How Pro-IQ™ Services Help Contractors Win

Running an HVAC business has never been easy – but today’s contractors are facing challenges at a scale not seen before. Persistent workforce shortages, rising marketing costs and shifting customer expectations are straining even the most established companies. After all, every HVAC business runs on three things: people to do the work, existing customers who need service and new customers to keep the business growing. And right now, each of those pillars – labor, loyalty and leads – is under pressure.

That’s why we’ve designed the new Pro-IQ™ services to help contractors tackle them head-on and build stronger, more resilient businesses – and offer three different service levels: Pro-IQ™ Install, Pro-IQ™ Engage and Pro-IQ™ Analyze.

Labor: Doing More with Less

The workforce shortage in HVAC is no longer a looming issue – it’s a daily reality. According to the U.S. Bureau of Labor Statistics, about 40,100 openings for heating, air conditioning and refrigeration mechanics and installers are projected each year, on average, over the decade from 2024 to 2034. According to ACHR News, there’s currently a shortage of 110,000 HVAC technicians, with about 25,000 leaving their company each year, often moving to competitors for just a small bump in hourly pay.

This “musical chairs” of talent means many contractors are stuck trying to do more with fewer hands. Every technician on payroll becomes more valuable, and every wasted hour is profit lost. Consider the cost of inefficiency: According to feedback from pros, each truck roll costs around $150 in labor, fuel and overhead. A callback because of a programming error or missing part? That adds another $150, along with the opportunity cost of the jobs that could have been completed instead.

Resideo’s free Pro App, the foundation for our Pro-IQ services platform, directly addresses these labor challenges. With one-touch programming and configuration templates, the app helps technicians complete installations nearly 15 minutes faster. Multiplied across dozens of installs per month, those time efficiencies can free up significant capacity without adding headcount. This could save technicians up to 500 labor hours a year or three weeks worth of labor that could be reinvested elsewhere. Beyond time savings, the app’s configuration templates also promote installation consistency, an important benefit for contractors onboarding new technicians and training teams on increasingly complex systems.

Even more importantly, the app simplifies the customer handoff. No more asking homeowners for their Wi-Fi passwords or fumbling with app setup. That “friction-free” process includes an easy QR-code scanning, improves customer satisfaction and eliminates a top complaint pros cite about connected thermostats. For contractors, it’s an immediate win: less stress on techs, fewer callbacks and happier customers.

Loyalty: From One-Time Installs to Lifetime Customers

Labor is only part of the equation. The second challenge – customer loyalty – may be the most critical of all – because once you install, how do you get them to remember to call when they need you the most?

Service agreements provide contractors with predictable work and revenue throughout the year. In an EGIA Snapshot Survey, many contractors reported that service agreement customers already account for a meaningful share of annual appointments, with a significant portion seeing more than 40% of their yearly jobs tied to agreements. Best practice benchmarks focus on converting demand service calls into ongoing agreements, helping contractors smooth seasonality, stabilize labor planning and build recurring revenue.

But service agreements alone don’t solve the entire loyalty gap. Once the job is done, many customers still forget who to call the next time something breaks. If their thermostat detects that the HVAC system stops working on a cold January night, their first instinct is likely to Google “HVAC repair near me.”

And those moments matter. According to ServiceTitan, HVAC service calls surge by nearly 20% during weather events, when contractors are busiest and competition for homeowner attention is highest. In a digital landscape where many homeowners may prefer to begin their contractor search online – and are likely to select from the first page of results – contractors risk losing valuable repeat business. This is where the combination of the new Honeywell Home ElitePRO smart thermostats and Pro-IQ services shines.

First, with Pro-IQ Engage, contractor branding is built directly into the new ElitePRO smart thermostat’s large touchscreen display and the homeowner’s First Alert^® app, where your company’s name and logo appear right in front of the customer in their moment of need. Homeowners can schedule an appointment with one click in the app. And if a cold snap is coming? You can deliver a custom message to your homeowner’s thermostat and app reminding them to make a tune-up appointment. For example, you can post: “Reminder, schedule your fall/spring tune-up appointment,” or even share your latest promotion.

With Pro-IQ Analyze, contractors gain proactive system insights: alerts on runtime anomalies, humidity spikes or early signs of equipment failure. Instead of waiting for the panicked call, contractors can reach out first: “Hi Mrs. Johnson, we noticed your system isn’t running at peak efficiency. We’d like to schedule a quick check before it becomes a bigger issue.”

This kind of proactive engagement builds trust and turns service agreements into always-on customer loyalty engines. Rather than two touchpoints a year, contractors remain connected 24/7. The result? More five-star reviews, stronger word-of-mouth and a customer who will call their preferred contractor first – every time. And it’s not just available on our premium model – we offer it on Honeywell Home FocusPRO^® and T Series smart thermostats too. 

Leads: The $200-to-$300 Question

If labor is the oxygen of an HVAC business, then leads are the fuel. But leads are expensive – and getting more so. Research from the U.S. Department of Energy shows that HVAC contractors spend an average of $200 to $300 per customer, with some markets reporting higher figures when factoring in digital ad spends, marketing overhead and sales time.

And those dollars don’t guarantee success. Only a percentage of those leads convert, and even fewer become long-term loyal customers. The traditional marketing mix – postcards, magnets, billboards and search ads – are costly and not always timed when a repair needs to happen. Even if interest is generated, customers often forget the contractor’s name by the time the next repair or replacement is needed.

Pro-IQ Engage reframes how contractors think about lead generation. Instead of spending more to cast a wider net, Pro-IQ turns every thermostat install into an ongoing brand touchpoint. 

I like to refer to Pro-IQ Engage as the modern “calling card” or “furnace magnet” – except it’s better. Instead of hoping a sticker stays on the furnace or that a postcard lands in the right pile of mail, the contractor’s brand lives in the homeowner’s hand every time they adjust the temperature, look at their doorbell camera or check the status of their smoke and water detectors. And preventative monitoring can help ensure you’re able to engage with your customers ahead of a system failure – which always happens during the busy season. 

The Future of HVAC Business

For some, labor is scarce, loyalty is fleeting and leads are expensive. But for pros that offer the latest Honeywell Home smart thermostat and Pro-IQ services, contractors can flip those challenges into opportunities.

• Labor: Streamline installs, reduce callbacks and empower technicians to do more with less
• Loyalty: Keep the HVAC contractor’s brand front and center in the app so customers can book appointments with one click 
• Leads: Understand insights into customers’ HVAC system performance and proactively reach out or resolve easy issues without rolling a truck.

In an industry where margins are tight and competition is fierce; contractors need solutions that work as hard as their teams do. The new ElitePRO smart thermostat, powered by Pro-IQ services, is more than another smart device – it is a business-building tool designed for the realities contractors face every day.

With Resideo, professionals are not just installing a thermostat – they are installing the future of their business.

About the Author
Nick Dalsin is the Global Vice President, System, Services, Software Applications & Tools at Resideo. Dalsin has a proven track record of successfully bringing products to market and leading impactful partnerships with industry leaders, professional service customers, device manufacturers and more and previously served as Global Vice President of Business Development and Home Services.

Currently, Dalsin focuses on identifying and filling market needs in the areas of comfort, water and security. He and his team are simplifying smart home services and tools that help protect what matters most. Dalsin connects smart home consumers with Resideo’s national partner network of 100,000+ professional HVAC and security installers and insurance companies. This process is rooted in a deep understanding of the customer and their needs and the ability to find professional partners who can help create more comfortable and energy efficient living spaces. 
 
Dalsin has served Honeywell/Resideo customers for more than 20 years. He brings experience in all facets of smart home and IoT devices, having worked in marketing, sales, product management and partnership development roles for the company. Dalsin is a graduate of North Dakota State University, where he studied electrical and electronics engineering.