How to Boost HVAC Service Agreement SalesBy My Service Depot on Thursday, January 17, 2019
How do you sell customers on service agreements? We've got the answers!
If you work in the HVAC business, you already know that your industry ebbs and flows on a seasonal basis. Generally, you stay busy with air conditioning in the summer and heating in the winter, but other times of the year can get pretty slow. If you do not pursue service agreements to buttress these lulls, you risk missing out on an opportunity for steady cash flow and better job management.
Repeat customers are like money in the bank. “A customer who buys twice is twice as likely to buy than one who buys once,” writes HVAC Today. Plus, “they cost much less to reach and sell – It costs approximately $40 to reach, visit, and close a customer versus $325 and up for non-customers.” All those cost savings can really add up. It only takes a 5% increase in customer loyalty to increase profits by 85%.
This article will discuss how you can increase HVAC service agreement sales at your company.
Start with the customer.
You already know that service agreements are good for your company. They let you plan HVAC maintenance services around your busiest times, and they can help you bring in regular income. However, you can’t make your convenience the reason behind your service agreement structures, or else you won’t sell too many contracts.
Instead, start with what your customers need and solve their HVAC problems for them. Provide a clear value. If your idea of a service contract is to send a “parts changer” to swap out a part when one goes bad, forget it. This doesn’t provide value; this provides a band-aid. Instead, think about how your team can serve your customers and prevent their HVAC systems from failing. Regular maintenance aims to replace parts before they go bad.
You could adopt a unique approach and position your company as a boutique heating, ventilation, and air conditioning company that specializes in older homes or specific HVAC systems, or you could just emphasize your dependability. The former approach caters to homeowners with specific systems while the latter establishes your company as one that will return calls, make a tech available, and follow through. Whichever path you choose, if you can solve customer problems (before they become serious issues), you will have a customer for life. The idea here is to leverage the aspects of your company that make it unique.
You can also consider adding services as a way to boost service agreement sales. This strategy works best when your offerings extend beyond standard HVAC, such as plumbing or electrical work, but you can still employ this strategy if you only do heating, ventilation, and air conditioning. Add in a yearly check-up that involves discussing the overall health of the system, any potential for smart home improvements, and general efficiency upgrades.
Go above and beyond.
Your service agreement is going to involve a level of maintenance and a set frequency for system tune-ups, but there is providing service, and there is providing service. The more you can keep your service agreement customers in the loop about their needs, what the contract includes, and your responsiveness as a company, the more value your HVAC contracts will have.
Start with communication. From the minute a tech gets dispatched, keep your customer up-to-date on what to expect. You can use tracking software or just send a text and email letting them know when your people will arrive to begin service.
Spread the word.
Make sure that your customers know that you offer service agreements. You won’t sign up many people if you expect them to inquire about HVAC contracts themselves. Make sure that your technicians understand the service levels you offer and that they “sell” the service agreements when they go on calls. The subject is easiest to bring up when they discuss cost with your customers before finalizing anything. A simple statement like, “if you sign up for one of our service agreements, this visit would have cost $XX.XX,” can work wonders. Likewise, have your receptionist ask callers whether they have HVAC agreements in place. That seemingly innocent question plants the seed that you have such a service to offer.
Build it in.
If you are a Smart Service customer, you can add a service agreement module on to your existing system. It tracks everything for you, from renewal dates and billing systems to equipment information and service history. You can also use the Service Agreement module in the Smart Service platform to set up different service levels and establish standards of care for all your service agreement customers.
Click here to learn more about our Service Agreement module and request a product demonstration. We can help you get your HVAC company set up to offer service agreements that attract business and foster customer loyalty.