Subscription services are becoming more and more common. This is even true in the home services sector. For example, some heating and cooling contractors offer recurring payments for HVAC maintenance plans.
You might wonder if such subscriptions can help your HVAC business grow. There is logic to this business model. The US EPA’s Energy Star site recommends HVAC checks twice per year. And the average homeowner spent $1,571 on HVAC repairs in 2022. For these reasons, regular visits from an HVAC tech are important.
Maintenance plans can benefit both you and your customers. You get guaranteed jobs without sales or marketing efforts. And your customers get the services they need on time.
In this article, we’ll look at how recurring payments for HVAC maintenance plans work. You’ll also learn the advantages of offering this option to customers. You will know how subscriptions can enhance customer experiences. Finally, we’ll give you tips to get started offering this option to your clients.
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Understanding Recurring Payments for HVAC Maintenance Plans
Maintenance subscriptions can help your business. Regular maintenance also offers advantages to your customers. It’s important you communicate to your customers why seasonal checks are a good idea, so you can set yourself up for recurring income. Here are some of those selling points:
- Increase HVAC performance. Simple maintenance steps can increase efficiency, which lowers energy bills. For example, replacing air filters can improve efficiency by up to 15%.
- Avoid costly repairs. Regular maintenance checks can reveal problems early. Adding lubricant or replacing a part is cheap compared to fixing a major breakdown.
- Get better reliability. Regular maintenance ensures HVAC units are ready for heavy use. Customers will have confidence in their furnaces or boilers in the winter and their AC units in the summer.
These benefits are important selling points for a maintenance subscription service.
How Do HVAC Maintenance Plans Work?
How would such a service work for your business? You would offer specific maintenance services on a regular schedule. Here is how your system might look:
- Offer a list of services on a monthly, quarterly, or half-year basis.
- Focus on maintenance services like filter replacement and system cleaning.
- Include more technical options like thermostat checks and electrical testing.
- Consider offering efficiency tests or air quality tests.
HVAC contractors often market these plans as seasonal maintenance. The goal is to prepare the system for heavy use and ensure reliability.
How to Organize a Subscription Maintenance Plan
In most cases, you will focus on preventive service. Appointments would occur in the months before the target season begins.
For instance, you can offer air conditioning service for your customers in springtime. This visit would include checking refrigerants and cleaning the air conditioner. You might also test the system and clean the ducts. Meanwhile, fall services would focus on the furnace or boiler.
You might also offer extra perks. For example, waive the fee for unscheduled visits for customers who are subscribers. Another option is to offer different packages. One might cover basic maintenance. A more expensive option could include extras like air quality testing.
You would start the service by setting up recurring payments. After this, customers can pay automatically with a card or bank transfer.
Define an appointment window for the seasonal service. Once their payment gets processed, your customers can make an appointment. Offer them any open time during the seasonal window.
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Advantages of Recurring Payments for HVAC Maintenance
Regular preventive maintenance can be cost-effective for customers. It can also bring benefits to your business. Here are six reasons a recurring payment model is helpful for you:
Predictable Revenue Stream
Recurring payments give you regular cash flow. You can estimate income based on the number of subscribers. With such consistency, you can budget more easily.
Financial uncertainty can be a big problem for home service providers. Some months may be busy, and others very slow. Recurring payments help you earn without having to wait for customers to call.
Also, with more financial certainty, it’s easier to plan for business growth. This can help your company reach its goals in the long term.
Better Customer Retention
Subscriptions help you build relationships with customers in two ways. First, it increases transparency. You offer well-defined services for a set price. Your customers know exactly what they are paying for and when. Most will prefer this option to calling a technician and not knowing the price until they arrive or dealing with a surprise cost.
Second, recurring services help build face-to-face relationships with customers. You get a chance to educate them on their HVAC system. These interactions can also help build a personal connection. If they trust you, customers are more likely to call you when they need other repairs.
Efficient Scheduling
Scheduling is more predictable with recurring payment services. You can spread visits out during the seasonal appointment window. You won’t have to worry about getting overwhelmed on some days.
You can also use an appointment or billing platform to automate appointments. Customers can choose a free appointment time and make the appointment automatically. This option is convenient for customers. It also gives you more time for service.
Easier Payment Processing
You will avoid managing paper invoices. All customers on the maintenance plan will have the same or similar charges. Also, you receive payments before giving the service. You don’t have to risk late payments or non-payment of invoices.
Consider setting up an online payment system. This arrangement lets customers connect a payment method and pay automatically. This way, they don’t have to remember to pay their subscription fee each month or quarter. They can pay via debit or credit or use a bank account or payment app.
These options also automate payments. This means you don’t have to spend time on manual accounting and payment processing.
More Upselling Opportunities
You can use your regular appointments to offer extras to customers. For instance, you can suggest upgrading parts. Or you might offer services that aren’t part of your normal package.
Seasonal appointments allow you to upsell over time. You can warn the customer that an appliance or part is reaching the end of its lifespan. You can remind them of the necessary replacement during the next seasonal visit. This allows them to plan financially for the service and avoid billing surprises.
Increased Customer Convenience
Easier payments and scheduling are more convenient for you. These features are also easier for customers. Maintenance may be an afterthought for most people. They may forget seasonal checkups for their heating and cooling systems. Or they may overlook their payments as they juggle all their other bills.
The automated aspect of subscription services makes it easier to remember HVAC upkeep. Also, paying and scheduling with a few clicks on a phone or computer is convenient. It negates problems like lost invoices or missed voicemails. Once they experience this convenience, customers will often prefer the subscription service model.
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Enhancing the Customer Experience through Recurring Payments
Customer convenience is a major benefit of maintenance subscriptions. This arrangement can also enhance other aspects of the customer experience. Specifically, it helps with different types of communication, transparency, and long-term relationship building.
Practical Communication with Customers
You can automate communications with subscription customers. For example, when the appointment window opens, you can remind customers by email or text. With the right system, you can automate this contact.
You can send similar notifications reminding customers of upcoming payments. Also, automate confirmations after a payment gets processed.
Finally, appointment reminder emails or text messages can help customers remember their appointments. They don’t have to worry about forgetting the time and date.
Building Trust with Transparency
With subscription services, customers know exactly what they are getting before your visit. You can carefully list the steps you’ll take in a service agreement, plus detail the cost of these services. Customers have the freedom to make a comparison with other contractors if they wish.
This transparency leads to a higher level of trust. Customers know they won’t get hit with surprise charges. Also, they can clearly see if a service falls outside of the subscription agreement.
Creating Long-Term Relationships
The combination of easy payments and trust sets the stage for a long-term relationship. After repeat visits, customers will come to rely on you to keep their HVAC system running.
This relationship will help you get larger contracts. You can turn this trust into jobs like installing new systems or making major repairs.
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4 Top Tips to Implement Recurring Payments in Your HVAC Maintenance Plans
Setting up recurring payments does not have to be complicated. You don’t have to come up with a workable plan right away. Instead, take a step-by-step approach to build a subscription service. Here are four tips to get started:
- Talk to customers. See if your customers have an interest in a subscription service. If so, find out what services they would like you to offer. How much would they be willing to pay for such a maintenance plan?
- Research competitors. Find out if competitors offer subscriptions. See what their service includes and how much they charge.
- Test-drive platforms. Find payment and scheduling platforms that offer demos. These can help you get a feel for how automated systems work.
- Come up with a list of services. Decide what you’ll include in the maintenance packages. Base your offerings on the seasonal needs of customers in your area.
These steps can give you a framework to set up a more complete subscription plan.