Every sale you make, every dollar of revenue you earn came from a customer that chose you over a competitor. Why did they pick you?

Chances are you are not the only service provider in your city, so there must have been other factors at play. Understanding what those factors are can help you know your customer motives and how to replicate the reasons your current customers selected you to gain new customers.

Each of your customers chose you because you offered the benefit they wanted. You offered the right combination of logical and emotional components that they wanted and needed. Your offer provoked them to take action and choose your services over all the other providers and the option of doing nothing.

Your customers chose you over a competitor. Your competitor’s customers chose them over you. Do you know why? The fact that they chose you means they found something different or better. But it also means that when they pick your competitor.

Knowing what those factors are means you can promote and differentiate your company based on the real reasons your customers choose you.

Here are some reasons why your customers choose you:

• Your company can best solve their problem
• Your company is the most reliable
• They trust your company
• You offer good after sales service
• Your company offered the best price
• Your company is the closest
• Your company was available to meet their schedule
• Your company was easy to buy from
• Your company was the first they found

Which of these answers apply to your customers? What can you do to present your company as the one that represents that choice? Understanding why your customers buy from you will give you a clear picture of your strengths and weaknesses and will show you how to broaden your appeal so that new customers will also choose you.

People will only buy from you when they want to. It is your responsibility to understand why the people who bought from you wanted to and to then communicate to others why they should want to buy from you. People will buy from you when they decide they want what you offer. Do you offer what they want? Do you know what they want? When you know what your customers want and offer it, they will buy from you and not from your competitors.

What other reasons do customers buy from you? What do you do the help them along the way?

Service Roundtable has shared a PowerPoint presentation by Linda Couch, Chief Operating Officer of Parish Services. She gave the presentation at Comfortech 2010 in Baltimore, MD.

The presentation shares 10 ideas for making your service technicians more productive. You can get it from Service Roundtable’s website or by clicking the image below.

Linda’s 10 tips are:

1. Clearly define and prioritize “productivity” for your techs
2. Define and manage productivity goals
3. Equip your techs with productivity enhancing tools
4. Equip techs with a proper, organized inventory
5. Train your techs: Technical
6. Train your techs: Advising
7. Use supporting customer service and dispatch strategies
8. Use supporting warehouse and purchasing strategies
9. Use supporting sales and marketing strategies
10. Use IT to increase productivity

She goes into much greater detail within the PowerPoint presentation, which also includes her speaking notes. Implementing all of Linda’s tips will take a great deal of time, focus, and dedication. But the effect her tips will have on the profitability of your business will be profound.

DIY website, eHow, has a short tutorial on selecting HVAC Service Software for a service management company.

HVAC service software is an integral tool for mechanical service management companies. You will want to find a solution that helps coordinate your customers’ needs in such a way that maximizes tasks completed, customer visits, and gross revenue while simultaneously lowering overall costs. Follow these steps to help in identifying HVAC software for your company.

eHow suggests looking for HVAC service software that works on mobile devices and can handle functions like dispatching, invoicing, and communicating with the office. It also suggests looking for software that will integrate well with your current account package.

eHow encourages readers to make sure the HVAC Software provider has a quality phone and email support system that you can reach during your working hours. eHow suggest finding service software that is tailored to work with your HVAC business. Finally, they suggest choosing HVAC service software based on its ability to to give you good and relevant reports about your business.

You can read the full guide at: How to Choose HVAC Service Software | eHow.com.

You’re not going to get paid on time for every job you do. Sometimes the situation just gets out of your control. It’s a fact of life. Fortunately for service contractors, three of the most common reasons service contractors are not paid on time are within your control.

Before reading on, take a quick second to glance over the bolded heading below. If you can honestly say that your company has never lost revenue or had their cash flow suffer due to late payer, skip this post or try reading something like this, this, or this.

Lost Invoices

It’s amazing how generous service contractors can be. However, to get paid on time, you need to avoid the accidental freebie jobs. Invoices and completed work orders shouldn’t be filed under the seat in your tech’s vehicle. But somehow, it’s still a regular occurrence to find old invoices there when cleaning out the truck. If the customer doesn’t get the invoice, you’re certainly not going to get paid.

Your business needs a system to follow every job through from beginning to end to make sure that nothing gets lost in the shuffle and business of every working day. Your company should have a method to track each customer from the time they call requesting service, through the time your techs get the job, through the time they finish the work, through the time the customer receives the invoice, to the time you receive the money. Any gap in this work flow can mean lost revenue or a delay in cash flow.

Delayed Invoices

Customers–more than ever in this Internet age–expect to get their invoices right away. Many contractors, especially if they also work in the field, don’t keep up with their office work. That means that there can be quite a gap in time between when you do work and when your customer sees the bill.

It’s hard to expect timely payment from a customer, when it’s been so long since you completed the job that they hardly remember what the invoice is for. Customers have become used to receiving bills immediately. They’re also becoming more used to having invoices emailed to them, and then being able to pay those invoices online. To get paid quickly, it is important to bill quickly, in the field as soon as the job is completed if possible. When techs are able to create invoices and collect money via checks or credit cards for work they do in the field, you are far less likely to wind up waiting for payment or losing out on uncollected revenue.

Invoicing with Terms

The terms you offer can also have a negative impact on cash flow and timeliness of payments. Giving a customer 15 or 30 days to pay by cash or check invites the possibility of the customer forgetting about the invoice. Some contractors have gotten fed up with the issue of late cash or check payments and have just started to require customers to have a credit card on file.

Contractors that balk at having to pay 3% to the credit card companies often forget the cost of uncollected debt and the time and effort of having to call up and remind customers of past due invoices. Being able to capture signatures and accept credit cards in the field can be the difference between having a healthy cash flow and constantly be waiting on customers to pay their bills.

A predictable cash flow is incredibly valuable to service contractors. Your employees and vendors expect to be paid on time, and so should you. Putting systems in place to track work and invoices, making sure customers are billed quickly, and avoiding invoicing with terms are all ways to make sure you get paid on time.

What are some other ways to make sure you are paid in a timely fashion? Leave your ideas in the comments.

Below is a collection of quick tips for your service agreement program. These are from the end of a longer article from Contracting Business Magazine by Robert Wikos of Peaden Air Conditioning. The rest of the article goes into depth about how a strong service agreement program will lead to better customer loyalty, revenue, and company value. The full article provides lots of stats to argue for a strong service agreement program, but for those of you who are already believers, the following list will give you some food for thought of what parts of your service agreement program you can work to improve:

1. Display a total commitment
2. Offer priority service
3. Honor your word
4. Be flexible
5. Provide reasonably-priced service with good value and benefits. It’s the beginning of a long-term relationship and not just a quick sale
6. Monitor your growth
7. Refine and duplicate procedures
8. Track technician performance

How has your company benefited from your service agreement program? Share your service agreement tips in the comments.

For those of you who hate writing business letters, Service Round Table has provided an extensive resource will ease the burden.

The Service Roundtable obtained a special license from Eshinesoft Corporation to make these ready-to-go, easy-to-modify standard business letters available online for our members and potential members. Cut and paste any letter into your word processor.

Why Free? Why is the Service Roundtable making this letter library available for free when others charge for it? Simple.

The library is accessible here for both SRT members and non-members. There are tons of letters here, but the search field makes it easy to find what you’re looking for. Once you find the right letter, you can paste it into a Word document and fill in the blanks.

You can use these letters in your business correspondence, and if you’re an ESC user, you can save the templates you use regularly right into ESC. If you’re not an ESC customer, you can sign up for the 30-day free trial to see how ESC can make your correspondence with your customers more efficient.

Make Each of Your Customer Interactions During Service Agreement Service Call a Selling Opportunity

August is almost over. That means the hot weather and the summer busy (or crazy) season is drawing to a close for much of the country.

It also means it’s time to take a look at the health of your service agreement program. Did your technicians sell more new service agreements than they did last year? Did your renewal rate improve? Do you have enough service agreements to keep your technicians busy through the winter? How has your service agreement base affected the overall value of your business? These are all good questions to ask to get ready for next summer’s busy season.

The summer busy season was a great opportunity to sell service agreements to your new or repeat customers. I hope your company had a successful year for selling service agreements. I also hope that the service agreements you sold are more than just a way to keep your technicians busy during the slow times.

Service agreements do give you revenue throughout the year and help to spread out the annual work load, but they also give you an opportunity to sell to your customers. A routine service check can uncover major problems for your customers before they become emergencies.

Those same routine checks also get your technicians face-to-face with your customers, which will beat the odds of door-hangers and direct mail any day of the year. You have a huge opportunity here. Your customers are expecting you to come. They’ve invited you in.

However, this direct interaction will be a huge waste if your techs just go into the house look at the equipment, change a filter or two and move on to the next service call.

This doesn’t mean you can invent problems or be dishonest with your customers, but your technicians should approach each service agreement call as an opportunity to find a way to help the customer through suggesting an equipment upgrade to save energy, proposing automated climate controls to make their house more comfortable, or some other way that you can benefit your customers.

You’ll want to make sure your technicians are prepared to sell during each encounter they have in the home of your service agreement customers.

Conversion Rate on a Service Agreement Call

Conversion rates on these routine calls will probably be much lower than your conversion rate of service agreements or ordinary service call, but it stands to bring in more sales dollars because you’ll be selling a more tangible product or service.

During a service agreement service call is the best time to bring up more extensive tune-ups to prepare equipment for cold weather and seeing what equipment is in need to replacement.

Conversion and sales rates are going to vary by your type of Service Company, but there are a few principals that will remain consistent.

1. Set a conversion rate goal: Every one of your technicians needs to know what the goal is and how well they are doing to reach it. Each tech should know where they stand.
2. Sales Training for Technicians: First and foremost, your technicians are technicians and the good work that they perform will have to stay priority number one. However, they are also the ones on the front line of your business. They have the most face-to-face contact with your customers, and therefore are best suited to selling to them.
3. Provide Strong Marketing Materials to Your Technicians: Your technicians can sell and talk about solutions, but many times it will not be a one call close. However, the marketing materials they leave behind after the sales conversation can help in the decision making process, as well as fill in many of the technical gaps that don’t get talked about in the sales conversation.
4. Reward the Results: The technicians that succeed in converting more sales should be rewarded generously for their efforts. Give them the incentives they need to stay motivated and focused on their goals.

You worked hard to get these service agreement customers. They trust you and count on you. Make sure that you serve them well by finding ways to make them more comfortable and making sure they’re equipment doesn’t break when they need it the most.

Identify Your Customers’ Needs

Communicate Regularly With Your Customers

Get Your Employees Involved in the Vision

Market Your Business Aggressively

Consistently Seek Out Referrals