Managing a moving company entails managing contracts. Whether you are a B2C or a B2B company, it is important that you have a decent contract management system in place and that your employees stick to it. Even though this is relatively common knowledge, there are still moving companies that do a poor job. To help you out, we will use this article to outline 4 strategies for effective contract management. Hopefully, these will make your everyday dealings a bit easier.
Strategies for effective contract management
As with most things regarding running a company, contract management isn’t something you can tackle in one go. You may still face specific issues even if you apply all our outlined strategies. After all, your client’s needs and professional capabilities will outline the type of contracts you have. And it is impossible to have a single system covering all possible types of contracts. So, give yourself time to fully understand your customer base so that you can easily manage your contracts.
Carefully outlining the details and duties
The first step in any severe contract management is learning to properly outline your contracts. Remember that a contract doesn’t only outline what you will do for your client. It should also outline how they should treat the process of moving and the payments regarding it. It is paramount for moving companies to understand the implications of their moving contract and what parts are legally binding. Know that your contract is your strong line of defense regarding wrong customers. And the more vital that line is, the easier it will be to defend your company.
Because the legal aspect of contract management is so important, we advise you to consult a lawyer. We regard so as one of the essential strategies for effective contract management. A good lawyer can outline all the potential issues that moving contracts have and ensure that yours is bulletproof. You must have proper coverage for late payments, irresponsible customers, mistakes from your moving team, and various other circumstances. Ideally, you will find a lawyer with experience with moving companies who understands the potential legal pitfalls.
Understanding the contract lifetime value
Every contract has a specific lifetime value. What that value will be like is mainly dependent on the customers. If your customers only hire you for single moving services, their lifetime value will be rather low. But, if they need to relocate multiple times and require in-between storage relocations, their lifetime value significantly increases. Of course, it should go without saying that B2B companies tend to have clients with the most significant lifetime value. After all, companies usually require ongoing moving+storage services.
So, why is this important? Well, to properly manage multiple contracts, you need to prioritize them. Most customer service software for movers relies on prioritization when managing customer needs. And the best way to make this prioritization is according to contract lifetime value. The bigger the lifetime value is, the more important it should be to make the customer happy.
Prioritizing reviews and ratings
Another way to organize contract management is according to reviews and ratings. Namely, while you are still growing your company, breaking through the wall of obscurity can be challenging. Most people needing moving services will only work with tested movers with good ratings. As such, you are getting the initial number of ratings and reviews can be challenging to make your company credible. And no lead tracking software for moving companies will help if your company doesn’t seem reasonable.
One way to improve this is to incentivize your customers to rate and review your company. Prioritize their contracts and ensure that they have your services available. You should also reward customers that recommend you to their friends and family. You can even look to include leaving reviews and ratings within the contract. But it would be best to be careful about how you frame it. All in all, it is important to use contract management to grow your company.
Gathering customer data
Every moving company should try to get as much relevant data about their customers as possible. Doing so makes your marketing more cost-effective and your sales more efficient. Unfortunately, gathering customer data is rarely easy. Sure, you can ask for specific data when collecting leads. A big part of CRM email marketing for movers enables you to do so. But there never seems to be enough data to get the whole idea of what your customers are like. Well, even in this regard, proper contract management can help.
A great way to use contracts is to gather precise, robust customer data. Before signing a contract, you can have your clients present extensive data on how they found your brand and what convinced them to work with you. And after they are done working with you, they can explain whether they are satisfied with your services and if they have any complaints. When it comes to business management, all this data will be invaluable.
We’ve outlined the top strategies for effective contract management so far. As you can see, contracts aren’t only pro-form pieces of paper but valuable tools used for business management. Proper contract management will ensure that your company has good coverage and that you don’t have to suffer frivolous customers. And it will also aid you in general customer management. Finally, if you utilize MoversTech CRM, you can use your contracts as another tool for data gathering. So, do yourself a favor and tackle contract management with due care.
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