In today’s society whereas consumer’s we are becoming increasingly used to and expectant of instant results is an obvious challenge for field service organisations but can remote services help bridge the gap? Manuel Grenacher, CEO, Coresystems ...
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Jul 30, 2019 • Features • Coresystems • Future of FIeld Service • manuel grenacher • remote service • field service • field service technicians • Internet of Things • IoT • SAP • Service Engineer • Service Management • Customer Satisfaction and Expectations
In today’s society whereas consumer’s we are becoming increasingly used to and expectant of instant results is an obvious challenge for field service organisations but can remote services help bridge the gap? Manuel Grenacher, CEO, Coresystems discusses...
With the pervasiveness of the Internet of Things (IoT), everything from device performance to customer interactions has become faster and more connected. Devices that require maintenance and repair now operate on an accelerated timeline of immediately notifying the user when service is needed. Because of this, customers expect real-time responses, leaving little to no time for a field service technician to travel to the site, troubleshoot the issue and fix the device. Therefore, to maintain and improve customer satisfaction, technicians are exploring ways to provide the same level of onsite, but while remote.
The idea behind remote technicians stems from the technician’s ability to diagnose a problem, determine possible solutions, and lay out a plan for issue resolution - all before they take one step onto the worksite. In a perfect world, remote technicians essentially only have to leave their workstations once to perform tasks that require a high level of skill, or perhaps not at all for routine maintenance and repair. Naturally, this drastically cuts down the amount of travel cost and time and total project duration needed to solve an issue with a customer’s device, streamlining the entire service request from issue detection to resolution.
Field service technicians no longer need to blindly infer what is happening on the broken device based on descriptions from less experienced users, nor do they need to fumble through repair instructions over the phoneField service technicians no longer need to blindly infer what is happening on the broken device based on descriptions from less experienced users, nor do they need to fumble through repair instructions over the phone. Indeed, the remote technician takes full advantage of tools such as augmented reality, artificial intelligence, and even the IoT itself to deliver the same experience as a technician standing in front of the customer would.
So how does it work? It starts with putting the proper infrastructure in place to allow technicians to troubleshoot issues on devices and machines from afar. Taking issue detection as an example, remote technicians can use augmented reality to share a mobile phone screen with a customer for a visual walkthrough of the issue. From there, the remote technician can schedule an onsite appointment if needed and manage the parts orders needed for specific projects, ensuring all the necessary assets are in place well in advance.
To be fair, managing a workforce of remote technicians is no easy task. In order to optimize your field service operations, it is extremely beneficial to be able to automatically assign the most qualified and available technician for respective service requests, taking into account expertise, location, and availability. As a fail-safe, the onsite technicians should have easy access to online product specifications and other assets needed to complete service requests. Additionally, similar to how remote technicians use augmented reality to connect to the customer for issue detection, on-site technicians can connect to more experienced journeyman technicians back at headquarters to troubleshoot unforeseen issues. This creates a network of knowledge that will keep project duration to a minimum, improving efficiency for the technician while onsite.
The way in which field service technicians work has evolved and is continuing to do so. The next generation of technicians are prioritizing independence, autonomy, and flexibility, on top of foundational knowledge and customer service experience. As the IoT continues to grow, so will the need for remote technicians, and the field service industry assuredly has the infrastructure to maintain the high level of customer satisfaction that we strive for today.
What are your experiences experimenting with a more remote field service workforce? Feel free to share your thoughts in the comments section below!
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Jul 22, 2019 • Features • Management • Bill Pollock • Strategies for GrowthSM • Customer Satisfaction and Expectations
Whether your present customer service performance is good, bad, or anything in-between, one thing is certain - it can be made better! Even the best customer service or technical support personnel will admit that they have some shortcomings in certain areas, and that there could, in most cases, be some improvement made. And if you can see it yourself, you can rest assured that your customers see it as well!
Some companies monitor their employees’ performance on an ongoing basis through the use of customer satisfaction surveys and/or field engineer skills assessments and performance evaluations. However, regardless of whether your company conducts these types of studies, it will always be your responsibility to measure your own (and your organisation’s) performance, and determine how you may be able to improve it over time.
There are some specific guidelines that you can follow, and we suggest that you use the following to conduct a self-assessment (or organisation-wide assessment) of your current customer service performance levels:
Select the areas where you believe you can attain the quickest improvement - both on the basis of your own evaluation, as well as through the eyes of your customers. Be aware that you and your customers may not always agree on which areas of your performance need to be fixed first, or which will require the greatest attention. Still, it will be helpful to look
at it from both perspectives as you prepare a “list” of the specific areas that you will need to improve.
Elect to do something about improving the areas you have identified on your list. This is not the time to go into “denial” if either your company’s performance appraisals - or your customers - are telling you otherwise. Remember, there are no “perfect” service technicians out in the marketplace; everybody makes mistakes, everybody has some problems that need to be worked out, and everybody can stand to benefit from some improvement. But, no improvement can ever be made if you do not first identify what it is, and; second, elect to do something about it.
Leave behind any of the old conventions you used in the past if they are no longer applicable. If you have been in your job position long enough, you have probably seen how some of the things that used to work every time only work some of the time today; things that used to work occasionally don’t work at all anymore; and things that only used to work “once in a blue moon”, now, don’t even make sense! For example, in the past, it was easy to tell a customer, “Sorry I didn’t get back to you any sooner - I only just got your message late this afternoon after the close of the business day.” This excuse used to work; however, with voice mails, texts, e-mails, and cell phones, this is no longer an excuse in the customer’s eyes - even when it really is! On the other hand, with new conventions that did not even exist 15 or 20 years (i.e., wireless communications, texts, etc.), you have new opportunities to improve your customer service performance - but, again, only if you use them!
Follow the guidance provided to you by company management, your Human Resources department, and any of the various training programs you have been able to participate in over the course of your career. Listen to constructive criticism from those who are in a position to provide it; and take it to heart when you conduct your own self-assessment. Remember, it will be in the best interests of both the company and its customers for your customer service capabilities to improve. However, it will be difficult to improve your performance entirely in a “vacuum”, and that is why you will need to continually follow the leads that are often provided by these key internal and external influences. Assume that everything you do can be improved. You know it; your management knows it; and your customers know it. This does not necessarily reflect a shortcoming in your performance capabilities; all it means is that whatever you are doing, you can do it better.
Sometimes this requires further education and training; sometimes it requires simply fine-tuning what you have already been doing; and sometimes it simply means doing some things better, faster, or “cleaner”. Albert Einstein always felt that if he were “smarter”, he could have gone well beyond the formulation of his theory of relativity. Nobody believes Einstein was a slacker when it came to physics - he just felt he could do better. And so should you!
Strive to make the necessary adjustments for improving your customer service performance capabilities. Some of these adjustments may be major (i.e., new training, re-training, taking additional courses or classes, etc.); some may be relatively minor (i.e., taking more notes or documenting what you do on a daily basis better, following up by telephone more often than you have historically, etc.); and some may just work themselves out as a result of your ongoing experiences with customers.
But, whatever the case, you need to understand that the way you do things today will not necessarily be the way you do things tomorrow; that some processes will change, and some will be replaced by new processes. With this in mind, you will always need to be aware of the adjustments that will be required, and equally prepared to adapt them into your daily, weekly, and ongoing service performance routines.
Spend some time doing each of these self-assessment tasks. As a general rule of thumb, people won’t tell you that you are doing something wrong until you’ve done it wrong at least two or three times - or more! Sometimes they won’t tell you you’ve been doing something wrong until you’ve done it dozens of times! You cannot always rely on others to tell you when your performance is “off”.
Therefore, by routinely giving yourself (and your organisation) a self-assessment appraisal - nothing too formal; just something that can keep you in check over time - you will not need to depend on others to tell you when you are going wrong, because you will already know it. Just as it is advisable to do prescribed medical self-checks at home so you can diagnose diseases before they can do you great harm, it is just as important to do these customer service-focused self-checks at work before poor performance harms your reputation among your company’s customers.
Ease into a comfortable process that allows you to review, evaluate, reevaluate, and adjust your customer service performance over time, as well as allow you to keep tabs on how well - or not well - you are performing at any given moment.
The reason we emphasise the word “ease” is because if the steps you take to improve your customer service performance are not “easy”, then you are not likely to do them - or at least do them well. Find a process that allows you to monitor your own performance over time, change the way you are doing some things, and introduce new ways of doing things better, thereby allowing you to “play” with the way you conduct your customer service activities until you can find a better way of doing so.
See how well the process works and adjust, re-engineer, or “tweak” it as often as necessary until it virtually runs all by itself. You will find yourself constantly changing things, adding things, or just doing things differently as you learn more and more about what your customers want and expect from you, and the two of you - your customers and yourself - will likely end up working together toward a common goal of improved customer service. From time to time, ask your customers how well you are doing, and where there may be areas that you could be doing better.
Believe me, they will tell you! Also, from time to time, tell your customers what new things you have learned, what customer service training courses you have taken, or what other ways you have learned on how to improve the levels of service and support you are able to provide to them. They will want to know, and these joint interactions may ultimately make it easier for them to see - and acknowledge - how your performance has actually improved over time. The customer service process is an interactive one, and one where you may easily obtain input and feedback from a variety of sources; however, it will be up to you to find them - and use them.
Start the process all over again. And again. And again. In fact, whenever you think that the process is completed, that will probably be a good time to start it all over again.
The self-assessment process, if done properly, will be a continuous one that keeps you (and your organisation) current with your customers’ needs, and provides you with the underlying tools to ensure that you can continually strive to improve the way in which you are able to support your customers.
The good news is that you will never have to do it all alone; your customers will always serve as a source of checks and balances to ensure that you are focusing in the right areas; and your company management will continually be able to provide you with opportunities for improving your own customer service skills - and you should always take advantage of them.
But most importantly, by dealing with your customers’ needs on a daily basis, you will never allow yourself to become “inadequate” - or even just “dusty” - in your ability to support customers, and that is why the self-assessment process you develop will work for you.
By employing the use of these types of self-assessments on an ongoing basis, you will always know where you are meeting your performance targets, where you are not, where you need improvement, and where you have problems. Then, based on the results, it will be up to you and your management team to determine exactly how to fix the things that need to be fixed, and resolve any problems that have been identified.
Jul 10, 2019 • Features • Software and Apps • Uber • localz • lastmile • Customer Satisfaction and Expectations
There used to be an adage in business when it came to dealing with suppliers that jokingly went along the lines of “I only want one throat to choke.”
The idea was that if an organisation was providing you with a service, it was preferable to have just one touchpoint with them, one human at the end of the phone who understood the entirety of the relationship. One vendor who could provide the hardware, the software and of course all the services required to make that then all work.
However, today this concept seems somewhat antiquated, particularly amongst larger organisations. In a world of increasing connectivity and APIs, the prevalent thinking is more along the lines of “I want whatever you have to work with what I have.”
Best-of-breed solutions are once again returning to the fore to resolve specific challenges, often challenges that have arisen as the result of the disruptive nature of emerging technology we have witnessed in recent times and the ripple effect that disruption has on service across many varied and disparate industry verticals.
This development has led to a new wave of innovative companies rising to prominence within the field service sector. These include ‘Last Mile’ solution provider Localz who have already garnered an impressive roster of clients including DPD, Belron and UK utilities giant British Gas. The latter even having showcased their use of Localz technology as a major USP in their most recent high profile advertising campaign.
Localz is a perfect example of an organisation that has been able to identify an essential gap in the current field service management ecosystem that has been exposed by developments outside of the sector. Rather than trying to reinvent the wheel and fix parts that weren’t necessarily broken in the first place, they’ve instead focused on providing a well thought out, easily implemented and effective solution for an important but somewhat overlooked part of the service cycle.
“We’re not here to change the world for field service companies; we are not going to make you change everything you already have. We are here to help you quickly get big cost savings and massively improve your customer experience by simply plugging in our location based day of service software,” comments Tim Andrew, CEO Localz.
Of course, the twenty-first century has so far been the century of data. We have seen field service companies make a concerted effort across the board to knock down the silos between divisions to allow data to flow seamlessly across an organisation to enable them to attain the once fabled, but now commonplace 360-degree view of the customer.
This trend has played well into the hands of the major platforms who could facilitate this by offering multiple functionalities within their suite of solutions. SAP, IFS, Microsoft and others have all championed the benefits of the platform approach for this reason.
As is the cyclical nature of such things, it is often outside of the restrictions of enterprise providers, that we see innovation flourish and thrive. It is a well established pattern of evolution and consolidation that those of us in the field service sector with more than a few flecks of grey in our beards will recognise.
However, the difference between today and previous years is the prevalence of APIs and the increasing ease of integration, which allows a solution like Localz to plug-in on top of a broader system and deliver the impressive level of last-mile communications and visibility that British Gas has harnessed so effectively.
“Connectivity is the big thing,” explains Andrew as we discuss how technology development has evolved in the last decade.
“It’s also important for technology providers to realise they need to switch the model on how the technology works. Smarter providers have stopped putting themselves in the centre. Customers’ don’t want to hear about a solution that is the centre of their operation; they have already invested significantly in many solutions and established efficient processes that broadly work well. Now they want to improve; they want to see how we add value to what they’ve already invested in.”
"The twenty-first century has so far been the century of data..."
The solution itself can be described in a sense as Uber for Field Service in that there is a very slick visual representation for the end customer to see the engineer arriving.
There is also, other useful technology within the solution, including scan to van stock management, which can be a game changer for the P&L of some companies struggling to cope with the constant movement of spares. However, it is in its ability to allow field service companies to deliver a service experience that has become an expectation in the age of Amazon and Uber, that Localz grabs the headlines.
This is mostly because it is addressing an issue that many service companies, whether it be a giant like British Gas is universal, or a niche SMB are facing - customer expectations and understandings of what ‘good’ service looks like are evolving rapidly.
“Something I touch on quite a lot is that customers are more informed across the board today,” explains Andrew
“Whether it be in a B2C, B2B or even a B2E environment, we’re all just universally more informed today as such customer expectations are radically increased. Also, the ability to switch providers, especially in the consumer world, is becoming easier and easier. I don’t need to speak to somebody; I literally can go on a website and choose from A, B, and C and get better service.”
The term that has risen to popularity over the last eighteen months in this regard is the ‘experience economy’ where customer satisfaction is no longer enough, we have to consider and understand the total customer experience to deliver customer delight. With this in mind, tools like Localz have become an essential part of the field service equation as they play a significant role in meeting the modern expectations of that service experience.
As Andrew touched on, this experience economy, these increasing customer expectations, have begun to break down the barriers of what we would traditionally define as business to business or business to consumer service standards.
The impact of disruptors, such as Uber and Amazon, is being felt wide and far beyond transport and e-commerce, it’s become ubiquitous across all industries.
“It’s definitely becoming that way,” Andrew agrees as we touch on how the lines across bB2C and B2B appear to be blurring.
“Service expectations especially around visibility and communication on the day of the service call are fast becoming table stakes in B2B, but I think we’re going to see it in B2B soon enough as well.”
If indeed the zeitgeist of the early twenty-first century, in the field service sector at least, is one of seamless service experience, then tools like Localz could very quickly become an essential addition to any field service organisation’s technology sector.
Jul 09, 2019 • Features • Management • servicemax • Software and Apps • Customer Satisfaction and Expectations
It’s been an eventful 12 months for ServiceMax. In April, Scott Berg relinquished his CEO position making way for IPC System’s Neil Barua. In December, parent company General Electric sold their majority stake (held since 2017) followed by SeviceMax’s own acquisition of real time communications outfit Zinc.
It all meant that the Maximize Bologna, an event consisting of a day of presentations from company figures and client case studies - and the first of four events in 2019 taking in London, Chicago and Tokyo - would represent something of a re-set for ServiceMax, an opportunity perhaps to usher in a new era.
With all this in mind, these are the five key threads I picked-up while in Italy:
1. Service Execution Management
Lubor Ptacek, the company’s SVP of Product and Solution Marketing, gave the first major presentation of the day, and following a brief run-through the firm’s 19-year history including their start-up origins to the role GE played in their development, he forecast where the sector is headed, aligning changes in the industry to ServiceMax’s new software category Service Execution Management, a new type of approach that includes field service and asset service management respectively.
2. Platform Is Now Managing 200 Million Assets
In the same presentation, Ptacek revealed a significant landmark in the firm’s growth, telling delegates that ServiceMax’s cloud-based platform is currently managing 200,000,000 assets. It’s an extraordinary statistic affirming the company’s core-service goals are statistically being met.
3. Real-Time Communication Will Play A Key Role
The firm’s integration of Zinc’s mobile-based app as a module into its own software platform signals their commitment to real-time communication in the service journey. Text, voice, video, handsfree, push-to-talk and broadcast features will all be possible on the mobile-first solution which encourages interaction across groups to share issues and offer knowledge. “The perfect combination of Zinc’s modern, real-time communication with ServiceMax’s cutting edge and comprehensive suite will be unparalleled in the market,” Zinc President, Stacey Epstein said at the time of the acquisition affirming the strategy.
4. Automation And Anxiety
“Competencies are by far the main obstacle according to companies undertaking a path to industry 4.0,” Nicola Saccani, Associate Professor at Brescia University told audience members during his presentation. Professor Saccani, a specialist in service and digital transformation, suggested that employers are struggling to keep up with the pace of which technology is progressing. This, along with the growing competency gap created from retiring engineers and new blood coming in, presents one of the biggest challenges to the sector.
5. An Excellent Keynote
Maximise events always draw a special keynote speaker and this year was no exception with Fausto Gressini, the world’s most successful MOTO GP and MOTO GP manager in superbike history sharing his thoughts on the evolution of his sport.
Superbikes, Gressini explained, have become data sponges.
They absorb reams of information from its tyres and engines, from its brakes and exhaust; an endless spout of data that needs to be interpreted to the team’s advantage. Furthermore, the rider, as well as navigating bends at a hair raising 140mph, is expected to understand the information coming through and relay any trends back to his mechanics.
It was an excellent keynote and entirely relevant. On the surface a field engineer and superbike rider may not have a huge amount in common but when it comes to data collecting and refining there is a definitive link. It was a fascinating session and one that delegates appreciated and could genuinely use in their own processes going forward.
A Final Thought
ServiceMax is in a transition period, albeit a positive one and the event nodded towards another interesting 12 months. We’ll be following their progress in these pages as well as fieldservicenews.com. Stay tuned!
The next ServiceMax Maximise event takes place 7 to 8 October in London. Click here for more information.
Jun 27, 2019 • Features • Management • Software & Apps • FieldAware • Service Evolution • Software and Apps • Customer Satisfaction and Expectations
Frankie Guynes, Customer Success Manager of FieldAware outlines what field service organisations should consider before making the next move in their field service maturity planning...
Frankie Guynes, Customer Success Manager of FieldAware outlines what field service organisations should consider before making the next move in their field service maturity planning...
You might think I am biased, but I truly believe that my Customer Success team has the best job. Why? Because that job allows us to participate in our client’s growth and success. Each day, we guide our clients to overcome all types of obstacles, ensuring they are getting everything they need from their field service solution. In fact, identifying these obstacles together, and supporting the client through their own individual maturity model is what ultimately makes the difference in their organisations.
To explain better: we work with clients who are at various stages of field service maturity. We use a well-established model which outlines five stages. By identifying a client’s current stage, we can more succinctly consult with clients on process improvements and activities that will progress them through the stages of maturity.
The stages start at basic, reactive business operations moving to more transformative business operations. The obstacles faced by these businesses are different; varying from lack of standard processes, poor change management, or inadequate technology. We focus on overcoming these obstacles, and the role that can play to advance an organisation to a market leader in their industry.
Wherever an organisation is in their field service maturity, what matters most is for the organisation to: map out a quick-path-to-value in their current stage of maturity, visualise where they want to be in the maturity model, and execute on operational changes that move the organisation to that goal.
The Right Fit Software
My team is greeted by many organisations that are “getting by” with existing technologies and processes. These technologies and processes are typically born from gaps in business processes as their business continues to grow. When technologies are deployed from necessity, organisations find themselves unable to scale; hampered by these disparate processes.
Although there are many factors that are involved in an organisation’s maturity stage, it is without question that the effectiveness of their technology is highly impactful. With technology as a cornerstone to success for an organisation’s maturity, organisations need to evaluate software based on the current state and the goal state for their business.
"The effectiveness of their technology is highly impactful..."
This doesn’t mean to implement technology well beyond the organisation’s current field service maturity, making change management and success difficult to achieve. Rather, find software that stretches beyond the current maturity stage and that allows the organisation to evolve within the technology.
The Path to Success
A fundamental step to success is for field service leaders to invest time to map out the current state of their organisation, along with a clear vision of the goal state. They must ensure that the technology for which they invest can evolve and support the business through their own field service operational maturity.
Mapping out the current state of the organisation consists of three activities. First, carry out a need’s assessment with an honest evaluation of current inefficiencies in organisational processes. Then, evaluate how current technology could evolve to support organisational changes, and finally, take a critical look at the decision-making process of investing in new technology.
This exercise inevitably means greater knowledge of your business; its operations and areas that are preventing the organisation from increased growth or value. It is essential to identify,
document, and “well-circulate” the goal state of the organisation and the measurements that will be used by leaders to identify success in these metrics.
When tackling this, it can help by focusing on the business goal and work backwards from that point. For example, delivering added-value to customers is a priority for many organisations, so it is given that operational changes should support this, and technology developments should enable it. Therefore, starting with this end point will mean a greater understanding of how the business can deliver this customer value successfully and consistently and what that looks like.
Use What you Have
Mapping out your current state will also uncover if you are making the most of your current technology. An important part of my role is to ensure our team is helping clients get everything they need from the solution. This means all software releases are communicated and demonstrated through solutioning sessions. It means new users are fully trained, and advanced solutions on the platform are well implemented.
In the end, I advise organisations to seek guidance from software experts to help with the journey. Transformative technologies can be difficult to navigate and implement into an organisation’s business processes. Find a technology partner that well identifies your organisational maturity path and that will help evolve your field service maturity from concept to reality.
Want to know more about FieldAware? Click here to access their page in the field service directory for more information , articles and resources.
Jun 24, 2019 • Features • Software & Apps • Future Technology • contact centres • omni channel • field service • IFS • omnichannel • Customer Satisfaction and Expectations
Jun 17, 2019 • Features • Software & Apps • Future Technology • contact centres • omni channel • field service • IFS • omnichannel • Customer Satisfaction and Expectations
Jun 06, 2019 • News • management • Survey • Customer Satisfaction and Expectations
Businesses are out of touch with their customers and overestimate the quality of the customer service they provide, according to new research from Pegasystems Inc. the software company empowering digital transformation at the world’s leading enterprises.
Research firm Savanta surveyed 12,500 global customers, businesses executives, and customer-facing employees for a one-of-a-kind, three-dimensional perspective on the state of customer service today. The research identified key customer service frustrations and revealed that many businesses don’t know their customers well enough to provide the level of service their customers want.
It also found that many organizations aren’t fully committed to providing the level of service they aspire to and run the risk of losing customers to competitors as a result. The good news? Customers, employees, and business leaders all agree on what matters most, so a clear roadmap exists.
Key findings of the study include:
• Business decision makers are out of touch:
Four times the percentage business leaders (40 percent) as customers (10 percent) rate the current standard of customer service as ‘excellent,’ while only 23 percent of customer-facing staff rate their organization’s service the same way. Similarly, an overwhelming 89 percent of decision makers and 73 percent of employees feel their organization provides an overall positive level of customer service, but only 54 percent of customers feel the same way. In addition, 71 percent of business leaders think they provide better customer service than their competitors – a number that is mathematically impossible to achieve.
• Are businesses really committed to providing good customer service?
While 81 percent of business decision makers consider customer service as either their main or key competitive differentiator, 33 percent of customer-facing employees say they face no consequences for providing bad customer service. Meanwhile, 48 percent of customer-facing employees say they face barriers to providing good service.
• Poor service is driving customers mad:
88 percent of customer-facing employees say that customer service is a priority within their business, but the customers tell a different story. Only 11 percent of consumers say contacting customer service is an enjoyable experience. Of those who are dissatisfied, 63 percent would rather clean the toilet than contact a customer service team. Only 10 percent say their typical customer service experience is ‘excellent.’
• Customers feel like organizations don’t know them well enough:
Despite 87 percent of business decision makers believing they know their customers well, the vast majority of consumers feel differently. Just 23 percent of consumers say businesses understand them as a person and their customer service preferences ‘extremely well,’ while 63 percent think organizations should make getting to know them better their top priority.
• Poor customer service can cost businesses customers:
Seventy-seven percent of customers agree the standard of customer service they receive is a major determining factor in their brand loyalty. In addition, 89 percent say receiving poor customer service from a business damages their impression of the brand. Significantly, 75 percent also say they have previously stopped doing business with an organization because of poor customer service. Forty-four percent report that if they receive a negative customer service experience, they immediately stop the purchase and move to another vendor. Despite this, only 35 percent of business decision makers say they lose customers ‘all the time’ or ‘fairly regularly’ as a result of providing poor customer service.
• Customers know what they want:
Consumers highlighted specific areas of frustration within customer service -- providing businesses with a clear roadmap for improvement. Their top three frustrations include taking too long to receive service (82 percent), having to repeat themselves when switching between channels or agents (76 percent), and not knowing the status of the query (64 percent). When asked what made for a positive customer service experience, 59 percent agree that a quick resolution of their issue or question mattered most, followed by a need for knowledgeable service agents (48 percent) and a fast response (47 percent).
“Good customer service can be the difference between success and failure. This study tells us that organizations still have a long way to go before they are able to fully meet the expectations of their customers,” said Tom Libretto, chief marketing officer, Pegasystems. “The good news is that there is overall agreement on what matters most. Solutions are available to help businesses understand and proactively address customer issues, while also arming customer-facing staff with the tools they need to provide more contextual, relevant, and knowledgeable service. Customers win, employees win, and positive business outcomes are delivered as a result.
Apr 14, 2019 • Features • Management • Data • Jan Van Veen • Monetizing Service • moreMomentum • Products as a Service • Customer Satisfaction and Expectations
Central question
Many manufacturers experience pressure on growth, revenue and margins. Their products and services are being commoditised. Competition from lower cost alternatives are arising. On the other hand, there are huge opportunities with new technologies, value propositions and business models.
One of the important trends is that value propositions and offerings become more data-driven and more service-oriented, which go hand in hand.
Besides predictive maintenance, most of the value from data is related to how clients use the equipment or products and to their operations and processes. Helping clients improve on this by nature is a service.
However, many manufacturers are product-driven businesses which do not fully appreciate the value that (advanced) services have for their customers and their own business.
So, one of the central questions is: How to Monetise Services and Data to Grow in a Disruptive World? The capability to monetising service and data is mission critical for sustainable performance and existence of manufacturers.
In a series of articles, we cover four critical steps that make the difference between success and failure in monetising services and data:
• Solve bigger customer problems;
• Articulate the value;
• Build momentum with clients to adopt;
• Build internal momentum.
Developing new data-driven solutions and services is all about extending the existing business model, which leads to different challenges than many other initiatives and programs in a business. Recognising this in advance will help understand the challenges and best strategies.
In the previous articles of this series, I have described critical success factors for monetising service and data, such as Solve Bigger Problems,Better Articulate Value and Remove Obstacles for Clients to Adopt. In the end, this all has to be done by people and teams in your organization.
Common mistakes
In this article I will describe common mistakes that many companies make, which holds them back in having fluid and energising change, and to move beyond business-as-usual in their endeavours to monetise service and data.
No North-Star
Many companies, including manufacturers, do not have a clear picture of where the industry is heading and where their business is heading. It is unclear for their employees what needs to be developed and why.
More specific, for many employees it is not clear why the new service and data-driven solutions are that valuable to clients, how it would fit in the overall core business and why it should be paid for by clients. Often, the indicated direction even suggests the opposite and may give room to the logic that value added services and datadriven solutions are (free) features to support the product sales.
Just imagine how a hypothetical mission statement “… being the world’s leading manufacturer of construction equipment and engines” would help develop and monetise advanced services and data-driven solutions.
Blinkered
People in manufacturing are often biased towards products, equipment and technology. They have a narrow view on:
• Customer problems beyond the requirements for the products and equipment;
• How other actors in the industry are developing with advanced data capabilities, which could become competition to the current position of a manufacturer;
• How new technology can be applied to develop new value propositions, solutions and operating models.
This will affect how product managers, marketing and innovation will develop new services and data-driven solutions. Too often, we see that the services and solutions do not always solve a customer problem and hardly differentiate from services and solutions competitors are offering as well.
It will also affect how their colleagues in the operations (sales and delivery) understand and engage, as there is no compelling context to understand the importance of the new services and solutions, let alone be engaged.
Top-down P&L thinking
Too often, we see that developing and launching innovations, such as new advanced services and data-driven solutions, stagnate because of the decision-making habits in an organisation. Typically, we see one or more of the following:
The strategic intent from senior leadership is unclear, hardly based on a well-developed shared concern, not giving a clear path on what services and solutions to develop, nor on what the strategic priorities and objectives are, to be successful. So, employees are not really enticed to take action and therefore no change.
The strategies and plans are more short-term which emphasise short term financial objectives, leading to two different scenarios:
Financial objectives are not articulating the need for services and data-driven solutions, nor specifying which portion of these objectives should come from services and data-driven solutions. Often, employees are actually motivated to stay away from developing and launching the new services and data-driven solutions.
Or, in case the financial objectives also assign financial objectives coming from services and data-driven solutions, there is a lack of description of qualitative objectives and strategic priorities on how to arrive at those financial goals. The result is often a lack of initiatives and progress, or lack of alignment and results.
Top-down strategies from senior leadership are so specific and instructive that these actually dismiss other employees taking ownership of the plans, and/or adjusting plans and local strategies where needed.
Paralysis by control
Top-down control mechanisms from the last few decades are a huge obstacle for fluid and energising change in an organisation and therefore hinder the initiatives like monetising services and data. More specifically, we often see the following patterns;
Internal conflict of interest in the product sales teams, because they are often incentivised on sales volume.
It does not make sense for them to sell complicated service contracts. It hardly affects their commission, consumes a lot of time and may even put their product sales deals at risk. Instead, it is more beneficial to please their clients by offering discounted services.
In case there is a separate service sales team, for the same reason, there are often internal arguments on who owns the client and what is the best plan forward with each client. In the worst case, this even leads to having different faces towards the clients, leaving them confused and with a bad customer experience.
Control mechanisms that are too strict create an unsafe environment in which employees show defensive and risk-avoiding behaviour. Instead of trying, learning and being successful in monetising new services and data-driven solutions, they instead become complacent and resistant.
Typical signs are pointing fingers to other teams to take action, declaring that the new services and solutions are not the core business, that customers don’t want to pay and referring to other companies who have tried and failed.
Some solutions
Many things come into play when increasing momentum for monetizing (new) services and data, and preventing existence of too many obstacles and resistance. In general, the more adaptive and fluid change in a business, the easier a specific innovation on service and data.
We have seen that leading manufacturers have adopted 4 winning habits which sets them apart. These winning habits define how both operation and innovation is lead. In the next paragraphs I will describe the 4 winning habits in relation to monetising services and data.
"People in manufacturing are often biased towards products, equipment and technology..."
Direction
Leading companies have a transformative vision and mission on where the business is heading, what needs to change and develop, and why this is important considering the changes in the industry. This is a quite a holistic picture in which all stakeholders and entities in the business can relate and get direction on how to develop themselves, their teams, their department and their business unit.
It provides an outside-in picture on how the business is and will be relevant to a certain industry and customers. It explicitly points out how the business will add value to clients and that this requires certain technology, (data-driven) solutions and services.
Now imagine how the following mission statement will drive the development and implementation of new services and data-driven solutions: “Our purpose is to enable healthcare providers to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery and improving patient experience, all enabled by digitalizing healthcare.”
Discovery
Here I want to focus on two phases on innovating your services and datadriven solutions: the development phase (including ideation, selection and design) and the implementation phase
For design purpose
In general, the envisioned services and data-driven solutions differ significantly from current business logic, mindset and operations in your business. Even though anyone in the organisation could raise great ideas, it is crucial that the development of the new services and solutions are done by dedicated teams with the right expertise and focus.
They need to ensure they are open-minded and unbounded by current (and old) business logic and pathways. In terms of discovery, this means they should:
Talk with other stakeholders in client organisations (rather than the ones your organisation normally speaks with) - for example, the CFO, CEO, VP, Innovation, commercial leaders, etc. Build a new expert-network outside the organisation - which is outside the current network of partners, suppliers and clients - including the academic experts and consultants in areas you usually have no relationships with and talk about topics other than current technology, products and service, and more about major trends, visions of the future industry,key challenges and strategies of different actors in your and adjacent industries.
This will not only help to obtain more ideas for future success, it will also help to change perspectives and business logic within the innovation teams and the rest of the organisation, by sharing these insights.
For implementation purpose
Once the new solutions and services have been designed and developed to a scalable offering, it probably needs to be embedded in the existing organisation. Now, the risks of resistance or complacency may come into play.
The more developed the mindsets and habits are on “digital” and change, the more fluid the implementation and change will be. This can be promoted massively by strong Discovery habits: Involving key players in the operating organisation, well in advance of the implementation, into the initiatives for launching new services and datadriven solutions - for example, by having a frequent dialogue on shared concern and discussing the alternatives to solve these concerns. This can be done by frequent conversations or including them in the extended innovation team.
Having everyone involved in discovery activities that do not require too much expertise and dedication, for example, by having colleagues; Have broader conversations in their day-to-day conversations with clients, suppliers and partners. You can provide them with topics and questions to help open the conversations
Joining events with customers where you discuss trends, visions, needs and how they see your added value. Join conferences within your own industry and even other industries and sharing new insights and learning points from the expert teams, painting a picture of what is going on in the outside world, how this may impact your business and how this will/could be addressed.
Decision making
In line with the mission, vision and direction leadership of leading manufacturers, have a clear strategic intent on:
Result objectives - for example, overall growth aspirations that new services and data-driven solutions are crucial and how much business is expected to come from these new services and solutions. Strategic objectives on which offerings and capabilities need to be developed.
Next, they have a clear (top-down) strategy which articulates crucial choices on how to achieve these objectives in a few phases. This should provide a common roadmap on which offerings to develop, how to sell them, to whom and by whom, how to organise marketing, sales and delivery, and which obstacles to overcome.
This strategy should address all stakeholders (including R&D, marketing, product-sales, service sales and service delivery) who have direct influence on implementation and success.
With this top-down strategy, still, a lot is left open on how to achieve the objectives. Local teams are empowered to develop their local roadmap and strategy, and to take full ownership of the local development, learning, capability development and execution. This will allow them to mitigate local strengths, weaknesses, opportunities, threats and market circumstances.
Dialogue
With a constructive and forward dialogue between individuals, teams and departments, issues are solved in a fundamental and sustainable manner, hence building capabilities to perform.
For monetising service and data, this means that: Ideally, services and data-driven solutions are being sold at point of sale (when equipment is sold) - maybe not the full package, but the entry level offering which will be the first step to the next level mature offerings. Commission structure of sales people needs to be designed in such a way that it promotes the right focus and behaviour.
I have seen quite a few examples where equipment sales people were quite successful in selling service contracts once the commission they would receive was tied to the sale of a service contract.
Sales people who sell advanced services and data-driven solutions need to have specific skills and background, which are not necessarily the same as skills required for selling the products and maintenance services. Most stateof-the art sales techniques such as Solution Selling, Challenger Selling or Value Selling, assume a fluid and educated dialogue on related business domains.
Often, these conversations should happen with other stakeholders at the client organisation, maybe at higher seniority levels. The different teams need to have the confidence and safe environment to learn and develop these skills and knowledge, and become fluent in these conversations and sales approaches.
Different teams in your organisation need to be “in the same boat” without conflicts of interest. We currently see more and more companies aligning targets and incentive schemes, in which common and shared objectives prevail above individual targets.
Full transparency in key performance indicators on progress and results is required, to have all stakeholders have the necessary insights to be able to take ownership and accountability and intervene when/where needed.
Benefits
The leading manufacturers, ahead of the game, have built momentum for continuous and easy change from the inside, moving beyond “business-asusual”. Their teams are passionate and eager to perform, learn and pursue opportunities. Instead of resisting new ways of thinking about customer challenges, customer value and their business, they focus on customers and pursue opportunities to increase value.
Monetising services and data has become a logical part of their overall vision and strategy. They are better in solving bigger customer problems, better at articulating the value for customers and in removing obstacles for their clients to adopt the new solutions. As a result, they better differentiate themselves – in the eyes of their customers - from their competitors. They perform better and have more resources to keep innovating their business and hence grow in our disruptive world.
Boost your monetisation If you want to accelerate the monetisation of your (new) services and datadriven solutions, I would like to recommend:
• Review your business alongside common mistakes and suggested solutions, and add the discrepancies to your strategy;
• Download the scorecard How to Monetise Services and Data here;
• Book a Discovery Call with Jan van Veen;
• Join our upcoming Impulse Sessions on How to Monetise Service and Data. These are full day interactive meetings with like-minded peers during which we will exchange experience, insights and challenges.
Essence It’s not about making money from new services and data-driven solutions; it’s about being highly relevant and valuable to clients in a sustainable manner and empowering your people to do the same.
It goes without saying that if you deliver value for money, you also get money for value.
Jan Van Veen is Managing Director at MoreMomentum.
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