By relying on paper management, spreadsheets, and stand-alone systems, enterprises that manage customer contracts and service agreements are experiencing revenue leakage. Service Contracts are as important, if not more, than the initial sale. Managing contracts, however, can be a clerical nightmare and, if not maintained properly, can result in lost revenue and poor customer service.
The service contract management capabilities of a service management application need to work in unison with asset tracking to provide service organizations with an all-in-one management suite for maximizing service revenues and improved customer service. They’re looking at complete automation.
The entire contract lifecycle from the initial quotes and estimates to automated billing needs to be automated and managed. Once the sale is completed, the next step is to establish ongoing revenue streams with customers. In many industries, the main revenue stream comes from service contracts. This is because of the intense competition that influences pricing of the machinery, subsequently lowering the profit margins. This is why it’s extremely important to keep a control of your service contracts and renewals to maintain and retain your customers.
Simple, enterprise-wide coordination of warranty management, contract tracking, service delivery, and billing, regardless of contract variations, speeds up billing cycles. Time, materials, and expense attributes, as well as exceptions, provide complete and accurate customer billing. With financial integration, the billing is accurate and immediate with the click of a button. The benefits of implementing contract management software saves time and valuable resources.
The contract management software supports all field service categories, including phone support, onsite services for equipment installations, break/fix, metered usage, preventive maintenance, and any need for repairs brought in house for service. Simple templates enable staff to create contracts with a few clicks. Quotes can be automatically turned into contracts when accepted. The benefits provided through the use of contract management software can be felt throughout an entire organization, as it allows a much more streamlined and efficient process for all personnel involved.
Contract and warranty tracking provides necessary visibility, so everyone interacting with the customers knows the contract status, service level, coverage, and the difference between warranted and billable goods and services. This visibility is vital to keeping everyone on the same page with the same objectives in mind, and keeps the customers’ needs at the forefront. These robust capabilities support automatic and renegotiated contract renewals, tracks contract modifications and invoice histories, and easily interface with third party financial systems.