As an equipment manufacturer, you need to continually improve your service delivery capability and align your service offers with customer expectations. This will enable you to defend and grow a key company revenue stream.
In this post, I’ll share 10 things that we know about equipment manufacturers and their customers gleaned from the most comprehensive field service benchmark dataset in the industry.
You can’t renew, cross-sell, or upsell a dissatisfied customer. I know what you’re thinking—no kidding Sherlock! However, I receive a large number of inquiries from TSIA’s Field Services members that follow the themes of determining the value of improving customer satisfaction, whether or not to incent customer satisfaction, and, yes, whether or not to measure customer satisfaction. This brings us to the first fact we know, based on the results from TSIA’s field services benchmark research:
Resolution time is what really matters. Traditional support and maintenance service offers have historically revolved around response time. This is because field service teams didn’t want to be held accountable for Level 1 support, spare parts availability, poor incident triage, etc. When the ticket gets assigned to a technician, the mentality is to start the clock and they’ll get there within the time allotted.
However, response time commitments are changing to resolution time commitments, and ultimately to equipment uptime and availability. This brings us to additional facts the data shows about equipment manufacturers:
You must do what you said you were going to do. Compliance with Service Level Agreements (SLA) is a relative standard of performance—this means that no matter the service level metric in the contract, customers expect you to meet that metric. And if you don’t, they will not renew.
To get their point across, customers are now insisting upon penalty clauses for non-performance. Note that for this correlation, the SLA is equipment uptime, not response time.
Customers love you, they just don’t want to see you for a while. After an incident is resolved, there is a call-back window where customers do not expect you to come back to service the same piece of equipment. It doesn’t matter if its for the same or a different problem, the longer the call-back window and the lower the number of call-back incidents, the higher the customer satisfaction.
Customers want, and need, your help to succeed. Technological advancements and an increase in product features have dramatically increased the complexity of the equipment. To the extent your organization can help customers fully utilize and get the best out of your product, you will be rewarded with more business.
The good news is that the lowest service delivery cost also results in the best customer experience. In order to improve serviceability by incorporating embedded diagnostics and connectivity, there needs to be close collaboration between the Services and Product Development teams. This will require tradeoffs between product feature sets vs. serviceability vs. IoT and connectivity.
During Field Service Power Hour session at our upcoming Technology & Services World conference in Las Vegas, I’ll go into more detail on the top 10 facts and how to deliver better service in the following areas:
We’ll also have other relevant content in our Field Services track, with sessions like:
Be sure to register today so you don’t miss out on this valuable insight. I hope to see you there!
Post Date: September 10, 2019
Vele Galovski is vice president of research, Field Services, for TSIA. Using his nearly 30 years of industry experience, he has consistently helped companies both large and small drive double-digit top-line growth with a proven retain, gain, and grow strategy. Vele has also written a book, The Perpetual Innovation Machine, which describes a holistic approach to management based on ambitious goal setting, data driven analysis, skillful prioritization, inspiring leadership, and the lost art of employee engagement.
The Technology Services Industry Association (TSIA) is dedicated to helping technology and services organizations large and small grow and advance in the technology industry. Find out how you can achieve success, too. Call us at (858) 674-5491 or we can call you.