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If you have a service-centric business, you rely on repeat business. Long gone are the days that transactional hardware sales are enough to get you by every month, which is why contract management is such a critical business function for service providers. With that in mind, you’d want as many devices or machines under contract as possible. Contracts represent recurring revenue for ongoing service, parts, supplies and, in some cases, hardware sales. But how do you ensure these contracts meet both your needs and your customers?
Solution selling is one of the many strategies you can use to ensure that your team is creating profitable contracts the first time, so you don’t have to worry about being locked into costly contracts that hurt your bottom line.
Solution sales involves a salesperson guiding potential customers through the buyer’s journey, from beginning to end, and delivering a contract that provides value and helps them achieve their goals. This is a markedly different approach from transactional sales, a model in which the salesperson is the gatekeeper that appears at the end of the buyer’s journey to close the deal.
For many businesses, particularly service providers, transactional selling is not a sustainable business model. It doesn’t provide the flexibility or scalability required to grow your business. Thankfully, solution selling is ideal for service-centric businesses that offer highly customized offerings like maintenance and service contracts.
There are many benefits of solution selling that extend beyond the initial sale, helping you secure that reliable recurring revenue so you can focus on growth. Here are five ways that solution sales can help you improve your overall contract management:
Maintenance and service contracts are the bread and butter for any service provider. Embracing solution selling gives you the information you need to build smart, profitable contracts the first time.
See how ourService Management Software can aid with contract management.
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