HVAC
HVAC Agreement Renewal Rate Calculator
See what improving your maintenance agreement renewal rate is worth in annual recurring revenue, and what each lapsed agreement costs beyond the plan price itself.
Result
Retention improvements are not free and this does not model what they cost. Earlier reminders, a person making the call, and actually delivering every included visit all take time. The point of the calculation is to size the prize so you can judge what that effort is worth. It also assumes a retained member behaves like an average one, which understates the value of long-standing customers and overstates the value of new ones.
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About this calculator
How should I calculate my current renewal rate?
Renewed divided by everything that reached a decision, renewed, declined and lapsed. Excluding the ones you never managed to contact produces a flattering number rather than a useful one, because those are exactly the agreements a process would have saved.
Why include repair revenue?
Because a member is worth more than their plan price. They call you first, they take your recommendations more often, and they are the customers most likely to buy a replacement from you. Losing the agreement usually means losing all of that.
What actually improves renewal rates?
Delivering the visits people paid for is the one that does most of the work. After that: contacting them well before expiry, sending a report they can remember, and giving one named person responsibility for the list.
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Open calculatorWork a renewal list, not a reminder
The demo shows agreements at 30, 60 and 90 days out with the visits-used column beside each one: the number that predicts whether they renew.