If you’re a business owner and want to ensure that your customers will sign a contract, there are several steps you should take to make the contract both worthwhile for you, and attractive for your customers.
In this article, we will provide an overview of how to create optimal conditions so that the contracts you create with your customers will be clear, accurate, and effective.
Craft a Unique Value Proposition
The first thing that you should do in creating effective contracts is craft a unique value proposition. To create a unique value proposition that works for your product or service, you should fulfill three major criteria:
- Identify your unique selling points (USPs). What sets your product or service apart from others? How can you communicate your USPs to your target audience effectively?
- Emphasize value over price. People will usually have options when it comes to price differences, but think about what sets your product or service apart in terms of value as this will stand out in potential customers’ minds.
- Illustrate the long-term benefits of your offering. How will it provide a substantial ROI for your customers?
Offer Incentives and Discounts
Offering customers incentives and discounts can provide an extra boost that will encourage them to sign contracts with you. Some of the incentives you can offer include:
- Free samples. If you offer different kinds of products or services that might be desirable to customers, you can include free samples in your offer.
- Memberships or loyalty points. Putting customers into a loyalty program will both help them feel like they are getting a better deal, and also help you harness the power of loyal customers.
- Bonuses. Offering bonuses for certain amounts of money spent can incentivize customers.
You can also offer discounts to customers if they agree to purchase a certain amount of your products or use your services for a specific period of time. This will both increase the volume of your sales, and make customers feel like they are getting a better deal.
Offer Flexible Payment Options
You should offer your customers flexible payment options. Flexible payment options will help increase your customer base as customers will have greater freedom to pay incrementally as their resources permit. Contractors and companies offering customer financing have increased customer loyalty, more sales and ultimately more ROI.
Some of the customer financing options you can offer include:
- Split payments. Split payments are when a customer uses different kinds of payment methods to pay for a single purchase. For customers that have credit and/or debit card limits, this can be a suitable option.
- Payments in installments. For some people, making small monthly payments is more manageable than paying one larger amount for a product or service upfront.
- Lines of credit and velocity banking. Lines of credit work similarly to credit cards in that customers receive a certain amount of credit, and can pay back purchases up to that amount. And velocity banking uses a line of credit to rapidly pay down a mortgage or other debts by funneling income into the line of credit to reduce interest and overall debt faster.
- Consumer loans. Consumer loans, or consumer finance accounts, are loans that are available for people who don’t have good credit scores.
Ensure a Smooth Contract Process
To ensure that the contract process goes as smoothly as possible, there are several points that you should keep in mind:
- Define the work to be done clearly. This includes a precise description of the deliverables, the services provided to achieve those deliverables, and any possible exclusions that might be relevant to your type of work.
- Be clear about the timeline. Lay it out in detail, and include milestones you intend to reach along the way, projected delivery dates, and your communication “cadence,” or how often you plan to communicate with the customer.
- Outline your terms of payment. This includes your fee structure, payment schedule, any late payment fees, and your accepted payment methods.
- Include any relevant confidentiality information, including a potential period for a non-disclosure agreement.
- Use legal language when necessary. If there are aspects of your work that could result in legal issues, be sure to cover these things at the beginning of the contract.
- Define communication protocols, including preferred methods of communication, frequency of meetings, and dispute resolution mechanisms.
By following these guidelines, you can enhance the efficiency and effectiveness of the contract process, ultimately leading to successful project outcomes and satisfied stakeholders.
Conclusion
To ensure a smooth contract process with your customers, it is essential to create clear, detailed contracts that cover all the points of your work. This will allow you to carry out your work with confidence, knowing that your customers are getting exactly what they need. And when your customers are satisfied, you will retain their loyalty and receive a greater number of referrals. This will ultimately help you grow your business more effectively.
