Many products such as manufacturing facilities or industrial electronics require regular evaluation and recalibration to maximize performance. Such activities are good candidates for inclusion in your service contract coverage options. If your company has not implemented a comprehensive warranty and service contract management program, you could leave considerable potential on the table for extended profits, future sales and customer satisfaction. How do you know if your distribution goals for the SAP service contract and warranty management will be achieved? Define the following key performance indicators (KPIs) that apply to service contract management and how they are generated and measured: Whether you are selling products, services or a combination of both, a significant source of revenue can be realized after the first sale. This can take the form of service contracts or extended warranty programs that add long-term value to customers and maintain their relationship with your customers. Your customers want contracts that are easy to understand and meet their expected service requirements. But once the contract is signed and the terms in effect, there are two essential factors: service contracts, which can be easily understood with accurate billing, will help your business increase renewal rates. B2B services are more likely to implement tailored programs than consumer-focused businesses. Establishing an effective line of communication with the group responsible for managing service contracts in your client`s business facilitates renewal rates and helps resolve disputes ahead of contract terms.
If legislation evolves, products such as software applications may change to maintain compliance with local or federal jurisdictions. Addressing service contracts ensures that your client meets these mandates in the future and at the same time provides your company with revenue to cover these costs. When did the customer receive extension notifications? Have they resulted in contract renewals or renewals? Have new services been added? How many notifications did they take place before the end of the sale? Not only do you track the percentage of these important factors, but also determine whether extensions lead to door-to-door sales opportunities and whether they become additional revenue. Sales teams need to be aware of potential opportunities to expand services as renewal approaches and provide add-ons including extensive on-site service, additional coverage, remote monitoring, inspections and other services. So I recently bought a 2017 Kia Soul from a used car dealership after problems with my other car occurred several times. The soul now has about 42k miles on it. I received a letter in the mail about the warranty that says, „Our statements indicate that you have not contacted us to activate a car service contract for your VEHICLE.