Even though the economy has become less than desirable on most fronts, there is one area where sales continue to rise. Companies report sustained income through the areas of extended warranties, service contracts and software updates. These add on products can provide needed revenue and the potential to make your company recession proof.
The secret to long term success is to help your customers keep the application or program running smoothly, selling them updates which provide an ongoing revenue stream. Improving service renewal rates means monitoring how people are using your product and making sure it continues to meet the needs of your customers.
The Service Contract Industry Council estimates that consumers will spend over $8 billion this year on extended warranties for products such as computers, other electronic items and appliances. Increasing attach rates will not only give your company an immediate cash boost, but if managed properly those maintenance and service contracts can lead to repeat business turning your customers into the kind of repeat buyers that are the backbone of any sound business enterprise.
The case is similar with service maintenance agreements sold with new software programs. These offerings are becoming increasingly popular as companies continue to look for ways to cut costs because of the tight economy. The result is often that you should offer licensing rights to your software or application in addition to options that include technical support, maintenance and overall warranty coverage.
You can maximize your renewal rates by utilizing a maintenance contract manager. The added expense of a maintenance contract manager is quickly justified in the extra revenue generated for your company due to the alignment of your hardware and software systems. Managed Maintenance, Inc. (MMI) specializes in maintenance contract management and reports as much as a 150% increase in new revenue. MMI offers the tools that will help you better manage the entire life cycle of service and maintenance contracts through their portal, ONEview. ONEview assists in tracking maintenance renewals and expiration dates and can help you find the best ways to reach customers to extend service contracts and increase revenue through renewed sales.
Maintaining communications with customers is vital to getting repeat business. A service contract management system will make sure you know ahead of time when contracts are about to expire and can prevent you from being nosed out by a competitor. A database of contact information is vital and will serve as a valuable sales tool. The information can identify customers who are using older versions of your product and provide yet another sales opportunity.