Using Termination Codes on your contracts will help identify why you are losing contracts. i.e. upgrades, lost to competition, went out of business, etc. This can be a very powerful reporting tool for your company.
Don't just change your contract status to terminated, add a termination code (1) so you can identifying exactly why a contract is terminated and help with your analysis of contracts. Also include the termination date (2) to identify a date range of when contracts were terminated. The expiration date on a contract is not always the same as a termination date. i.e. Contract was terminated before expiration due to lost to competitor. This can be used to see trends in loss of contracts and possibly identify problem areas to make your customers more pleased with your company.
Some suggested Termination Codes:
- Lost to Competitor
- Customer Canceled
- Bad Debt
- Out of Business
- End of Rental
In addition, we suggest you break out your top competitors, so instead of Lost to Competitor, we suggest one for each of your top competitors and one generic for all others.
- Lost to Copier company ABC
- Lost to Copier company 123
- Lost to Copier company Test
- Lost to Other Competitor
ID587 is our Contracts lost & won report which reports this data see more here
You can also use eViews to report on termination codes and dates on contracts.