Grow Your Business With Residential Maintenance Agreements - Kevin Nott

Grow Your Business with Residential Maintenance Agreements May 19, 2006

Four Basic Principles
Match demand and capacity
Ease their pain
WOW your customers
Personalize the experience

The Key is to Match Capacity to Demand Once the plane takes off, you can’t fill an empty seat

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

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

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

Ways to Grow Your Business
Acquire a competitor
Get more customers
Get more sales from existing customers

The Challenge of Growth
Finding customers
Finding new products and services
Timing of new hires
Training
Vehicles
Inventory
Overhead constraints
Cash flow demands

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

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

Maintenance Agreements Give You Steady and Predictable Demand So you can set your capacity to meet the demand

What is Done on a Maintenance Visit and Why?
Dan Dearden
Field Service Representative
Salt Lake City Trane

Who Does Maintenance?
Maintenance Technicians
Service Technicians
Installers
Plumbers
Any field employee

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

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

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

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

Create a Benefits Statement
Minimize utility bills
Optimize comfort
Ensure safety
Minimize repairs
Extend equipment life
Discount on products and services
Priority service

What Tasks Will be Performed on a Maintenance Visit?
Determined by Owner and/or Service Manager
See Dan’s checklist

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

Develop Pricing
Labor Rate
Materials costs
Number of annual visits
Number of pieces of equipment
Payment method
Desired profit

Calculating Hourly Cost

Calculating Selling Price

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

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?

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)

Create Forms
Maintenance checklist
Maintenance Agreement form
Maintenance Performance report
Bank/Credit Card Draft Agreement

Create Tracking System
Customer information
Equipment information
Scheduling system
Paper system
Computer system

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

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

Establish Reporting System
Tracking boards
Program goals
Individual and team
Exception reports
Profitability reports
Other measurements required

Where do Agreements Come From?
Tune-ups
Marketing
Service calls
Equipment replacement

Maintenance Circle Maintenance Base Tune-Ups Replacements Replacements Service Maintenance Accessories Referrals

Converting Tune-ups to Agreements
Its all about the experience
Show the value
Involve the customer
Tune-ups done by Maintenance Technicians

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

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

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

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

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

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

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

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

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

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

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

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

Training Maintenance Technicians
Industry training opportunities
RMGA and EPA certifications
Written list of tasks
All tune-ups done the same way by all employees

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

How Many Agreements do You Need
1000 agreements for each million dollars of revenue
400 agreements per technician

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

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

Every time your plane takes off with empty seats it costs you money Fill up the seats with maintenance work

Converting Maintenance Visits to Leads Takes Training and Practice
Kalani White
Territory Manager
Salt Lake City Trane

Questions?

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!

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?

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.

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

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

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

THE END
Thank you for your business!
Have a great night!

Grow Your Business With Residential Maintenance Agreements - Kevin Nott

by Kevin Nott

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