5 Steps to Service Contract Program Success

Every commercial entity is concerned with distinguishing their products or services from their competition. One way companies try to stand out is by maintaining a viable and profitable on-going revenue stream by offering entitlements such as extended warranties and/or service contracts. Even some very large and financially stable companies admitted that they survived the last recession on the strength of their on-going service arrangements with their clients. It makes sense that having a number of contractual arrangements where clients pay an agreed-upon price for a contracted term is a good thing!

Though it’s common knowledge that recurring revenue sources are good for business, few companies actually know how to setup, maintain, and market a program that will provide significant and stable revenue streams over the years. It’s true that not all commercial/corporate entities are able to provide sustained contractual services; but, of those that could benefit, not many companies have given this consistent profit-making venture enough effort. And those that do try to set up service contracts often fall short of their goals.

This White Paper provides steps that will help your company jump the hurdles of setting up recurring service contracts . After you’ve followed these steps and set yourself up for service contract success, you’re sure to see consistent, long-term profit growth.

Do it Right: 5 Considerations for Service Contract Success

    1. Commitment: Implementing a successful service contract program will take considerable effort and resources in the beginning and must come from the top. This means that everyone needs to know that corporate management is dedicated to making recurring contracts a priority. Creating an environment conducive to service contract success is not a departmental project, nor is this simply something your Service Manager can do in his/her spare time. Everyone in the company needs to be dedicated to making the program successful from start to finish.

    2. Selling: You need to sell a program. Simply offering some kind of contract to a client does not bring in the revenue that actively selling the contract will. To sell the program, you need to include value that a client won’t ordinarily get without a contract in place. Things you could include in your contract are:

    • Discounts for future purchases of parts or consumables

    • Priority handling of calls

    • Early notification of new products and services

    • Shorter turn-around times

    • More personalized approach by providing technical information

    • Historical reports and portals

    • White papers that will benefit those clients that agree to a contract with you

    • A special email or telephone number for clients to contact

    Be prepared that, in the same way you sell products and equipment, you’ll need to market and sell your service contract program. In fact, because service contracts are repetitive in nature, it is often more lucrative to push selling them even more than your product sales.

Download the rest of the white paper and learn how a solid plan for selling, monitoring, and implementing service contract programs into your field service operation can increase revenue. Also see common pitfalls to avoid in order to achieve service contract program success. Start boosting your field service company’s profits today with a well organized plan for service contract program success !

5 Steps to Service Contract Program Success

5 Steps to Service Contract Program Success

Free White Paper: 5 Steps to Service Contract Program Success

A Complimentary White Paper for Service Organizations

  • Learn the time-tested criteria you need to define a plan to create, configure, market, and maintain a service contract program, and avoid several common pitfalls.

    Download our practical guide, 5 Steps to Service Contract Program Success, to learn how you can establish a reliable service contract program today.

    5 Steps to Service Contract Program Success

    Get this free guide and you’ll learn:

    [well_item] How to sell, monitor, and implement service contracts as part of your everyday business strategy [/well_item] [well_item] How to set yourself up for increased annual profits [/well_item] [well_item] Common pitfalls to avoid in order to achieve service contract success [/well_item] [/list_well]

    This is the most informative, practical guide available for service managers considering how to increase revenue and set up a reliable service contract program. Enjoy!