AUTHOR ARCHIVES: Michael Blumberg

Chief Marketing Officer at Mize and regular Field Service News columnist Michael Blumberg says 2019 has been a good one for the Field Service Sector...

Michael Blumberg reflects back on some of the key themes from the 10th Annual Extended Warranty and Service Contract Innovations Conference, held in Nashville, USA...

Much has been made of the potential benefits of adopting at least some servitized strategies within a service portfolio. However, the processes that need to be put in place are complex and a delicate balance between increasing profitability and overcommitting on contractual obligations needs to be struck. Here Michael Blumberg offers his guidance as to what systems of support are required to achieve a successful path towards servitization...

Michael Blumberg outlines why good Service Lifecycle Management infrastructure is the key to generating exceptional aftermarket revenue...

It seems that customer experience is the number one metric that Field Service Organisations are seeking to improve in today’s business environment, but it is an uphill task if your field service technicians don’t have access to the key details of each and every job to hand as they arrive on your customer’s site. The answer writes Michael Blumberg is investment...


Customer Experience is the single most important factor in driving customer loyalty and retention. In fact, market research studies show that it costs five times as much to attract as new customer as it does to keep an existing customer satisfied. Repeat customers also spend on average, 67% more than then one-time buyers.

Furthermore, just a 5% increase in retention can yield profit increases in the range of 25% to 95%. Let’s face it, the customer experience does not end once customers make a purchase. It is just beginning. Original Equipment Manufacturers (OEMs) not only have a responsibility to keep their customers satisfied through-out their buying journey and ownership lifecycle. They also have an opportunity to strengthen their relationship with customers and create more value for them by providing quality, aftermarket services.

There are many factors that influence Customer Experience when it comes to field service. The two most important factors by far are speed of service resolution and first time fix rate. A service provider can excel in every other area of consideration. For example, courtesy of service personnel, ease of doing business, accuracy of billing, experience and knowledge, etc.

However, if takes too long for the FSE to resolve the problem or if the Field Service Engineer (FSE) needs to return because they didn’t fix the problem right the first time, the customer will be unhappy. If this remains a persistent problem, Customer loyalty and retention will suffer.

To prevent this problem from occurring, Field Service Organizations (FSOs) must be aware the bottlenecks, or, barriers, which prevent their FSEs from providing excellent speed of service and first time fix rates. For example, technicians may have: 

• Insufficient knowledge to address the issue at hand: For example, they may lack the skills to solve the problem right the first which can result in either a repeat visit or the need to dispatch a different FSE to the customer site, thus extending the length of the downtime.

• Inaccurate or partial data about customers and/or products: FSEs must spend additional time onsite attempting to understand the customer’s problem when this type of situation occurs. Not only do run the risk of making inaccurate repairs when they rely on inaccurate or partial data, they also run the risk of impacting the quality of future repair if they do capture complete or accurate data.

• Inability to communicate effectively with remote experts: This can happen when the remote support expert is not able to understand or  visualize the issue described by the FSE and/or when the FSE doesn’t understand the corrective action suggested by the remote experts.

• Inaccurate spare parts inventory - Service visits are closed incomplete or extended when this FSE doesn’t have the right part on hand.

• Non-existent audit trails to track previous service requests or warranty information - This means that FSEs lack the right information to properly troubleshoot, diagnose, and repair the problem. Not only does it increase the chance of a repeat service visits, it results in a situation where the FSO may not be meeting their contractual obligations or providing more service then the customer is entitled to; both have consequences.

Given that FSEs spend almost 1/3rd of their time at the customer site, OEMs must do anything they can to help FSEs avoid these bottlenecks. To ensure FSE optimize the customer experience, companies can turn to several solutions, including:

• Utilizing online forms to capturing critical service information

• Providing FSE with online access to Knowledge resources

• Improving parts availability through catalogs and inventory tracking apps

• Offering remote support to guide technicians to make better diagnostic and repair decisions

• Maximizing customer lifetime value through instant quotes and contracts

All these solutions are currently through commercially available, end-to-end field service management Solutions.

Benchmark research by Field Service Insights indicates that these types of solutions have a measurable impact on improving Key Performance Indicators (KPIs) related to field service. For example, companies who implement these solutions can increase FSE utilization and calls completed per day by 25% and 30% and reduce service resolution time and calls requiring second level support by 56% and 64%, respectively.

These improvements validate the tremendous impact that field service applications, such as those described above, have on enabling FSEs to deliver a better Customer Experience.

Michael Blumberg is Founder and Executive Director of Field Service Insights and CMO of Mize, Inc. Deliver 

We live in a world of instant results. Seamless, efficient and accessible service has become the new norm and unless yourorganisation adopts dynamic scheduling you may just fall behind the increasing expectations of the modern consumer argues Field Service Insights’ Michael Blumberg...

The ability of Field Service Organizations (FSOs) to deliver  an optimal customer experience depends in a large part to their ability to effectively schedule their Field Service Engineers (FSEs).Scheduling of Field Service Engineers if a critical success factor in optimizing customer experience. Ultimately, this requires FSO to make the highest and best use of resources to obtain the highest and best outcome for themselves and their customers. In other words, outcomes that result in high first-time fix rate, customer satisfaction ratings, and profitability for the FSO.

Smaller businesses using five or fewer technicians may be able to manage scheduling effectively enough to operate a successful business. However, an increase in the number of employees, the number of customers, or the number of service requests can quickly disrupt the flow of business. With each new addition, the complexity of scheduling grows exponentially. This is because each addition brings a host of related attributes. For example, a new technician means identifying a new skill set, adding another vehicle, identifying a different route, stocking more parts, and redistributing servicecalls. Multiply times two - or twenty and a logistical nightmare quickly ensues.

At issue, end-customers increasingly expect a high level or responsiveness example, one that provides them with visibility into their FSE’s route and schedule, and one that provides a high level of certainty of when their FSE will arrive onsite. Using manual scheduling or basic dispatch software will not result in this outcome. It is virtually impossible to remain competitive in the field services environment using manual scheduling and spreadsheets, which can cost mangers 20% of their workday. Further, incorporating even a single change, such as adjusting for a driver who calls out, can have a domino effect on the overall schedule, wasting additional time by the scheduler and downtime as other technicians wait for reassignment.

Dynamic Scheduling software offers a host of benefits and there are several factors which should be considered when evaluating scheduling software options. Some core functions include resource scheduling, dispatching, route planning, work order management, SLA compliance tracking, parts inventory management, forecasting, integration with other systems, and reporting just to name a few.

The table below shows which outcomes are typical for organizations that use dynamic scheduling applications:

REDUCTION IN:	INCREASE IN:
Labor costs	Procedural consistency
Scheduling/re-scheduling costs	Customer satisfaction
Fuel costs	Availability of resource usage reports
Inventory costs for parts	First-time fix (FTF). SLA Compliance/Onsite response time

While the most common reason for not replacing an existing field service management system is cost, efficiencies gained from a technology-based system often negate that argument. Further, companies using dynamic scheduling can gain a 20% - 25% improvement in operating efficiency, field service productivity, and utilization. Other reasons to consider a change are opportunities for growth, more accurate and reliable data, flexible and scalable scheduling, and positive impact on KPIs.

With a seemingly infinite choice of features, identifying a workforce and scheduling management platform that is cost-effective and offers what you need without unnecessary add-ons that don’t add value can be a challenge. Most systems offer a customizable range of features and benefits appropriate to your industry, size, and business objectives.

A benchmark survey by Blumberg Advisory Group indicates that advanced tools like Dynamic Scheduling software allows companies to perform more efficiently and effectively by optimizing scheduling and associated functions. Companies that use these tools also are more likely to have an SLA compliance rate of 90% or higher. Field service workers scheduled through an automated process are also more likely to complete five or more calls per day, at a utilization rate of 85% or higher.

 

"It is virtually impossible to remain competitive in the environment using manual scheduling.."

 

In addition, companies that utilize advanced tools are more likely to be able to manage and schedule a higher volume of service events. For example, half (49%) of the companies surveyed that use advanced receive at least 500 service request calls per day, and about half of those companies (26%) receive 1,000 service calls per day.

They are also more likely to have a higher ratio of FSEs to schedulers than companies who do not use w technology. In summary, Dynamic scheduling software offers clear advantages to field service organizations regardless of the industry, services, revenues, or number of field service workers.

Automated technologies provide enhanced functions beyond the capabilities of the most adept schedulers and other manual approaches. Being able to get the best qualified FSE to the customer site at the right time, relies not only on identifying a knowledgeable technician and the necessary parts but ensuring they get to the customer site within the timeframe promised. Using a scheduling software system can make this happen while simultaneously adjusting the calls, routes, and ETA’s of other field service workers to maintain responsiveness and avoid jeopardizing schedules.

The business intelligence collected and stored in these systems allows FSOsto make better decisions about what inventory and tools to carry, equipment to be repaired or replaced, routes that should be developed or changed, and other factors that influence the bottom line.






More and more field services organizations recognize this need and adopting dynamic scheduling platforms, leaving businesses that do not provide these increasingly expected and desired services struggling to compete.

You can download the whitepaper, Creating an Uber-like Service Experience: Benchmarks and Best Practices in Field Service Scheduling, here.

 

Life is full of fine lines. Genius and madness are two sides of the same coin it is often said and the balance between science and art is one full of intricate nuance. Similarly the relationship between increasing service revenue and healthy profit margin relies a a special type of alchemy, as Michael Blumberg explains...

Companies who are extremely effective at growing their service revenue while maintaining healthy profit margins typically have a very good understanding of the size and forecast of the markets they serve.

Their perspective is not defined solely terms of an order of magnitude, for example stating “their market is approximately $500M -$750M, but articulating the size of their market down to the exact monetary value (e.g., £, €, $, etc.) of revenue and decimal point of the growth.

Knowing the exact size and forecast of service markets is critical for making optimal decisions with respect to investment and resource allocation. For example, it might be important to have this information on hand prior to building a marketing strategy, establishing a division, or developing a service offering for it. If the data validates that a market segment is large and growing rapidly then a more aggressive investment maybe warranted. Rely solely on an order of magnitude or general assumptions can lead to miscalculated decision that results in a significant loss or failure for the company.

 

"While obtaining a granular level of data on the size and growth rate of a market segment can help service executives make better decisions and ensure better results, it is surprising the many do not attempt to obtain this level of insight..."

 

While obtaining a granular level of data on the size and growth rate of a market segment can help service executives make better decisions and ensure better results, it is surprising the many do not attempt to obtain this level of insight.

Instead, service executives often rely on gut instinct or settle on an order of magnitude, given some related indicator. For example, we often hear service executives claim that it is enough for them to simply know that service market for a product is large because sales of the product have been high .

The problem with this type of market analysis is that it assumes that 100% of people who have bought a product will also purchase the service.

The truth is that very few, if any, companies have a captive market or experience 100% attachment and renewal rates. Even Best in Class companies experience averages attachment rates of 76% and 90% renewal rates.

Unfortunately, relying on KPIs does not take into account broader, strategic and objective factors such as the installed base size, competitive threats, economic factors technology trends, or other market trends, More importantly, it does not provide any hard data related to revenue which also necessary for developing objective ROI and/or make versus buy analysis.

While surveys and secondary research also have merit when it comes to market sizing and forecast, they too have their shortcomings. Surveys and secondary research can of course provide insight into size and growth of a market as well as answer questions with respect to who buys, what do they buy, and factors influencing supply and demand.

However, they do not measure the actual size and growth of the Total Available Market (TAM) for the service under consideration at any level of precision. A shortcoming of secondary research is that it may not specific enough or tailored in its the perspective. The research methodology behind the forecast may also not be very sound or defensible.

 

"We have found econometric market models to be very effective method for conducting this type of service market analysis..."

 

Ultimately, a good TAM analysis is one that takes into account the size and growth rate of the customer base or installed base as well as the serviceable value of that base along with its anticipated growth rate. We have found econometric market models to be very effective method for conducting this type of service market analysis.

A good econometric model considers several data points related to the number buying organisations, types of buying organizations, purchase trigger events, equipment penetration rates (i.e., shipments), population density, replacement rates, and revenue allocation by service category and/or equipment category. These factors help determine the size and value of the serviceable customer or installed base while surveys and secondary research provides data points (e.g., price points, average spend, etc.) necessary for determining current and forecasted revenues and/or expenditures for a given service.

Building an econometric model to determine the size and forecast of the TAM may seem like a lot of work. However, the efforts are worth it and can prevent a company from making serious mistakes and/or miscalculations about their market opportunity. Several years ago, a client of mine gave a presentation at an industry conference where his competitors were present.

The presentation showed that his service business was growing twice as fast as the market. Although he had commissioned us to build a TAM model, he chose to compare his company’s revenue growth to market size data from an industry analyst’s report (i.e., secondary research). After the presentation, I asked him why he didn’t present our data. “We based our investment and resource allocation decisions on your model not the secondary research. We want to keep this fact a secret from our competitors as long as we can” was his reply. Had his company relied only on secondary data they would have had different results. His answer provided that his investment in building the market model was worth it.

To learn more about using econometric modelling to determine the Total Available Market for your company’s services check out Blumberg Advisory Group’s Revenue Maximization practice at https:// blumberg-advisor.com/revenue-maximization/

In fact, it is those smaller organisations that may likely see the biggest benefits.

 

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Michael Blumberg is President of the Blumberg Advisory Group and founder of Field Service Insights

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Michael Blumberg reveals some of the key findings of the latest research into field service Scheduling and Dispatch to come out of Blumberg Associates...

A critical success factor in managing a Field Service Organization (FSO) is the ability to effectively schedule and dispatch field service engineers (FSEs).

It is about making sure that technicians arrive at the customers’ site at the right time with the proper tools, knowledge, and resources to resolve the problem during their initial visit.

First Time Fix is the name of the game in field service. FSOs run the risk of incurring additional costs and damaging their customer satisfaction any time their First Time Fix target is in jeopardy.

There’s a lot at stake for FSOs when it comes to effectively scheduling and dispatching FSEs. There are significant challenges for FSOs, particularly if many service visits are required each day, dispatching is made from a large pool of FSEs, and the FSO is financially penalized by the customer when response time commitments or Service Level Agreement (SLAs) are not met.

 

"First Time Fix is the name of the game in field service. FSOs run the risk of incurring additional costs and damaging their customer satisfaction any time their First Time Fix target is in jeopardy..."

 

Over the last 10-20 years, FSOs have turned to advanced tools and technology to automate the scheduling and dispatch process to improve this activity.

These tools range from appointment setting applications to dynamic scheduling software based on artificial intelligence and operations research algorithms.

To understand how these tools are deployed in the field as well their impact on service performance, Blumberg Advisory Group and Field Service Insights in conjunction with Timing Software conducted a benchmark study among 150 FSOs. In this article, we will examine the impact of automated appointment booking applications and dynamic scheduling functionality on performance.

Most FSOs had limited flexibility in their appointment booking process.

 

• 59% offered their customers the first available time slot while the remaining 40% provided their customer with alternative options
• Approximately half (49%) set appointments 5 days out or longer. This reflects that they have limited ability to handle emergency and/ or expedited requests.
• Less than one-third (30%) were capable of booking appointments 1 to 2 days in advance. However, nearly two-thirds (65.7%) utilized automation to help identify or locate available appointment times.
• Almost three-quarters relied on the automation supplied by their CRM/ERP software vendor.
• Less than 9% utilized a separate, best of breed scheduling solution for appointment booking, while the remaining depended on a customized system developed in-house.

 

FSOs who utilize automated appointment booking offer a better customer experience than those who do not.

There is a higher level of customer engagement because it provides the customer with options and a feeling of control when service is provided.

Companies that utilize this functionality are four times as likely to handle a 500 or more service requests per day and experience a higher FSE to Dispatcher ratio that those who do not.

The second step from booking an appointment is the actual scheduling of FSEs.

 

• One half assigned FSEs to customer sites based on their skill set, availability, and proximity.
• Remaining 50% either determined the schedule for their FSEs by dispatching the same FSE to the same site every time or assigned the same FSE to the same site having the FSE determine their own schedule.

 

Two-thirds of survey respondents utilized an automated process/system.

Approximately half (51%) used software that contains some type of algorithm which optimizes scheduling based on specific criteria (e.g., cost, travel time, etc.) or pre-defined factors. Less than one-third (31%) have a scheduling system on a rules-based engine. The remaining 17% have an AI based system that improves their scheduling process based on dynamic variables.

 

"FSEs who use automated scheduling software are 47% more likely to complete 5 or more service visits per day..."

 

The use of automated scheduling software has several benefits to FSOs. Our survey results indicate companies who utilize this type of software are 45% more likely to handle 100 or more service requests per day.

They are also 39% more likely to experience an SLA compliance rate of 90% or higher. In addition, they are twice as likely to have FSE rates of 85% or higher.

 

Furthermore, FSEs who use automated scheduling software are 47% more likely to complete 5 or more service visits per day.

Our findings suggest that appointment setting functionality plays a critical role in improving customer experience, increasing service productivity, and operating an efficient dispatch centre.

Automated scheduling software provides measurable improvements with respect to FSE productivity and efficiency. In the last year, 99% of FSOs surveyed incurred a financial penalty or were required to provide a customer rebate for missing SLA/response time targets. Almost half (45%) missed these targets more than 24 times last year.

The use of advanced tools and technology like automated booking and scheduling software will have a significant improvement in reducing or eliminating the frequency of these occurrences.

 

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Field Service Insights is a subscription-based, membership website headed up by long-time fieldservicenews.com associate columnist Michael Blumberg. Fieldservicenews.com has arranged an exclusive free trial period to this exciting new members community for field service professionals.

Michael Blumberg himself tells us more...

At Field Service Insights, every month, we bring you thought-provoking content designed to help you thrive in core areas of your business.

With over twenty-five years’ experience in the field service industry, we are continuously researching and evaluating industry trends, benchmarks, and state of the art. We are skilled at helping field service leaders anticipate the future, overcome obstacles to growth, and implement lasting change.

Field Service Insights was created based on the thought that providing overall service or having exceptional customer satisfaction is not easy. We know that field service leaders must continually deliver exceptional service, demonstrate value, and contribute to their company’s bottom line.

 

"Let’s face it, Field Service Organizations can’t invest in new tools or strategies simply because of their competitors. Analysis and due diligence are required when making these types of decisions..."

 

We understand the many challenges field service leaders face. We are aware that they don’t have access to unlimited capital resources. Every decision must lead to measurable results. Positive impact is key from day one.

Let’s face it, Field Service Organizations can’t invest in new tools or strategies simply because of their competitors. Analysis and due diligence are required when making these types of decisions.

Our mission at Field Service Insights is to provide field service leaders with insights and perspectives that can transform their business and provide added value for their customers. We want to help them shorten the learning curve and accelerate their transformation process.

By joining Field Service Insights, you will gain access to the latest strategies, tools, and perspectives on Field Service Management to help you increase service revenue, boost profits, and customer satisfaction.

For a limited time, we are offering Field Service News viewers a FREE 3-Month Individual Subscription of Field Service Insights.

 

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Click here to take advantage of this offer

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You don’t want to miss the valuable insights and perspectives from Field Service Insights! Join us TODAY!

 

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