10 Effective Tips to Increase Revenue in Your Field Service Business
Expanding a Field Service Business could be an uphill task for anyone. As your company grows, your expenses and overhead costs will increase simultaneously. This means if you don’t trade carefully and ensure steady revenue generation, your profit margin will take a dip. However, acquiring more work orders is not sufficient to mitigate this task. Eventually, you will have to explore novel ways to generate more revenue so that it balances with the business expenses, and subsequently, maintain your profit margin.
If you are facing a decrease in your revenue either from decreasing number of customers or growing expenses, here are some foolproof methods you can try to earn more money and ensure a steady revenue inflow.
Table of Contents
1. Set a Clear and Achievable Goal
For any business, the importance of setting an attainable financial goal is paramount. If you don’t have a clear revenue goal from the get-go, it will be really difficult to scale whether your business is gaining profit or lagging behind.
To set a reasonable revenue goal, begin your strategy by reviewing your finances, including your current profit margins, pricing, overhead costs, and business expenses. Pay attention to whether your revenue has increased since last year/ previous month and if yes, by how much.
Building on those statistics, figure out what would be a reasonable revenue goal for your business and aim for it by standardizing and streamlining your operations.
2. Restructure and Refine Your Pricing Strategy
One major factor that determines whether customers will be drawn to you is your pricing. For most people, affordable service is always preferable. But you need to ensure quality even if you are offering a competitive price.
Your prices, however, depend on a host of external factors that is not always under your control. You need to take note of demand, supply, availability of the materials and products required, seasonal variation in workflow, varying labor costs, and so on. Therefore, if you don’t have a clear pricing strategy, you will end up spending more money than you should be making.
Start with a clear, effective pricing strategy that reflects your industry practices accurately. You should also consider your clientele strength, resources, and your level of experience. But most importantly, base your prices on the total expenses, including equipment, material cost, overhead costs, and all kinds of potential business costs that may arise.
Remember to keep your pricing strategy flexible. Revisit it from time to time so that you may alter it as per the current market standards and any unprecedented factors.
3. Make Payment Easier
If you are struggling to generate revenue despite setting a competitive price, revisit your payment process. Customers always look for convenience in every step of the interaction, especially when it comes to making payments.
If you still receiving payment via cheque and cash, you are probably scaring away a lot of customers. Moreover, millennials and Gen Zs now live off of their smartphones and computers. Therefore, if don’t have any online payment system in place, you are potentially losing a big chunk of potential clients.
Make sure to set up online payment channels so that customers can pay you instantly and easily with just a few clicks on their computer/tab/smartphone. In this regard, you might want to invest in field service management software compatible with QuickBooks. It organizes all your customer data in one place, helps you create invoices, edit and share them without re-entering data, and supports payment collection on site.
Create Invoices on the go and share them with your customers for an easy payment process. Contact us to Know more.
4. Provide Financing Options
It is not wise to think all your customers will come loaded while asking for your services. Some might hesitate because they don’t have an adequate budget right off the bat, nonetheless in dire need of the services you offer. Therefore, if you have an alternative plan, you might grab this vulnerable clientele and generate more revenue in the long run.
Customer finance is an excellent way to attract these kinds of clients. If you offer a more affordable, flexible payment plan where they can pay for your services in installments instead of a lump sum amount, they are more likely to choose you even over big names in the field.
Help your customers afford your services, and generate more revenue in return.
5. Offer Lucrative Offers and Discounts
Everyone loves a good deal. Therefore, if you can throw in some bonus with your usual package, chances are you will be attracting more customers. And as a result, generate more revenue. This could be a discount, some additional services, free inspection from time to time, and anything that is within your capability.
Although discounts and free services might sound counterintuitive to revenue growth, it is an effective way to build your brand image and boost overall sales. When a customer looks into your profile, you can lure them in further by “extra somethings” like these. Once they get hooked on your efficient services, they are most likely to come back again.
6. Upsell Your Service
One of the most effective ways to generate more revenue is to bundle and upsell your products and services. Thus, you can earn more from a single job without spending more. Think of this as carrying out two work orders in a single location, oftentimes done by the same technician.
When a customer requests a specific service, think about what additional services you can offer in the same quote. For example, if you are a plumbing service and are hired for fixing an overflowing kitchen sink, you can also offer an inspection of the drainage system for any blockage.
If you can upsell successfully, you are also saving a ton of money which you might have to spend on advertising or acquiring more customers.
7. Target Frequent Customers
Acquiring new customers for your business is always great. But remember, to generate steady revenue you need to make sure our old customers are coming back to you for any further requirements. Else, your business is not really growing. On one hand, you are reaching out to new customers while on the other hand, your existing customer base is shrinking day by day.
This is why customer loyalty is of great importance in any business. Repeat customers offer consistent earning and thus, predictable revenue.
Focus your marketing strategy to target customers looking for recurrent service instead of one-off jobs. This will help you not only to increase sales but also to develop a loyal customer base and in turn, steady revenue channels.
8. Take Customer Feedback and Redesign Your Strategy
At this point, you might think you have learned enough business strategy and therefore, could make one of your own to increase revenue. However, the most important aspect you should take note of is flexibility. If you become quite self-content that the strategy is going to make it big, think again. Only time will tell whether it is effective or not.
While it is difficult to forecast how your strategy would perform, you can always measure its success by taking customer feedback. Once you finish a job, you can survey the customer experience and pay heed to what they have to say about your service, pricing, or any other aspect of your business. You can always benefit from their suggestions on how you can improve further. Be sure to develop a survey questionnaire that would get you relevant answers.
Customer experience is a significant driver of business growth. So, if you can leverage their feedback, you can effectively build a better business strategy based on it. Remember, happy customers, are more likely to become repeat customers, meaning reliable revenue for your business. Besides, the word-of-mouth promotion that you may leverage from their experience could bring you more new customers, leading to business expansion and in turn, increased revenue.
9. Explore New Marketing Channels
Don’t limit yourself within your comfort zone. Try to explore new leads, greater areas, and improved services. As you grow your business, the chances of revenue generation increase simultaneously.
In order to attain this goal, try to explore new marketing strategies and channels. Some of the most popular for generating business leads for field service businesses are:
- Social media business pages
- Company website
- Email marketing
- Local service ads from Google
10. Invest in Field Service Management Software
No matter how much effort or money you put into developing a new revenue strategy, nothing will lead to fruition if you are caught up too much in administrative work. To apply your strategy successfully, you need to make sure your business processes are running smoothly without taking up too much of your time or attention.
This is where Field Service Management Software comes to your rescue. This innovative digital tool automates and streamlines your operations, making your workflow seamless and increasing productivity.
At the same time, this software solution empowers you to attain many of the goals mentioned here. For example, you can build improved communication channels with your clients to provide them with an excellent customer experience, automatically schedule and manage recurrent work orders to attend to repeat customers, create invoices on the go and share them with customers for an easy payment process, and so on. But most importantly, this digital tool allows you to receive work orders anytime, anywhere so that you never miss any business opportunity, which is the ultimate requirement for increased revenue generation.
Field Promax: Your One-Stop Solution to Automation
It can be safely said, that in today’s time, work order management software is the best investment you can make if you are serious about revenue generation. So, if you don’t want to lose the competitive advantage, check out Field Promax today. As one of the leading field team management software, it has garnered remarkable popularity in recent years. Despite being easy to operate and affordable, you will be surprised to learn about the endless tasks it does on your behalf.
Field Promax allows you to do the following:
- Create estimates
- Send quotes for customer approval
- Turn estimates into work orders
- Receive service requests
- Schedule and dispatch technicians
- View and manage the entire schedule
- Notify customers about the scheduled visit
- Manage route plans
- Monitor technicians’ location in real-time
- Keep track of job progress
- Manage inventory
- Share job status and proof of work with customers
- Create, edit, and share invoices in the field/ from the office
As the cutting-edge field service automation software takes a huge load of business operations off your shoulder, you can spend that time focusing on more important works instead, such as increasing productivity and strategizing for more revenue generation.