We have often written about service contracts in the ServiceLobby. A large number of our consulting assignments revolve around the conception and marketing of service contracts. Today we want to discuss the customer touchpoints at which you can best sell contracts.
During the life cycle of a machine, the probability of a purchase is not always the same. You should therefore focus your sales efforts on the times when the customer is most likely to be receptive.
The sale of the primary product is the most suitable customer touchpoint
This is not surprising! Because when customers are considering buying a new product, they naturally think hard about what the best maintenance solution is for them. They are then also receptive to contract concepts of all kinds that offer them a long-term and predictable partnership.
This makes it easier for you to convince them that contract solutions offer real added value. If necessary, also provide information about Leasing offers, Availability guarantees or similar solutions if you already offer them.
The optimum time window usually closes at the time the sale is concluded. Experience has shown that the installation of the machine is less suitable as a customer touchpoint for closing deals. This is also shown in the diagram above. Here, the customer's focus and concentration is initially on other things.
The focus is now on commissioning and processing the first orders. As part of the briefing, you can also address the maintenance points and explain how you as a service provider can also provide support here. However, most customers have no time for this at this stage.
The end of the warranty period is also suitable for selling service contracts
The second most important contact point for the sale of service contracts is the end of the warranty period. Until now, the customer has enjoyed the benefits of the statutory warranty or a warranty extended by you and their production was protected from costly machine breakdowns. The end of the warranty, on the other hand, can lead to a feeling of insecurity.
You can use this to follow up and inform them of the importance of regular maintenance to ensure smooth operation in the future. Or you can offer to extend the warranty. Depending on which offers you have included in your contracts. We have explained the design options for service contracts in detail as part of our online course on the subject of Service contract management executed.
So don't miss this good opportunity to follow up here. It can really pay off for you to pick up the phone at this touchpoint. Don't let this opportunity pass you by!
As the product life cycle progresses, the probability of completion decreases
After the end of the warranty period, it becomes increasingly difficult to convince the customer of your offers. If the machine has already been running for some time without any problems, it is simply more difficult to explain to them why they now suddenly need a maintenance contract.
Nevertheless, touchpoints such as maintenance and repairs purchased without a contract can of course also be used. The chances of success are just much lower.
But especially in the case of major and problematic failures, you can also find open ears here. Because once the customer has fallen flat on their face, this increases awareness of the fact that your service contracts offer an advantage in terms of reliability. Your technicians may also be able to provide useful support in your sales efforts here.
So concentrate your sales efforts primarily on the two contact points when selling the machine and at the end of the warranty period. This is where you have the best chance of success. After that, the willingness to buy tends to decrease. However, you can still occasionally close deals later on, which you should also point out to your technicians. After all, they often have the closest customer contact during the life cycle of a machine. However, you need to be aware of how important the two main touchpoints are for your contract sales.
Selling service contracts is a great way to grow your business and generate secure, crisis-proof revenue. By focusing your sales efforts more wisely, you will be able to sell more contracts than ever before!
