Businesses are missing out on a significant opportunity to use technology to fix internal processes and address the root causes of customer experience issues in the wake of the pandemic, research from enterprise software specialist IFS has today...
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Jun 30, 2021 • News • field service management • IFS • Leadership and Strategy • GLOBAL • customer experience
Businesses are missing out on a significant opportunity to use technology to fix internal processes and address the root causes of customer experience issues in the wake of the pandemic, research from enterprise software specialist IFS has today revealed.
The global study, which surveyed 1,700+ executives and 12,000+ consumers, shows that businesses understand software has a key role to play in consistently delivering positive outcomes, but that current approaches to customer experience do little more than wallpaper over the cracks, instead of identifying and addressing systemic problems in their operations.
Although businesses claim to pay close attention to customer service, the inflection points that occur throughout the lifecycle of their operations and encompass processes, technology solutions, and human coordination are even more important to a positive customer experience – but these are far too frequently overlooked. It is only with careful orchestration of these components that companies can deliver a quality ‘Moment of Service’, in which everything comes together to create a positive result for a customer.
29% of managers don’t take action on known operational issues, while 18% are too busy to report issues not considered urgent
This orchestration is only possible when the technological foundations are in place to provide visibility of these inflection points. Only then can businesses take the appropriate action to ensure they delight, and don’t disappoint, their customers. Indeed, some 85 percent of businesses said that their enterprise software helped them measure performance and act on issues at these inflection points to affect the end customer outcome.
However, IFS’s research also uncovered that while 79 percent of businesses have invested time and resources in identifying where these inflection points are, when problems are identified nearly a third of managers (29 percent) admitted to reporting them but not taking any action. Furthermore, some 18 percent revealed they were too busy to report issues unless urgent, while just 15 percent said they proactively look to preempt problems.
Despite the majority of companies (66 percent) investing upwards of $250,000 each year evaluating the customer experience through Net Promoter Scores, reviews, and customer satisfaction surveys, it is clear that unless they resolve these issues when they find them, customers are unlikely to see a meaningful change in their experience. Indeed, 82 percent of respondents were unable to recall a single positive example of a recent frictionless customer experience. This gap between understanding and acting is a business risk that few can afford.
For enterprises that fail at the moment of service, the ramifications are significant. A quarter of consumer respondents stated they would never engage with a brand again after just one bad experience, while over half (52 percent) would abandon a company after two to three. IFS also sought to examine the impact of negative experiences on wider brand perception and uncovered that 58 percent of consumers are very likely or somewhat likely to share their negative perceptions with their network, highlighting how easily a bad interaction can be amplified.
90% of businesses now reengineering operations to ensure better customer experiences
However, it’s not all doom and gloom. Over half (52 percent) of consumers are inclined to leave a positive review, underscoring just how much can be gained by focusing on delivering an exceptional customer experience.
To ensure they’re delivering the optimal customer experiences that breed this kind of advocacy, businesses need to rearchitect themselves to remove pain points and streamline operations, rather than trying to talk their way out of issues they walked themselves into. Investing in the right enterprise technology, that enables them to not only address current problems, but adapt to emerging conditions will be key to consistently delivering positive outcomes for customers and a powerful competitive differentiator for organizations.
“When it comes to delivering a positive customer experience, businesses have a limited opportunity to get it right. And if they neglect to assure every single inflection point, they are gambling with their outcomes,” IFS Chief Customer Officer Michael Ouissi said. “There are many points where you can either delight or disappoint a customer across the value chain and it is clear from these findings that consumers are willing to voice their opinions either way. As more and more businesses look to service provision as a key competitive differentiator, running the right enterprise software—engineered for the moment of service and which is able to orchestrate the multitude of people, assets and customers—will separate the winners from the losers.”
With 90 percent of businesses stating they have reengineered or are reengineering their business to ensure customer touchpoints and stages come together for better moments of service, it is vital that companies ensure processes are optimized across each of these inflection points to mitigate issues and fuel growth.
IFS believes a composable enterprise approach, which harnesses a combination of packaged functions and technologies to derive data-driven insight and deliver positive outcomes, will be key to delighting customers and creating competitive advantage, but businesses need to move quickly to seize this opportunity.
Download a copy of the report Fixing the fundamentals: Understanding new business models and opportunities in the wake of Covid-19.
Further Reading:
- Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
- Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
- Find out more about IFS @ www.ifs.com/
- Download a copy of the IFS Study @ www.ifs.com/sitecore/media-library/assets/fixing-the-fundamentals/
- Follow IFS on Twitter @ twitter.com/ifs
Jun 29, 2021 • News • Workwave • Digital Transformation • softrware and apps • GLOBAL • Real Green Systems
WorkWave®, a leading provider of industry-changing software solutions that enable field service companies to reach their full potential, today announced that it has signed an agreement to acquireReal Green Systems, a prominent provider of field...
WorkWave®, a leading provider of industry-changing software solutions that enable field service companies to reach their full potential, today announced that it has signed an agreement to acquire Real Green Systems, a prominent provider of field service solutions in the green service industries.
This unique combination brings together two proven software solutions in the field service industry and furthers WorkWave’s position as a premier provider of leading solutions, delivering brands that have been proven over decades to drive the success of their customers.
“This acquisition is something rarely seen. It is two successful, fast-growing, market-leading companies coming together to create something truly special,” said David F. Giannetto, CEO of WorkWave. “It marks the beginning of a new chapter where WorkWave will help our customers focus on the future, helping them to go beyond service to create effective, fast-growing, highly profitable service organizations that also deliver the best service experience possible. Real Green believes in this same mission, and together we will allow every solution in this expanded WorkWave product portfolio to deliver greater value. We have tremendous respect for the Real Green team, and the goal of this acquisition is to not just allow them to continue to lead the green industries forward, but to help them make an even greater impact.”
THIS ACQUISITION BRINGS TOGETHER TWO OF THE MOST RESPECTED SOLUTIONS IN THE FIELD SERVICE INDUSTRY
Real Green and WorkWave share a common background as two companies created by industry professionals nearly 40 years ago, both becoming well respected in their respective industries, and continuing that success across the following decades. The merger of these two companies will allow WorkWave to combine the best parts of each organization, allowing Real Green to advance more quickly and WorkWave to embrace their depth of expertise in the green industries that Real Green is known for. While the Real Green solution and PestPac will remain separate, additional product offerings that support customer growth, including the equally respected Coalmarch and WorkWave Agency groups, will combine forces to maximize their development and value.
“This acquisition is one of the most impactful combinations in field service, merging two forward-looking companies who helped shape their respective industries,'' said Darren Roos, Chairperson of WorkWave. “The board of directors, along with EQT Partners, are honored to support WorkWave’s commitment to empowering its customers through strategic acquisitions that make a positive impact on its customers and the field service industry overall.” As a sign of their support, Serent Capital, the former investor in Real Green, and Real Green Founder Joe Kucik will roll significant equity and join TA Associates as minority owners of WorkWave.
“After years of watching WorkWave develop alongside Real Green, we’ve long known that the combination of these two companies would create something special,” said Bill Nunan, President and CEO of Real Green, who will stay on as the head of Real Green operations within WorkWave. “We are thrilled to be joining such a progressive solutions provider that shares our commitment to helping customers thrive, and who so strongly supports the continued growth and development of Real Green solutions, and our passionate customer base.”
This acquisition follows WorkWave’s recent acquisition of Slingshot, a leading provider of customer call center software, and further demonstrates WorkWave’s commitment to building an organization that is the best partner in the industry, enabling its customers to think and go beyond service, to create the best service organizations possible.
Further Reading:
- Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
- Read more about WorkWave on Field Service News @ www.fieldservicenews.com/WorkWave
- Find out more about WorkWave @ www.workwave.com
- Learn more about Real Green Systems @ www.realgreen.com
- Follow WorkWave on Twitter @ twitter.com/WorkWave
Jun 24, 2021 • News • Artificial intelligence • Digital Transformation • technology • Aquant • GLOBAL
Aquant, the leading service intelligence platform announced Service Insights. The tool, capable of analyzing your data out of the box, provides a detailed window into factors that impact customer experiences. This empowers service leaders with the...
Aquant, the leading service intelligence platform announced Service Insights. The tool, capable of analyzing your data out of the box, provides a detailed window into factors that impact customer experiences. This empowers service leaders with the knowledge to prevent customer disasters ahead of a negative Net Promoter Score (NPS) or service escalation.
“Historically, service decisions have been made using only a fraction of available service data. That causes blind spots into customer satisfaction and creates an environment of reactive problem-solving. If you wait until you receive a negative NPS, it’s too late,” says Shahar Chen, CEO and co-founder, Aquant. “The new normal in service requires providers to approach customers with solutions before a customer comes to a provider with a complaint.”That kind of data-driven decision-making fosters better customer experiences and improves service outcomes. But before you can make informed decisions, you need a clear picture of what story the data is telling — and that’s been a roadblock for many organizations.
Service Insights Curates and Analyzes Disparate Data and Provides Actionable Recommendations
“We’ve worked with leading service organizations to build a powerful analytics tool that is designed for business users,” adds Assaf Melochna, president and co-founder, Aquant. “Service Insights provides targeted information in the language that service leaders understand, and it does so in days, without the need for a multi-department deployment.”
Service Insights is Not a BI Tool. It’s an Entire Data Science Team at Your Fingertips
Aquant delivers a 360-degree view of the service lifecycle. Unlike traditional BI tools, Service Insights is able to access more of your data, and then analyze and interpret it — without the need for a team of data scientists. Users will see immediate value following a simple deployment process. Isolated data points become descriptive and predictive intelligence presented through auto-generated reports and easy-to-access graphical dashboards. Here’s what’s possible with Service Insights:
- Mine insights out of your (un)structured service data - Gain a deeper dimension of insight into your unstructured data with Aquant’s Service Intelligence Engine by identifying key symptom and solution data directly from customer comments, call center agent notes, field technician debriefs, and machine log files. Formerly hidden data becomes a powerful decision-making tool.
- Generate service performance and risk models - Service Insights automatically generates trends, recommendations, industry benchmarks, and predictions based on more than 5 million service tickets from manufacturers and service providers. Leverage Aquant’s predictive modeling to create customer risk scorecards, and manage workforce performance, and training strategies.
- Get the right insight at the right time - Need a quick summary of your business, a snapshot of customers, or an overview of the workforce before your next meeting? Aquant auto-generates easy-to-read overviews for each customer or service provider, identifying key statistics and important trends. Focus on the most critical service issues without having to dig into dashboards.
To learn more or schedule a demo, visit www.aquant.io
Further Reading:
- Read more about Digital Transformation @ www.fieldservicenews.com/aquant
- Read more about Aquant on Field Service News @ www.fieldservicenews.com/aquant
- Find out more about Aquant's AI Tool Service Insights @ www.aquant.io/platform/service-insights/
- Learn more about Aquant @ www.aquant.io
- Follow Aquant on Twitter @ twitter.com/Aquant_io
Jun 23, 2021 • News • Digital Transformation • field service management • IFS • GLOBAL
IFS, the global cloud enterprise applications company, announces that the Aston Martin Cognizant Formula One™ Team will use its enterprise resource planning (ERP) software to track costs, guide investment decisions and development choices, and...
IFS, the global cloud enterprise applications company, announces that the Aston Martin Cognizant Formula One™ Team will use its enterprise resource planning (ERP) software to track costs, guide investment decisions and development choices, and evidence spend during competition accounting periods.
The IFS solution will play an important role in ensuring spend compliance with the stringent new Formula One cost cap audit requirements introduced this season by the Federation Internationale d’Automobilie’s (FIA).
The 2021 season sees a radical change in the way Formula One racing teams can spend funds to compete. New cost cap rules by the sport’s governing body, the FIA, limit how much a Formula One team can spend on enhancing the race car’s performance during a calendar year.
This year sees F1 teams starting with a cap of $145 million, gradually reducing to $135 million by 2023. The implications are far-reaching, especially for the finance operation of each team.
IFS SOFTWARE ENABLES ASTON MARTIN COGNIZANT FORMULA ONE TEAM TO OPTIMIZE OPERATIONS AND REPORT FINANCIAL COSTS TO FIA
Robert Yeowart, Aston Martin F1 Chief Financial Officer, is responsible for ensuring the business operates as efficiently and effectively as possible, and, with the cost cap, getting even more value from every pound spent. “The FIA can come and audit us at any time. They can scrutinize our accounts—examining everything we’ve spent, when and where. The new reporting requirements are demanding. Alongside the technical and competition compliance we’re used to, the body is looking for anomalies and trends to expose any team operating beyond the defined cost cap parameters. We have to be ready to supply the evidence and audit trails to support any inspection.”
Aston Martin F1 has implemented IFS to support its operations, financial reporting and production areas.
“IFS has given us the perfect platform to build on,” says Yeowart. “It enables us to really understand where we're spending our money by detailed cost analysis, which we couldn't do before. We can track our inventory and answer questions like ‘what parts do we have available to us?’ What state are they in? How many parts are in the building and how much does each cost?”
The IFS solution enables Aston Martin F1 to run “pound-for-lap-time” ratio analysis in its development projects. This means the organization can get, for the first time, an objective view of how much one upgrade might cost versus another, and the resulting performance improvement in lap time for each.
The FIA also requires teams to track inventory to ensure the cost of parts is not allocated to the wrong accounting year, including evidencing when parts are first used with a bar code tracking system. All the data needed will be fed through IFS. “We know exactly where our inventory is, when we first used a part, how many kilometers it's done, how much life it has left and when we need to be considering a spare or replacement,” says Yeowart. “Towards the end of the season all this is absolutely critical as we may have had accident damage and be up against the cap.”
As F1 racing evolves, Yeowart is clear about the importance of the system. “IFS can help my team meet the cost cap regulations through improving our planning, our data and our analytics. It helps us understand where we've spent our money so far, what we've left to spend against the cap and how we plan to spend it. It lets us analyze where we're adding performance on the car, and if that’s the best use of our capped resources. And it ensures that, when we report to the FIA, we are 100 percent sure that the information we provide is accurate and exactly what is required.”
At the end of 2022, Aston Martin F1 will also become the first team in 20 years to occupy a new, purpose-built factory. “Against a cost-cap environment, we have the perfect opportunity alongside our IFS system to really focus on efficiency, optimization and, ultimately our purpose: helping over 1,000 people to create, within regulated constraints and spends, the highest possible performance for our F1 competition cars,” concludes Yeowart.
As a strategic technology partner, IFS will empower Aston Martin Cognizant Formula One Team with its state-of-the-art tools to ensure operational excellence. The platform gives the team flexibility in this exciting new era with fresh investment from the shareholders and the construction of a new factory.
Oliver Pilgerstorfer, Chief Marketing Officer, IFS, added, “Effectively capturing and handling data is crucial for high-performing businesses like Aston Martin F1. The sport of Formula One is all about precision, which is relevant across the whole value chain, where hundreds if not thousands of separate processes need to be perfectly orchestrated to ensure success on race day—that’s the moment of service, when everything comes together. IFS is proud to empower many of the world’s most respected brands to operate at peak performance, often in highly regulated industries where compliance, traceability and quality assurance truly matter.”
Learn more about how IFS supports the Aston Martin Cognizant F1 Team at www.ifs.com/f1.
Further Reading:
- Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
- Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
- Find out more about IFS @ www.ifs.com/
- Learn more about Aston Martin Cognizant Formula One @ www.astonmartin.com/en/our-world/amf1
- Follow IFS on Twitter @ twitter.com/ifs
Jun 11, 2021 • News • Digital Transformation • field service management • IFS • GLOBAL • Axios Systems
IFS, the global cloud enterprise applications company, announces that it has concluded the acquisition of Axios Systems.
IFS, the global cloud enterprise applications company, announces that it has concluded the acquisition of Axios Systems.
The transaction, which was initially announced in March 2021, combines two pioneers of the service management space: IFS, with its leadership in Field Service Management and Axios Systems, with its strength in IT Service Management (ITSM) and IT Operations Management (ITOM). The combined IFS Enterprise Service Management proposition is unique in how it enables companies to orchestrate their value chain and optimize their workflows so they can not only deliver amazing moments of service to their customers, but also so they can maximize revenue creation opportunities and increase profitability.
IFS STRENGHTENS LEADERSHIP in service management with THE ADDITION OF AXIOS SYSTEMS' POWERFUL ITMS AND ITOM CAPABILITIES
Since the acquisition was announced, IFS is proud to have attracted many of the best leaders from the sector to bolster the already growing team at Axios Systems. Now under the framework of a dedicated Business Unit within IFS, the team are focused on delivering new product innovation, increased investment in customer experience, and a more focused, industry-led, go-to-market.
Martin Schirmer, President of the Enterprise Service Management Business Unit, commented, “Over the past two months I have met with many employees, customers and partners who I would like to thank for their openness and enthusiasm for what lies ahead. It’s clear to me that we have acquired a company with many assets and strengths, in a market that is evolving and in need for further disruption. With the investment we are committing as well as our customer-centric approach, I am confident that our current customer base will benefit, which will in turn help attract new customers, and we will further extend IFS’s dominance in the overall service management space.”
To learn more about IFS’s service management solutions, please visit: ifs.com/service. For more information on the Axios Systems best-of-breed proposition Assyst, please visit: ifs.com/assyst.
Further Reading:
- Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
- Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
- Find out more about IFS @ www.ifs.com/
- Learn more about Axios Systems @ www.axiossystems.com/
- Follow IFS on Twitter @ twitter.com/ifs
Jun 09, 2021 • Features • service excellence • technology • Aquant • Covid-19 • Leadership and Strategy • GLOBAL
In an age of Uberization, customer service expectations are higher than ever in our post- pandemic world. The answer to meeting those expectations lies within the rich data sets we have on each customer. However, the flow of information often...
In an age of Uberization, customer service expectations are higher than ever in our post- pandemic world. The answer to meeting those expectations lies within the rich data sets we have on each customer. However, the flow of information often reaches us too late for intervention. Is Artificial Intelligence the solution that will help us spot service trends before the customer relationship goes sour? Kris Oldland talks to Aquant’s Sidney Lara to find out more about this critical area of modern service excellence...
At the end of 2020, Field Service News Research undertook a major research study that globally spoke to over 240 field service organisations.
The study’s findings reinforced what many of us already knew; our industry was going through radical change. The pandemic was the catalyst, but we had already begun a journey of transformation long ago. Yet, while the technology and even the delivery mechanisms for service may be rapidly evolving, the fundamentals of service delivery remain constant.
In that study, we saw how 70% of field service organizations stated that service excellence remained a key differentiator in winning and retaining business. However, the definition of what service excellence looks like in a post-pandemic world (a world that has embraced digital transformation with both hands in a bid to better meet customer demands) has undoubtedly changed.
In today’s Uberized world, the expectation of effortlessness in service interactions has reached entirely new peaks. Our customers expect us to have joined the dots before we speak to them. They have become accustomed to the companies they choose to work with, having a detailed and intimate knowledge of their interactions. Yet, for many field service organizations, they are driving while looking in the rear-view mirror. That is to say that today too many of us (because of lack of tools, not lack of will) fail to leverage the deep customer data we have until there is a problem.
The systems in place are often adequate, but is it adequate enough when the bar has been raised so high by bleeding-edge data-driven service providers? Is the information your service department receives often simply too little and too late? When that low NPS score comes back, the damage has been done, and it can take twice as much effort to rebuild a broken customer relationship than to maintain a healthy one.
The key question then for field service organizations operating in these dynamic and fast-developing times is how can they get ahead of customer issues before they happen? The answer is by understanding all of your service data.
It is a task easier said than done, but one that can be achieved by leveraging Artificial Intelligence tools that are designed to surface the critical data that brings such insight and knowledge to the fore.
To find out more about this critical area within our sector, Kris Oldland, Editor-in-Chief, Field Service News, caught up with Sidney Lara, Service Principal, Aquant.
Kris: Customer relationships have always been important, why the urgent need now to reevaluate how well you know your customers?
Sidney: We are in the age where data is readily available almost anywhere and anytime. Customers can make smarter decisions when it comes to choosing a manufacturer or service company. So, while they may be a customer today, what are you doing today to ensure you have their loyalty tomorrow?
Additionally, as technology evolves both for manufacturers and service providers, you need to think about clearly defining your differentiating product or services. Take a step back and ask yourself if you were the customer, why would you choose a particular product or service? Do your goals align with your customer goals and how do you ensure you are meeting those expectations? If you can’t measure your customer loyalty, you may find yourself at risk of losing them. What if one day, your largest customer decided to go with another product or service? How would this impact your business?
Kris: Service leaders have quite a few tools to measure KPIs and/or customer stats, what are they missing?
Sidney: I would agree. At the same time be very careful when talking about using tools and KPIs. I have seen and talked to people throughout my career that embrace technology and KPIs for their business or operations. What can be missing is the criticalness of the measure. Meaning, why are you measuring a particular KPI? Is it the flavor of the month or year? Is it because everyone in the industry measures it? Whatever the case may be, tools can shed light on weaknesses within your organization. However, will those measures improve customer value or benefit? If it doesn’t, maybe you need to rethink and prioritize accordingly. We need to be careful not to confuse data points with insights, just because we have the data, doesn’t always mean we know how to use it in a way that best advances our goals.
Kris: It sounds like you are discussing BI tools. Why does standard BI fail service organizations?
Sidney: Thank you for asking, as this is a critical point - we need to differentiate data points and BI tools from meaningful analysis of that data. Organizations can fall into the trap of adopting BI tools and create wonderful insights to see their business strengths and weaknesses to the level they have never seen or experienced before. While the detailed visibility can be great, this can also lead to a trap of creating too many KPI’s or lead to the potential of “analysis paralysis”.
Those that know me well have heard me say “let’s not boil the ocean.” If we try to solve all issues, (with this wonderful BI Data) we will never effectively solve any of them or at least not in a timely manner.
Next you need to ask, does what I’m highlighting with my BI dashboard actually align to the company’s strategic goals? If it does, then it’s much easier for you to gain organizational buy-in. The next question is, how can we use this data to ensure visibility and timely support to solve those issues? Strategic measures need to become front page news within an organization whether results are good or bad.
Total transparency on key initiatives drives accountability and ideally creates a winning environment when everyone can see improvements month over month. Finally, and most critical, is taking timely action on those measures if you don’t meet your goals.
Teams should strive to review results as often as needed to monitor and celebrate successes. But equally important, swift action to apply timely countermeasures on missed targets is the secret sauce. Done in a very cadenced manner, you will drive effective improvements to your organization. Likewise, if countermeasures are not executed in a cadenced manner consistently, I’d be willing to bet lack of improvement will follow.
But back to the question, “Why do standard BI tools fail service?” Ultimately, BI tools provide a vast amount of information, but little direction on what information is most critical to my business goals. Additionally, they don’t answer the question, “How do I take actionable steps to address service issues?
Kris: How can service leaders make informed decisions today (based on data not hunches)?
Sidney: Service leaders must discipline themselves to step away from the inevitable daily service fires to evaluate if their services are providing customers with value.
Ask the following questions:
What are the ways that you are measuring customer value? How often are you taking the customer’s pulse of satisfaction? Are you leveraging technology to gain immediate access to this critical data?
While we often hear that service is the most important department in an organization in terms of driving customer satisfaction, service leaders need to have the data readily available to effectively navigate and analyze their services.
Even by monitoring certain KPI that on the surface appear good can still lead to customer dissatisfaction. Service leaders must have the ability to look deeply into metrics for true root cause understanding. This is where today’s AI can aid in swift decision making. Service leaders must embrace change and leverage technology to gain the best insights as quickly as possible to effectively steer the organization in the right direction. Those that do will be able to maximize customer satisfaction while improving operations that lead to growth.
Kris: What do those different outcomes look like?
Sidney: Great question - It is essential to understand all the relative data to your initiative or goal. By reacting to a metric, simply because it dipped or missed the mark can often lead to all kinds of assumptions and ineffective countermeasures. You’ll only get a true understanding of the root cause if you look at all the data (the big picture) that led to a final outcome. This leads to effective countermeasures and decision making. This is where you should leverage technology to customize the view you need for your specific needs.
Kris: What tools will ultimately help them turn the corner in their customer relationships?
Sidney: Turning the corner with customers can be easily achieved when you are the driver and/or initiator in communicating asset performance and service performance. Don’t wait for the customer to express dissatisfaction.
When you have the ability and tools to illustrate your service performance, you should want to communicate the results of your services. If your services are doing great, then this provides the platform to remind your customer of why you are a choice provider. Can you leverage these opportunities for upselling more services?
If your services are not going well, you should still take the opportunity to tell your customer what actions you are taking to improve the misses. Effective communication and transparency of your services with your customer will help nurture a relationship where customers will see you as a partner in their business and see you as a vested partner making them successful.
Kris: What’s the best way to get started today?
Sidney: I recommend getting started with AI tools or AI vendors that can understand both your business and your data on day one. Look at technology that can quickly analyze your data AND provide actionable recommendations, instead of a tool that simply visualizes data.
There are many BI technologies that have the ability to compress and summarize data so it can be difficult to decide which one is best for you.
At Aquant not only do we have the ability to compress and summarize your data, but we also differentiate ourselves by applying Natural Language Generation (NLG) and Natural Learning Processing (NLP) to enable dynamic real time feedback. We uniquely aggregate your data into a simple yet meaningful format.
As a result, Service leaders can take swift calls to action like never before. Our technology can be implemented in a matter of a few weeks enabling service leaders a jump start on your abilities to drive change.
Further Reading:
- Read more about Aquant on Field Service News @ www.fieldservicenews.com/aquant
- Read more about Service Leadership @ www.fieldservicenews.com/service-leadership
- Learn more about Aquant @ www.aquant.io
- Follow Aquant on Twitter @ twitter.com/Aquant_io
- Follow Aquant on LinkedIn @ www.linkedin.com/aquant.io
Jun 02, 2021 • News • industry leaders • IFS • Leadership and Strategy • GLOBAL
Geo-data specialist, Fugro, is fueling a transformation journey to unify its people, processes, and business data with a single enterprise resource planning (ERP) software solution from IFS.
Geo-data specialist, Fugro, is fueling a transformation journey to unify its people, processes, and business data with a single enterprise resource planning (ERP) software solution from IFS.
With a 9,000-strong workforce in 61 countries, Fugro collects and analyzes information about the earth and the structures built upon it. The company helps its customers determine the optimal site for the safe, cost-effective, and sustainable design and construction of buildings and infrastructure by acquiring, analyzing and advising on geodata for clients in industries such as offshore and land-based energy, renewables, infrastructure, and nautical engineering.
IFS Software to empower Furgro employees worldwide with cloud-based capabilities across global finance and accounting, project management and procurement
The investment in IFS is part of a company-wide initiative that is aimed at bringing staff together in one collaborative way of working, on a centralized technological framework. Without a central system and access to one version of its business information, the company was challenged in leveraging efficient and collaborative ways of working, with common processes and effective business and financial reporting. To provide a single, digital home to its business units, the company opted for a flexible solution that could support its project-based business and ensure timely and accurate reporting in one fully integrated solution. The cloud-based IFS solution will support mission-critical processes including financial management, project and business management, project accounting, and purchasing. When fully deployed, the system will be used in some 40 countries worldwide.
“Companies like us, supporting our clients in managing their complex project lifecycles, are often forced to use separate software products to manage different stages of the project, creating multiple disconnects between data, people and time,” Fugro Chief Executive Officer Mark Heine said. “The IFS solution will standardize and harmonize our project-oriented processes in one highly intuitive ERP platform. Having all of our people accessing the same data and working in the same way will be faster and more enjoyable for our teams. We look forward to working with IFS to usher in the next phase of our company’s business transformation journey.”
Frank Beerlage, Managing Director, IFS Benelux, added, “Project-based service providers such as Fugro need business technology that can scale and flex as business and circumstances dictate. We have a very successful track record in developing tools for companies in some of the world’s most demanding environments, both offshore and onshore. Fugro is a well-respected brand in the project-based service space and we are excited to be working alongside them to establish new standards of efficiency and value.”
The solution will be implemented in collaboration with management and technology consultancy, and Platinum-level IFS partner, BearingPoint.
Learn more about how IFS supports project-based businesses at www.ifs.com/corp/solutions/enterprise-resource-planning/project-erp-software/.
Further Reading:
- Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
- Find out more about IFS @ www.ifs.com
- Learn more about Fugro @ www.fugro.com
- Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
- Learn more about the IFS Enterprise Resource Planning @ www.ifs.com/enterprise-resource-planning/project-erp-software/
- Follow IFS on Twitter @ twitter.com/ifs
Jun 01, 2021 • Features • Coen Jeukens • servicemax • Leadership and Strategy • GLOBAL
Do you know what your maximum service revenue potential could be based on the product units your organization sells? Is your current service revenue less than this maximum? Do you have a process to upsell service contracts into your existing...
Do you know what your maximum service revenue potential could be based on the product units your organization sells? Is your current service revenue less than this maximum? Do you have a process to upsell service contracts into your existing installed base? Coen Jeukens VP of global customer transformation at ServiceMax explains more...
If you gave one or more puzzled looks while reading that, chances are you are suffering from upsell leakage.
In my previous article on revenue leakage, I defined two types of leakage: contract and non-contract leakage. In this article, we’ll define upsell leakage. It is very likely that upsell leakage at your business could be twice as big as the other two combined.
Understanding Upselling Leakage
As a service organization, you’d like all your customers to buy your premium service. Some customers will buy ‘gold’ service level for their installed base, others will be happy with ‘basic’ service. It all depends on the use case of your customer and their propensity to value the services you offer. As use cases tend to change over time, you may want to consider setting up an upselling program using the touchpoints from your service delivery.
“If you don’t ask, you don’t give them the opportunity to say yes.”
Not having such a program deprives you of revenue potential; being the delta between your current service revenue and ’gold’ service level.
Defining the Upsell Service Revenue Potential
To quantify upsell leakage we can use a mechanism known to Sales as TAM (Total Addressable Market). Suppose you sold 1,000 units at $10,000 each. Suppose a ‘gold’ service contract has an annual selling price of 12% of the unit selling price. This would put your service-TAM at $1,200,000 per annum.
Imagine your service department has 600 of those 1,000 units on their radar screen. The rest is sold via an indirect sales channel and/ or lost-out-of-sight. This gives an installed base visibility of 60%. Let’s assume those 600 units generate a service revenue of $400,000, split across:
- 10% of units are in (OEM) warranty and don’t generate revenue (yet)
- 50% of units have a bronze, silver, or gold contract generating $240,000
- 40% of units don’t have a contract and generate $160,000 in Time & Material (T&M)
With the above figures, you currently reap 33% of your service-TAM and you have an upsell potential of $800,000. Monitoring this upsell leakage metric should give you the incentive to put a revenue generation program in place.
Identifying the Metrics that Impact Upsell Leakage
In the numeric example, we’ve touched on three metrics that impact upsell leakage.
- Installed base visibility: It all begins with installed base visibility. Units not on your radar screen will not contribute to your service revenue! This is easier to manage for units sold via your organization’s direct sales channel, though it does require an effort to manage the life cycle from as-sold to as-maintained. For units sold via the indirect sales channel, you’ll have to exert extra effort to get access point-of-sale data, maybe even ‘buying’ the data.
- Attach rates: Both warranty and contracts are attached to the unit, thus driving attach rates. Attach rates are ‘boolean,’ they say something about having an attached contract, not about the amount of revenue you get through that contract. Attach rates start at the installation/ commissioning date of a unit. Either Sales makes the attached-sale at point-of-sale of the unit or the Service department drives the attaching post-point-of-sale. The driving metric for Service is to maintain a continuum of attachment throughout the life cycle of the unit.
- Service revenue contribution: Within the subset of attached contracts, you’d like to have as much revenue contribution as possible, ‘gold’ service being the holy grail. Per service contract you could have any of the following revenue contributions:
- OEM Warranty: 0% of Service-TAM
- Enhanced Warranty: 33% of Service-TAM (only the on-top-of OEM warranty piece)
- Extended Warranty or Basic Service: 67% of Service-TAM
- Gold: 100% of Service-TAM
Remedying Upsell Leakage
The overarching paradigm to growing service revenue is twofold: increasing your installed base visibility and making sure you have attached offerings to those units.
Getting visibility on units sold via the indirect channel is slightly more complicated, but once you quantify the associated service-TAM with those units, you may have the ‘funding’ to ‘buy’ the data. This may even lead to revenue sharing models with your channel partners. The last piece of the puzzle is using the visibility of the upsell leakage gap whenever you have a touchpoint with your customer.
Note that the original (service) contract has been drafted many months ago by people who are further away from the business, who could not 100% envision the service reality of today. You thus may end up in an entitlement conversation where the customer has an urgent requirement whereas the contract ‘only’ covers for the ‘basics.’ The delta is an upsell opportunity. Either resulting in an upgrade of the service contract or maybe only upgrading an incidental work order. In case the latter happens more often, you have the data points to convince the customer for the former.
Now, understanding that upsell leakage is potentially twice as big as contract and non-contract leakage together, you may have found your compelling reason to start another revenue growth project.
Learn about ServiceMax Entitlements here.
Further Reading:
- Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
- Read news and articles about ServiceMax @ www.fieldservicenews.com/servicemax
- Learn more about ServiceMax Entitlements @ www.servicemax.com/asset-360/warranty-contract-management
- Read more articles by Coen Jeukens on Field Service News @ www.fieldservicenews.com/coen-jeukens
- Find out more about ServiceMax @ www.servicemax.com/uk
- Follow ServiceMax on Twitter @ twitter.com/ServiceMax
May 13, 2021 • News • field service management • IFS • Sustainability • Leadership and Strategy • GLOBAL
IFS, the global enterprise applications company, announces that Jacqueline de Rojas has joined its Board as a non-executive director. Following three years of successive double-digit growth, the appointment of de Rojas adds strength and depth to the...
IFS, the global enterprise applications company, announces that Jacqueline de Rojas has joined its Board as a non-executive director. Following three years of successive double-digit growth, the appointment of de Rojas adds strength and depth to the IFS Board, providing direction, governance, and support to management during this phase of expansion. The appointment is effective immediately and brings the current number of non-executive directors at IFS to five.
De Rojas is an experienced technology executive and industry thought leader. Through her various roles and appointments, she has helped the industry at large address the digital skills gap, deliver on diversity and inclusion, and ensure technology is accessible throughout all levels of society. Her work and commitment have been recognized by industry bodies and governments. She has also been awarded Commander of the British Empire (CBE) for services benefiting the technology sector related to international trade.
TENURED TECHNOLOGY EXECUTIVE AND PRESIDENT OF TECHUK TO SUPPORT IFS THROUGH THE NEXT PHASE OF GROWTH
Commenting on her appointment, de Rojas said, “As the global economy reboots following the Covid-19 pandemic, technology will play a crucial role in helping businesses to build back better and make up for lost ground. Throughout this crisis, we’ve seen the power of IT in action to deliver life-saving public services, swift vaccination rollouts and keep businesses operational.”
“IFS stands apart from its competitors by marrying the Company’s deep industry expertise with its ability to rapidly create business impact,” she continued. “The leadership team has a clear vision of how to empower its customers to deliver meaningful moments of service and value. I’m thrilled to be joining the diverse and ambitious team at IFS which is set to play a major role in the reshaping of industry business models as we enter a post-Covid economy.”
Darren Roos, CEO of IFS, said, “Jacqueline’s track record speaks for itself and she is a real ambassador for the things we care about as a business. Her experience and passion will be meaningful as IFS continues its transformation and growth trajectory. The expertise she brings will further enhance the board’s ability to support and oversee the delivery of our strategy.”
Jacqueline de Rojas CBE
De Rojas holds Board-level assignments for several leading global businesses: as Chair of Metapraxis; and as a Board director at Rightmove plc, FDM Group plc, Costain Group plc. She is also President of techUK, an advocate for diversity and inclusion, and a mentor at Merryck Group.
Prior to her current assignments, de Rojas had a 30-year career in enterprise software having held senior leadership positions in global tech businesses such as Citrix, CA Technologies, McAfee, Novell, and Business Objects.
For more information about the members of the IFS Board, please visit: https://www.ifs.com/corp/company/governance/
Further Reading:
- Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
- Find out more about IFS @ www.ifs.com/
- Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
- Learn more about the IFS Board @ www.ifs.com/corp/company/governance/
- Follow IFS on Twitter @ twitter.com/ifs
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