How to Retain Customers and Boost Revenue with Maintenance Contracts
You’ve already put in the work to attract customers, develop a relationship with your new clients, and complete maintenance jobs. So, what’s the best way to sustain your revenue and strengthen your business? Encourage your current customers to keep coming back to you for additional needs and services. Retaining clients is incredibly cost-efficient because you’ll spend less money on marketing efforts and instead focus on building long-standing relationships. According to the Harvard Business Review, finding new customers can be up to 25% more expensive for your small business than working with existing clients on new jobs. What’s more, similar research shows that increasing your retention rate by just 5% can improve your overall profits anywhere from 25% to 95%. Think it’s too good to be true? Here’s why your existing clients can be the best move to boost revenue. What is a Maintenance Contract? We’re sure you have at least a cursory understanding, but in the interest of crystal clarity: a maintenance contract is an automatically recurring agreement between your small business and a customer who pays a regular pre-set rate, tied to a schedule (usually monthly or quarterly) for a defined set of services. Often, these contracts include preventative care and routine checks a few times a year. After you work with a new client -- maybe you’re installing a new unit or completing an emergency repair -- consider pitching the idea of an ongoing contract. Set up precisely what the agreement will offer, how many times a year you’ll provide maintenance as part of the pre-set fee, and reassure your client they’ll be prioritized should more work need to be done that falls outside of the standard maintenance service. With established maintenance contracts, you can build these client relationships by offering discounted services on additional future maintenance, repairs, or new parts. Maintenance Contracts Boost Consistent Revenue As a small business owner, you have overhead costs, whether or not you get new client jobs. It can be daunting to know bills are due before you’ve secured new work. In the best case scenario, you will have steady customers that rely on you for repeat service. In this scenario, you’re securing regular income for your small business that provides stability in the off-season. Meanwhile, your customers feel secure in knowing you’re helping prevent a future headache by looking out for their well-being year-round and saving them money. That feeling of security you can provide to your customers helps make your business more “sticky” resulting in an ideal win-win situation that can guarantee future income. This is the key to establishing financial security for your small business. A Mobile Invoicing App Automates Recurring Billing for Maintenance Contracts Having maintenance contracts with multiple clients means keeping up with those quarterly or bi-annual inspections and regular invoicing. The key to managing these contracts, and getting paid quickly, is to stay organized and on schedule. So, how do you manage all that client information and routine service detail? A mobile invoicing app, like InvoiceASAP, can help you keep track of all the details, jobs, and locations, while automating billing and QuickBooks or Xero accounting syncs. Utilizing maintenance contracts, and managing them with InvoiceASAP, will help you secure stable revenue year-round, grow your personalized customer relationships, and increase your profits to improve your company long term. Start managing your maintenance contracts today by signing up for a FREE account with InvoiceASAP–Running your business has never been so easy!