Warranties + Renewals = Retention

In follow-up interviews, PMPs said their companies sought ways to boost recurring termite revenue and retain termite customers.

One way they did this was by offering a termite damage warranty, reported 31 percent of PMPs in the 2023 State of the Termite Market survey.

In Orlando, Fla., Drake Lawn & Pest Control offered to cover up to $1 million in termite damage for the life of the home, including transfer of ownership.

Damage warranties typically require customers to pay an annual renewal fee; this allows PMPs to inspect the home yearly for termite activity and conducive conditions, so fixes can be made before major damage occurs. In 2022, termite renewal fees on average accounted for 17.3 percent of termite control revenue per company location, found the PCT survey.

As part of its warranty program, Drake Lawn & Pest Control retreats homes with liquid termiticide every 10 years at no extra cost. The annual renewal fees make this possible.

“We’re taking some of the money over the course of 10 years and applying it to our cost of doing the treatment every 10 years,” explained Brandon Hill, the company’s president.

Customers have embraced the program. “They don’t have a large bill every 10 years. It’s a lower annual payment. So far, it seems to be working for us,” said Hill.

Drake’s warranty covers damage from Eastern, Formosan and Asian subterranean termite species. The company also offers an add-on protection program for drywood termites for about $400. This has helped boost termite revenue and make customers “stickier.”

“I would say the majority of our subterranean sales have included drywood sales on top of it,” said Hill.

The average customer retention rate for termite control customers over the past five years was 75.9 percent, found the PCT survey.