In an exclusive seven part series for PSI, beginning in the April 2020 edition, Jim unpacks each one of the factors over the coming months to help grow your service business.
1. Develop the service business mindset
It is vital to develop a service business mindset when the installation activity can be so time consuming, which is easier when you keep in mind the many benefits of growing your service sales.
2. Set service goals
Goals keep us energised and focused on what we are trying to achieve. The great boxer Muhammad Ali said: “What keeps me going are goals”.
3. Increase sales from customers
Your customers are the easiest, most profitable group to whom you can market your business and increase your service sales, as video game entrepreneur John Romero stressed: “In marketing I’ve seen only one strategy that can’t miss – and that is to market to your best customers first, your best prospects second and the rest of the world last.”
4. Retain service contracts
Research shows that 20%-70% of new customers are lost within the first 12 months of acquiring them. All that hard earned effort in winning the new account just goes to waste…
Service contracts can be retained for many years as long as the customer sees he is getting value for money, continues to have a good experience and feels valued as a customer.
5. Generate leads for new accounts
To accelerate growth in service sales you need to develop, test and measure new lead generation methods for winning new customers. There are some smart ways of doing this online through the use of Pay Per Click advertising, which can be challenging but effective, plus there are also traditional offline methods such as telesales, direct mail and traditional sales.
6. Increase profit through pricing
Businesses often underestimate just how much effective pricing management can boost profits. When installers are either faced with a tough economy or have difficulty in winning new customers, one of the first things some do is reduce their prices. This can be a slippery slope.
7. Measure service business
The service business is about detail, the most important of which should be measured across the three dimensions of service growth, service quality and service efficiency. Goals and improvement activities should be developed for the areas you wish to focus on. This will enable you to manage your growth better.
Long- time PSI contributor Jim Rathbone is the Managing Director of Rathbone Results which supports security installers to increase profits and grow recurring income.