Global Field Service Management (FSM) Trends for 2019/2020 – and Beyond!

The results of Strategies For GrowthSM‘s (SFGSM) 2019 Field Service Management (FSM) Tracking Survey reveal a healthy – and expanding – global services market that appears to have clearly rebounded from the economic downturns and upheavals experienced over the previous 10 years or so (i.e., since the 2008 economic bust). In fact, the global FSM market is now poised to make significant strides forward in terms of growth, technology adoption and the integration of those technologies into existing (and improved) services operating plans and processes.

However, there are still many obstacles along the way, and those Field Services Organizations (FSOs) that are not prepared to adapt to the “new” way of running a services operation will be ill-prepared to compete on a head-to-head basis with those that are. For example, the top future challenges cited by survey respondents as likely having the greatest impact on their ability to acquire and/or integrate new technologies into their existing field service operations may be summarized as follows:

  • 43%  Return-on-Investment (ROI) on the acquisition of new technology
  • 34%  Identifying all of the required functionality for the organization
  • 30%  Cost of new technology
  • 28%  Potential disruption from new technology implementation and burn-in
  • 27%  Obtaining management “buy-in” for new technology acquisition

Other challenges, such as selecting the most effective FSM solution (19%) and integrating new technologies into existing FSM solution platforms (16%) are also cited as rounding out the top challenges facing the global FSO base.

The good news is that there are also significant and distinct opportunities, or benefits, that can be realized by FSOs, regardless of type, size or coverage, through the acquisition and integration of these new technologies. For many FSOs, these may include:

  • 39%  Ability to run a more efficient field service operation by eliminating silos, etc.
  • 37%  Improving customer satisfaction
  • 36%  Ability to provide customers with an end-to-end engagement relationship
  • 27%  Establishing (or strengthening) a competitive advantage
  • 27%  Improving field technician utilization and productivity
  • 25%  Reducing Total Cost of Operations (TCO)

But these opportunities and benefits do not automatically produce themselves – there needs to be a formal plan for attaining these goals, and many of the leading FSOs already seem to know how to go about making it happen.

The 2019 survey results also reveal that more than two-thirds (71%) of global FSOs currently run their services operations as profit centers, rather than as cost centers. This percent represents an increase from roughly 66% only three years earlier, but more than 10 percentage points above roughly a decade ago. In fact, the percent increases to 74% for those FSOs attaining 90% or greater customer satisfaction, and up to 81% for Best Practices FSOs that also achieve 30% or greater services profitability.

As we move through the uncharted waters of 2019, 2020 and beyond, the future state of the global Field Service Management (FSM) market will depend largely on which strategic actions FSOs plan to take in the ensuing 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 an excellent place to start!

The 2019 survey results reveal that the top drivers cited as being most influential on the future success of FSOs may be categorized into three main areas:

  1. Need to improve service workforce utilization, productivity and process efficiencies
  2. Meeting (or exceeding) customer demand for quicker response and improved asset availability
  3. Internal mandate to drive increased service profitability and revenues

However, once the key market drivers are firmly identified, FSOs need to create – and implement – the most effective strategic planning actions to address them head-on. As identified in SFGSM‘s 2019 survey, the most commonly implemented strategic actions, currently, are:

  • 47%  Develop and/or improve KPIs used to measure field service performance
  • 43%  Invest in mobile tools to support field technicians
  • 38%  Automate existing manual field service processes and activities
  • 34%  Integrate new technologies into existing field service operations

The question then arises: What can your FSO realize from aggressively addressing each of these challenges and opportunities head-on, recognizing the key market drivers, and taking the strategic (and tactical) actions to take the organization to the next level?

The answer is simple! The average FSO is currently attaining 37% services profitability and 84% customer satisfaction (although 26% are not even attaining 20% profitability, and 20% are not attaining 80% satisfaction). Therefore, while the opportunity is there, not all FSOs have their operations in order to aspire to the next levels of Best Practices.

So, … if your organization is not currently attaining desired levels of profitability and satisfaction – or even worse, finds itself among those not even attaining lower levels of performance – now would be the perfect time to consider acquiring a Field Service Management (FSM) (or a Connected Field Service, or CFS) solution that can help it to attain these loftier levels, without losing any more ground to the industry leaders who have already taken the appropriate actions.

[BTW – Have you already taken SFG℠‘s 2019 Servitization Journey Benchmark Survey? If yes, then, thank you! If no, please accept our invitation to take the survey by clicking on the following Weblink: https://www.surveymonkey.com/r/SFGServ19. Thanks!]

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Matching Your Services to the Customer’s Total Service and Support Needs

The customer’s need for basic product service and support is quite simple; essentially, when their equipment is down, and they need it back up and running as soon as possible. You may typically consider this as being the customer’s “core” need for basic systems and equipment service and support.

In most cases this will involve a simple, rather than complex, repair process; typically the kind of repair that the service technician has made countless times, over and over again. For repeat customers, the service technician will already be familiar with the equipment, along with its respective service history, as well as having some insight with respect to how the customer actually uses the equipment on a day-to-day basis. He or she will probably also have all the documentation and tools they need to make the repair and, probably, all of the necessary parts as well.

For most customers, this will be all they need – plain and simple. However, there will always be the chance for exceptions, and you should be prepared to address them as quickly as possible. Some examples include cases where the customer believes that what they are asking for is “basic” equipment service and support, but it is really value-added, or “over and above the call of duty” support.

For example, once the field technician arrives on-site, some customers may ask it to perform the next scheduled preventive maintenance at the same time since it was already scheduled for later in the week. While this may seem like a reasonable request from the customer’s perspective, it could possibly wreak havoc with the day’s service call schedule and, if no additional time is available, cannot easily be done. At times like this, the service technician will typically check in with its dispatcher to see whether performing an impromptu PM call is even feasible.

However, in most cases, all that is typically required in cases such as these is to inform the customer that the exclusive goal for this particular visit is to get the equipment up and running as quickly as possible, and that their scheduled preventive maintenance can best be accomplished at its pre-designated time.

While the service technician may have a clear understanding of the difference between “basic” and “value-added” equipment service and support, it cannot always assume that the customer will share the same understanding. It all comes down, ultimately, to the basic understanding of the difference between customers’ wants and needs, and the service technician’s ability to manage them appropriately.

By understanding the difference between the customers’ various needs and wants, and handling them accordingly, the service technician will already be far along the road toward matching the company’s services to the customer’s total needs. There is generally a big difference between customers’ “basic” and “value-added” product service and support needs; however, we may define their “total” needs as essentially encompassing everything they want, need, and expect to receive from their services provider, in general – and their field technician, in particular.

For example, the customer’s total needs may be nothing more than the coupling of their basic and value-added needs, all delivered to them in a timely, skilled, courteous, and professional manner. As such, the service technician’s performance at each of these levels of customer service becomes very critical. For example, if the customer perceives that the technician is unable to satisfactorily deliver even their most “basic” equipment service and support needs, they will be even less likely to believe that it can meet their “value-added” needs. Compounding the issue would be their perception that the field technician can’t even comport itself in a professional or courteous manner.

Ultimately, customers will be depending on their field technicians to not only provide the physical repair of their installed equipment, but to also serve as a technical adviser, trainer, applications specialist, service call scheduler, customer service representative, and primary go-to person for general inquiries, new product information, parts ordering, and anything else they can think of. Again, while it is not necessarily the technician’s responsibility to serve in all of these roles, they should at least be prepared to serve as a “channel” between the customer and everyone else within the organization who actually has these individual responsibilities.

In this way, the service technician can also position itself in the minds of its customers as someone who is “personally” responsible for supporting their “total” service and support needs, even if all they are doing is supporting their equipment on-site, and acting as an intermediary between and among the other various departments within the company’s service and sales organizations.

It is important to remember that even if the service technician is doing everything it is supposed to be doing within their specific service responsibility, the customer’s needs will generally always be greater than services alone, and they will continually be counted on to point them in the right direction, make the appropriate recommendations, lead them to the right people within the sales or other services organizations, and generally support them in all of their “total” service and support needs.

Maintaining Satisfactory Customer Service in an Outsourced Environment

[This article was originally published in Field Service News on January 22, 2019]

As customers become more sophisticated, the market more complicated, the economy more volatile, and the services community more demanding, it is also becoming more difficult to manage all customer service-related activities in-house. As a result, many businesses have turned to outsourcing in order to ensure that they have the required staffing and resources to get the total job done.

While some businesses may outsource only in non-core competency areas such as accounting and payroll, secretarial and clerical, or even telesales, others may outsource entire blocks of their core business activities to firms specialising in distinct areas such as field service, technical support, customer service, sales management, manufacturing and production, human resources, quality control, etc.

However, whether the organisation’s customer service functions are staffed by full-time company employees, part-time support personnel, outsourced agencies or personnel, or any combination thereof, one thing remains certain; the company’s customers and prospects must receive consistently high levels of customer service and support, regardless of whose personnel they happen to be dealing with at any given moment.

Most managers agree that the key ingredient for success in running a services business, whether it is run exclusively by an organisation’s own full-time employees, or supplemented in part by outside personnel, outsource agencies or other third parties, is to have all of the workers that represent the business in the marketplace put on a cohesive and consistent front when they deal with customers and prospects. It is important to remember that customers will not care what type of employee representing your company was rude to them on the telephone, or did not provide them with the desired level of customer service – all they will remember is that your business failed to get the job done.

There are many good reasons for why a services organisation might consider outsourcing; but before entering into any specific outsourcing agreement, you should first prepare yourself, and your employees, for the most effective way to manage this complementary workforce. We suggest six basic recommended guidelines:

  1. Train your outsourced personnel as if they were your own employees. Make sure they understand the products and services you sell, the markets you sell to, and the way you normally conduct business. If your business involves dealing with highly demanding customers such as hospitals, banks or aerospace, etc., make sure they share the same “sense of urgency” that your own employees have when they deal with these types of customers.
  2. Take any outsourced customer contact workers on a short “field trip” to show them how your customer support center works and, if direct customer contacts will eventually be made in the field, take them along on a few customer calls first to show them the way you normally treat your customers.
  3. Provide the manager of the outsourced operation with a fail-safe “back door” to a full-time manager at your company, even at the C-level, if necessary. Let the manager know that he/she is not in it alone when help is needed.
  4. Get daily reports in a standard reporting format (e.g., problem or exception reports) every morning to ensure that everything is in order, and that no special problems are developing.
  5. Give your outsourced employees samples of your company’s products or other items, product pictures or services marketing brochures. You may also want to give them some small gifts with your company’s logo or name on them, such as T-shirts, mugs, pens, desk calendars, a picture frame, etc. This might be especially helpful in dealing with an outsourced night crew or other off-shift workers who would otherwise have no real contact with your full-time company personnel. Some businesses arrange for an Open House lunch or reception for their outsourced personnel for the purpose of having them meet the full-time staff.
  6. Problems should be confronted immediately, head on, with the outsource manager. When your own managers are faced with a problem, they typically know exactly what to do – they have been there before. However, the same problems may be new to your outsource managers, and they may need some immediate help from your own management.

Outsourcing is basically a “partnership” designed to deliver quality equal to or greater than that which you yourself would provide. We have found that too often these agreements are handled more as a “’vendor” relationship, rather than as a partnership, even to the point where the in-house person responsible is often referred to as the “Vendor Manager.” Sometimes, simple things like this set the wrong tone right from the start – and things can easily go downhill from there. It is crucially important to create an atmosphere whereby your partners feel they are part of your company’s service delivery infrastructure, and not just an add-on.

Treating outsource vendors and their employees in the manner described through these six suggestions is the first step to creating a win/win alliance. However, it is typically the attitude of the key people that often makes the difference between success and failure in any relationship. By following these six suggestions, a services organisation can maximise its chances for cultivating an environment that would allow for the attainment of desired levels of customer service and satisfaction.

Invitation to Register for Two Webinars Covering the U.S./Canada & UK/Europe FSM Markets

To All Field Service Management (FSM) Professionals:

We invite you to register for our two complimentary Webinars on Thursday, February 7th – less than one week from today!
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  • Webinar #1*: UK/Europe Still Lags Behind the U.S. with Respect to FSM PerformanceThursday, 7 February at 13:30 GMT (8:30 am ET)
  • Webinar #2*: “The State of Field Service Management (FSM) in 2019 – and Beyond”; Thursday, February 7, at 11:30 am ET (16:30 GMT)

Click here to register for one, or both, Webinars

Based on the results of the 2018 Strategies for Growth℠ FSM Benchmark Tracking Update Survey, here are some of the key Market Drivers that will be revealed:

  • A majority of global Field Services Organizations (FSOs) presently manage their service operations as a profit center (60% for UK/Europe, and 55% for the U.S./Canada)
  • A majority of global FSOs are currently using CRM and Contract Management apps to drive their services business
  • The average services profitability realized by U.S./Canada FSOs is 32%, compared to 36% for UK/Europe FSOsx

[BTW – If you haven’t taken it yet, the survey link for SFG℠’s  2019 Field Service Management Tracking Survey is: 

Thank you in advance for your participation. Hope to see you there!
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Bill

Using Service Lifecycle Management (SLM) to Support Your Customers While You’re Servicing Their Equipment

[Before you read our latest Blog, why not spend 15 minutes or less taking our latest Field Service Management (FSM) Tracking Survey? This is our fifth FSM Survey since 2011, and we would love to share the results with you once we’re finished with the data processing and analysis – sometime in late March! The survey link is: https://www.surveymonkey.com/r/2019_FSM. And, oh yeah, after you finish, please don’t forget to read our Blog!. Thanks, Bill] 

Every day you deal with a multitude of customers who vary by type, size, installed base, usage, personality and everything else that ultimately differentiates one customer from another. However, one thing always remains constant – their business systems and equipment are critically Important to their day-to-day business operations. Despite this common thread that runs through virtually all of the customers you support, it is still important to recognize that each customer account will likely be different in terms of:

  • The various types, brands, models and numbers of units they have installed at their respective sites;
  • The ages of the individual units that are covered under their various Service Level Agreements (SLAs), or supported via a Time & Materials (T&M) basis;
  • The usage patterns of the equipment at their individual locations (i.e., continuous intermittent use; single vs.multiple shifts; simple vs.complex multifunctional peripheral applications; and so on);
  • The volume, capacity or throughput they regularly execute; and
  • Many other unique and/or specific differentiators.

For some of your customers, their equipment is an integral component of what they do on a day-to-day basis. Customers in all industry segments, whether it be legal, financial, medical, real estate, government, or other highly-demanding markets, will tell you that their systems and equipment are essential to their business operations, and that when their equipment is down, their production is severely affected. For some, even a small piece of connected equipment may be the only means they have for providing their customers with a receipt, order confirmation, or other important transaction-generated documents. In fact, for many in the latter category, their reliance on the equipment you support may be even more critical to them (at least on a relative basis).

Regardless of the specific industry market segment or type of customer, there will always be a basic level of reliance on the business systems and equipment they have installed at their facility. In addition, you will find that your customers will also be relying heavily on your organization to ensure that their equipment is always up and running as required – and as expected. As such, it is important to recognize that in the customer’s mind, if the equipment is not working optimally – regardless of the technology that may have been built into it – it is worthless.

Since there is just so much that the customer is either inclined or permitted to do in order to get the equipment back in working order following a failure, in most cases, your field technicians will be the sole entities that they can count on to make that happen (that is, aside from remote monitoring and diagnostics, etc.). Accordingly, they will need to approach the servicing and support of the equipment with a great deal of professionalism and responsibility. Customers usually do not care whether the cause of an equipment problem is due to a hardware or software failure; a paper jam; or whether it was the unit’s fault, their fault, or nobody’s fault in particular. All they know is that when they needed to use the equipment, it simply did not work.

This is typically where the organization’s field technicians come into the picture. In many cases, they represent the only “real” physical manifestation of the service and support that keeps their equipment up and running – or at the very least, they may represent their first line of service and support defense. Your customers may rely heavily on the equipment itself to support their day-to-day business operations; but they rely even more on your organization and your field technicians to ensure that the equipment can continually do what it is supposed to do.

This is a unique area where most services organizations – and their dealers and distributors – can use some help! The good news is that there is a Service Lifecycle Management (SLM) software solution available for users in every industry, size and geographic coverage segment. The implementation of an SLM solution can provide a comprehensive set of integrated business solutions that empower strategic initiatives while driving tactical execution.

Companies that install, repair, and maintain business systems and equipment can increase their competitive advantage, grow top-line revenue, and bolster bottom-line profitability through the use of an effective SLM solution. Among the basic features and benefits of SLM functionality for a typical Field Services Organization (FSO) may best be summarized as follows:

  • Comprehensive Contract and Service Level Management
  • Service and Sales Integration
  • Increased Help Desk/Contact Center Effectiveness
  • Field Service Efficiencies

Comprehensive Contract and Service Level Management

  • Through SLM, customer contracts and Service Level Agreements (SLAs) can be structured in ways that best fit the business, as well as the businesses of their respective customers. Key items such as maintenance and repair service; preventative (or predictive) maintenance; remote monitoring, diagnostics and repair; and draw-down contracts can all be easily established and managed. As such, the organization’s services management can be assured that all of the obligations of its customers’ SLAs are well-planned for – and met – and that all of its mission-critical commitments to the customer are being honored.

In this way, services revenues are maximized, and there is little risk of experiencing lost revenues. Company representatives can quickly and easily verify both the customer and vendor entitlements, thereby eliminating any costs that might otherwise be associated with providing customers with parts, consumables or services they are not entitled to under the terms and conditions of any existing warranties or contracts. This also ensures that any and all dealer claims will be quickly processed.

Service and Sales Integration

  • The Service and Sales Integration functionality of an SLM software suite can be relied on to enable the manufacturer’s and dealer organizations’ field service technicians and contact center personnel to more thoroughly service the company’s accounts, while also driving increased revenue in the process. By placing intuitive, easy-to-use sales tools into the hands of the appropriate service employees, the number of new opportunities to up-sell and cross-sell equipment, parts and consumables to existing customers will increase multifold.

The organization’s service technicians are out in the field every day talking to, and interfacing with, its customers; why not also provide them with the tools and resources they can use to close – or at least open – additional sales opportunities within this virtually captive customer base!

Increased Help Desk/Contact Center Effectiveness

  • SLM can also allow the organization to increase its call handling efficiencies, especially in the areas of first-call resolution and call avoidance rates. This will ultimately result in the lowering of internal service costs, and commensurate improvements in existing levels of customer satisfaction and retention. In many ways, business systems and equipment services have been somewhat commoditized over the years, and the only way that one services organization (or its dealers) can establishment a competitive advantage over another is to differentiate (i.e., improve) the way in which they support the customer base after the initial sale.

The best way to do this is to provide superior levels of help desk and call center support empowered by a robust SLM capability. By arming your call center personnel with accurate and up-to-date customer and installed equipment base information – be it entitlement, configuration, or marketing campaign data – the organization will be able to greatly increase its ability to sell, cross-sell, and upsell its entire portfolio of products, services, parts and consumables.

Field Service Efficiencies

  • Leveraging the field service automation tools inherent in the SLM software allows the organization to optimize its field force capacity utilization, resulting in significant operational efficiencies as field technicians quickly become empowered to increase revenue generation and recovery. By streamlining and managing the invoice process, billing cycles will be lowered, as will other key areas, such as Day Sales Outstanding (DSO), etc.

These improvements will almost immediately go directly to the bottom line as you will be able to manage your cash flow and receivables much more effectively. Similarly, by streamlining and managing your service inventories (such as trunk stock) more effectively, you will also be able to realize significant inventory cost reductions.

What many OEMs and dealer organizations seek is an end-to-end, enterprise-wide SLM solution that addresses the complete equipment/service lifecycle, from lead generation and sales quotation, to service and billing, through asset retirement. They are looking for a solution that both integrates and optimizes the critical business processes that all services organizations have to face with respect to providing their customers with the levels of service and support they require.

Services organizations that provide their customers with any combination of products, parts, services and consumables must be able to not only fix the customers’ equipment, but to fix the customer as well; however, the ability to do so may vary greatly from one organization to another. However, the most successful organizations will ultimately be the ones that have the right mix of management, personnel, tools, resources and solutions (i.e., Service Lifecycle Management), all working together to provide their customers with the levels of service and support they require – and expect!

The Benefits of SLM May Be Transformative For Your Services Organization!

Managing today’s service enterprise means planning and coordinating service on a global scale. It means delighting your customers – and your shareholders. And it calls for new technologies and business practices designed specifically to solve the Service Lifecycle Management (SLM) challenge. Based on these reasons, we believe that any services organization that strives to provide “best-in-class” field service in support of its customers must first implement a robust SLM solution in order to achieve its objectives.

While at first glance, it may appear that there are many alternative SLM solutions available; however, not all of them are designed with the same levels of functionality, applications, and comprehensiveness that the SLM market requires – i.e., the key ingredients for success. Simply listing and describing the potential benefits of SLM constitutes only half of the battle – prospective users will still need to “sell” the concept of SLM to management in order to gain their “buy-in”.

The benefits of implementing an SLM solution are many – and are fairly universal (that is, applicable for virtually every services organization, regardless of type, size, or geography served). Users typically identify the following five areas of benefits as the most compelling talking points in selling the concept to management;

  1. Reduced Service Costs
  2. Streamlined Workflow
  3. Improved Service Levels
  4. Enhanced Quality and Growth
  5. Increased Customer Satisfaction
  1. Reduced Service Costs

Simply citing generic data regarding potential cost reductions does not generally entice management to look any further. In order to truly gain their attention, it must be specified exactly where the cost savings will be coming from – and to what extent (i.e., provide them with hard numbers). The good news is that a robust SLM solution can manifest quantifiable cost savings from several specific areas including:

  • Improved technician productivity
  • Improved Inventory/parts management
  • Optimized service delivery
  • Reduced time in the “service-to-cash” cycle

These areas of cost savings will very likely peak management’s interest – as well as entice them to ask for more detailed cost-saving information. For example:

Improved Technician Productivity

Through SLM, improvements in technician productivity can be gained in a variety of ways including:

  • Providing field technicians with real-time, direct access to customer service history, equipment repair records, product information, and inventory and parts availability enables them to provide the best service possible in the most cost-effective manner by eliminating time-consuming paperwork and forms preparation. As a result, the technicians are able to spend virtually all of their time (i.e., billable time) providing their customers with the highest levels of service and support, rather than simply collecting information and filling out forms.
  • Providing field technicians with specific service level information for each customer they serve so that they never unknowingly provide their customers with anything less – or more – than those levels of service that are specifically covered in their respective Service Level Agreements (SLAs).
  • Reducing overhead costs through the elimination of most paperwork, delays in communications, and the use of outdated systems that had previously required manual data entry or redundant data input.

Empowered by the data and information made available through SLM, field technicians can also serve as the “eyes and ears” of the organization with respect to identifying potential cross-selling or upselling opportunities for the company’s various products and services. For example, armed with recent service call activity data, a field technician can provide customers with fresh information on new product or service offerings that would ultimately benefit their operations in the long-run – while at the same time, identify potential leads for the company’s sales team. By doing so, customers will not only look at their field technician as “the person who gets things fixed”, but also as a “trusted advisor” – or the one they can count on to both fix their equipment, and provide them with recommendations for acquiring new products and/or upgrading their service level coverage.

However, while improved technician productivity is generally an eye-opener to management, there are still far more compelling cost benefits that can also be gained through an SLM solution.

Improved Inventory/Parts Management

SLM can also result in “hard” cost savings through improved inventory/parts management, as summarized below:

  • SLM enables services organizations to enhance their Equipment Asset Management (EAM) capabilities by allowing them to track specific component/equipment relationships, and monitor their inventories for the purpose of automatic replenishment. By developing – and following – tightly integrated inventory management processes, users are able to significantly reduce inventory size and related carrying costs.
  • SLM also provides technicians with access to real-time inventory information, as well as the ability to order parts directly from the field, rather than having to wait until they return to their home base, or gain access to a telephone connection. The ability to work with real-time parts/inventory information provides both the technicians – and the customers they serve – with immediate access to parts availability, while simultaneously updating inventory levels and triggering automatic replenishments.

Some organizations may also wish to implement “vendor managed inventory”, or “just-in-time” inventory replenishment models to support their customer base, so that once a needed part is identified, it can be ordered and shipped immediately from the vendor source to the customer site. These types of fast-track inventory models can be easily implemented and supported through SLM.

However, while improved inventory/parts management ultimately benefits both the services organization and the customers it serves, there are still additional cost savings benefits that management can literally “take to the bank”.

Optimized Service Delivery

Optimized service delivery may mean different things to different people; however, the most compelling benefits of service optimization delivered through SLM are typically realized in terms of:

  • Minimized time to dispatch (i.e., quicker response time);
  • Increased first-time fix rates (i.e., fewer repeat failures and/or service calls); and
  • The ability of customers to perform self-diagnosis and problem resolution viathe Internet.

Ultimately, each of these benefits is realized through improved response time, decreased need for follow-up/repeat calls, and less equipment downtime. Even so, there are still several other types of benefits that will also be of significant interest to company management.

  1. Streamlined Workflow

Technology is the tool that assists services organizations in making their operations run more efficiently – but it is only a tool. However, SLM leverages best-of-breed service management solutions with industry best practices already built-in, thereby allowing practitioners to benefit not only from the automation of their current processes, but also by allowing them to redefine and improve their processes to deliver optimum results. These results are typically manifested in the following ways:

Integrated Processes and Technologies

Only through SLM can the practitioner benefit from a completely integrated and seamless solution that provides an instant 360-degree web-based view of the entire business. For example, when Sales or Marketing require information from Service Operations to develop targeted promotions to maximize cross-sell and up-sell opportunities, a robust SLM solution can give them exactly what they want– when they want it. Similarly, when Service needs real-time customer information from the Contact Center prior to making a call, SLM makes that information readily available.

A unified and modular approach, based on open industry standards, protects the users’ existing IT investments, lowers their Total Cost of Ownership (TCO), and paves the way for the deployment of the appropriate SLM modules – as required – as the organization grows.

Improved and Streamlined Processes

The end result of successfully integrating the organization’s processes and technologies is improved and streamlined processes – in otherwords, running the organization more efficiently. These benefits are typically manifested in the following ways:

  • Through an automated call management system based on CTI, IVR, dynamic scheduling and dispatch, and closure capabilities, services organizations can rapidly improve and streamline their call management process, thereby significantly increasing customer satisfaction and retention.
  • With the ability to apply contract templates, initiate automatic contract renewals, and build structured workflow processes, users can maximize their contract processing, resulting in more predictable revenues and improved productivity.
  • The capability to track, monitor, and automate stock based upon user-defined rules, in conjunction with the ability to support multiple warehousing strategies, also leads to improved and streamlined stock management levels at reduced inventory levels (also resulting in reduced inventory costs).
  1. Improved Service Levels

There are basically two ways to look at SLM – (1) as a tool for lowering the cost of doing business, and (2) as a means for improving existing service performance. While the cost savings may be very real, SLM can also be a significant contributor to the overall improvement in the levels of service performance for the organization. Complete charge capture, and maximizing cross-selling and up-selling opportunities are just some of the ways that play to both perspectives on SLM.

Complete Charge Capture of Service Delivery

SLM enables the complete capture of all parameters involved in delivering service (e.g., parts, T&M, expenses, ancillary services, extended warranties, etc.) ensuring that no billable charges are ever lost or overlooked, and ultimately improving invoicing accuracy. Through SLM, as soon as the technician closes a call and captures the customer’s electronic signature, that data can instantly be transmitted to the central billing system, thereby significantly streamlining and compressing Days Sales Outstanding (DSO).

An SLM system can also serve a useful role in assisting organizations in improving future product (and service) designs by identifying any flaws in their existing products based on both aggregate and product-specific service history. What’s more, by continually tracking product service history over time, any new or emerging design flaws can be identified as a particular product line moves through its maturity cycle, or as a new product line is introduced.

Maximized Cross-Selling and Up-Selling Opportunities

Through the capability of leveraging a Web-based customer self-service portal in conjunction with a dynamic self-learning knowledgebase, users gain the ability to offer new products/services at every customer interaction, resulting in increased revenues without increasing costs. A state-of-the-art SLM solution that embeds intelligent automation along with a robust product information management repository can arm all of the employees in the field with first-rate cross-selling and up-selling capabilities by prompting/alerting them of any potential sales opportunities (e.g., contract/warranty expirations, aging equipment, ancillary accessories, add-ons, etc.) at the specific time of interaction with the customer. Past Strategies For GrowthSM, “Studies have shown that there is no better place to cross-sell or up-sell than at the specific point of customer interaction – and SLM is the only solution that provides field personnel with all of the tools they need to make it possible.

Ability to Leverage Service as a Competitive Advantage

Through SLM’s Business Intelligence (BI) capabilities, users can identify, monitor, and track opportunities to offer customized and global service agreements based upon each customer’s unique usage levels. By doing so, the customer benefits from having its service needs and requirements fully met, and the services organization can maximize its total revenues in the field. SLM also supports the services organization’s ability to deliver proactiverather than reactivepersonalized service – at an affordable price – empowering it to exceed customer expectations and generate repeat sales.

  1. Enhanced Quality and Growth

While most of the benefits described thus far focus primarily on transitioning from the past to the present, enhanced quality and growth clearly looks to the future of the organization – and this is where SLM excels. The three main components of these forward-thinking benefits may best be summarized as follows:

Ability to Deliver Consistent Service Globally

The most effective SLM solution is one that is truly global, able to support customers using all types of equipment, in all applications, and in all geographies by using the same database. As such, the SLM solution must be designed to implement common business processes on a single system worldwide with support for multiple currencies, operation centers, and price books – and be able to support global, regional, and local views of the service operation.Even if your organization does not presently operate on a global basis, your SLM solution must be ready to step up to the opportunity if it arises.

Modularity for Supporting Growth

An SLM solution must also be able to grow with the organization. Few services organizations actively plan to reduce their operations over time; however, with today’s economic and competitive pressures continually limiting available growth opportunities, services managers have to take advantage of every real opportunity that comes their way – and the best way to do this is through system modularity. For example, few systems today can support a global deployment through a single application.

As the service business grows, it will also likely require additional solutions to support that growth. A robust SLM solution will be able to support the business through the availability of specific modules that can be easily – and seamlessly – added as it undergoes growth, or change. Only a scalable SLM solution can offer the precise configuration and functionality that can enable a services organization to continue to support a growing number of users as it, itself, grows in size and capability.

Improved Quality and Reduced Costs

Through SLM, users are also able toidentify defective, outdated, or unnecessary parts, resulting in both enhanced quality of service delivery and reduced costs. More importantly, the most cost-effective spare parts can be easily identified and stocked, and any individual line items that may be adding unnecessary costs to operations can also be identified and flagged.

  1. Increased Customer Satisfaction

Historically, for some operations managers, customer satisfaction has been nothing more than an inexact science that defies accurate reporting, consumes a great deal of time and resources, and is immeasurable in terms of actual results. However, the vast majority of services managers in today’s marketplace recognize customer satisfaction for exactly what it is – an essential building block for long-term, profitable relationships that ultimately leads to customer loyalty and repeat business.

Numerous studies have also shown that acquiring a customer is a great deal more expensive than retaining an existing one. What’s more, the level of service a company offers may ultimately be the principal deciding factor between whether a customer becomes loyal to its vendor, or decides to switch to a competitive vendor, platform, or service. By utilizing SLM to anticipate customers’ needs and requirements, improve responsiveness, and deliver consistent service, services organizations can improve the way in which their customers perceive the quality of their service offerings – and this will go a long way in their ability to transform customer satisfaction into true customer loyalty.

The principal benefits of facilitating the transition from customer satisfaction to loyalty are summarized below:

Ability to Anticipate Customer Service Requirements

SLM provides users with easy-to-use functionality, an intelligent knowledgebase, and a comprehensive customer repository to track problems and potentially identify many other problems before they occur. With this valuable information at their fingertips, users can offer more efficient scheduling for preventive maintenance (or implement an IoT-powered Remote Diagnostics / Remote Monitoring platform), and minimize the need for on-site visits and repeat service calls, wherever possible. As a result, customer satisfaction is increased, and costly unscheduled service visits can be minimized.

By having real-time, anytime, anywhere access to customer information, repair histories, parts availability, and technical product specifications, field technicians will always be properly prepared and empowered to complete all of their work during the first visit to the customer site, thereby saving both the service provider and the customer time and money.

Improved Responsiveness to Customer Calls and Service Delivery

SLM empowers Contact Center and field personnel with visual alerts, automatic escalation, scripting, and question trees, so they are able to respond to customers’ inquiries quicker and more completely. Through SLM, they will also have a full range of corporate knowledge stores readily available to optimize the customer interaction process. In addition, the integrated, multi-channel inbound/outbound capabilities facilitated by SLM provide for unparalleled customer support in all areas, including placing and tracking an order, updating records, making payments, receiving remote support, and scheduling a service call. As a result, there will be significant improvements realized with respect to first call resolution, decreased call center times and costs, and the ability to deliver consistent – and consistently high – levels of service.

Making It Easier to Do Business – Making It More Profitable

In today’s increasingly fast-paced business environment, customers have very high expectations, and they will take no excuses for poor customer service. They expect fast, relevant, and accurate information from the companies they do business with, and they will accept nothing less. The self-service capabilities offered through SLM provide customers with all of the information they need – when they want it, anytime, anywhere. This, in turn, ultimately results in improved customer satisfaction and strengthened loyalty throughout the user’s customer base.

By implementing a state-of-the-art SLM solution, services organizations can positively impact all aspects of their business through improved invoicing accuracy, automated contract renewals, and the ability to offer customized service agreements – all of which are geared to improving their relationships with customers while simultaneously increasing revenues and reducing costs.

How to Make Your Field Service Management (FSM) Solution Rock!

[With a Little Help from My Friends in the Rock & Roll Hall of Fame]

[Reprinted from Field Service News. Enjoy!]

Whenever one of your service customers hollers “Help”, you not only need to respond quickly, you also need to Get It Right the First Time – because you certainly won’t want to waste the time and expense of having one of your field technicians Truckin’ to the customer site unnecessarily – and you also won’t want to have to Do It Again later! If you’re not careful, it will all be Wasted Time!

By the way, this is why many of the leading services organisations are incorporating Augmented Reality (AR) into their Field Service Management (FSM) solutions – because Every Picture Tells a Story, don’t it? With all of this “new” technology being integrated into FSM solutions supporting the global field services community, The Times They Are a Changin’, for sure!

For a majority of users, the decision as to which type and brand of equipment to acquire is based more on the quality of service that will be provided after the purchase, rather than on the acquisition of the piece of equipment itself. Plus, it’s not only based on Money, Money, Money –  it’s more often than not based on things including Promises, Honesty and A Matter of Trust!

However, once selected, after the services provider asks the user to “Take a Chance on Me”, it will need to, first, make sure that its new customer has a Peaceful Easy Feeling, and that it hasn’t spent a whole lot of Money for Nothing (or you could end up in Dire Straights)!

Further, whether the customer’s equipment is located in Allentown, or Katmandu, the services provider must be sure that there Ain’t No Mountain High Enough to keep it away from delivering the services that have been promised. If you cannot cover all of the geographic areas where your customers’ (and prospects’) equipment is located, you may end up with an unhappy customer in Massachusetts, requiring your field techs to work weekends on Tulsa Time, finding a suitable contractor in Sweet Home Alabama, being stuck in Lodi (again), authorizing a costly flight to Kokomo, Going to California yourself – or even worse – having to deal with a Panic in Detroit! One way or the other, you’ll never want to hear one of your Colorado customers tell you to “Get Out of Denver”!

Communications is also a critical component of any services relationship – and the last thing you will ever need to experience with your customers is a Communications Breakdown! Customers will want you to be their “Nights in White Satin”, consistently being able to provide them with what they want, “Any Way You Want It”, so they will always feel Glad All Over.

Customers hate it when they call their services provider and get No Reply! There’s a Fine Line between being only casually responsive and treating your customers with a full measure of Respect – and you don’t want to cross that line the wrong way, otherwise your customer will feel like “(I Can’t Get No) Satisfaction” and end up in Misery!

If you get your communications right with your customers, you’ll find that The Winner Takes It All (i.e., your services organization); but if you Try Too Hard, you might end up just Livin’ on a Prayer, waiting for another opportunity to make it up to them – and they may simply tell you, “Not a Second Time”! It’s also important to remember that even if your customers have already asked you 65 or 66 questions, you will still need to be prepared to answer Questions 67 and 68!

So, … if you consistently deliver the expected – and desired – levels of service to your customers, and your field technicians remain Cool, Calm and Collected with respect to managing their customer relationships, then you may be in it for The Long Run! If so, then Long May You Run (that is, in circles around your competitors)!

However, for every services organization that actually “gets it”, there are probably a dozen or so more that don’t! That’s why it is so important to make sure you properly train – and arm – your field techs (i.e., with mobile tools and accompany technology, etc.) with everything they need All Down the Line, so they can satisfy their customers consistently, and go home every day after their last call feeling Free as a Bird and ready to Rock and Roll All Nite!