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Grow Your Business With Residential Maintenance Agreements - Kevin Nott
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Grow Your Business With Residential Maintenance Agreements - Kevin Nott


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Weatherproof an HVAC business by selling maintenance agreements to customers

Weatherproof an HVAC business by selling maintenance agreements to customers

Published in: Business, News & Politics

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  • 1. Grow Your Business with Residential Maintenance Agreements May 19, 2006
  • 2. Four Basic Principles
    • Match demand and capacity
    • Ease their pain
    • WOW your customers
    • Personalize the experience
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  • 10. The Key is to Match Capacity to Demand Once the plane takes off, you can’t fill an empty seat
  • 11. Ease Their Pain
    • Its all about perception
    • Perception is based on many differing factors
    • Perception can be changed by providing believable information
    • Create perception of reasonable and factual anxiety
    • Offer to relieve anxiety at a reasonable cost
    • Remove the perceived anxiety as promised
    • Deliver additional “feel good” benefits not promised
  • 12. The WOW Factor
    • Its all about the experience
    • Promise more than your competition
    • Deliver more than you promise
    • Consistency in every contact
      • Visit to visit
      • Person to person
  • 13. Personalize the Experience
    • People buy based on emotion and justify based on facts
    • Emotionalize benefits
    • Make them specific to the customer and the customer’s home
    • Use this emotion when presenting options
  • 14. Ways to Grow Your Business
    • Acquire a competitor
    • Get more customers
    • Get more sales from existing customers
  • 15. The Challenge of Growth
    • Finding customers
    • Finding new products and services
    • Timing of new hires
    • Training
    • Vehicles
    • Inventory
    • Overhead constraints
    • Cash flow demands
  • 16. Would Growth be Easier if You Could …?
    • Choose your customers
    • Plan your hiring
    • Train future technicians
    • Match capacity to demand
    • Schedule demand to fill excess capacity
    • Predict cash flow
    • Ensure profitability in slow months
    You can do this with maintenance agreements
  • 17. With a Maintenance Program You…
    • Own your customers
    • Have more opportunities in front of customers
    • Schedule the work to fill in the slow times
    • Know staffing needs several months in advance
    • Can predict the revenue and cash flow
    • Keep technicians busy year round
    • Get steady source of replacement opportunities
  • 18. Maintenance Agreements Give You Steady and Predictable Demand So you can set your capacity to meet the demand
  • 19. What is Done on a Maintenance Visit and Why?
    • Dan Dearden
    • Field Service Representative
    • Salt Lake City Trane
  • 20. Who Does Maintenance?
    • Maintenance Technicians
    • Service Technicians
    • Installers
    • Plumbers
    • Any field employee
  • 21. An Effective Maintenance Program is a Company-wide Culture
    • Maintenance is the driving force for the business
    • It’s not just another product you sell, it’s the heart of your business
    • All must believe that regular maintenance is in the best interest of
      • The customer
      • The equipment being maintained
      • The employees
      • The company
    • Maintenance customers are treated like royalty – because they are
  • 22. How is that Culture Developed?
    • Name the program
    • Require all employees to observe a maintenance being performed (preferably on their own equipment)
    • Give preferential pricing on all products and services to agreement customers
    • Create an unbundled cost of the services
    • Every employee knows intimately the benefits
    • Always ask callers if they are a maintenance customer
    • It starts at the top
  • 23. Creating Your Maintenance Program
    • Develop a name
    • Create a benefit statement
    • Determine what will be done during a visit
    • Establish benchmark time for each visit
    • Develop pricing
    • Determine SPIFF
    • Develop a script
    • Establish scheduling guidelines
    • Create forms
    • Create tracking system
    • Develop renewal system
    • Establish program goals
    • Develop reporting system
  • 24. Name the Program
    • Name should be unique
    • Should create positive and descriptive image for customers
    • Should not be confusing or misleading
    • May have a tag line or slogan attached
    • Get everyone involved in the process of naming the program
    • Avoid names that allude to promises of energy savings, extended equipment life or fewer repairs
  • 25. Create a Benefits Statement
    • Minimize utility bills
    • Optimize comfort
    • Ensure safety
    • Minimize repairs
    • Extend equipment life
    • Discount on products and services
    • Priority service
  • 26. What Tasks Will be Performed on a Maintenance Visit?
    • Determined by Owner and/or Service Manager
    • See Dan’s checklist
  • 27. Establish Time for Each Visit
    • Determined by Owner and/or Service Manager
    • Consider all the tasks identified in the previous step
    • Include travel time
    • Include customer education time
  • 28. Develop Pricing
    • Labor Rate
    • Materials costs
    • Number of annual visits
    • Number of pieces of equipment
    • Payment method
    • Desired profit
  • 29. Calculating Hourly Cost
  • 30. Calculating Selling Price
  • 31. Determine SPIFF
    • Offering maintenance agreements is part of minimum job expectations
    • Spiff options
      • By number of annual visits
      • By pieces of equipment
      • By number of years
    • Typical SPIFF is $5.00 to $10.00 per annual visit
      • Agreements
      • Tune-ups
  • 32. Develop a Script
    • Consistent, friendly greeting
    • Ask if caller is maintenance customer
    • Ask what prompted them to call
    • Capture critical customer data first
    • Capture equipment information
      • Age
      • Make
    • Payment terms
    • What else do you want to know?
  • 33. Establish Scheduling Guidelines
    • Have a schedule book (manual or electronic)
      • Two-hour blocks
      • 4 blocks per technician
    • Start schedule with slowest time of year and work back toward busy time
    • Do furnace and A/C maintenance visits separately
    • Schedule 1 piece of equipment per block
    • Start with 2 to 3 blocks per tech per day (leave time for service-generated tune-ups and demand service)
    • Don’t over schedule (don’t pay overtime for maintenance)
  • 34. Create Forms
    • Maintenance checklist
    • Maintenance Agreement form
    • Maintenance Performance report
    • Bank/Credit Card Draft Agreement
  • 35. Create Tracking System
    • Customer information
    • Equipment information
    • Scheduling system
    • Paper system
    • Computer system
  • 36. Develop Renewal System
    • Send postcard two weeks prior to scheduled renewal visit
      • Reminding them of their appointment
      • thanking customer for the privilege to serve them
      • reinforcing the benefits of their service
    • Technicians need to know if they need to renew an agreement as they are dispatched
    • Technicians debrief immediately after visit on renewal success
    • All non-renewals need to be contacted
      • Determine why they cancelled
      • Attempt to reclaim the customer
  • 37. Establish Program Goals
    • 85% renewal rate
    • Labor rate
    • 5% replacement lead turnover rate
    • 95% first-time completion rate
    • Accessory sales
    • Customer satisfaction rating
    • Others as desired
  • 38. Establish Reporting System
    • Tracking boards
      • Program goals
      • Individual and team
    • Exception reports
    • Profitability reports
    • Other measurements required
  • 39. Where do Agreements Come From?
    • Tune-ups
      • Marketing
      • Service calls
    • Equipment replacement
  • 40. Maintenance Circle Maintenance Base Tune-Ups Replacements Replacements Service Maintenance Accessories Referrals
  • 41. Converting Tune-ups to Agreements
    • Its all about the experience
    • Show the value
    • Involve the customer
    • Tune-ups done by Maintenance Technicians
  • 42. Build Value from Start to Finish
    • Marketing
    • Pricing
    • Answering the call
    • Scheduling the appointment
    • Dispatching
    • Performing the tune-up
    • Educate customers about agreements
    • Sign up customer with maintenance agreement
    • Thank You card
    • Quality assurance call
    • Seasonal newsletter
  • 43. Marketing Tune-ups
    • Focus on tangible advantages to customer
    • Take advantage of new customer acquisition periods
      • Mid May to late June
      • Mid September to mid November
    • Special offers
      • Preseason
      • Postseason
    • Target marketing
      • Equipment over 10 years old
      • Age of home
      • Income levels
      • Zip Codes
  • 44. Pricing Tune-ups
    • Street rate should be a premium price
    • Build in a “schedule today” discount
    • No special discounts during peak season
    • Special offer pricing
      • 10% to 20% off depending on time of year and need for work
      • Never discount below price of maintenance agreement
  • 45. Answering the Call from a Tune-up Ad
    • The customer is yours if you handle the call correctly
    • Answer with a smile
    • Never give out prices without benefits
    • Talk about personal experience
    • Talk about the company and the people
    • Ask for the order
    • Give customer two hour window
    • Thank the caller for the opportunity to serve
    • Assure them that they have made a good choice
  • 46. Scheduling Tune-ups
    • Screen customers
      • Schedule tune-up visits on equipment newer than 10 years old further into the season
      • Schedule tune-up visits on equipment older than 10 years old ASAP
    • Schedule time that is convenient for the customer
    • Send out reminder if over two weeks out
    • Always thank the customer for the opportunity
    • Remind them of the value and the benefits
  • 47. Dispatching Tune-ups
    • Call the day before to confirm appointment
    • Call 15 minutes prior to the start of the two-hour window to give customer a closer time.
    • If technician is running late, call customer immediately
    • When technician is on the way, inform customer
      • Give technicians name
      • Tell customer positive information about technician
      • Ask customer to call if they have any concerns
  • 48. Performing the WOW Tune-up
    • Shoe covers / Floor protection
    • Clean cut technicians with uniforms with name badge
    • Knock, don’t ring bell
    • Greet with smile and handshake
    • Introduce yourself and the company
    • Start with the thermostat
    • Ask the customer to observe
    • Introduce customer to the equipment
    • Show customer condition of equipment
    • Explain consequences associated with the condition
    • Explain each thing you are doing and benefits
  • 49. Performing the WOW Tune-up
    • Ask customer comfort questions
    • Explain benefits of equipment and accessories they don’t have but that may be beneficial to them
    • Talk often about the benefits of regular maintenance
    • Clean up area as good or better than it was found
    • Point out how good the equipment looks
    • Reinforce the benefits they will now get
  • 50. Educate Customers about Agreements
    • Ask customer if you can review what you have found
    • Preventative Maintenance
    • Not a start-up service
    • Pricing reflects the timing
    • Remind customer of condition of equipment
    • Create reasonable anxiety regarding the condition
    • Explain the benefits of the agreement
    • Ask the customer if they would like those benefits
    • Introduce the agreement as the solution
  • 51. Sign up Customer with Maintenance Agreement
    • Explain agreement options
    • Inform customer when you have openings for the next visit
    • Ask customer to participate in the agreement program
    • Call the office to schedule the next visit
  • 52. Other Tune-up Tasks
    • Send a Thank You card
      • After returning to service van, complete a personalized thank you card and envelope
      • Include with the day’s paperwork
    • Call the customer within 48 hours to see if the customer is satisfied.
      • Reinforce positive comments
      • Immediately act upon negative comments
    • Place customer on mailing list for newsletter
  • 53. Hiring Maintenance Technicians
    • Clean cut
    • Works well with people
    • Detail oriented
    • Enjoys working with hands
    • Assertive
    • Stepping stone to Service or Installation
    • Where to find them?
      • Applied Technology Colleges
      • High School counselors
      • Mechanics
      • Other in-home sales companies
  • 54. Training Maintenance Technicians
    • Industry training opportunities
    • RMGA and EPA certifications
    • Written list of tasks
    • All tune-ups done the same way by all employees
  • 55. Getting Replacement Leads from Maintenance and Tune-up Visits
    • Approximately 5% of maintenance visits should result in replacement leads
    • Report in when equipment is over 15 years old (or an age you feel comfortable with)
    • Encourage homeowners with older equipment to get estimate for new system if only as a budget for the future.
    • Keep database of this equipment and send replacement offers quarterly
  • 56. How Many Agreements do You Need
    • 1000 agreements for each million dollars of revenue
    • 400 agreements per technician
  • 57. Payment Options and Sales
    • Monthly-pay and multi-year prepaid agreements provide the best opportunity to sell equipment and accessories
    • Technician does not need to worry about renewal
    • Customer does not have the sticker shock of both the agreement and the other sale
  • 58. Get Started Now
    • Set aside time to review this information
    • Get out the checklist and make specific assignments with specific dates
    • Schedule follow-up meetings to ascertain progress
    • Involve your TM as needed
    • Ask questions
  • 59. Every time your plane takes off with empty seats it costs you money Fill up the seats with maintenance work
  • 60. Converting Maintenance Visits to Leads Takes Training and Practice
    • Kalani White
    • Territory Manager
    • Salt Lake City Trane
  • 61. Questions?
  • 62. Measuring Your Program
    • Are the comfort consultants talking about your program?
    • Are the service technicians asking customer is they are on the program, if not, would they like to be?
    • Are the customers happy with the jobs you have done for them?
    • Now you can find out!
  • 63. Customer Satisfaction Survey
    • What questions are asked?
      • Do you have a maintenance agreement?
      • Were you offered a maintenance agreement?
      • Were efficiency options given?
      • Was a load calculation done?
      • How did you hear about us?
      • Why did you choose us?
      • Were you ask about cleaner air?
  • 64. Customer Satisfaction Survey
    • Who should participate in the Survey?
      • Everyone committed to customer satisfaction.
      • Everyone who would like honest feedback from their customers.
      • Everyone who would like to track their company & employees performance.
      • Anyone who would like referral business.
  • 65. Customer Satisfaction Survey
      • How to get the most from your surveys!
      • Encourage your customers to participate
      • Stay focused on the customer
      • Show you appreciation
      • Talk to your installers and technicians
      • Lead by example
      • Advertise your results
  • 66. Customer Satisfaction Survey
      • How do you get started?
      • Instruction are on the brochure
      • Talk to your TM
      • How much does the program cost?
      • $600 per year (billed $300 semi-annually)
      • Includes all postage, surveys, and survey results
  • 67. Sales Trane’ing Classes?
      • Sales Training: XLi Certified – 8 weeks of sales training
      • Building customized presentation books
      • Laptop Presentations & Proposals
      • Understanding Duct Work – Duct Design for sales people
      • Referral Farming – All the leads you will ever need
      • Mini Boot Camps – Overcoming objections – Asking the right questions
      • Know Your Competition – competitive review strengths and weaknesses
      • Selling Clean Air – Trane Clean Effects
      • Unique Solutions -- Zoning, twining, PTAC, & Mini Splits
      • Load Calculation: Manual, Computer, Pocket PC
      • Building a Website
      • 13 SEER Plus – Selling comfort and accessories
      • Boot Camp – December 1st
      • Operations Training : Employee Retention, Managing by Margins, Understanding Financials, Service, Lead Generation, Installation, Management Structure
  • 68. THE END
      • Thank you for your business!
      • Have a great night!