Preventive maintenance agreements are still the most profitable source of revenue for service businesses. Make the most of your service contracts by simplifying and automating how you manage them.
Businesses involved in field service have had to adapt to serious changes in the last decade. With rapidly advancing technologies including mobile and wearable technology, telematics, and cloud deployment, not to mention the increasing customer demand for quality product support, service businesses have had to evolve in order to stay competitive.
It’s important to remember, in the face of all these advancements, that the core qualities of great service aren’t changing. Preventive maintenance, for example, is still the most profitable revenue source for service businesses.
What is changing is the technology available to help manage important field operations, like service contracts, which makes it easier for service businesses to take advantage of new forms of recurring revenue.
Preventive Maintenance, Where a Focus on Automation Pays Off
Because of the changes taking place in the service industry, we’ve put together this series, Focus on Preventive Maintenance, detailing how you can use software to simplify preventive maintenance within your organization.
By focusing on preventive maintenance (PM) you put your company in a position to remain stable through turbulent times. Instead of relying on sporadic break/fix orders to stay alive, you enjoy reliable, recurring revenue sources by embracing service management technology to manage your service contracts.
Field service software simplifies the PM process and allows you to build a consistent customer base. In this post we highlight steps you can take to simplify service contract management, and walk you through the mobile and back office software features that can organize the complicated process of running successful PM programs.
Here are some ways you can automate service contracts to simplify preventive maintenance:
1. Use Mobile to Empower Technicians
Using mobile to manage PM contracts in the field keeps technicians up-to-date and provides access to customer and asset information through the technician’s mobile device.
While on site, techs can see customer warranty, contract, and service history records. Equipped with this knowledge, they can make sure they do the job right the first time and even sell or renew expiring contracts right on site.
2. Connect the Company through Service Contract Automation
Managing contracts can be a clerical nightmare if not maintained properly. Without the right tools to help you organize and automate contracts, you risk loss of revenue and poor customer service.
Set automated alerts using an events manager to perform the following tasks with “set it and forget it” technology:
- Automate alerts for expiring contracts
- Track inventory for service contracts
- Set up automated email campaigns and workflows to sell contracts
- Keep technicians informed
- Send alerts when contracts aren’t profitable
Automated alerts attached to PMs connect each role in your organization, from the dispatcher who schedules and assigns, to the technician who accepts and closes, to the service manager who approves and invoices.
3. Calculate Service Contract Cost
Figuring out how much to charge for your service contracts can be tricky. You have to determine how much each step will cost, including labor and parts, then balance those costs against the length of the contract, the number of visits, and how much profit you expect to make.
Simplify the process by using a service contract cost calculator so you can charge a fair, but profitable price. Instead of estimating how much to charge, simply plug in the terms of the contract and have the software do the calculating for you.
Take Your Service Contract Program to the Next Level
Research has shown that companies that maintain preventive maintenance out-earn companies that don’t. Give your technicians and office employees the tools they need to sell, renew, and manage contracts.
This is part one of a three-part series. Check out the rest of the series to complete your preventive maintenance strategy:
Get the Field Guide to Running a Successful Preventive Maintenance Program
Learn how to make the most of your service contracts by automating, scheduling, and analyzing your preventive maintenance program. Download the guide free here!
