to face severe criticism for his marketing strategy. One of the major changes they made was how they brought on new cleaners and pros. He wanted qualified applicants to apply online and introduce this online method to the 28 markets the company served.
His opposition came from co-owner Umang Dua who believed that applicants would not complete the application unless a person helped them. They decided to do a small test run to see the results. The used a new system in Miami and Washington D.C. in 2015.
When the company closed the $50 million Series C venture capital funding in November 2015 fear set in. They wondered if there would be any funding for businesses in the future. The staff saw other companies struggling to raise capital to fund business projects. They went ahead with the online application process but had to cancel many job orders because they had more jobs that staff to meet the growing demand for cleaning.
When the company’s biggest competitor went out of business it produced relief and fear in Handy.com employees. The good news was they was no longer a competitor that fought them for every single customer. The company had the market but not enough new staff to meet the demand. This produced complaints, refunds, and numerous problems.
Handy had to improve their product and customer service quickly. They hired dozens of new cleaners and hired about 100 customer service reps for the New York City office. They took calls and handled customer problems. They decided to use call centers later to save millions of dollars in costs. This meant they had to layoff many new workers they just hired.
The company now tries to use technology where it cuts costs and people where they are most effective. Oisin Hanrahan idea about online applications finally paid off eventually. Now his companies have enough staff to meet the customer demand for cleaning services. They did not expand into new markets but focused on the 28 they served.