In last month’s Snapshot Survey, we asked contractors all about service management operations to get an idea of what’s working in the industry and what’s not. Here’s one survey question and its results from the summary report.
Question: At what rate does your company convert demand service customers into service agreement customers?
The warmest service agreement leads are demand service customers – they’re already inviting your company into the home, agreeing to a conversation, and encouraging a relationship with your company. When we asked at what rate respondents’ companies converted demand service customers into service agreement customers, we found the leading result to be 31-40 percent of the time (22% of respondents). That was followed closely by 21-30 percent of the time (18%) and 11-20 percent and 0-10 percent (both 14%).
According to Gary Elekes, an EGIA Contractor University faculty member and a service department efficiency expert, service agreements need to be offered at 100% of all demand service calls. A minimum of 25 percent of those demand service calls should actually be converted into service agreements, with a target goal of 50 percent.
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