At their core, service contracts have one essential job: generate scalable, recurring revenue. In addition, successful contract management can provide your customers with the assurance their equipment is maintained in a way that increases customer satisfaction and decreases any downtime.
Without contracts and an efficient management system in place, companies are at the mercy of equipment breaking down in order to earn revenue. Not only is operating solely on a break-fix model outdated and unstable, but for companies with regular operating costs are almost guaranteed to earn less money than companies employing modern service contract software.
Service contracts are as important, if not more important, than the initial sale. So with these long-term benefits of service contracts in mind, shouldn’t you be using the best tools to manage these valuable assets?
How automation helps manage service contracts
Now that we’re on the same page about the value of service contracts, you may be asking, “How do I make the most of my service contracts once I have a system in place to manage them?” Managing contracts can be a back office nightmare if not maintained properly, which can result in lost revenue and poor customer service. Automating your contract management with software or a field service solution can help you avoid this nightmare while automating service contract information and keeping your organization knowledgeable and proactive.
Ways to automate contracts
Examples of tools and solutions available today include Contract Lifecycle Management software, Document Management Systems, and Field Service Management solutions. The right fit is determined based on the organization and specific needs or requirements, but many field service organizations see the longer-term benefit of going one step further.
For field service organizations, leveraging robust tools like field service management solutions and integrated ERP systems is standard for managing contract management and profitability. These technological frameworks offer unparalleled capabilities in streamlining contract lifecycles, from initial negotiation to ongoing service delivery and renewal. Field service management solutions enable seamless scheduling, resource allocation, and real-time monitoring of service activities, ensuring optimal utilization of resources and timely delivery of commitments outlined in contracts.
ERP systems centralize financial data, providing comprehensive insights into revenue streams, costs, and profitability metrics associated with each contract. Together, these technologies empower organizations to not only enhance operational efficiency but also strategically analyze and optimize contract profitability, fostering sustainable growth and competitive advantage in today’s dynamic business environment.
It is when the field service solution and the ERP combine that magic is made; leveraging these two systems together allows service organizations to focus on and achieve accurate contract profitability.
Where to start?
It’s clear that a field service solution will drastically help you run your service contract operation. So now it’s up to you to make the move to integrate an automated solution and set up the alerts to keep your company informed. Don’t miss out on the opportunity to optimize contract profitability by investing in alerts, escalations, and workflow software.
Guide to Contract Profitability
This is the only guide you’ll need. Explore why contract profitability matters, traditional methods to track and monitor, and modern methods available now. Get the guide here.
