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How to gain competitive advantage through Service Agreements?

Posted by Admin on Jun 21, 2018
From the day they were born, Molly and Katie were inseparable. Having shared their childhood together and subsequently their schooling, they grew up to venture into a similar nature of work as well, i.e., Field Service. The only difference now was, they had separate companies/ventures. The companies provided services in the field of HVAC/Plumbing/Electrical majorly which required highly skilled technicians. Having adopted the pen-paper method initially to manage their technicians, Molly slowly moved onto adopt a field service management software for the same.
 
When the friends met to discuss the success of their individual ventures, Katie was surprised to find out that Molly’s company was more successful than hers. When questioned about the success, Molly went on to state that the software she had adopted was facilitating easy manage of work and allowing the company and the customers to reach upon service agreements.
 
The story pours an emphasis on how a service agreement helps to create stronger annuities and recurring customer revenue.
How is it beneficial for customers/homeowners?
  • By investing a reasonable amount at regular intervals (frequencies), customers are benefited as they have a long-term coverage provided/guaranteed.
  • They are proactively keeping their home safe.
How is it beneficial for the company?
  • SA’s are a way to ensure that their phones will ring for service requests → important mechanism for survival in this industry. They have
    reassurance
    that this customer will most likely come back to them for a service as they have invested money in a long-term plan of service/maintenance.
 
For a company to remain in business, it is important that it generates its targeted revenues from time to time. In this arena, service agreements play a major role as a contributing factor. Providing quality service as stated in the service agreement helps to increase customer satisfaction, boosts the customers retention rates and also makes ways to ensure you cross and up-sell effectively.

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