4 Ways to Increase Revenue per Maintenance Call
Service providers need a constant stream of orders to stay afloat and remain profitable. If the stream of orders ceases, the business could be in a lot of trouble within a short period. Because of how the revenue generation of service providers is designed, these businesses must work to create basic measures for increasing revenue. A clear example of a measure for improving revenue is the creation of service level agreements (SLAs).
The importance of applying strategies for enhancing revenue is also highlighted by the fact that it is both hard and expensive to get new customers. Increasing revenue per maintenance call is an important strategy that service organizations can apply. Let's consider how organizations can increase revenue per maintenance call through the use of SLAs and other measures.
Recurring service agreements
The application of SLAs to increase revenue per maintenance call is in the creation of recurring service agreements.
These agreements are a simple way of guaranteeing a steady source of revenue for a service business. Recurring service agreements basically specify the terms of provision of services repeatedly. With the agreements in place, maintenance calls can be a steadier source of income since they are essentially pre-ordered.
Another way in which service agreements guarantee increased revenue per maintenance call is in the protection that comes with the agreement. Since the terms and conditions of providing the service are clearly stated in the agreement, more revenue can be generated. Agreements like SLAs are designed to protect both the service provider and the client.
Organizations can make more money from maintenance calls when they streamline their operations. Streamlining operations involves eliminating wastes and offering products and services according to the most efficient methods to eliminate wastage.
Running a low-cost system by eliminating waste and automating as many processes as possible will guarantee higher revenue per maintenance call. While measures like creating SLAs guarantee a steady stream of income, running streamlines operations indirectly increases the revenue per maintenance call.
Upsell and cross-sell
Upselling and cross-selling work like SLA because they involve directly increasing the revenue from each maintenance call. The principles of upselling and cross-selling are based on strategies for getting the average client to spend more money by offering extra products and services related to the initial order.
This option is a creative method for increasing the value of maintenance calls and generating more revenue.
Create loyalty programs to encourage maintenance orders and directly increase revenue from maintenance. This method is somewhat related to the creation of recurring service agreements in that it encourages regular maintenance calls.
Loyalty programs could even encourage clients to establish a regular maintenance schedule, increasing the revenue from maintenance calls that way.
Existing customers already trust the business and are bound to contribute a higher percentage to the revenue. Maintenance calls are one way through which existing customers can enhance revenue. The methods highlighted above should be applied to enhance revenue per maintenance call and generally increase the revenue of a business by focusing on existing customers.