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What is Proactive Service?
The customer is guaranteed not only quick system repairs, but also regular service intervals.
A proactive service agreement is one in which the dealer is offering regularly scheduled contact with the customer.
"It's not reactive," advises Kayye. "It's continuous personal contact. It's way beyond an extended warranty."
The customer is guaranteed not only quick system repairs, but also regular service intervals. Ideally, the dealer comes to the home on a quarterly basis.
Among the potential areas covered in a proactive service agreement are:
"It's not reactive," advises Kayye. "It's continuous personal contact. It's way beyond an extended warranty."
The customer is guaranteed not only quick system repairs, but also regular service intervals. Ideally, the dealer comes to the home on a quarterly basis.
Among the potential areas covered in a proactive service agreement are:
- Cleaning and dusting of the equipment (on a quarterly basis).
- Video and audio calibration.
- Complete operational review of the touchpanels, remotes and/or keypads in the system.
- A general installation inspection.
- Free software upgrades.
- Proactively checking bulb life on TVs.
- Assured product performance throughout the term of the plan.
- Unlimited (or limited) service with no deductibles (some dealers sell "limited" service agreements in which the homeowner "buys" a certain number of "service hours" as part of the plan -- once the customer exceeds that number of hours, he is then charged for time and materials).
- Coverage against electrical surges.
- Free DLP bulb replacement for rear-projection sets.
- Customers support 24/7, 365.
- Protection against lemons
- Product replacement if deemed irreparable.
Service Agreements 101
 | How to Sell Proactive Service Agreements Reducing your installation labor warranties and offering sales commissions on renewals can lead to 70% margins on service contracts. What is Proactive Service? The customer is guaranteed not only quick system repairs, but also regular service intervals. Why Aren’t Integrators Selling Service Agreements? More than half of integrators do not even try to sell service agreements, according to CE Pro research. Who Buys Service Agreements? Gary Kayye of Kayye Consulting breaks down potential buyers into five groups. | |
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About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
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