Field Service is a Growth Market: Step 1 for Driving Field Service Revenue
Thanks to the TSIA’s report, The State of Field Services, we know that over 70 percent of field service organizations are struggling when it comes to creating profitable revenue growth.
While Glympse isn’t an analyst or research firm, we do work closely with a lot of customers in the field service industry every day. We’ve noticed one big barrier that prevents field service organizations from deploying strategies and programs that drive new revenue. That barrier is most often their mindset.
The TSIA research report reveals that 33 percent of these organizations still run as a cost center.
The problem: If you think like a cost center, operate like a cost center and measure success based on cost center efficiencies, how can you ever become a profit center? Quack, quack!
In our eBook, “Field Service Leaders: Stop Trying to Cut Costs and Start Focusing on Making Money,” we present a multi-step approach to get you thinking about how to realign your field teams around revenue generation.
Below is an excerpt from the eBook.
CHAPTER 1: Don’t expect different results if you keep doing the same thing
excerpted from “Field Service Leaders: Stop Trying to Cut Costs and Start Focusing on Making Money”
Jobs per day. First time fix. Wasted truck rolls. Rerolls. Then there’s mileage, efficient routing and service parts management. These are the metrics field service leaders strive to optimize every day, every hour. In an industry facing rising costs and customers expecting more, it’s no wonder executives are constantly seeking new and creative ways to reduce field service operations expenses.
More recently, best-in-class organizations have focused on driving better customer service around field service as a path to better margins. The connection to efficiencies: happier, more informed and less frazzled field service customers are less likely to cancel their contract or service, less likely to miss an appointment and less likely inundate customer support channels looking for answers or apologies. Customers benefit from a less stressful experience, and field and customer care teams complete work more efficiently.
Revenue is an important field service metric
Extending the happier customers logic to measure field service revenue, organizations have learned that informed customers who keep their appointments begin generating revenue immediately. Empowered customers with the flexibility to change a field service well in advance are less likely to churn and become lost revenue. Here, also, is where many early adopters are implementing new strategies that involve connecting the IoT, machine learning and predictive analytics to proactively identify and solve issues without a customer’s involvement – demonstrating value and streamlining their own operations simultaneously.
Many best-in-class organizations also connect customer-focused field service to customer loyalty and lifetime customer value and have focused transformation strategies on this approach. The common refrain: field service appointments are the only in-person interaction a customer has with the business and the experience they’ll most likely judge the entire brand on. If it’s a positive experience, they are more likely to recommend a brand to their friends (Net Promoter Score) and more likely to keep doing business with the company (higher CSAT leads to higher lifetime customer value). When it is time to reach out again – whether to seek support, buy more or extend/renew a service – that field service interaction is the one they’ll remember.
Data supports this approach. A NewVoiceMedia study that found that 49 percent of consumers switched vendors due to poor customer service. This number increases for 24- 34-year-olds, where 62 percent of consumers have switched to another business because of subpar customer service.
A path to more immediate revenue
While reducing costs and improving customer satisfaction both contribute to healthier margins and long-term revenue growth, many field service organizations can benefit from reassessing what role they can play as an active revenue generator for the business now. There are more direct paths for generating field service revenue. Strategies that focus solely on continually cutting costs and improving service levels as a means to improve profitability will only create expectations from ever-cheaper, ever more “delightful” service from management and customers alike. Unfortunately, this only perpetuates the vicious cycle of pressure to do more with less. It’s time for field service leaders to break that cycle and begin pursuing outcomes that will put them at the forefront of organizational growth.
To learn more about how to break that cycle, you’ll want to check out the next chapter of “Field Service Leaders: Stop Trying to Cut Costs and Start Focusing on Making Money.”