For any field service business, retaining customers is the key to long-term survival. Constant churn and turnover is expensive—and unsustainable. One of the most effective ways to retain clients is by offering annual contracts. Here’s a look at how field service annual contracts can help your business, some tips for getting started, and an important tool to help manage those relationships.
What is an annual contract?
An annual contract is an agreement between a business and a client that outlines the services that will be provided over the course of a year. This can be for anything from weekly lawn care to monthly plumbing inspections. Annual contracts are beneficial for both businesses and customers because they provide stability and peace of mind. For businesses, annual contracts mean guaranteed income and predictable cash flow. For customers, annual contracts mean never having to worry about finding a new service provider or remembering to schedule service appointments.
How can annual contracts help my business?
There are a few key ways that field service annual contracts can help your business grow:
- They provide stability: Having annual contracts gives you a base level of income that you can count on week after week, month after month. This can be helpful in maintaining cash flow and meeting financial goals.
- They help you retain customers: Once someone signs an annual contract, they’re more likely to stay with your business for the long haul. This means less time spent marketing and acquiring new customers and more time spent focusing on delivering great service.
- They allow you to plan ahead: When you know how much revenue you’ll be bringing in each month, it’s easier to plan for big purchases, hire new employees, or invest in marketing campaigns.
How do I get started with annual contracts?
If you’re interested in offering field service annual contracts to your clients, there are a few things you need to do first:
- Determine which services can be offered on an annual basis: not all services lend themselves well to being part of an annual contract. For example, one-time projects or services that are only needed seasonally probably wouldn’t work well as part of an annual contract.
- Create templates or standard agreement forms: These will help make the contracting process quicker and easier for both you and your clients. You can find some standard agreement forms online or work with an attorney to create custom forms for your business.
- Come up with pricing: One of the benefits of annual contracting is that it allows you to offer discounts to your clients since they’re committing to using your services for an extended period of time. Work out pricing that makes sense for both you and your clients and that will allow you to turn a profit while still providing value.
- Start marketing your contract offerings: Once you’ve got everything in place, it’s time to start letting your clients know about your new contract offerings! Add information about contracts to your website, send out emails or direct mailers, or even offer contracts as part of a bundle package when prospects sign up for other services.
How do I manage all those relationships?
Whether you operate a lawn service business with five trucks or a multi-state plumbing operation with 50, you need to deploy your trucks and teams efficiently to keep your customers happy. The best way to do that is with fleet management software like GPS Trackit. When you know where your trucks and teams are—and how they spend their time in a day—you can make better plans and give your customers more accurate information. GPS Trackit’s software also helps you monitor and encourage driver behavior which saves you money on fuel, insurance, and vehicle wear and tear. The average GPS Trackit customer sees its fleet management software pay for itself within the first month of use.
To learn more about how GPS Trackit can help you reach your growth goals, contact a Fleet Advisor today for a free, personalized demo.