Recently in the Field Service News Digital Symposium, Kris Oldland, Editor-in-Chief, Field Service News, was joined by Mickey Rooney, Program Director JLL in a wide-ranging discussion that touches on a number of key points as the built environment...
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Mar 24, 2021 • Features • Cognito iQ • facilities management • Service Innovation and Design • Mickey Rooney • JLL • Integral • Built Environment
Recently in the Field Service News Digital Symposium, Kris Oldland, Editor-in-Chief, Field Service News, was joined by Mickey Rooney, Program Director JLL in a wide-ranging discussion that touches on a number of key points as the built environment sector faces a major pivot point in its evolution and reflect on the changes this will bring to field service operations on a massive scale.
In this excerpt from the full interview, the two discuss the importance of data in the new normal of field service as we begin to fully adopt digital transformation in a period of significant disruption for our sector on a global basis.
Want to know more? FSN Premium Subscribers and FSN Elite Members can watch this full interview and hours more of in-depth long-form interviews with a series of field service leaders in the Field Service News Digital Symposium. Watch the interview with Mickey Rooney on the button below.
If you are currently on our free forever FSN Standard subscription tier or have yet to join 30,000 of our field service peers as a FSN subscriber you can find out more again on the button below.
Further Reading:
- Read more about the Digital Transformation in the field service sector @ https://www.fieldservicenews.com/blog/tag/digital-transformation
- Read more about Service Innovation and Design @ https://www.fieldservicenews.com/blog/tag/service-innovation-and-design
- Read more about Leadership and Strategy in field service @ https://www.fieldservicenews.com/blog/tag/leadership-and-strategy
- Read more about JLL/Integral @ https://integral.co.uk/
- Follow JLL/Integral on Twitter @ https://twitter.com/IntegralUKLtd
- Read more about Cognito iQ who are working closely with JLL/Integral @ https://www.cognitoiq.com/
- Connect with Mickey Rooney on LinkedIn @ https://www.linkedin.com/in/mickey-rooney-0106a161
Mar 17, 2021 • Features • Cognito iQ • facilities management • Service Innovation and Design • Mickey Rooney • JLL • Integral • Built Environment
Recently in the Field Service News Digital Symposium, Kris Oldland, Editor-in-Chief, Field Service News, was joined by Mickey Rooney, Program Director JLL in a wide-ranging discussion that touches on a number of key points as the built environment...
Recently in the Field Service News Digital Symposium, Kris Oldland, Editor-in-Chief, Field Service News, was joined by Mickey Rooney, Program Director JLL in a wide-ranging discussion that touches on a number of key points as the built environment sector faces a major pivot point in its evolution and reflect on the changes this will bring to field service operations on a massive scale.
Here, Rooney outlines why he believes that digital transformation has now reached a crucial point that will become the catalyst for significant and widespread change that field service organisations must adapt to and embrace.
Want to know more? FSN Premium Subscribers and FSN Elite Members can watch this full interview and hours more of in-depth long-form interviews with a series of field service leaders in the Field Service News Digital Symposium. Watch the interview with Mickey Rooney on the button below.
If you are currently on our free forever FSN Standard subscription tier or have yet to join 30,000 of our field service peers as a FSN subscriber you can find out more again on the button below.
Further Reading:
- Read more about the Digital Transformation in the field service sector @ https://www.fieldservicenews.com/blog/tag/digital-transformation
- Read more about Service Innovation and Design @ https://www.fieldservicenews.com/blog/tag/service-innovation-and-design
- Read more about Leadership and Strategy in field service @ https://www.fieldservicenews.com/blog/tag/leadership-and-strategy
- Read more about JLL/Integral @ https://integral.co.uk/
- Follow JLL/Integral on Twitter @ https://twitter.com/IntegralUKLtd
- Read more about Cognito iQ who are working closely with JLL/Integral @ https://www.cognitoiq.com/
- Connect with Mickey Rooney on LinkedIn @ https://www.linkedin.com/in/mickey-rooney-0106a161
Mar 12, 2021 • Features • Cognito iQ • facilities management • Service Innovation and Design • Mickey Rooney • JLL • Integral • Built Environment
Recently in the Field Service News Digital Symposium, Kris Oldland, Editor-in-Chief, Field Service News, was joined by Mickey Rooney, Program Director JLL in a wide-ranging discussion that touches on a number of key points as the built environment...
Recently in the Field Service News Digital Symposium, Kris Oldland, Editor-in-Chief, Field Service News, was joined by Mickey Rooney, Program Director JLL in a wide-ranging discussion that touches on a number of key points as the built environment sector faces a major pivot point in its evolution and reflect on the changes this will bring to field service operations on a massive scale.
In this excerpt from that interview, the two discuss exactly how the built environment and importantly how we are using it is changing and what this means for field service companies.
Want to know more? FSN Premium Subscribers and FSN Elite Members can watch this full interview and hours more of in-depth long-form interviews with a series of field service leaders in the Field Service News Digital Symposium. Watch the interview with Mickey Rooney on the button below.
If you are currently on our free forever FSN Standard subscription tier or have yet to join 30,000 of our field service peers as a FSN subscriber you can find out more again on the button below.
Further Reading:
- Read more about the Digital Transformation in the field service sector @ https://www.fieldservicenews.com/blog/tag/digital-transformation
- Read more about Service Innovation and Design @ https://www.fieldservicenews.com/blog/tag/service-innovation-and-design
- Read more about Leadership and Strategy in field service @ https://www.fieldservicenews.com/blog/tag/leadership-and-strategy
- Read more about JLL/Integral @ https://integral.co.uk/
- Follow JLL/Integral on Twitter @ https://twitter.com/IntegralUKLtd
- Read more about Cognito iQ who are working closely with JLL/Integral @ https://www.cognitoiq.com/
- Connect with Mickey Rooney on LinkedIn @ https://www.linkedin.com/in/mickey-rooney-0106a161
Mar 10, 2021 • Features • Cognito iQ • facilities management • Service Innovation and Design • Mickey Rooney • JLL • Integral • Built Environment
As we continue our series of videos looking at field service operations and technology within different industry sectors we talk to Mickey Rooney, of JLL about how the evolution of the built environment, how this will impact what service looks like...
As we continue our series of videos looking at field service operations and technology within different industry sectors we talk to Mickey Rooney, of JLL about how the evolution of the built environment, how this will impact what service looks like for service providers operating in this area and why CognitoiQ has been a crucial element in JLL's ability to sit at the forefront of innovation and ingenuity in their sector.
Want to know more? FSN Premium Subscribers and FSN Elite Members can watch the full interview with Mickey Rooney and hours more of in-depth long-form interviews with a series of field service leaders in the Field Service News Digital Symposium. Watch the interview with Mickey Rooney on the button below.
If you are currently on our free forever FSN Standard subscription tier or have yet to join 30,000 of our field service peers as a FSN subscriber you can find out more again on the button below.
Further Reading:
- Read more about the Digital Transformation @ www.fieldservicenews.com/digital-transformation
- Read more about Service Innovation and Design @ www.fieldservicenews.com/service-innovation-and-design
- Read more about Leadership and Strategy in field service @ www.fieldservicenews.com/leadership-and-strategy
- Read more about JLL/Integral @ integral.co.uk/
- Follow JLL/Integral on Twitter @ twitter.com/IntegralUKLtd
- Read more about Cognito iQ who are working closely with JLL/Integral @ https://www.cognitoiq.com/
- Connect with Mickey Rooney on LinkedIn @ www.linkedin.com/in/mickey-rooney
Jan 18, 2021 • News • Carbon Emissions • Sustainability • Service Innovation and Design • EMEA • Telcos
Omdia’s first research into service providers’ ESG initiatives finds that green energy was accountable for the highest number of individual measures over the research period, equivalent to 25.3% of the total, followed by digital inclusion (16.7%)...
Omdia’s first research into service providers’ ESG initiatives finds that green energy was accountable for the highest number of individual measures over the research period, equivalent to 25.3% of the total, followed by digital inclusion (16.7%) and social welfare (16.7%).
Omdia’s “ESG Service Provider Index”, which provides a view on telecoms operating groups and sector ESG initiatives announced from 2019 to November 2020, covers 192 announcements from the largest 15 service providers by revenues.
THE NUMBER OF COMPANIES PLEDGING TO A DATE BY WHICH THEY WILL REDUCE THEIR CARBON EMISSIONS TO NET ZERO IS INCREASING
The research reveals that all fifteen service providers announced at least one green energy initiative, while 73.3% announced at least one measure in social welfare, and 60% announced measures to improve the recycling capabilities of their operations.
However, diversity and digital ethics are two ESG areas that saw less activity over the research period, with 53.3% of operators announcing no diversity measures, and 73.3% making no announcements around digital ethics.
Governance-focused environmental ESG initiatives such as green bonds enable companies to fund plans to reduce their carbon footprint and source energy from renewable sources. While Vodafone, Orange, Verizon and Telefonica each launched green bonds over the research period, Omdia expects the relatively low levels of industry-wide activity in this area will grow over the coming years as telcos look finance their network modernization plans and other ESG initiatives.
Among the fifteen companies covered in the tracker, Vodafone, BT, Orange, Deutsche Telekom, Telefonica, Verizon, Comcast, and KDDI pledged a date by which they will reduce their carbon emissions to net zero, a major milestone an increasing number of companies are planning for.
Paul Lambert, Principal Analyst at Omdia, commented: “In formulating ESG strategies, service providers have followed a broad range of measures to improve their near-term ethical standing, and, over the mid and long term, reduce their impact on both the environment and their costs by using sustainable energy.
“Service providers covered in the research have also been active in putting in place inclusion, social welfare, and digital initiatives in ways that enable them to apply their strengths and capabilities in new ways to bring tangible benefits to diverse communities. Looking forwards, an industry that thrives from connecting people can be expected to accelerate its efforts to forge better connections between us, our society and the environment.”
Further Reading:
- Read more about Service Innovation and Design @ https://www.fieldservicenews.com/service-innovation-and-design
- Read the ESG Service Provider Index @ omdia.tech.informa.com/ESG-Service-Provider-Index
- Read more about Sustainability on Field Service News @ www.fieldservicenews.com/sustainability
- Find out more more about Omdia @ omdia.tech.informa.com
- Follow Omdia on Twitter @ twitter.com/Omdiahq
Jan 07, 2021 • News • Sustainability • Telecommunications • Service Innovation and Design • GLOBAL • RECONOMY
Reconomy has revealed which of the world’s largest businesses are bidding to be named as the most sustainable company. The company has produced an algorithm which measures the strength of a business’ ethical messaging on social media and its...
Reconomy has revealed which of the world’s largest businesses are bidding to be named as the most sustainable company. The company has produced an algorithm which measures the strength of a business’ ethical messaging on social media and its individual business strategy.
The waste management service has compared 157 of the world’s biggest organisations across 13 industries. Using Corporate Knights’ leaderboard and YouGov’s ranking of the most publicly perceived companies, each firm was analysed to reveal how many mentions of ‘sustainable’ related key terms were included in their business strategy and on social media. Key terms included ‘sustainability’, ‘renewables’, and ‘green energy’.
The data unveiled interesting statistics about the telecommunications sector. Vodaphone mentions sustainability the most throughout its social media and business strategy. Sustainable keywords were mentioned 238 times across Vodaphone’s public and professional platforms. Overall, it ranked fourth out of the 157 organisations analysed. They emphasise their commitment to reducing their carbon emissions by 50 per cent by 2020. BT and Virgin Media followed Vodaphone in this category, with 125 and 54 mentions of sustainability respectively.
RECONOMY REVEALS THE BUSINESS WORLD'S BIGGEST SUSTAINABLE GIANTS AND TELECOMMUNICATIONS SECTOR LEADERS
Meanwhile, PlusNet failed to mention any sustainable key terms across its social media and business strategy. The internet service provider ranked 142nd out of the 157 organisations. AOL and Talkmobile also failed to mention any sustainable key terms across their platforms.
Harvey Laud, Divisional Director at Reconomy, said: “Organisations are looking towards sustainability to produce a reformed focus for their businesses. Whilst the research is primarily an indication of which companies are leading the way in terms of ethical management; it does prove that all industries are pointing to a future where sustainability is a priority for all operations.
“This is being achieved through ethical production, smarter waste management, and understanding the long-term effects that businesses can have on the environment. Customers are demanding sustainability, and the best businesses are listening.”
Compared to other industries, the telecommunications sector has an informative approach to sustainable pledges over a persuasive one. This is because a majority of ethical practices take place on the business end, rather than persuading the customer to complete ethical tasks. For example, where Coca-Cola ranks first in the rankings overall with 676 sustainable pledges across their platforms, their message asks customers to recycle. For telecommunications, sustainable practices must take place before the point of sale.
Laud continued: “All sectors and industries have a part to play in creating a sustainable future for both their customers and the wider public. However, for the telecommunications sector, the benefits are widespread. Substituting old copper networks for newer fibre optic connections is more efficient in terms of energy consumption and reduces failures. The removed copper is also highly recyclable. Sustainable options are not limited to benefitting the planet, they can also help businesses grow.”
For more information, visit www.reconomy.com/sustainable-giants/
Further Reading:
- Learn more about Reconomy Sustainable Giants @ reconomy.com/sustainable-giants/
- Read More about Service Innovation @ www.fieldservicenews.com/service-innovation
- Learn more about Reconomy @ www.reconomy.com
- Follow Reconomy on Twitter @ twitter.com/ReconomyNews
- Follow Reconomy on LinkedIn @ www.linkedin.com/reconomy
Dec 03, 2020 • Features • Covid-19 • Service Innovation and Design
Sam Klaidman, Principal Advisor with Middlesex Consulting, reflects on the drivers behind why your customers buy the service service contracts you offer, and outlines if and how that has changed since the pandemic...
Sam Klaidman, Principal Advisor with Middlesex Consulting, reflects on the drivers behind why your customers buy the service service contracts you offer, and outlines if and how that has changed since the pandemic...
For over 20 years, I was the Vice President of Service for two companies. In one company I had global responsibility and in the other I was responsible for the Americas. To keep up to date with industry trends, I attended local, and some Global, AFSMI meetings and I read as many service-related articles as I could find.
I was always jealous of people who published articles and got their name “out there.” Then I retired and started my own consulting business. I felt like the time was right for me to share my ideas and collected information with my peers.
Thanks to an introduction from a friend, I was able to get an article published in the September 2008 issue of American Laboratory. The topic I chose was “Why Companies Sell Service Contracts and Why People Buy Them.” Since then, I have written 16 articles and whitepapers and posted approximately 220 blog posts. Most of these were about some aspect of the business of Field Service. Yet when I searched through the 220 post titles, I realized that I had never updated my original article even though our industry has gone through major changes since the original piece was published.
Buying a service contract pre-COVID
Before COVID, the people who purchased service contracts were Manager level. They had day to day responsibility for whatever their equipment was being used for. In that first article, I listed the four reasons why people purchased contracts:
- Maximize Uptime
- Predictable costs
- Peace of Mind
- No hassle
When I have an assignment to grow service revenue, I survey customers and ask them to rate these same four characteristics where one is most important. Here are the results of three of my pre-COVID engagements:
The first and last columns are part of the same survey for the same client. The last column is for a small number of customers with many instruments that provide the company with excess testing capacity. Yet the managers were interested in a service contract for all their instruments! Not because they were worried about maximizing equipment uptime, but because they were interested in minimizing their daily hassles. They were willing to spend company money to reduce their job-related stress.
Changes in customer’s wants and needs now
Today, the reasons people want service contracts are more varied than ever before. When it comes to buying hardware service contracts, we are seeing two significant changes:
- The purchasing decision is being made by a more senior individual than the department manager.
- The reasons to buy a contract are frequently based on more and different strategic factors than in the past. They are as varied as the reasons they purchased your product as well as the high-level strategic goals of the company.
Here are some of the challenges that most business executives (including your customers) are dealing with today and which will continue for the foreseeable future:
- Grow revenue and reduce costs
- Minimize CapEx
- Digitize their business
- Introduce a servitization business model
- Mitigate known and unknown business risks
- Provide a safe and secure environment for their employees
- Figure out how to retrain key employees
- Deal with an aging workforce
Your customer’s challenges will result in changes to how you create, price, and deliver your services in 2021 and beyond. Here are a few well know changes:
- Enable customer self service
- Move to a blended workforce of direct and contract field engineers
- Migrate from a transactional to an outcome driven service organization
- Innovate to embrace the notion of touchless service
- Personalized and multichannel services
Changes in the Sales environment
These three snippets from a recent report, 2021 Predictions for Sales Leaders: THE YEAR OF VALUE, highlight some of the changes that sellers must be prepared to manage. These conclusions are generic and impact both product and service selling:
- In 2020, CFOs got more involved with every purchase being made and every dollar of spend was scrutinized. Those who were able to quantify the outcomes associated with their spend were able to get their projects completed. Those that were not able to articulate value saw their projects overlooked by those who had a higher level of perceived value to the business.
- To succeed in virtual B2B sales cycles in the coming year and beyond, it’s critical that CROs (Chief Revenue Officers) work with their sales leadership to ensure that their teams are intentional in discussing and quantifying value early in buying conversations and that every opportunity is substantiated with the strongest business case possible based on true economic impact and outcomes. To thread the value conversion through the full customer journey and ensure retention and expansion remain positive, sales leaders will also need to work with the customer success leaders to ensure that the company is proactive in communicating the outcomes of their solutions in order to maintain renewals NRR (Net Recurring Revenue) remains high.
- Unlike in the beginning of 2020, sellers can no longer take clients to hockey games or dinner to build rapport. Instead, all information sharing happens digitally, via email or a web conference. You have minutes, not hours, to make an impact. According to McKinsey, “digital self-service and remote rep interactions are likely to be the dominant elements of the B2B go-to-market going forward, when selling to both SMBs and large enterprises.” And 89% of companies expect these changes to stick, anticipating they will need to sustain these virtual go-to-market models for 12+ months, per McKinsey.
Selling services now and post-COVID
The best time to sell a service contract is at the time of equipment sale. This is because your product sales teams are dealing with customers with the same issues your service sellers are experiencing. But the product people have successfully addressed their prospects challenges when presenting and closing your product sales. Therefore, the sales team can integrate your services into the overall justification (use case) and close the product and service sale at the same time if they are professionally trained and properly compensated. Also, adding services into the use case will likely differentiate your company and help close the deal.
Obviously, we all have a sizeable number of service contracts which are already in place and renew every year or so. If you are experiencing difficulties in securing renewals on a timely basis, then I suggest you spend some quality time with your sales management peer and get some help on how to dig out customer’s most pressing challenges. You can then present your solutions in a way that shows the customer how you can help them achieve their objectives while feeling that they are minimizing their personal risk.
If you find that there is a large gap between what you are offering and what you believe the customers want, then you have to put on your service marketing hat and find out their needs and the price they are willing to pay. Then you must update your offerings and create new value propositions for each customer segment and the services and contracts you want them to buy. Sometimes you can do it all by yourself and sometimes you will need a more experienced consultant to interview a representative number of customers and find out what your customers are willing to pay for. The consulting investment is generally minor compared to the contract sales you achieve.
Whatever you do, you must make sure that your contracts and other services create enough value for your customers so they will find it exceedingly difficult to move to a time and materials model or worse, move to a third party vendor.
Further Reading:
- Read more about the impact of COVID19 on the field service sector @ https://www.fieldservicenews.com/hs-search-results?term=covid
- Read more about Service Innovation and Design @ https://www.fieldservicenews.com/blog/tag/service-innovation-and-design
- Read our exclusive series of articles exploring the findings of our research study on the pandemic @ https://research.fieldservicenews.com/
- Read more exclusive FSN articles by Sam Klaidman @ https://www.fieldservicenews.com/blog/author/sam-klaidman
- Connect with Sam Klaidman on LinkedIN @ https://www.linkedin.com/in/samklaidman/
- Find out more about Sam Klaidman's work with Middlesex Consulting @ https://middlesexconsulting.com/
Oct 01, 2020 • Features • Service Innovation and Design
As the sad news of the passing of field service industry legend Bill Pollock still hits home, Field Service News is proud to continue to shine a light on his insights that so many in the industry have learnt from. Here we hear Bill's thoughts on how...
As the sad news of the passing of field service industry legend Bill Pollock still hits home, Field Service News is proud to continue to shine a light on his insights that so many in the industry have learnt from. Here we hear Bill's thoughts on how we must embrace a strategic approach to service delivery to ensure we meet our customers' expectations...
Every day, more services organisations are relying on customer service to differentiate their otherwise commodity-like offerings in order to bring customers in, keep them happy, and make them loyal. However, while it is not "rocket science", any services manager can look like an "Einstein" if he or she embraces the rudimentary aspects of customer service throughout all phases of services marketing and promotion, sales prospecting, writing the contract, and managing the customer relationship over time.
While there are many ways to go with respect to defining and establishing a strong customer service mentality within the organisation, the most direct path to determining whether your organisation is on the right track is to test yourself on a number of questions that will indicate how well positioned you are from a customer service perspective.
The basic questions that any sales, marketing or customer service professional should be asking, and a corresponding set of guidelines for addressing each of them, may include:
1. Does your organisation have a formal customer service or customer care department? Does it have a well-defined customer service mission or charter? Is it adequately staffed and empowered?
Surprising as it may seem, some services organisations have no formal customer service or customer care infrastructure. Even in cases where other departments may be managing portions of the company's customer service activities (e.g., handling complaints, responding to inquiries, etc.), there may still be no formal companywide procedures or processes for managing customer service. As a result, any customer service activities provided are probably not being performed in a consistent and cohesive manner. Further, in cases where customer service is performed essentially as a "secondary" activity to the department's otherwise self-defined "primary" activities, lack of adequate staffing, empowerment and accountability may become major inhibiting factors.
2. Is there a formal process for handling customer service activities? Are specific responsibilities defined and assigned? Is there accountable ownership?
All functions within the organisation require formal processes to ensure effectiveness. Documented processes are even more important when they involve customers and other external parties (e.g., vendors, dealers, alliance partners, etc.). But processes, in and of themselves, do not get the job done. They must be managed by designated personnel, with specifically defined roles and responsibilities, in order to be effective. The capability to track who actually has ownership of each customer service activity as it is being performed will be critical in measuring overall company performance, as well as providing an ongoing record of success (or failure) in meeting the company's customer service goals and objectives.
3. Does your company management promote and encourage customer service? Are there incentives for doing it right, or sanctions for doing it wrong?
Regardless of where your customer service personnel get their primary inspiration, they must still be fully supported by management at all levels. However, this is clearly a case where actions speak louder than words. Management must do everything possible to articulate and communicate its philosophy of customer service throughout the organisation in order to empower its customer service personnel to get the job done – and reward them for being successful at it.
4. How interactive is your organisation with the customer base? Does it communicate with them enough? Does it offer them with a means for providing their customer service input and feedback?
A one-way street for customer service is never adequate. A services organisation's customers must also be able to articulate and communicate their concerns to the organisation, and they will need to know how to do so. Accordingly, the organisation should have a formal process in place for soliciting and receiving customer service input and feedback directly from customers. The process should be well-documented and promoted, easy to access, user friendly, and sincere. Most importantly, all communications coming from the customer base must be quickly and satisfactorily answered. It is generally also a good idea to summarise some of the customer feedback and related company responses in a communicated format such as a company newsletter or Blog, or on the company Website (e.g., FAQs, Customer Service Update, etc.).
5. Are your customer service personnel properly trained? Do they have all of the necessary tools and resources to get the job done?
Just because certain individuals are "good with people" does not necessarily mean that they are fully equipped to handle all types of customer service situations. It may mean that they have the "right stuff" – but they will still need to receive the "right training." Even with the proper training, a customer service representative is often only as good as his/her ability to get the job done. This requires access to all of the necessary customer service and support tools, such as guidebooks and procedure manuals; software systems that allow them to log-in calls and track how and when corrective actions are required; and state-of-the-art mobile communications capabilities.
As you can imagine, there are dozens of additional questions that will still need to be answered before you can be certain that your organisation is addressing all of its key customer service issues. However, these five questions should be at the top of your list in order to make an initial assessment of exactly where your company stands with respect to its customer service philosophy.
Steve Mason, COO at FieldAware, a cutting-edge, cloud-based, mobile field service management platform that empowers companies to transform their field service organisation through automated processes and streamlined operations, agrees that, “It is the planning process that helps services organisations to establish the goals, objectives, targets and vectors that they must follow in order to, first, survive, and then, thrive especially in the current pandemic reality. Once they have a sound plan in place, they will require the tools to empower them to take the necessary steps forward. This is where we come in to assist our customers with both their planning process, and their ability to implement, monitor and measure their success over time”.
The planning process is critical for services organisations of all types, sizes, and industry segments, as offered by Emma Lampert, Global Head of Customer Success at localz, a global provider of real-time customer communications and service tracking solutions for field, collection and delivery teams on the day of service, who explains that, “Before you can progress your customer service plan, you will need to listen to customers’ needs. Feedback can be used to tackle their concerns head-on, as well as shaping your long-term strategy. With this in mind, we provide a range of tools to communicate with customers before and after a service is delivered. You can easily configure the communication journey to meet the needs of your specific segment.”
First and foremost, management commitment is what is required for getting started, and the plan for services management is what is needed for getting organised. Direction and focus assists in setting the appropriate targets, and teamwork and structure help to provide the proper environment for plan execution. Finally, it is with leadership and training where all of the services management components are "pulled together" so that the organisation can be successfully led through plan implementation and roll-out.
In assessing the quality of your organisation's strategic services planning effort, it is important to remember that the strategic puzzle is only complete if all of the pieces are fit together in the proper placement. When any one piece of the puzzle is missing, the process is incomplete. Your organisation may already have most of the puzzle pieces in place, but only through the adoption and utilisation of a formal planning process will the services management puzzle ultimately be put together in an efficient and effective manner.
The more of the planning elements your organisation already has in place, the more ready it is to move forward toward plan implementation:
- Leadership is critical to the empowerment that is required to "get the ball rolling"
- Information and Analysis provides you with the tools required to measure and assess your services management effectiveness
- The Strategic Services Plan is the framework from which your organisation will operate
- Human Resource Development and Management assures that you have the right personnel to "get the job done" and reviews legislation to ensure requirements are fully complied with in the service delivery model
- Management of the Process assures the appropriate levels of quality are built into the design of the organisation’s products and services as well as the processes that bring them to your customers
- Performance and Operational Results provide you with a benchmark for evaluating your performance
- Customer Focus and Satisfaction assures that your organization will always strive to provide its customers with the levels of products, services and support they require
If carried out successfully, the key outcomes of the ongoing strategic services planning process would be:
- The ability to predict/anticipate changes that the business will have to face in the immediate-, short-, intermediate- and long-range
- The ability to manage/control the way in which the business evolves and grows
- The ability to keep your employees, customers and society safe during COVID-19 and other pandemic-related situations
- The ability to act/react to both evolving and sudden market events and occurrences
- The ability to positively impact the environment whilst reducing operating expenditure
- The ability to dampen/soften the impact of negative economic downturns, market trends and/or competitive threats
- The ability to plan/support the most effective actions for positioning the organisation for growth mode
For more information, or to download a complimentary copy of the companion SFG℠ Analysts Take paper, please visit either the FieldAware or Localz Websites.
Further Reading:
- Read more exclusive Field Service News from Bill Pollock @ https://www.fieldservicenews.com/blog/tag/bill-pollock
- Read more about Managing the Mobile Workforce @ https://www.fieldservicenews.com/blog/tag/managing-the-mobile-workforce
- Read Bill's personal blog @ https://pollockonservice.com/
- Read Bill's Obituary and comment to leave your respects @ https://www.fieldservicenews.com/blog/farewell-to-one-of-the-very-best
- Read more about the offerings Localz offer to Field Service Companies @ https://www.localz.com/
- Read more about the offerings FieldAware offer to Field Service Companies @ https://www.fieldaware.com/
Jul 10, 2020 • Features • research • Mize • Service Innovation and Design
Michael Blumberg offers us an exclusive analysis of the research he has recently conducted to identify trends amongst service organisations when it comes to service contract revenue that shows the secret is 'all about the asks'...
Michael Blumberg offers us an exclusive analysis of the research he has recently conducted to identify trends amongst service organisations when it comes to service contract revenue that shows the secret is 'all about the asks'...
Mize recently conducted a study among service executives and warranty professionals who are involved in marketing and selling service contracts and extended warranty (SC/EW) programs. The findings validate which strategies and tactics offer the best results which in turn will help managers and executives become more effective in marketing and selling extended warranty/service programs.
A total of 96 service contract and warranty professionals have participated in our survey. Just over two-thirds (68%) of the survey respondents were representative of the B2B segment. The remaining 32% were from the B2C segment.
Essential Key Performance Indicators Amongst Field Service Organisations
Attach and Renewal rates are the primary Key Performance Indicators that companies rely on to evaluate the success of their Service Contract and Extended Warranty Programs. A small percentage of respondents (15%) reported attach rates in the range of 51% to 70%. Most respondents (45%) reported attached rates of 26% to 70%).
Concerning renewal rates, while a majority (71.5%) of the respondent’s report renewal rates of less than 50%, over one-quarter have renewal rates of 76% or higher. Half of these respondents have renewal rates over 90% demonstrating that this level of performance is possible.
Higher attach and renewal rates were observed among respondents from the B2B segment. This is attributable to the fact that companies in the B2B segment are often more engaged with customers during and post-sale than those in the B2C segment. B2B companies may have multiple interactions with a customer before, during, and after the sale then B2C companies. For example, in the purchase of a refrigerator, the retailer may have only one chance, usually at the point of sale, to sell an extended warranty during the point of sale. In contrast, the seller of Construction Equipment may have multiple interactions with the customer throughout the lifecycle of the equipment. This increases their opportunities the seller must upsell, and cross-sell extended service programs.
Configuration
One of the key drives of successful Extended Warranty programs is Contract Configuration. This term, configuration refers to:
- the length of contract coverage,
- level of customization,
- processes/services engaged
- resources deployed in delivering the services
- entitlement levels offered.
With respect to length of coverage, most respondents (82%) surveyed to date indicate the typical length of SC/EW programs is equal to or less than three (3) years. Among these respondents, slightly more than half (48.0%) offer programs that range in length between 1-2 years, while 52% have programs of 3-4 years in length. The survey results suggest SC/EW programs have a shorter coverage period within B2B than B2C. Slightly more than half of the B2B respondents offer programs that are 1-2 years compared to only 18% of B2C respondents.
Customization
In terms the level of customization provided, over three quarters of the respondents offer SC/EW with some level of configuration. While approximately one-half (54%) offer mostly Standard Configuration, they also indicate that some of the programs have some level of customization. However, only 18% offer mostly Customized programs or entirely customized programs. The remaining respondents offer only a standard configuration. Customized programs are more prevalent within the B2B sector than B2C. Nearly 82% of B2B respondents offer programs with some level of configuration while only 44% in B2C.
Flexibility of Terms
Slightly less than half (48%) of the respondents surveyed indicate that they provide their customers with the ability to terminate their contracts after they are purchased. Among those who allow early termination, the majority (58%) allow for termination with penalties. Higher attach rates and renewal rates are associated with companies that provide ability to terminate early.
Approximately one-half (52%) of the respondents surveyed provide their customers with the ability to negotiate the price paid for service contracts. Higher attach and renewal rates were observed among companies who provide customers with the ability to negotiate. This practice is more common within the B2B Segment.
Processes
When it comes to processes covered, most (86%) respondents will correct failures that customers experience during the coverage period. Other types of processes engaged as reported by 20% to 30% of respondents include preventive maintenance, calibration, planned inspections, consumable replacement, recalls, and remote product monitoring.
In delivering these services, most respondents provide the following resources as part of the SC/EW program:
- Spare Parts (64%)
- Advanced exchange/parts swap (54%)
- Onsite Field Service (82%)
- Depot Repair (50%)
- Remote Support (57%)
A smaller percentage of respondents also offer Diagnostic tools (14%) and loaners (7%) as part of the SC/EW configuration.
Entitlements
Entitlements are another aspect of SC/EW configuration that customers will consider in their purchase. Entitlements can be viewed as the level of service they can expect to receive once a problem or claim is reported. Almost one-half of the respondents (43%) provide a field service response time guarantee. Another 39% include guaranteed parts delivery time. Other types of entitlements that maybe found with an SC/EW configuration include resolution time guarantee (21%) and telephone response time (36%) and loaner if problem can’t be resolved within 24 hours (18%).
Frequency of Communications
Survey respondents typically notify customers that their SC/EW programs are up for renewal. One half (50%) of the respondents indicate they provide more than 75-days advanced notification; 16% provide 90 days or more notification. Higher renewal rates observed among companies that provide 90 t0 76 days advanced notification. Two-thirds (68%) of respondents provide only 1-2 advanced notifications. The remaining 32% provide 3 or more notifications. Higher Renewal Rates are observed among respondent who provide 3 or more notifications
Front Line Personnel & Automation
A majority (54.2%) of respondents involve front line service personnel in the sale of SC/EW contracts. Approximately, two-thirds (68%) provide formal sales training while less than half (46.2%) use automation to facilitate the ability front line service personnel to sell SC/EW programs. Higher attach rates and renewals are cited among respondents that use automation to facilitate sale by front line service personnel
Summary & Implications
In summary, the more distinctions a company can make about its SC/EW program, the more likely customers will be to purchase it. In other words, customers consider the value of a service contract before they purchase it. This maybe an “eye-opener” for manufacturers and their channel partners who take the view that a warranty is a warranty. Just because customers purchase their product doesn’t mean that they’ll purchase the SC/EW.
As the survey results indicate, the key drivers of a successful SC/EW program are level of customization, coverage and configuration, flexibility of terms, frequency of communication, use of front-line service personnel in sales process, and use of automation. When it comes to selling service contracts and extended warranty programs, it’s about the asks. These observations underscore the importance of implementing solutions that enable Durable Equipment Manufacturers and their Channel parts to set up, sell, administer, track, and analyze various service programs.
Further Reading:
- Read more exclusive FSN articles by Michael Blumberg @ www.fieldservicenews.com/blog/author/michael-blumberg
- Read more about MIze @ www.fieldservicenews.com/blog/all-about-mize
- Read more about research into field service management @ research.fieldservicenews.com
- Read more about Service Innovation & Design @ www.fieldservicenews.com/blog/tag/service-innovation-and-design
- Connect with Michael Blumberg on LInkedIN @ www.linkedin.com/in/blumberg1/
- Folllow Mize on twitter @ twitter.com/mizecom
- Find out more about the solutions offered by Mize @ m-ize.com
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