How many companies want to keep your consumer dollars for themselves? Basically all of them that are already receiving your consumer dollars.
Customer retention is not a new idea. However, there are always new trends, including the “subscription model” pushed by streaming services, software providers and retailers locking in regular payments for regular deliveries. When a purchase is set on default, it’s convenient for the customer – and profitable for the company.
A contractor’s maintenance agreement is more like the subscription version of a loyalty program than, say, a restaurant’s frequent patron card, where a certain number of visits gets you a free item. In the latter case, there’s the promise of a future reward from the company, but with no commitment from the customer.
With the maintenance agreement, however, there’s an investment – a transaction – that secures the benefit of discounts and priority service in addition to a regular tune-up that improves operation and efficiency and helps prevent untimely repair calls. While you get recurring income, the customer gets peace of mind.
With subscription models, there’s a big marketing emphasis on keeping people in the system. Retention is key to the growth strategy. The same can be true for maintenance agreements.
Having a customer sign up for a maintenance agreement is a matter of presenting clear benefits. Keeping them in the program is the next step. Part of this is management. Your office needs to be able to keep track of customers and remind them when maintenance is due. Scheduling the next service call at the end of the current call aids continuity.
Another part is customer service: Continue to exceed expectations and deliver high value on every call. Then there’s retention marketing. Stay in touch, such as differentiating yourself with customer newsletters and deepening relationships through social media.