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What is the value of a customer relationship? Is it worth it to over-deliver on SLAs just to keep a paying client? What role does field service have in keeping customers happy? Aly Pinder, senior research analyst analyst, Service Management, Aberdeen Group,  shares his views.

These are all questions which have put a microscope on service technicians and field engineers. Historically, the field service team was solely looked to in order to show up on time based on a 4-8 hour service window and fix a failure. But in this age of empowered customers, the field service team is expected to deliver real value to each customer interaction (while also, of course, fixing the failure).

But with this demand for increased value comes the opportunity to find new products and services that customers need and want to buy. As seen in Aberdeen’s Service Revenue: Unearth an Untapped Stream of Dollars research, eight out of ten top performers (81%) were able to attain their service revenue goals in 2014 and they also cultivate an environment of innovation for their service offerings to meet the needs of their customers. But how did these service organizations and manufacturers achieve these results? Did the money just fall from the trees? Of course not, these companies helped the field team excel at service and wow their customers into new opportunities.

The path to this level of engagement is outlined below and should be the centerpiece of any strategy to drive profitability from the field:

• The carrot is often more successful than the stick in business. Incentives, if targeted the right way, have the ability to drive the behaviors which can transform an organization.[quote float="left"]The carrot is often more successful than the stick in business. 

   

  This is true for the field team. If your organization only monitors or incents doing more jobs as quickly as possible, your technicians will neglect aspects of the service experience which could prove valuable to customers. Savvy service leaders implement incentives and performance goals which tackle both short-term operational objectives and long-term relationship goals like profitability, revenue, and customer satisfaction.
• Give the sales team a view into the field. The sales team has a difficult job (and no, I am not pandering to the sales executives out there). They “always must be closing” new business. And one of their top challenges is having enough leads to close. This is where the field service team can help out. Service technicians are in front of customers every day, they’re in front of the equipment on site, and they even have access to the competition’s assets. But in order to connect customer insight with the sales team, the field needs the mobile tools AND the training to pass along the right information. Technicians need to ask the right questions while on site with customers and have their eyes / ears open to gaps in the current products and services being used. Passing these leads on to sales can drive the top line for the entire organization.
• Don’t give service away for free.

   

  Don’t give service away for free. Too often organizations send technicians out to customers to service equipment and assets which are no longer under warranty or within a service contract. This is a missed opportunity. Top performing organizations ensure their service team delivers service which is being paid for. And when contracts expire or are close to, technicians don’t have to refuse service but they will have the knowledge to give the customer a small nudge reminding them their bill is due.

The field service team has a special place in the hearts and minds of customers. Technicians show up when there is a problem (or before), fix it, and leave with a smile. But this relationship has the opportunity to garner insights that can turn into new revenue opportunities. I don’t think technicians should be salespeople, but they understand customers, equipment, and assets. And this insight makes them invaluable in finding the next dollar while ensuring customers remain happy.

 

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Aly Pinder, research analyst and mobile workforce specialist with the Aberdeen Group joins Field Service News with a new monthly column. In this first feature he looks at how companies can stand out in 'the age of the customer'

How would you rate your organisation’s ability to deliver great service?

Now, how would your customers rate your service?

I think both questions can lead to valuable insights into how the service organisation needs to evolve in 2014. But the customer’s take on your service is becoming more important than ever. Aberdeen’s recent research on the State of Service Management: Roadmap to a Profitable 2014 (March 2014) highlighted the top pressure facing organisations is increased competition both in products and services (52% of respondents, n = 170). No longer can service and manufacturing organisations rest on their laurels that the customer will not find someone else who can provide similar if not more value. For this reason, it is imperative that organisations re-train their focus on improving the service experience and providing value to the customer relationship.

In order to achieve this heightened level of service to the customer, a few lessons should be learned from top performers recently sampled from Aberdeen’s research. These best practices are just a starting point, but should be followed to ensure competition doesn’t eat away at your profits or customer base -

Craft a culture of service.

Exceptional service can only be achieved if the entire organisation is on board to deliver value to the customer. Often times we view service as a “problem” for field service or the contact centre. This is not a winning approach. The field service team is often the function which is in closest proximity to the customer, but each team within the organisation can have a positive impact on the relationship. For example, engineering has the opportunity to make products that are easier for customers to use and doesn’t break as frequently, marketing has the ability to highlight products or services that most align with customer needs, and operations can make service delivery more efficient by removing clutter from the service chain.

Learn from your customers.

Customers are more than just a means to more revenue. Customers show a window into the future of innovation and viability for the organisation. Top performers in Aberdeen’s research were 50% more likely than peers to proactively capture customer feedback in regard to product and service performance (66% vs. 44%, respectively). Organisations that do not listen to customers’ needs will miss out on finding that next great product or service. Furthermore, customers have more clout than ever, so neglecting them will not only impact one sale it may also negatively influence their connected ecosystem of current and future sales.

Design products for improved service.

Continuous improvement is a topic often denoted to manufacturing or operations. However, I propose that all organisations and functional areas should strive to continuously improve the offerings for their customers. The best performing organisations in Aberdeen’s sample were twice as likely to design products for improved serviceability (56% vs. 28%, respectively). These firms relayed customer and usage data from the field to engineering and design teams to enhance future products. An emerging concept for service organisations is “ease of doing business” for the customer, designing products for serviceability is the next frontier of this concept.

Find out what motivates your great service team.

Does your organisation know what motivates its field service teams? Not many organisations do. We just assume that an hourly wage is all it takes to have a technician who is excited to provide exceptional service. And this may be true at times, but organisations need to provide customers with even more valuable experiences. Thus firms must take a look at the employee’s motivation to create a link. Organisations are missing opportunities to identify gaps in service because technicians are not engaged to go beyond just turning the wrench to see the customer’s true needs.

Field service excellence is no longer a simple proposition of meeting a schedule. Top performers are looking to the service organisation to provide enhanced value to customers and become a willing partner for innovation.

 

A recently published study from Aberdeen Group commissioned by Trimble FSM has found that the best-performing field service organisations are extremely focused on improving service, and to achieve that, they are leveraging performance analytics to launch new initiatives and enhance existing ones. As a result, they are reaching higher levels of customer satisfaction and loyalty.

The report, Secrets to Optimize Field Service for Better Customer Experience, written by Aberdeen analyst Aly Pinder, revealed that top performers exceed customer expectations and SLA goals in their efforts to retain valuable customers, and that customer satisfaction is a leading contributor to their success.

Streamlining service in the field and improving efficiency are key objectives of today's executives, the report stated. Customer experience is a top priority, and organisations are leveraging analytics to drive quality and enhance customer interactions. More than 50 per cent of the organisations surveyed say they use performance data to evaluate the effectiveness of their service.

The field service organisation traditionally has been evaluated based on operational metrics such as workforce utilisation and overtime costs.

This model worked best when field service pursued a break/fix strategy but is no longer the only path to service differentiation and success, the report found. Customer experience must now be at the centre of the entire service operation's strategy.

Organisations meeting 80 per cent of their customer service requirements for issue resolution times on average are able to retain 12 per cent more customers than those that meet only half of their customer requirements, the report says. With service a key factor in customer loyalty and a leading indicator of field service success, it is critical that companies deliver on what they've promised, when they've promised it. For businesses with mobile workers in the field, it becomes even more important to achieve excellence in delivering services

 The report is available here (registration required)