greeneagle
04-06-2004, 02:08 PM
Do Maintenance Contracts Help Manage Client Relations?
Managing client relations is an integral part of the Web Design business. Everyone seems to handle their clients differently, but it comes down to meeting their needs on a timely basis for an expected cost.
One of the main sources of revenue in this industry is repeat business, including maintenance. There are different views on how to handle maintenance and associated costs with customers:
1) On a “Services as Used” Basis
This method may or may not require project cost estimating. The “As Used” method has advantages for clients that need to feel more in control of costs and where maintenance volume may not indicate the need for a monthly maintenance contract. Another advantage is when “Start-Ups” are involved, the business owner or entrepreneur may be more budget minded and not want to commit to a monthly capital outlay.
The disadvantages here are that not many clients understand Internet and Search Engine mechanics. Most, still see their Web Site as a Static Media and don’t realize the need for SEO, Fresh Content and Linking Programs. Many times these costs are mentioned in initial client meetings but not quoted in the Web Design phase.
We have found that many customers preferring this open ended maintenance agreement fail to request timely updates, SEO and Linking programs. Sometimes, this can be remedied with a concerted effort toward Client Education by the Web Design Company.
This method can also bring difficulties for the Provider. When performing a host of different services, estimating can be very time intensive and not as accurate as some would like, even with detailed aids such as spreadsheets. This method also makes it more difficult for the Web Design Company to predict income and to provide a steady income base for the business.
2) Maintenance Contracts
Maintenance Contracts come in many flavors, but most are extremely limiting as to what services and quantity of services are to be provided for a flat, predictable monthly fee. One of the issues that come up immediately is additional cost of services not covered. One way that this issue can be diminished is to normalize all service costs and provide all services at that hourly fee.
This method is good in that the client knows exactly what to expect in service level and can predict cost. The Provider can also better schedule workload and predict revenue.
Maintenance plans come in incremented monthly service time and can be designed for different customer requirements. For example; 5, 10, 15, & 20 hour per month plans.
We really can’t imagine a client desiring a valuable Web Presence not needing at least 5 hours/month in updates, promotion, monitoring and reporting. But, then again it comes back around to client education.
These plans are usually tailored to offer the client “best value” options and may not require as much estimating and other logistical losses.
How do you handle client education?
What has been your experience with customer Site Maintenance?
What system/systems work best for you?
Do you estimate everything, detail the invoice, or both?
Do you provide value and/or ROI (Return on Investment) calculations for your customers?
Looking forward to your insight and experience,
Thanks,
Ken
Managing client relations is an integral part of the Web Design business. Everyone seems to handle their clients differently, but it comes down to meeting their needs on a timely basis for an expected cost.
One of the main sources of revenue in this industry is repeat business, including maintenance. There are different views on how to handle maintenance and associated costs with customers:
1) On a “Services as Used” Basis
This method may or may not require project cost estimating. The “As Used” method has advantages for clients that need to feel more in control of costs and where maintenance volume may not indicate the need for a monthly maintenance contract. Another advantage is when “Start-Ups” are involved, the business owner or entrepreneur may be more budget minded and not want to commit to a monthly capital outlay.
The disadvantages here are that not many clients understand Internet and Search Engine mechanics. Most, still see their Web Site as a Static Media and don’t realize the need for SEO, Fresh Content and Linking Programs. Many times these costs are mentioned in initial client meetings but not quoted in the Web Design phase.
We have found that many customers preferring this open ended maintenance agreement fail to request timely updates, SEO and Linking programs. Sometimes, this can be remedied with a concerted effort toward Client Education by the Web Design Company.
This method can also bring difficulties for the Provider. When performing a host of different services, estimating can be very time intensive and not as accurate as some would like, even with detailed aids such as spreadsheets. This method also makes it more difficult for the Web Design Company to predict income and to provide a steady income base for the business.
2) Maintenance Contracts
Maintenance Contracts come in many flavors, but most are extremely limiting as to what services and quantity of services are to be provided for a flat, predictable monthly fee. One of the issues that come up immediately is additional cost of services not covered. One way that this issue can be diminished is to normalize all service costs and provide all services at that hourly fee.
This method is good in that the client knows exactly what to expect in service level and can predict cost. The Provider can also better schedule workload and predict revenue.
Maintenance plans come in incremented monthly service time and can be designed for different customer requirements. For example; 5, 10, 15, & 20 hour per month plans.
We really can’t imagine a client desiring a valuable Web Presence not needing at least 5 hours/month in updates, promotion, monitoring and reporting. But, then again it comes back around to client education.
These plans are usually tailored to offer the client “best value” options and may not require as much estimating and other logistical losses.
How do you handle client education?
What has been your experience with customer Site Maintenance?
What system/systems work best for you?
Do you estimate everything, detail the invoice, or both?
Do you provide value and/or ROI (Return on Investment) calculations for your customers?
Looking forward to your insight and experience,
Thanks,
Ken