I recently met with a very experienced businessman who told me this story. He recently had security systems installed to provide additional protection for a couple of his elderly family members. He went on to explain that that he was very happy with the installation but was careful to note that the installer had missed a beat by not offering to provide for an annual service and maintenance contract. The businessman would have been very pleased to accept an arrangement where he paid for the regular maintenance. The installer had in effect “left money on the table”.
The installer was so busy dealing with the day to day installations he completely missed the opportunity to establish an ongoing and recurring income for the future. This potential income would have required little or no great effort to set up.
Effectively this meant that in the future he would just have to continue finding more and more new customers for installations. Had he arranged the ongoing maintenance he could rely on this source for an income even if the economy changed and his new installations slowed down.
Sometime ago we had a customer who was maintaining a database which they updated after every job to remind them to contact their customer again in 6 months to arrange a return service. This procedure took time to update after each job and then it took even more time and effort to call each of their customers to arrange the next appointment.
Instead when booking the job we simply added an additional drop down selection which added the customer to a reminders list. Then 30 days before the next service call is due an email was sent automatically to the customer asking them to contact us to arrange the appointment. This had an immediate effect.
Where previously 3 days a week were spent trying to contact the customers for appointments, now the customers call the office. What a turnaround. The reminder list even highlights the small number customers who don’t actually get around to calling, and this has saved the team so much effort and meant they were able to be re-deployed onto other income generating activities.
Having the system in place has been a real winner.
Can you think of areas in your business where you are “leaving money on the table”? Are there areas in your business where with a few simple steps you could increase your revenues and even better still build a recurring income for the future?