Aly Pinder, Program Director for Service Innovation & Connected Products at IDC, discusses how knowledge transfer can be seamless across service organizations.
Connected Customer Experience
Optimize Your Service Contract Operations: Increase Your Service Contract Revenue
A statistic to overcome: Companies realize less than 15% of potential service contract revenue.
Overall, unachieved revenue results from businesses not offering service programs beyond standard product warranties. Even when service programs are offered, the attach rates remain low as some retailers and channel partners may not focus on service sales, or customers fail to understand the value of these programs.
This month's webinar, hosted by Mize, Inc., highlighted the top priorities for manufacturers and services organizations driving investments around service innovation. Improving the customer experience, growing revenue, and innovation through knowledge management figured prominently.
Our presenters, including Aly Pinder, Program Director for Service Innovation & Connected Products at IDC, Stuart Ransom, Chief Revenue Officer of Mize and Michael Blumberg, Chief Marketing Officer of Mize, led the discussion of how end-to-end service excellence enables the framework to meet the challenges faced today and in the future.
It’s every manufacturer’s challenge: how to build a forever transaction with every customer you’ll ever have.
Initial product sales are your primary focus, and rightly so – they provide immediate net new revenue, cash flow and market share growth. Though when you turn a single-event sale into a subscription model, the revenue scope shifts to an ongoing relationship, facilitating a forever transaction, and often a customer for life.
Seemingly every company touts a customer-first focus. Though for manufacturers, an accurate admission is that their concentration is squarely on their products. It’s a common trap: manufacturers have people and processed that primarily think from the product vantage, with systems and technology infrastructure that keeps this mindset prominent.
Is this a profitable way forward?
Last week, Mize hosted a webinar titled “Benchmarks to Optimize & Maximize Service Contract Sales”. The webinar presented the results of study conducted among service executives and warranty professionals who are involved in marketing and selling service contracts and extended warranty (SC/EW) programs. Representatives of 96 companies participated, providing an elusive look into how they’re configuring their contracts, sales and marketing approaches, results realized and planning for future expansion of this customer-connecting, revenue-generating profit center.