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ID560 - Low Profit Contract up for Renewal / Escalation - Overview & Sample

Report of low profit contract up for renewal/escalation

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Overview

Overview

When possible, Best Practice is to evergreen your service contracts (auto renew) with a clause in your contract that allows you to increase the rate each year. Then set up eAutomate to have automatic rate increases for base and overages. Typically you review each contract before renewing and perhaps have a larger increase for a less profitable contract. Typically we see dealers auto increase contracts by 10% each year. This alert will tell you about contracts up for renewal with low profit margin in last VariableW (12 or 24) months due to expire (or has a scheduled price increase) in the next 90 days.

Run Schedule: Monthly on 1st AM

Type of Output: Email

 

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Sample

Sample

ID560Sample.PNG 

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Variables

Variables

ID560Variables.PNG

Variable W: Rolling Periods Back to Report (Enter RMXX - options RM02 to RM24)

Variable X: Contract Type Code(s) to consider (separate list with comma) or blank for ALL

Variable Y: Enter Number of Minimum Months Contracts should be Active

Variable Z: Custom Property on Contract Record for Snooze Date

Variable 1: Enter number of contracts to report on to limit output quantity

Variable 2: Note Type Code used on Contract notes for action plan

Variable 4: Contract with a lower GP Percent to report on (numbers only, no % please)

Variable 5: Enter 'Contract' to reference the Sales Rep assigned to the Contract, or 'Customer' to reference rep assigned to the customer per CRM else the customer per eAuto

 

 

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Alert Functionality

Alert Functionality

-If contracts are terminated or have another increase date set for after the date it’s reporting then they fall off the list.

-The contract profitability alert (ID768) is reporting the worst XX contracts, whereas the CEOJuice Contract Analytics Customer Profitability report groups/ranks the performance at the CUSTOMER level. So the worst XX contracts in this alert may not match the worst XX Customers for the same contract types (a customer might have multiple contracts of the same type that total up to a different overall performance level than an individual contract).

-Alert considers Expiration Date on Contract Record of Expiration Date of upcoming scheduled rate increase.

Expiration Date on Contract Record:

ID560_ExpDate.PNG

Contract Rate Schedule details (alert would fire from sample below 90-days prior to 8/27/2021):

ID560RateSchedule.PNG

Auto Rate Schedules can be set as follows:

At Contract Base Rate Level:

ID560ContractBase.PNG

At Meter Group Level:

ID560MeterGroupsMain.PNG

At Meter Group Detail Level:

ID560MeterGroupDetail.PNG

 -Alert does NOT monitor At Equipment Detail Level:

ID560EquipDetail.PNG

 

Column Headers Explanation:

Column Headers Explanation:

ID560Columns.png 

(1) Branch: Branch assigned at Contract Level

(2) EventActionDate: Date of upcoming expiration

(3) EventSource: 

Contract ExpDate - contract has fixed expiration date in next 90-days

OR

Contract NextBaseIncreaseDate - contract has auto increase set on base rate in next 90 days

OR

Contract NextOvgIncreaseDate - contract has auto increase set on overage rate in next 90 days

(4) Period Margin / PeriodMarginPct / Period Revenue / Period Cost: Period is for number of months set in your VariableW and is at Contract Level (not Customer or Parent Customer Level)

(5) ContractLifeMargin / ContractLifeRev / ContractLifeCost: Contract Level for entire life of contract (as long as it has been active)

(6) CustPeriodMargin / CustLifeTimeMargin: Customer Level for life of Customer in eAuto

(7) NPS Score: Customer's NPS Score for reporting period (per VariableW)

(8) SnoozeDate: If contract was snoozed, then will show snooze date populated in Custom Property ZCJProfitAlertSnooze

(9) ActionNote: If notes listed on Contract under Note Type of ReviewAction, those notes populate here

 

 

Snoozing:

Snoozing:

To "snooze" a contract so it disappears off our ID560 report until snooze date reached. Go to the Custom properties tab:

1. Enter date to snooze (Contract will not report on ID560 until that date is reached) on Contract Record Custom Properties ZCJProfitAlertSnooze:

ID560Snooze1.PNG

2. Enter Note on Contract Record indicating research results and action(s) to be taken:

ID560Snooze2.PNG

Be sure to use Note Type of Review Action to explain why snoozed and what to do once ready to review again:

ID560Snooze3.PNG

Cloning

Cloning

This alert can be cloned which means creating multiple subscriptions of the same ID# (ID768). This function will ONLY work if at least ONE of the variables on each subscription is different.

See this link for an overview of cloning features.

 

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Best Practices & Tips

Best Practices & Tips

-See THIS LINK on Best Practices for setting automatic contract rate increases

-Use On Demand SSRS Report ID150 Contract Profitability to review profitability details, CLICK HERE on how to best run

Custom Property Set Up

Custom Property Set Up

To create Custom Property for snoozing contracts:

Step 1: Create Custom Property Attribute name via Tools / Lists & Codes / Attributes

Attribute name: ZCJProfitAlertSnooze

Description: Snooze contract from showing on reports until date

Data type: Date

CP1.PNG

Step 2: Add this Attribute to Contract Custom Properties Configuration via Tools / Lists & Codes / Configurations (custom properties, select Contract Properties Group

CP2.PNG

Use available attribute(s) drop down to quick add ZCJProfitAlertSnooze (no default value), select OK:

CP3.PNG

Step 3: Create Note Type Revie Action via Tools / Lists & Codes / Note Types:

Be sure to check off "Allow changes. edits, and deletions of notes of this type"

CP4.PNG

 

 

 

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Related Alerts

Related Alerts

ID150 - Contract Profitability

ID174 - Contract Change Audit

ID261 - Contracts with no scheduled increases or escalations setup for base or overage 

 

 

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