alk to any Service Leader about service being about fixing things and you might be surprised by their reaction.
In the not-so-distant past, I worked for a service organisation that was referred to regularly as the ‘fix it’ team. Needless to say, my esteemed service colleagues did not react kindly – and rightly so!
In fact, the attitude that service is synonymous with fixing issues, resolving problems and mending broken things is a bit on the simple side. Yes, of course service is resolution driven – especially within Customer Service teams – but to claim that service is this, is rather short-sighted.
It is, or certainly can be, so much more.
In fact, service has the potential to be one of the most valuable functions within your business.
Here are our top 3 reasons why.
Generating Recurring Revenue
Service offers the greatest opportunity for a recurring revenue stream. Selling managed services is one thing, but if you deliver those services effectively, it is the gift that keeps on giving. One well deployed project offers an opportunity of up to five years’ worth of service maintenance revenue, and that’s not to mention upselling of support enhancements as you develop your offering.
Don’t get us wrong, it’s not easy. To deliver an excellent service and continually support those service customers – new and old – takes resource, resilience and a strategic approach, but once you have that in place your traditional service cost-centre becomes one of your business’ most margin rich functions.
The amazing thing about loyalty is that it provides both confidence for that recurring service revenue and keeps customers coming back with new requirements and opportunities.
And while loyalty is often driven through Sales Account Managers, it is your Service team that presents the biggest (often overlooked) opportunity. Your service team speak to your customers every day, they engage with them when there are issues and have the ability to take their pain away, strengthening relationships as they go. Powerful stuff!
There’s no real alchemy to it, but providing a really good, smooth and effortless customer experience has been proven to reduce churn, increase loyalty and establish new opportunities through every interaction.
There is an unfortunate trend emerging in AV for over promising and under delivering when it comes to services. Selling the service dream is the easy bit, delivering it? Not so much.
But where some businesses are falling short of meeting customer expectations, others are swooping in on the opportunity to really deliver the very best in services and are differentiating themselves in doing so.
Finding your USP can be difficult in a highly competitive market that uses the same technologies to establish similar functionality. So how do you stand out? How do you continue winning in a world where product and project margins are squeezed so tightly?
Develop your service image or reputation so that your business is absolutely synonymous with the very best in customer support and value-add for your customers. Align your service function with the idea that you can deliver on your service promises every time and with an excellent customer experience. You’ll soon find opportunities come knocking.