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BUILDING A CULTURE OF SERVICE EXCELLENCEJuly 2015
Aly Pinder, Senior Research Analyst,Service Management
2 2
Aly PinderSr. Research Analyst
Aberdeen Group
As a senior research analyst in the service management practice, Aly Pinder Jr. researches and explores how service and manufacturing executives utilize technology and implement best practices to improve post-sales service and support processes. Through practitioner benchmarking and analysis of
Aberdeen’s research database, he examines how Best-in-Class service organizations are reengineering their
service chains for improved performance and increased profitability
Nik ParraCTO
Resource POS
As Chief Technical Officer at Resource POS, Nik is responsible for propelling his company forward utilizing best in class technology. Nik headed the
implementation of FieldAware's field service management software in 2014.
3
TODAY’S AGENDA:
1. Aberdeen Research Methodology
2. New Generation of Service
3. Transform the Service Business
4. Benefits of Service Excellence
5. Steps to Optimize the Service Chain
6. Q&A
5
ABERDEEN’S RESEARCH METHODOLOGYPACE: END-USER INVESTIGATION
PRESSURES ACTIONS CAPABILITIES ENABLERS
External and internal forces that impact an organization’s market
position, competitiveness, or business operations.
The strategic approaches that an organization takes in response to industry pressures.
The business capabilities (organizational, process, knowledge management etc.) required to execute
corporate strategy.
The key technology solutions required to
support the organization’s business
practices.
What is causing organizations to think
differently?
What strategies are they using to respond to
pressures?
Why are they achieving greater success?
What technologies and services are enabling
them to succeed?
!
6
ABERDEEN MATURITY CLASS FRAMEWORKDEFINING THE BEST-IN-CLASS
Selected Performance Criteria (KPI)
Worker Productivity
Customer Satisfaction
Service Revenue
Total Respondents
- Top 20%
- Middle 50%
- Bottom 30%Respondents are scored individually across KPI
Best-in-Class
Industry Average
Laggard
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TOP CHALLENGES FACING SERVICE
35%
38%
44%
44%
52%
0% 20% 40% 60%
Aging workforce - Loss of knowledge and skill
Inability to integrate data captured in thefield with enterprise systems (i.e. ERP, CRM)
Executive mandate to cut costs in field service
Emerging technology trends (i.e., technologyadvancing too fast for us to keep up)
Executive mandate to increase field efficiency
Percentage of Respondents, n = 182
All Respondents
Source: Aberdeen Group, July 2015
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PREPARE FOR A NEW WAVE OF WORKERS
35%
38%
44%
44%
52%
0% 20% 40% 60%
Aging workforce - Loss of knowledge and skill
Inability to integrate data captured in thefield with enterprise systems (i.e. ERP, CRM)
Executive mandate to cut costs in field service
Emerging technology trends (i.e., technologyadvancing too fast for us to keep up)
Executive mandate to increase field efficiency
Percentage of Respondents, n = 182
All Respondents
Source: Aberdeen Group, July 2015
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NOWADAYS
33%
36%
37%
43%
52%
0% 10% 20% 30% 40% 50% 60%
Improve service-relatedprofitability
Drive service revenues
Improve customer retention /loyalty
Drive service resourceproductivity / utilization
Improve customersatisfaction
Percentage of Respondents, n = 219
All Respondents
Source: Aberdeen Group, July 2015
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INVEST IN KNOWLEDGE FOR THE SERVICE WORKER
Strategic Actions Best-in-Class Respondents
Invest in mobile tools to provide technicians with better access to information in the field
44%
Improve forecasting of and planning for future service demand
41%
Increase availability of service knowledge in order to diagnose and resolve service issues more quickly
41%
Source: Aberdeen Group, July 2015
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INCENT AND DEVELOP THE SERVICE WORKFORCE
48%
27%
17%
0%
10%
20%
30%
40%
50%
60%
Field technicians incented to identify cross-sell and up-sellopportunities (i.e. either direct sell or lead generation for
sales team)
Perc
enta
ge o
f Res
pond
ents
Best-in-Class Industry Average Laggards
Source: Aberdeen Group, July 2015n = 182
16
Renewals & Up-sell• Service optimization impacts
customer satisfaction• Happy customers come back
and buy more
7%
Improvement in annual service contract renewal
rates
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FOCUS ON IMPROVED VISIBILITY
72%
45%47%
35%31%
20%
0%
20%
40%
60%
80%
Process to track mobile assets(parts, fleet, people, serviceableassets) in real or near-real time
Real-time updates of partsusage from service technician
truck / van stock
Perc
enta
ge o
f Res
pond
ents
Best-in-Class Industry Average Laggards
Source: Aberdeen Group, July 2015n = 182
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LISTEN TO THE CUSTOMER & EVOLVE TO MEET THEIR NEEDS
74%67%
52%
64%
43%36%
25%
35%
45%
55%
65%
75%
Use of customerfeedback to evaluate
service employeeperformance (field
technician, CSR)
Proactive capture ofcustomer feedbackregarding product
and equipmentperformance
Annual / frequentcustomer user forum
Perc
enta
ge o
f Res
pond
ents
Best-in-Class All Others
Source: Aberdeen Group, July 2015n = 219
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THE EMERGENCE OF THE EMPOWERED CUSTOMER
32%
37%
46%
53%
63%
0% 20% 40% 60% 80%
Global expansion of product /service offerings
Increasing product-basedcompetition
Reduced service margins
Increasing competition inservice
Changing customer dynamics
Percentage of Respondents, n = 182
All Respondents
Source:Aberdeen Group, July 2015
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THE EMERGENCE OF THE EMPOWERED CUSTOMER
32%
37%
46%
53%
63%
0% 20% 40% 60% 80%
Global expansion of product /service offerings
Increasing product-basedcompetition
Reduced service margins
Increasing competition inservice
Changing customer dynamics
Percentage of Respondents, n = 182
All Respondents
Source:Aberdeen Group, July 2015
22
TOP 5 MOST CRITICAL METRICS THAT DEFINE SERVICE SUCCESS
68%
41%38%
34%29% 28% 26% 25%
20%
30%
40%
50%
60%
70%
80%
CustomerSatisfaction
ServiceProfitability
First-TimeFix Rate orFirst-Call
Resolution
ServiceRevenue
SLA /contract
compliancerate
ServiceCosts
(overall)
CustomerRetention(Customer
Churn)
ServiceableAsset
Uptime /Availability
Perc
enta
ge o
f Res
pond
ents
All Respondents
n = 219
Source: Aberdeen Group, July 2015
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BUSINESS GAINS FOCUS ON SERVICE OPTIMIZATION FOR THE BEST-IN-CLASS
13%17%
19%
27%
0%
5%
10%
15%
20%
25%
30%
ServiceRevenue
Revenue CustomerSatisfaction
BusinessProductivity
Annu
al Im
prov
emen
t in
KPI
Best-in-Class
n = 180Source: Aberdeen Group, July 2015
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TAKEAWAYS• Implement / Invest in technology
– Top challenge facing service — insufficient technology infrastructure– Top strategy for Best-in-Class is to invest in mobile tools to provide techs
service workers with better access to information (44% of Best-in-Class)• Create a team of service worker partners
– Top 3 goals for service• Improve customer sat / loyalty• Drive service resource productivity• Drive service revenue
– Service workers incented to identify cross- or up-sell opps • Build value in the customer partnership / relationship• Become a trusted partner
• Improve visibility into the service chain– Real-time updates of service resources– Process to track mobile assets in real- or near-real time
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THANK YOU
For more information about FieldAware and how they help customers automate their service chain visit
www.fieldaware.com
THANK YOU
For more information on this and other topics, please visit aberdeen.com
@pinderjr
https://www.linkedin.com/pub/aly-pinder-jr/2/8a9/2a4