How Were You Planning to Use Market Research Data as Input into Your 2021 Strategic Plan?

Just after the Labor Day holiday, every year, businesses begin their planning processes for the coming year. This is typically the time when internal planning teams are created, planning deadlines are set, and marketing goals and targets are established. But what types of market research data are you planning to use in your planning process? And how are you going to get it in the first place? Now is the time to plan exactly where your customer research will come from – and how to use it most effectively in supporting your strategic planning process.

In today’s upended business environment, even the most skeptical services managers will agree that “the customer is always right”. Still, there are too many organizations that do not – or will not – go directly to their customers for input and feedback. A reporter once asked the legendary bank robber, Willie Sutton, why he robbed so many banks. Without hesitation, he replied, “Because that’s where all the money is!”. While Willie’s business practices may not have been either legally or politically correct, there was one thing that you had to give him – he knew where to go to get what he needed. In the services industry, the place where we need to go, to get the information we need – is the customer.

Some managers argue that internal call activity data, information and reports are all they need to measure and track their organization’s performance over time, and identify unmet user needs and requirements. They claim that these internal data are more objective, accurate and statistically valid than anything market research may derive from conducting customer needs, requirements and satisfaction surveys.

Objectively speaking, they may be right! However, the customers your organization supports are typically not objective in the way in which they assess and evaluate your performance and, in most cases, the internal data you are able to derive do not adequately reflect their true perceptions of satisfaction – let alone loyalty – with respect to your organization’s performance. It is primarily for these reasons that we believe the only true source of customer-focused research comes from the customers themselves – and that the most effective means to collect this information is to interact with them through a customer survey.

Customer Survey Design Components

Customer surveys, in and of themselves, are not new. They have been used for decades. What is new, however, are the ways in which the data are collected, processed, analyzed and applied, as well as how the information is ultimately integrated into the strategic planning process.

Traditional modes of conducting customer surveys via mail, telephone and personal interface have now been essentially replaced by e-mail or Web-based surveys. Newer data processing tools, coupled with the increased speed of collecting and processing data through electronic means, have also made it much easier – and quicker – to analyze the collected survey data. What used to take months to design, execute, process and analyze now only takes weeks.

Still, one thing remains unchanged over time; in order for any customer survey program to be effective – especially with respect to supporting the strategic planning process – it must address each of the following key survey design areas:

  • Business Objectives, such as “Why is the research being conducted?” and “How is it going to be used?”
  • Information Objectives, such as “What information do we need to support our business objectives?” and “How can we most effectively obtain it?”
  • Organizational Structure, such as “What areas do we want to measure?” and “Which areas require separate, or more detailed, analysis?”
  • Customers and Customer Groups, such as “Which customers should be surveyed?” and “Who within each customer organization represents our most appropriate contact?”
  • Competitive Environment, such as “Who are our direct and indirect competitors?” and “Who should we be benchmarking against?”
  • Operational Information, such as “How do we obtain current lists of customers?” and “How can they best be reached?”
  • Statistical Requirements, such as “What is an acceptable margin of error?” and “How can the data be most effectively reported?”
  • Previously Conducted Research, such as “What have we learned from our past studies?” and “How can we integrate what we’ve learned into the new survey process?”
  • Internal Measures, such as “What mechanisms are currently being used to measure and track performance?” and “How can we reconcile the external findings with our internal data?”
  • Customer Relationship Management (CRM), such as “How can the customer survey program support our overall CRM initiatives?” and “How can the results best be communicated internally and externally?”
  • Tracking and Monitoring, such as “How should we track our customer needs, requirements and satisfaction performance over time?” and “How frequently will we need to update our information base?”
  • Timing and Scheduling, such as “When will the baseline results be required?” and “How quickly can the survey be designed, executed, processed and analyzed?”

A Customer Satisfaction Measurement and Tracking program can successfully address all of the areas as described above, as well as provide management with a comprehensive analysis of the baseline, or “benchmark”, customer needs and requirements/satisfaction survey results, and the analysis of trend data that could be used to identify key patterns of change, or movement, in customers’ perceptions of service performance over time. These would include, but not be limited to:

  • Detailed analyses of the overall survey findings that establish baseline needs/satisfaction levels, and track trends and shifts in customer needs and satisfaction from period-to-period;
  • The identification of specific areas requiring improvement and/or enhancement;
  • Generation of executive-level summary reports, detailed survey data and regular (e.g., quarterly) tracking reports;
  • Assessments of the strategic implications for the organization based on the analyses of the overall survey findings; and
  • Development of specific recommendations for improving the existing services portfolio and corresponding levels of satisfaction.

Survey Research Applications and Uses

The applications and uses of the findings from a customer satisfaction measurement and tracking program of this type would be multifold:

  1. The organization could acquire new and useful input and feedback directly from its customers regarding their perceptions of the value, need and levels of satisfaction associated with the acquisition and use of the company’s products and services.
  2. The survey results could then be used to monitor trends in both company performance and customer satisfaction over time. This information could contribute directly to the ongoing improvement of the company’s products and services as part of an overall marketing plan, and could ultimately lead to the development of new, or modified, products, services and support features designed to meet the total needs of the customer base.
  3. The results of the survey could also be used as a marketing tool for promoting the company’s various product and service lines through a number of means including:
    • The creation of an executive summary, or “white paper” report, based on the general survey results, for distribution to targeted customers and prospects via mail, e-mail, insertion in corporate literature folders, or at industry trade shows;
    • Development of a series of promotional and public relations-oriented news releases targeted to key business publications and trade papers; and
    • Publication of a “genericized” summary of the survey results in an appropriate industry trade journal or magazine that serves the organization’s general customer/market base.
  1. The results of the survey analysis, as well as a sampling of selected verbatim quotes and comments, could also be incorporated directly into the company’s advertising and promotional programs, corporate brochures, testimonials, newsletters, etc.

Any business that has put off conducting a customer needs and requirements assessment, or customer satisfaction survey, for a year or more allegedly to “save money” or wait for the “right time” may now be experiencing a dramatic decline in customer satisfaction. since they haven’t really tracked it over time, or implemented any corrective actions before things began to deteriorate.

However, by the time an organization typically realizes that there has been a significant downturn in customer satisfaction, it may take another year or more before it can effectively reverse the trend (i.e., through problem recognition, identification, correction, and tracking). That may seem like a long time, unless you consider that if they didn’t forego their customer survey tracking in the previous year, it could have corrected all of the problems by now!

Measuring customer satisfaction is a necessary process for all businesses, and not one to be taken for granted. Simply because your customers appear to be satisfied with you today does not ensure that they will remain satisfied forever. Why not let them tell you exactly what makes them “tick”, and what “ticks” them off?  You can only do that if you take the effort to design, execute, analyze and track your customers needs, requirements and corresponding levels of customer satisfaction, through an orchestrated process, on an ongoing and focused basis. If you haven’t already, now is the time to make customer-focused research a regular part of your ongoing strategic planning process. The time to start is now!

SFG℠ Makes Four eBooks and 15 Analysts Take Papers Available for Licensing and Distribution

Today, July 27, 2020, Strategies For Growth℠ (SFG℠) announced that it has 4 eBooks and 15 newly-written Analysts Take papers now available for licensing and distribution.

These papers range in topics from transitioning your customer base from customer satisfaction to customer retention; the positive impact of “great” communications (i.e., as opposed to only “good” communications), and how to get to that level; how the leading services organizations are planning (and executing) for future growth and sustainability; Warranty Management patterns and trends for 2020 and beyond (i.e., the results from SFG℠‘s 2020 Warranty Chain Management Benchmark Tracking Survey); and many others.

If there is any interest at your organization, please contact Bill Pollock, president & principal consulting analyst, directly at 484.620.2711 to discuss further, or feel free to e-mail Bill at wkp@s4growth.com. Also, be sure to ask about the companion Webcasts available for each of the eBooks and papers.

Simply click on the following link to download a summary description of each available paper, along with their associated licensing fees, etc.: Available SFG eBooks and Analysts Take Papers

Looking forward to hearing from you!

Bill

Transforming Targeted Market Research into Improved Customer Satisfaction & Retention

Market Research Is Not an End unto Itself – It’s Basically a Tool for Identifying Opportunities and Preventing Problems

No services organization ever went bankrupt as a result of investing money in market research that delivered actionable results, and provided a positive Return on Investment (ROI). It is only those organizations that have wrongly invested a great deal of money in “untested” areas that could have been better served by conducting the appropriate market research first.

Read SFG℠‘s latest Analysts Take paper on the value of Market Research in terms of its ability to help you transform your Services organization.

Click here to access the paper: Transforming Market Research into Customer Sat & Retention (20-06-11-v01)-compressed

Video Podcast #02: Using the LOTS Approach to Communications to Ensure Maximum Customer Reliance and Retention

Hi All!

[This is our second Blog-posted video Podcast! There will be more coming on a regular basis from this point on!]

Using the LOTS Approach to Communications to Maximize Customer Reliance and Retention! Analyst Bill Pollock of SFG℠ and www.PollockOnService.com talks about what FSOs should be using as communications tools to make sure their field techs are always engaged – and customers are rarely enraged!

To access the video, please click on the following link: https://www.youtube.com/watch?v=n4jE3Js5y3I&t=23s

BTW – Thanks again to all of you who contributed to our first 56,500 Blogsite visits! It is greatly appreciated! Looking forward to the next 56,500+!

 

 

Video Podcast #01: Turbulent Times Require Serious Solutions – Especially in Field Services!

Hi All!

[This is our first Blog-posted video Podcast! There will be more coming on a regular basis from this point on!]

Turbulent Times Require Serious Solutions – Especially in Field Services! Analyst Bill Pollock of SFG℠ and www.PollockOnService.com talks about what FSOs should be thinking about – and doing – in the midst of the COVID-19 pandemic – and beyond!

To access the video, please click on the following link: https://www.youtube.com/watch?v=n4jE3Js5y3I&t=23s

BTW – Thanks again to all of you who contributed to our first 56,000 Blogsite visits! It is greatly appreciated! Looking forward to the next 56,000+!

 

 

Lessons Learned from WBR’s 2019 Field Service Amelia Island Conference – Advancing Service Together through Innovation, Cross-Industry Best Practices & Transformation

[WBR’s annual Field Service Amelia Island conference is one of the premier Field Services event of the year – and this year was, once again, no exception! More than 350 field service professionals attended the conference from August 18 – 21, 2019.

The following is a brief excerpt from SFG℠‘s “Lessons Learned …Analysts Take report, written and distributed under the auspices of WBR. Our suggestion? Don’t read the following excerpt – go to the bottom of the page and download a complementary copy of the full report, and read up on what the key players in the field services community had to say with respect to “Advancing Service Together!“]

Since 2003, WBR has been bringing together the world’s leading services organizations to “benchmark, establish best practices, embrace new technologies and build a strong network to enhance its attendees’ services businesses and field operations.” Each successive conference over the past 16 years has provided participants with “future-facing content and a mix of interactive session formats that ensure [they can] learn and network most effectively.” As such, these annual (and mid-year) Field Service events are designed to set up its attendees “for maximum profitability and competitiveness in [their] service business.”

And this year’s Amelia Island event did not disappoint, as the nearly 400 onsite attendees would most likely attest!

“At Field Service Amelia Island I learned that Field Service professionals love to learn new ways to improve service delivery since that is often the first (and only) personal contact a customer has with their brand. They are especially eager to explore what technology can do to optimize their field service fleets to get them to job sites efficiently and safely.”

– Carol Roden, Senior Product Marketing Manager, Lytx

The main theme for WBR’s 2019 Field Service Palm Springs conference was billed as “Advancing Service Together”, similar to the Palm Springs event held earlier in the year – and the succession of speakers, presenters, moderators, panel participants and practitioners all supported that theme throughout the conference by sharing examples (i.e., mostly success stories) about how it takes a strong commitment to teamwork to have any chance of meeting, let alone exceeding, management goals for improving employee and customer satisfaction – while at the same time, driving increased services revenue streams and making a profit by doing so.

“After attending the Field Service Conference on Amelia Island, the importance of disruptive service, and understanding that what got our businesses to their current level of success will not take them to the next level of success is evident. In an XAAS world, those organizations that embrace these transformations with technology and culture will win!”

– Mary Flake, General Manager – Coastal Southeast Service, Comfort Systems USA

The ”Lessons Learned” at the conference were many, and we have attempted to summarize the main sessions (and lessons learned) in the text that follows. Please note that not all of the sessions are highlighted and summarized in this document; however, there are many others that are available through WBR directly. Also, if you missed the chance to have one of your “lesson learned” quotes included in this paper, … well, there’s always next year in Palm Springs or, again, at Amelia Island!

Each of the three Main Days of the conference had a particular focus, beginning with Day One setting its sights on “Technology and Process Innovation for Efficiency”; Day Two focusing on “Disruptive Service & Customer Value; and Day Three focusing on “Leadership & Service Revenue Generation.”

Overall, WBR’s 2019 Field Service Amelia Island conference gave every attendee the opportunity to learn, question, network, buy/sell and interact with vendors, practitioners, editors, writers, industry experts, consultants, research analysts, peers and competitors and every other important person or company in the field services business.

The temperature was not as hot as in Palm Springs, earlier in the year – but the topics covered at the conference were still “red hot”. One of the key learnings from this year’s event is that “the main benefit of this conference is that it represents a middle ground between what we all learned last year, and what we will expect to learn next year.” As such, this year’s conference represented another key milestone in the Journey that we, as an industry, are taking along with our customers.

At the risk of repeating myself from the “Lessons Learned …” Analyst Take paper distributed following this year’s Palm Springs conference, I believe the following quote still stands true:

“As Bob Dylan once wrote and sang, ‘The times, they are a’changin’.    He must have been singing about the field services industry!”

– Bill Pollock, President & Principal Consulting Analyst
Strategies For Growth℠

Here’s looking forward to seeing you all at Palm Springs and Amelia Island again next year!

[To download a complementary copy of the full “Lessons Learned …” report, simply click here: @@@ 2019 Field Service Amelia Island Analysts Take Report (Final Draft – 19-09-17).]

Revitalizing a Mature Product/Service Line Can Add Life to the Cycle

After a while, even the most innovative product/service lines may begin to lose some of their luster and appeal, ultimately being perceived by the marketplace more as a commodity-like offering, rather than as a unique or differentiated product or service. Classic examples range anywhere from cameras, to computers, to consulting services. What was initially offered to the market as an innovative product or service, without any direct competition, can soon become just another product or service alternative among scores of increasingly competitive offerings.

It is for this reason that it is critical to understand where your organization’s service offerings stand in the perceptions of the marketplace at any given point in time. In many cases, it will be the new, innovative, “upstart” companies that are doing the bulk of the research and market testing prior to launching their new products and services, and not the companies that are still selling their older, more mature commodity-like offerings.

However, there may still be a great deal of life left in the more mature business lines that comprise the majority of your company’s product or service portfolio. Even better, these lines generally tend to be “proven” with respect to market acceptance, and may only need a gentle marketing “push” every once and awhile to stimulate additional market interest and sales. Even NASA uses a “mid-course correction” every now and then to ensure that its space vehicles get to their targeted destinations.

A further complication may also arise from the fact that many businesses that provide both products and services to the market often find that when sales or market share takes a downturn, they are unable to determine whether the decline is more related to problems with their products, problems with their services and support, or a combination of the two. However, more often than not, it is generally a combination of the two. While this is typically a fairly easy matter to resolve, it is one that can often lead to a costly and ineffectual failure if not approached properly.

Whenever a situation like this takes place, the organization should examine a number of critical areas through the execution of a carefully orchestrated research program, focusing on issues such as:

  • An assessment of the changing, evolving or emerging customer/market needs, requirements, preferences, perceptions and expectations associated with its mature product/service offerings;
  • The identification of specific new or value-added product features, characteristics and attributes (e.g., functionality, quality, reliability, modularity, packaging, etc.) that could redefine the mature products; and the corresponding features, characteristics and attributes that could similarly redefine the levels of service required to support these products from the customer’s perspective (i.e., professional services, Web-based self-support, etc.); and
  • Suggested, or recommended, improvements to the existing products and support services required to address these changing and evolving needs.

The results of a program of this nature would be extremely useful to the organization’s sales and marketing management in terms of their ultimate ability to:

  • Modify and enhance the historical product and service offerings to address the changing levels of market demand and requirements;
  • Project the likelihood of customers switching to new, redefined or replacement, products and services in the near- and long-term future;
  • Develop a plan for migrating to new product and services offerings to reflect the evolving needs and requirements of the market;
  • Identify and cultivate expanded and/or redefined target markets based on the identified patterns of “core” vs. “value-added” product/service preferences and user perceptions;
  • Strengthen the overall product/service awareness and image in the marketplace through a program of heavily promoted refinements, enhancements and/or modifications based on the study findings; and
  • Monitor the ongoing positioning of the product/service offering in the marketplace in order to determine when it may no longer be profitable to support it.

More specifically, the primary objectives of the organization should be to first, identify the changing customer needs, requirements, preferences, perceptions and expectations that can be used to assess and “fine tune” the overall strategic and market position of the company’s historical product and service lines; and second, to ensure that the company can continue to effectively market these mature products and services, with a compelling promotional “spin”, and to the appropriate market segments.

A comprehensive examination of these key issues could lead to the development of a set of strategic and tactical recommendations for action with respect to defining/redefining the preferred product features, characteristics and attributes, and the corresponding customer service and support requirements. The recommendations would be developed to address:

  • The magnitude of the impact on the organization’s existing product/service lines resulting from the projected differences between historical and future market demand and purchase patterns in an expanded/redefined market base; and
  • The identification, assessment and prioritization of expanded/redefined product/service features, characteristics and attributes that would serve to support any recommended changes, modifications and/or enhancements to the company’s existing product and service lines.

There are many ways in which a business can determine exactly how much “kick” its historical product or service offerings still have in them – or, conversely, whether it is time to “kick” them out of the company’s portfolio altogether, and replace them with newer, more innovative and competitive products and services.

While your present business lines are probably the key factors that have helped your company to grow to its current size and market position, they may have become “dusty” over the years, and now may be in need of either a good “dusting off” or, possibly, retirement.

Putting a “cash cow” off to pasture before it is time can cost your company money in terms of lost potential. However, keeping it on as an active component of your business portfolio may cost even more in the long run, in terms of giving your company a perceived market image as either being “dusty” itself, or no longer offering anything but commodity-like products and services.

Assessing where your business lines stand today in terms of market perceptions, image and their ability to meet your customers’ changing and evolving needs, will allow you to determine just how much “dust” is actually on your existing portfolio of offerings, and exactly what you will need to do to “shake it off” and compete more effectively in the future.

[BTW – Are you a Warranty Chain Management Professional? If so, we invite you to participate in SFG℠‘s 2019 Warranty Chain Management Benchmark Survey Update! Take the survey, and view the final results during our January 17, 2019 Webcast (and accompanying complimentary Analysts Take summary report! Share your knowledge and learn from your peers! To participate, please click here: https://www.surveymonkey.com/r/WCM_19]

UK/Europe vs. U.S./Global State of Field Service Management (FSM) Survey Findings Infographic

The attached Infographic presents and compares the key survey findings from Strategies For Growth℠s 2017 Field Service Management (FSM) Benchmark Survey for the UK/Europe vs. the U.S./Global FSM markets.

The U.S./Global survey findings were presented on November 8, 2017 in a Webcast hosted by CSDP, the leading service relationship management software developer that commences every client engagement with consulting. Bill Pollock, President & Principal Consulting Analyst at Strategies For Growth℠, was the featured presenter.

The Infographic provides a synopsis of how the UK/Europe FSM market differs from the U.S./Global FSM by comparing key survey findings in an easy-to-follow graphical format. By viewing the Infographic, learn how the UK/Europe FSM market compares to all others for each of the key survey findings.

[Download the Infographic at: UK-Europe vs US Infographic (November, 2017).]

The State of Field Service Management (FSM) in 2017 – and Beyond!

[This Blog post contains a sampling of the content and information that will be presented in our upcoming Webcast, Wednesday, November 8, 2017 from 1:00 pm to 2:00 pm EST. To register for the Webcast and receive a complimentary copy of the full Analysts Take white paper, please go to: http://bit.ly/CSDPWebinarNov8.]

As we near the end of calendar year 2017, many Field Service managers have begun to wrestle with the question, “What lies ahead for us in the next 12 months and beyond? Of course, there is no quick and easy answer – and everything can change in a heartbeat due to unforeseen internal and/or external factors.

As such, it becomes increasingly important for Field Service Organizations (FSOs) to understand the specific impact that the next 12 months (and beyond) will have on the quality and performance of their field service operations. In fact, the future state of Field Service Management (FSM) will depend largely on what strategic actions FSOs plan to take in the next 12 months or so. Since these actions will be directly linked to the multitude of drivers that are most likely to influence decision making within the global services community, this would be a good place to start.

The results of Strategies For GrowthSM‘s (SFGSM) 2017 Field Service Management Benchmark Survey reveal that the top drivers cited as influencing FSOs today may be categorized into three main areas:

  1. Customer demand and/or preferences
  2. Need to improve service workforce utilization, productivity and efficiencies
  3. Internal mandate to drive increased service revenues

When asked to cite the top three drivers currently influencing their ability to effectively manage field services operations, 56% of respondents cite customer demand for quicker response time, and nearly one-third (32%) cite customer demand for improved asset availability.

However, the need to improve workforce utilization and productivity is also cited by a majority (51%) of respondents as a top driver, followed by the need to improve service process efficiencies (39%). An internal mandate to drive increased service revenues is then cited by 31% of respondents as one of their top three drivers.

Once the key market drivers are clearly identified, FSOs need to create – and implement – the most effective strategic planning actions to address them head-on. As revealed in the SFGSM survey, the most commonly implemented strategic actions, currently, are:

  • 48% Develop and/or improve KPIs used to measure field service performance
  • 40% Invest in mobile tools to support field technicians
  • 36% Automate existing manual field service processes and activities
  • 31% Integrate new technologies into existing field service operations
  • 30% Provide additional training to field service technicians and dispatchers
  • 26% Improve planning and forecasting with respect to field operations
  • 25% Increase customer involvement in Web-based service process
  • 24% Provide enterprise-wide access to important field-collected data

These data strongly suggest that there is a pattern of synergy among the top four cited strategic actions that builds a foundation for all of the other actions that will ultimately be taken by the organization; that is, that nearly half of the FSOs comprising the global services community already recognize the need to build and/or improve their KPI measurement program – this is essential! This is the first step!

Based on the SFG survey data, Jerry Edinger, President, CEO and Chairman of CSDP Corporation, a leading Service Relationship Management software developer, explains, “This is why we start every one of our client engagements with consulting. We ensure that your business processes are designed correctly before automating them. Software alone cannot improve KPIs. We design the exact Field Service Management solution based on the needs and requirements of the organization.  We detail how a solution automates the entire service delivery and customer service processes into a fully integrated field service management system and maps it into the overall enterprise workflow. Once the consultative effort is completed, we then have a detailed roadmap of how to build the most effective solution to meet the organization’s field service goals and objectives.”

However, along with the development and/or improvement of a KPI program, nearly as many organizations also recognize the need to invest in state-of-the-art mobile tools to support their technicians in the field, while concurrently, automating their existing manual field service processes and activities to provide an enterprise-wide foundation for collecting data and information, and disseminating this process to field technicians (and, in many cases, to their customers) on an as-needed basis. Further, about one-third of FSOs recognize the need to integrate new technologies into existing field service operations to make it all come together.

This synergy is built on, first, ensuring that there is an effective KPI measurement program in place, and using that program to establish a benchmark, or baseline, for measuring the organization’s current field service performance. Second, there needs to be a comprehensive internal effort to bring the technical aspects of services operations into the current (and future) timeframe – this can be done mainly by investing in an effective package of mobile tools to support the field force.

Finally, it will be the integration of these new technologies (e.g., mobility applications, the IoT, wearables, 3D printing, Augmented Reality (AR), Artificial Intelligence (AI), Machine Learning (ML), etc.) into the overall mix of resources and tools deployed by FSOs that will empower the field force do their jobs more productively and efficiently. The desired results, of course, would be the improvement of service delivery performance and the resultant improvements in the levels of customer satisfaction (and retention).

The data make it clear that there is no mistake – that is, if your services organization already finds itself behind the curve with respect to:

  1. The automation of its existing field service management processes (or lack thereof);
  2. Its ability to meet (if not exceed) its customers’ demands or requirements;
  3. Its ability to support its field technicians and customers with real-time data and information; or
  4. Dealing with escalating costs associated with running its services operations; this gap will likely only get larger over time – unless it considers implementing a new, more state-of-the-art, field service management solution;

SFG’s 2017 FSM survey results clearly show the impact that doing so will have on the organization – as well as on its customers and its bottom line.

[For more information on this topic; to register for the companion Webcast hosted by CSDP on Wednesday, November 8, 2017; or to download a copy of SFG’s companion Analysts Take report, please visit the registration Webpage at: http://bit.ly/CSDPWebinarNov8.

How to Sell Services to Individual Vertical Industry Segments

You Need to Understand Their Unique Needs and Requirements – and Be Organized to Meet Them!

A.  Introduction

All vertical industry segments continue to undergo significant change, and along with this change comes evolving needs and requirements for field service and customer support. In addition, the competitive landscape of the global services community is in a phase of constant acquisition, merger, partnership, consolidation and realignment, and no two experts can agree on where it will end, and what it will ultimately look like.

Still, Field Service Management (FSM) solution users expect, and demand, consistently high levels of service and support so that they can deal more effectively with their own growing economic costs, shifting customer demographics, advancements in new technologies and changing patterns of growth. There are, however, some easy guidelines for getting started on the path to being better prepared to support these highly demanding and, oftentimes, heavily regulated industry segments.

The best place to start is to first gain a strong working knowledge of the unique needs for each of the individual vertical industry segments you are targeting, typically comprised of manufacturers/OEMs, third-party maintainers and independent service organizations, professional services organizations, in-house services organizations, consumers and others; who in turn, support their respective systems, equipment and devices – either on-premise, in the Cloud – or both!.

B.  Understanding the Unique Needs & Requirements of Individual Industry Segments

Knowing the specific services business of your customers and all of their general terminology, “buzz words”, Key Performance Indicators (KPIs) and acronyms is not only an admirable goal, but a “given” just to participate in a segment-specific sector (i.e., terms like Manufacturer/OEM, TPM/ISO, MTTR, FTFR, etc.). However, each individual market segment also has its own unique set of terms and acronyms, as well as its own structure and organization, patterns of purchasing and decision-making, and means for evaluating the needs and requirements of service

This is the level of understanding that is ultimately required in order to succeed in building a solution that meets the needs of any individual specific industry segment – keeping firmly in mind that the same acronyms (e.g., ATM) may mean something entirely different in different industry segments  (e.g., the communications and banking segments, etc.). Also, you will need to keep in mind that some segments (e.g., medical devices, aerospace, government, etc.) may be much more demanding than others.

While there are many guidelines that can be used to facilitate an understanding of the specific needs and requirements of individual segments, there are essentially six (6) which provide a sound foundation. They are:

  1. “If you don’t speak their language, they won’t think you understand their business”

All of the FSM solution provider’s sales, services and marketing personnel that have any contact, either direct or indirect, with customers and prospects must be familiar with the terminology, technology and “buzz words” of the targeted segment. They will be required to communicate articulately with company management and personnel at each prospect organization, typically coming from a variety of related fields, sometimes with vendors supporting their segment, and are now serving in the roles of department heads or purchasing managers, equipment operators and/or technicians, etc. They already speak the language, and, as a result, the entire FSM solution provider sales team will need to be trained to understand and speak to key customer issues in their own words, names and examples.

Every industry segment has its own vocabulary and terminology – and, as an example, the medical device segment is no exception! In fact, with as diverse a composition of medical systems, equipment, instrumen-tation and devices that populate this segment, as well as the many departments or groups that get involved in the solution acquisition decision-making process, simply learning the acronyms themselves can be almost overbearing. Medical systems, equipment and instrumentation that can be found in a medical center’s imaging department can include x-ray, ultrasound, MRI, CT scanner (i.e., don’t call them cat-scanners!), nuclear medicine, PETT, and many others. There are also blood gas chemistry analyzers, patient monitoring systems, surgical suite systems and a full range of accompanying consumables and reagents, in addition to parts.

Further, although their Hospital Information System (HIS) may look similar to you as many other types of data centers or repositories – they will also have their own set of “buzz words”, acronyms and terminology, as well. Although most segment-specific medical services organizations may already understand these names, acronyms and terminologies, the more general IT services organizations will need to ramp up to learn them in order to be perceived as credible for supporting a medical systems and equipment installed base.

  1. “If you know who to sell to, you can shorten the overall sales cycle”

Knowing who to sell to within the prospect (and customer) organization is critical to the success of the overall sales effort. The fewer referrals you get within the organization before you reach the right decision-maker, the less likely you will be in getting “brushed off” along the way.

However, in order to be in a position where you can effectively differentiate between the decision-influencers and the decision-makers, you will first need to understand the segment’s (and each prospect’s) organizational structure, hierarchy and roles. This will require an enlightened understanding of the various titles, responsibilities and roles of key segment decision-makers in general, as well as the specific names relating to each within the prospect organization.

Who are these decision makers? What are their pain points? What gets them “excited” about service? What is a typical structure at companies in their industry segment?

Every services organization has its own characteristic structure, organizational hierarchy and roles. That is why it is so critical that the FSM solution sales team understands exactly how each of its targeted prospects  is structured and organized – especially with regard to who the principal FSM solution acquisition decision-makers (and decision-makers) are.

For example, at some organizations, all IT and software solution acquisitions are screened, managed, negotiated and overseen by a senior IT program team and/or committee. It is often the case where this would represent the starting point of entry for the solution vendor sales team; however, in other cases, it might commence at the CFO’s, or CIO’s, office, Finance and/or Purchasing Department. Again, it all depends on each organization’s unique structure and hierarchy of decision-makers.

The mode of acquisition will also likely have an impact on who within the prospect organization will constitute the ultimate decision-making entity. For example, under a perpetual license scenario (i.e., typically involving a large, up-front, capital expenditure), the decision-making team is likely to include Finance and Purchasing, Department Heads, as well as Service Operations.

However, under a subscription pricing model (i.e., where there is no large, up-front, capital outlay required), regular monthly (or quarterly) usage-related payments are typically substantially lower and, accordingly, the ultimate acquisition decision may not need to involve all of these departments. Since Cloud-based FSM solutions are typically sold via subscription model, the purchase decision-making process will likely be less involved.

  1. “If you know who is involved in making the decision, you can ensure that they have everything they need from you”

The decision-making process, and ultimately the entire solution sales cycle, can be both expedited and facilitated if the solution sales and marketing team has a prior understanding of who is involved in the decision-making process, how many individuals get involved, who “calls the shots”, how long the process takes, what they need to know, and when they need it. Any incomplete information provided will simply extend the overall length of the process, and any extraneous information will create “noise“. In some cases, information given to the “wrong” individual may be worse than not providing it at all.

This is an area where a more complete understanding of the specific individual(s) you will be selling to will be helpful to ensure that you fully understand all of the needs, requirements, constraints (i.e., both IT and budgetary), preferences and “pain points” that will come into play. It will generally be this individual (or group of individuals) who will convey to you the business’ main acquisition and usage considerations that may include anything from implementation timeframe and training; to initial cost vs. Total Cost of Ownership (TCO), Return-on-Investment (ROI), and other financial aspects, etc.

  1. “If you understand their cost constraints, you can package your solution more attractively”

All prospects are likely to inform you of their various cost constraints right from the outset. However, all solution sales personnel should be trained to distinguish “real” from “perceived” costs as a result of the initial prospect meeting and needs assessment. They should be able to establish prospect thresholds for cost vs. value and build into the equation the best timing for spreading out the total program costs.

Sometimes total cost is the principal determinant; sometimes regularly scheduled cash expenditures are more important. In either case, the most appropriately “packaged” and priced solution must be developed for each prospect and customer, and your solution sales personnel must be equipped to do this.

Some potential examples of cost constraints may include departmental limits imposed on monthly expenditures (e.g., where the Department or Services Manager may only be able to approve up to a certain amount of expenses per month, etc.). Under a subscription pricing model, this constraint may disappear entirely; however, in a perpetual licensing scenario, the approval for the solution acquisition may need to be escalated to the attention of the CIO and CFO, etc. Of course, sales of Cloud-based FSM solutions will likely avoid this level of complexity.

  1. “If you know how your customers support their users, you can better understand their solution needs”

This requires a full understanding of how the users’ systems and equipment are being supported, in addition to what specific types, and how many units, of equipment comprise the overall base (again, either on-premise, Cloud-based, or both). For example, a laptop, tablet or mobile device used in a hospital setting, or on the factory floor, etc. may have substantially different service requirements than one used in a retail or hospitality environment.

Equipment used in three-shift cycles in life-critical medical applications requires very different service than the same equipment used in a nine-to-five office shift. The impact of downtime, both scheduled and unscheduled, on process throughput (and revenue stream) is also an important consideration, and should be evaluated primarily on the basis of each type of equipment’s application. These are important considerations that you will need to learn from each prospect.

A full understanding of the ways in which the prospect organization, in turn, supports its customers will also place you at an advantage with respect to showing them that you “get” their business model – and can build a solution that directly meets their – and their customers’ – needs, requirements, preferences  and expectations for service.

  1. “If you understand how your customers are growing, your solution should grow along with them in meeting their evolving needs”

If you are aware of your customer’s plans for growth (i.e., organic, via merger and/or acquisition, etc.), you will be better able to “tailor” your solution specifically to that customer’s needs. By understanding your customers’ plans for growth, along with their anticipated timetables for change, you will be better prepared to gauge the expected impact of those changes on their services model, and suggest an appropriately scalable solution that takes the anticipated growth (or downsizing) into consideration. If you can anticipate these changing needs (and convey your understanding to your prospect), you will find yourself in a much better position to propose a solution that meets their expectations.

As many individual industry services segment are typically characterized by high levels of market growth; technology adoption; and prospects for merger, acquisition and consolidation, you must let your prospects know that you understand their evolving needs for functionality, features and scale, and are able to convey that the solution will scale along with their evolving needs.

As a result, a strong part of the overall sales message should always focus on the scalability aspects of the solution that is, that it can keep up with the expanding needs of the organization – and its customers – over time.

C.  Summary and Conclusions

In summary, the most successful solution providers in 2017 and beyond will be those that:

  • Understand the unique language, terminology and “buzz words” that characterize the segment;
  • Understand both the current and evolving needs of the segment, in general; and for each of their individual customers and prospects, in particular;
  • Are organized and structured to address the unique needs of the segment (i.e., through a segment-specific sales approach, supported by segment-specific sales, marketing and promotional collateral;
  • Are prepared to grow along with, or ahead of, the overall growth of the prospect;
  • Are prepared to “partner” with their customers in order to ensure that all of their services goals and objectives are being met.

The most successful FSM solution providers will be those that can work as partners with their customers – and that partnership must be developed from the initial dealings with the prospect, and carried out through all successive interactions during the course of the entire sales cycle.

The main key to success, however, will be the ability to show your prospects that you truly understand their needs and requirements (i.e., you “get” it), and that you can offer an FSM solution that supports all of their goals, objectives, customer satisfaction and retention, and financial targets.

[To download a complimentary printed version of the full Analysts Take paper (i.e., including the six (6) guidelines for organizing to meet customers’ services needs, requirements, preferences and expectations), please click on the following link: @@@ How to Sell Services to Individual Industry Segments (Draft-17-06-23-01.]