Field service automation reveals hidden revenue opportunities for top line growth
LONDON, UK – 2 December 2014 – Service departments are shaking off their historical image as expensive cost overheads as organisations find innovative new ways of transforming service departments into revenue generating profit centres, according to leading field service management specialist, ServiceMax.
“Service used to be all about being a necessary evil. You had to provide it and you tried to minimise the cost of it. It’s now seen as a source of additional revenue,” said Spencer Earp, Vice President EMEA for ServiceMax. “On average companies are increasing their productivity through mobile by twenty six per cent, increasing customer satisfaction by fifteen per cent, and gaining a twenty two per cent revenue boost by automating their field service management. Add to this the commercial insight into addressable revenue-generating opportunities and the resulting top line growth, and suddenly service becomes a much more important part of the business plan.”
A recent World Business Research survey found that sixty six per cent of companies view their service organisations as profit centres rather than cost centres. Forty four per cent of company executives view their field engineers as qualified lead generators, and more than a quarter of them are already incentivising their field service technicians to sell. With average service margins nearly eleven per cent higher than equipment margins, CEOs are looking for better ways of maximisng their service revenue opportunities.
By empowering and mobilising service technicians with cloud-based, real time tools in the field they can do work-orders, request parts, schedule and be scheduled, look up manuals, take payments, renew maintenance agreements, use social channels to communicate problems swiftly and effectively and upsell and cross sell products and solutions where appropriate.
All of this is done on a smartphone or tablet device. All the data is real-time. Technicians also have the option of working off-line and then synching up to reduce dead time administration at the end of a job. Customer relationship management systems pick up the information and ensure that the customer receives future communications, advice, updates and education, while the data delivers new customer and business insights.
“Whilst, we are not in a recession any more, companies are still cautious and want to make everything last longer,” added Earp. “This has two results. As a company, you’re not going to see huge upswings in product sales, but you can grow by putting together innovative services programs. It’s a recession-proof source of revenue growth. In contrast, customers are not as willing to upgrade to the new versions of the products they have as quickly as they did before, but they are open to a value-add service program that helps them run more efficiently. This is one of the emerging areas - the servitisation of companies – that are coming on top of the cloud, mobile devices such as smart phones and tablets, and the industrial internet with the focus on devices as sources of data.”
There are more than twenty million field service technicians around the globe, yet today there’s no standard technology for managing the way companies of all types and stripes empower them to truly delight their customers in the field. ServiceMax is rethinking field service and delivering on the promise of cloud and mobile software, powering a new era of field service experiences for their customers’ customers. The impact of ServiceMax is simple: lower costs, greater efficiency, and happier customers; all while increasing revenue. ServiceMax has helped customers on average increase productivity through mobile by 26 per cent, service revenue by 22 per cent and customer satisfaction by 15 per cent. ServiceMax customers include large enterprises such as Tyco, Coca-Cola Enterprises, and Elekta, and smaller businesses like McKinley Equipment and Kinetico. Based in Pleasanton, California, they are a company of innovators, thinkers and doers who care passionately about changing the world of field service. To learn more, please visit www.servicemax.com
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