Glossary · Support and service

Hour bank: how to avoid arguing at the end of the month

Also known as: Prepaid hours · block of hours

An hour bank is a block of service hours bought in advance that is drawn down as work is done.

Why it works

The customer pays up front and gets a predictable cost; you get recurring revenue and are paid before you work. Both sides come out ahead if the rules are clear.

Four things to put in writing

  1. What draws down the bank and what does not. Travel? A diagnosis that ends in “not our problem”? A five-minute call?
  2. The minimum billing increment. If it is half an hour, a five-minute question uses half an hour. Say so before, not after.
  3. What happens to unused hours. Do they expire? Do they roll over? For how long?
  4. Who sees the balance and how often.

The usual mistake

Not showing the balance to the customer. If only you know how many hours are left, every renewal turns into an argument and the customer is suspicious even when you are right.

Keep reading

Related terms

Support and service

SLA

Service level agreement

An SLA (service level agreement) is the written commitment, usually part of a contract, on how quickly you will respond to and resolve a customer’s tickets.

Sales and customers

Customer profitability

Account profitability

Customer profitability is the difference between what you bill an account and what it costs you to serve it.

Support and service

Customer portal

Self-service portal

A customer portal is the web space where your customers check and open their requests without having to call you.

On the blog

See all 53 glossary terms

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