As the first quarter comes to a close, Mize reminds us of the importance in maintaining a service-centered culture in our business.
During last week’s webinar, entitled “Winning Service Strategies to Unlock the Value of the Install Base,” speakers Michael Blumberg and Tom Schlick taught us how to enable service revenue growth by shifting to a customer-centric mindset.
Blumberg, CMO of Mize, brings with him a diverse industry experience in Aftermarket Services while Schlick, author of Jumpstart Your Service Revolution, shares with us over 30 years of experience as a customer-focused business operations executive. Together, they explain why and how to unlock the value of the existing install base.
This blog gives readers an overview of key points from the webinar as well as download access.
Before we make any moves towards transformational change regarding our company’s service strategies, we must first understand why?
First, Blumberg tells us that aftermarket service revenues represent a large, untapped market opportunity $100 billion dollars large to be exact! This is because a customer’s lifetime value equals about 10 times the amount of their product purchase price. Not only that, the aftermarket service industry is expected to grow 15-20% per year over the next decade.
Second, research shows that service-oriented businesses make 2 times more in gross profit margins than product-oriented businesses do. However, most companies are not capturing these aftermarket opportunities for they do not have the proper metrics or service strategies in place.
Fortunately, Schlick shares 5 service strategies we can follow to unlock the value of the install base:
1. Don’t get lost
Developing a customer centric, service-centeredbusiness requires transformational change. This may require a company to change its inherent DNA—from the way leader’s think all the way down to the employee experience—so it’s important to have strong leaders who have a clear vision for service.
2. Build customer loyalty
According to the numbers, it is 5-25 times more expensive to acquire new customers than to retain existing ones. Additionally, 2/3 of all customers spend more with your company through aftermarket activities like cross-sell and up-sell of extended warranties, spare parts, training programs, accessories, etc.. Therefore, by offering various service programs to customers, companies can build a loyal customer base.
3. Create a customer-centric and service-centric culture
From top to bottom, every person in the company must create, nurture, and maintain a mindset which aims to serve the customer. When every person thinks this way, companies foster a service-centric culture.
4. Listen to front-line service techs
The most important information your company must know is what the customer needs and wants. Who better understands these factors than the field-service techs who interact with them on a daily basis? Because techs interact with customers 5-15 times more than sales teams, they possess deep insights into customer needs. Therefore, companies should deeply consider their input.
5. Have a passionate vision for service and communicate it clearly
Leaders must agree that service is strategically important. Then, it must be translated throughout every approach in the company. In this way, service becomes a “team sport” where everyone works towards the common goal of serving the customer. The grand prize is unlocking the value of the install base and increasing service revenues.
Now that you understand why and how to unlock value in the install base, you need a customer-centric solution to manage aftermarket services.
Mize provides the platform companies need to optimize service management and maximize customer lifetime value.
Our Connected Customer Experience Platform makes it easy to manage and sell tailored solutions to Customers, such as Extended Warranty or Service Programs, Maintenance Agreements, Service Parts, and Attachments or Accessories.
By offering configurable and flexible programs, Mize enhances the buying experience which leads to increased attachment rates and service revenues.
So, where is your company when it comes to unlocking value?
To learn more about winning service strategies, Mize invites you to:
- View and Download on-demand Webinar recording and presentation at https://bit.ly/2GQXcmN
- Schedule a free consultation at https://bit.ly/2tDoGUo
- Visit www.FieldServiceInsights.com, an online publication dedicated to helping service professionals gain access to the latest and greatest strategies, tools, and perspectives on service management so that they can increase sales, boost profits, and delight their customers
- Connect with Mize at the 15th annual Warranty Chain Management Conference in Orlando, FL from March 12-14, 2019