Warranty: Selling More Service Contracts
Closing the sale of a service contract might be reason to celebrate, but it’s certainly not the end of the cycle. Rather, it represents the culmination of one set of business processes and the start of a set of after-sale processes. All of these processes must help a company make a real contribution to the bottom line, improve customer satisfaction and yield a larger, more predictable revenue stream.
Aberdeen research, in a recent report by Bill Pollock, titled “Service Contract Management,” confirms that best-in-class organizations do a much better job of packaging, selling and managing service contracts than industry average and laggard companies combined. In this case, best-in-class companies achieved a 90 percent contract renewal rate, 28 percent improvement in service-level agreement/contract compliance over the past two years and 26 percent increase in total service revenue over last two years. But there are key areas where even the leading service organizations fall short. Here are some of the report’s highlights:
Best-in-class performers are:
• Twice as likely as all others to measure service performance against contract obligations.