3 Ways To Improve Your Close Rates On Service Agreements

A down economy can make it difficult for service companies of any type to sell their service agreements. People are reluctant to buy something without knowing what the true value of the product or service is first. So what can you do to move potential contract customers off of the fence? Believe it or not, you have many of the tools necessary to make this happen already. And, putting those tools to work for you is easier than you may think. Let's take a look at three of you biggest assetts that can help you to grow your company.

Use Your Technicians

Your field workforce is one of the first places to look to for spreading the word about the value of your service contract offerings. Your technicians, while directly in front of your customers, can ask subtle questions and drop off brochures. Take, for example, the following scenario:

Your technician has just finished repairing your customer's refrigerator. The refrigerator is a few years old. Your technician tells your customer what they did to fix the problem and then hands them the bill. He/She states how incredibly expensive it is to fix these new fangled appliances and then asks your customer if they have ever thought about purchasing a service agreement. Depending on the customer, they may reply with something like "yes but I thought it would be too expensive" or "no, how does it work?" This is the perfect time for your technician to give your cusotomer a brochure about your coverage options and then refer them to a someone who specializes in selling contracts within your office.

The best part about the above example is that your technician is not really performing a hard sell to your customer. They are merely dropping off some information about other services your company offers, then referring them to someone who is more informed on how to close the sale.

Praise Your Referrals

You've heard the saying "word of mouth advertising". Well, when it comes to selling service contracts, this is one of the most effective ways to get people interested. A simple conversation by one of your customers at work or with a neighbor could turn in to a contract sale and all you had to do was provide great service. If you want to close more contract sales, then give your customers some incentive for helping you out. For example, send out a communication to your customers (via email, post office, or technician) letting them know that for every new customer they give you they will recieve a $25 gift certificate from a restaurant or retail store of their choice. Give them all of the inforamtion that they will need in order to take advantage of your offer and then follow up with each customer and let them know how appreciative you are for their help. By presenting them with a gift certificate and calling them personally to thank them helps you to establish a solid relationship with each of your customers. A good relationship leads to more sales opportunities and, in this case, more referrals.

Don't Forget Your Auto Attendant

Depending on the size of your company, you may have an auto attendant or some way for your customers who call you to be directed to the correct department via your phone system. If you have an auto attendant, you probably also have a music on hold feature so that your customers are not left with dead silence while on hold or being transfered. Both of these features are excellent ways to let your existing and potential customers know about other products or services your company offers. In essence, you have a captured audiance. Take advantage of that time and be sure to add messages such as up coming sales, why they should purchase your service contracts, and maybe some tips on how to manage problems that may come up involving the items that you cover under your contracts. Your customers don't want to hear silence while on hold, so give them your best deals while they wait.

Closing the sale on new service contracts can be difficult at times. Take advantage of all the tools at your disposal to make this process easier. Your technicians get face time with your customer. Get them to drop off some of your brochures while they are still on the call. Your current customers are an excellent selling tool. Create reward programs for the ones that refer new customers your way and be sure to follow up with them to thank them personally. Finally, if you have an auto attendant and/or music on hold, make sure that you add informative messages that help to sell your products and services while your customers wait on hold. You have already paid for each of these tools. Give them the opportunity to pay you back!

Do you use the tools mentioned above now? What are some of the tools you use today to help close the sale of your service contracts. Give us your feedback below.