We can’t stress enough the importance of having HVAC Companies and the Precision Tune-Up Specialist (PTS) renew the service agreement on the last tune up. It is important that the PTS renew the agreement at a high rate. To acomplish high renewal rates the PTS must be trained and have an outgoing personality profile.
The service agreement should expire about the time of the final tune-up. If the service agreement was converted from a single tune-up and the first tune-up under the agreement was performed six months after the single tune-up, the final tune-up is performed at the end of the agreement.
Customers are much more likely to renew if the agreement will expire immediately after a tune-up. Customers have a higher renewal rate when presented the renewal option in person. Renewal rates in the spring are higher than renewal rates in the fall. Never include the single tune-up as the first tune-up for a service agreement.
One of the objectives of our Maintenance Department is to level out the workload. Make sure all PTS and service techs are trained and understand that we perform maintenance on all components on each tune-up in order that the AC and Heat are ready to go at any time. Don’t promote or reinforce the concept of seasonal tune-ups with the customer.
If the service agreement does not expire at the end of the agreement start scheduling the tune-ups out so they eventually do expire on the last tune-up. Mail a letter stating the features and benefits of service agreements along with an executed renewal agreement. Follow up by phone and time the call about the same time the customer should receive the agreement in the mail.
Some companies pay half commission for PTS, tech and CSR renewal of service agreements. I prefer to pay a lower hourly wage and keep everyone aware of performance based compensation. If you want higher renewal rates reward higher renewal rates.