If you ask equipment manufacturers (metal benders), they will claim that your customers are technically their customers. What’s changing now is that they want to have their customers pay them for maintenance and repair services instead of you.
I am, of course, speaking about how manufacturers are increasingly embracing the service business as the next leg of profit to be mined in the market. The days of distribution channel loyalty are gone. Prepare to do battle with the well capitalized companies that you used to call “partners.” Where is the evidence that the drums of a channel war are beating? Consider these two recent news stories:
GE just spent almost a billion dollars to buy a software company that specializes in technology for service delivery. The price tag for that purchase was an estimated 15-times ServiceMax’s current revenue. GE REALLY WANTED THIS TECHNOLOGY to pay that kind of price. Note that ServiceMax is built on top of Salesforce’s CRM platform, NOT AN ACCOUNTING APPLICATION. GE’s aggressive activity in the market says that customer service and sales are the new battlegrounds for manufacturer competitiveness. They want to control the entire customer experience from initial consideration of their equipment through the maintenance and repair cycle and then finally the upgrade and replacement at end of life. ServiceMax helps them deliver on this promise with great efficiency and customer visibility.
GE was in the news again because Boeing has hired a GE exec from the GE Aircraft Engine business to run the Boeing Commercial Airplane Group (CAG). Kevin McAllister was selected as the new CEO of Boeing CAG because he specializes in monetizing “after the sale” services for maintenance and repair. At GE, they sold a program to the airlines that delivered jet engine maintenance and repair for a fixed fee based upon the number of hours on the engines. That program was just what the airline operators wanted – a no hassle, no risk, fixed cost plan sold by an expert in jet engine technology. Now, Kevin is heading to Boeing to concentrate on the same type of program for commercial aircraft.
So why are the manufacturers so interested in service these days? Because lifetime value of the customer is everything, and service is easier than ever to deliver because of technology. Historically, service was hard because it was unpredictable, and it was not possible to be everywhere the customer needed you to be at one time. Now, with advanced instrumentation and the Internet, the manufacturers can “see” what is happening in order to better manage a service delivery plan. Also, customers have come to understand that the company responsible for service needs to be the one with all of the data required to do the service right, and it really doesn’t matter who employs the technician that shows up to turn the wrenches so long as the owners of the data give him good instructions. Manufacturers can build an enduring ownership bond with the customer throughout the product lifecycle to earn a premium on their stock value. Check out chapter 5 in my book, The Digital Wrap, about how Tesla has become the envy of the manufacturing world because of this dynamic.
So what are you going to do when the metal benders come after your customers? Are you just going to hand over the relationship and the data so that you can become the labor bureau and the truck depot for their profit machine? Or are you going to seek more data and more technology so that you can become the trusted advisor to the customer? The advisor that informs them of the failure modes of each type of equipment and teaches them how to negotiate with the manufacturers at arm’s length to get the best equipment deal? The advisor that implements the best customer service technology and sells the best program for hassle-free and risk-free maintenance and repairs?
The great news about the metal benders is that they are still metal benders, and they would struggle to spell customer service if you gave it to them in an anagram. It will take some time for software applications and technology to overcome their metal bender cultural habits. The bad news is that they have LOTS of capital, and while they are “figuring it out,” it may still cost you lots of pain and profits if you don’t have a better program.
Here are my tips for preparing to win the battle for customer loyalty:
Focus on technology for customer service and sales, NOT OPTIMIZATION OF YOUR ACCOUNTING FUNCTION! Your perfect back office process is perfectly irrelevant to a customer looking to eliminate risk and hassles. Stop looking to the accounting application providers to solve your customer service and sales challenges.
Systematically collect customer connections. Every interaction with a customer should result in an email address and a mobile phone number. These can be used to connect the customer with the information you generate to demonstrate your value.
Innovate in programs for service management. These innovations can be data collection and mining for predictive service, warranties you sell to those that enter your premium maintenance tier, system monitoring services, fixed price payment plans, or whatever application of technology and business process to limit risk and hassle for both you and the equipment owner.
Diversify your expertise across as many manufacturers and brands as you can credibly support. You want to be in the position of the trusted advisor to the customer, and knowledge is power in this position. You also want to have credible data and experiences to back up your representations to the customer.
Stop concerning yourself with parts margin and instead focus on total margin per applied labor hour. Parts are not going to be in short supply, but skilled labor will be precious. Lower your inventory carrying costs by setting up fast response partnerships and technology connections to the best parts suppliers. Focus on speed and proactive service with the customer, not parts margin.
Begin experimenting with non-proprietary, independent monitoring and controls solutions that you can apply across equipment brands. Use these to build data that leads to credible recommendations and solutions for the customer.
This cultural shift to an information-based service approach with lots of online connections to your customers and their equipment will place you in a position to be the valuable brand that the customer trusts with their important equipment purchases and maintenance programs. The manufacturers are guaranteed to show up with proprietary solutions because of their metal bender culture. If you are prepared, you can laugh all the way to the bank as they throw money at a problem that you have already solved.
You know “one-truck Chuck,” or “white-van Stan” as I’ve heard him called before. He’s the one undercutting you and stealing your customers. It’s because he’s well rounded, and by that I mean he’s cut all the corners clean off. He has no overhead and he only wants to make a little more than his old hourly wage as an employed technician. But Chuck isn’t alone, is he? There’s Stan, Bill, Charlie, and the other new low-price competitors setting up shop every day.
You lose deals to Chuck and Stan every day. Prospects tell you “I’ve got a guy” and customers tell you that someone offered them a price they can’t refuse. So, what are you going to do? I suggest you take advice from a Chinese guy that died over two thousand years ago:
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” – Sun Tzu, The Art of War
OK, I know it’s passe to whip out quotes from The Art of War when you’re talking about business strategy, but bear with me on this one.
Know your Enemy
Chuck and Stan are really easy to understand. Like any of your competitors, they have strengths and weaknesses that you can exploit. Obviously, their biggest competitive advantage is price for the reasons mentioned above, but they also have personal relationships on their side. Their customers have their cell number and can give Stan a call anytime they want.
If you’re trying to grow a high-margin, premium brand, you’ll never compete with these fellas on low labor rate or personal relationships, and you don’t want to. Neither are scalable. And, if you want to beat Chuck, you should tell your customer that your goal is to expend as little skilled labor and customer-facing admin as possible. Tell them that skilled labor is costly for you and difficult to hire. Tell them that modern customer service doesn’t happen over the phone.
Instead, offer customers a technology-enabled plan for predictable outcomes at a predictable price. The goal is to reduce their risk and aggravation by implementing a proactive plan that uses data about their facility and equipment to intelligently target low-cost preventative work that curbs expensive repairs. By planning work as opposed to reacting to it, overall expenses will go down because less on-demand skilled labor is used and fewer parts are required. Throughout the service cycle, information will be pushed to your customers online to reinforce the value you provide and to build trust through visibility and transparency.
Chuck can’t offer that. Chuck shows up when the phone rings if he’s not too busy with another customer. Chuck fixes broken equipment that could have been repaired for much less if the issue was caught earlier. Meanwhile, the customer is aggravated because they have downtime, lost revenue, and unhappy employees or customers of their own. Chuck costs more when you calculate for these risks.
You can explain these risks until you’re blue in the face, but a large portion of prospects and customers will still choose Chuck and Stan over you. That’s OK. Those aren’t the customers that you want so don’t waste your time. Simply leave them with an accurate prediction of their future. Explain the many ways that Chuck will let them down, and when he does, they’ll remember you.
Know yourself (and what makes you better)
Let’s do a quick test. Which of the following are part of your company’s value proposition?
We work hard
We care
We have integrity
We are honest
We are dedicated
If any of these are in your brand’s value proposition, you have a problem. There’s a lot wrong with this list, but most of all, they aren’t competitive or differentiating. It only took 10 minutes of Googling service contractor websites to find the same values listed on multiple websites. Honestly, all of these values are table stakes for the industry and should be implicitly expected. So what makes you different? Do any of these values sound familiar?
We’re more experienced
We’re bigger
We do more
Each of these actually provides tangible value to the customer. More experience means that you are likely to solve problems faster and at a lower cost than your competitors. More coverage area and diversity of service offerings mean that your customers won’t have to manage as many vendors. These are a step in the right direction. How about these values?
We’re transparent
We’re accountable
We’re data-driven
We’re modern
These are rarely seen value propositions in our industry because they are difficult to offer without technology that enables mobility and modern online customer engagement. The vast majority of service contractors are still running on paper, server-based software, or accounting systems that don’t offer functionality for technicians or customers. That means that customer data is limited, inaccessible, and unusable. In other words, the opposite of transparent, accountable, data-driven, and modern. The companies that can offer these values will win the most desirable, high-margin customers.
Beating Chuck and Stan really isn’t that hard. It comes down to a couple easy steps. First, differentiate the value that you offer and understand, without a doubt, that your higher rates are warranted because you will reduce the customer’s risk and aggravation by providing predictable outcomes at a predictable price. Second, if the customer still isn’t convinced, let them go. Predict their future and they’ll come back.
Want to learn more? Watch the recording of our December 7th webinar, “Don’t Sell on Price, Offer a Premium Program” presented by ServiceTrade’s CEO and author of The Digital Wrap, Billy Marshall. Click here to watch the recording.
What’s your company worth?
In The Digital Wrap Book, Chapter 14 was titled the Digital Wrap Formula for Maximizing the Value of Your Business. The chapter covered the technical, financial calculus that can be used to determine the amount a financial buyer might pay for a service contracting business (read the related blog post). It also offered a good deal of advice regarding how an owner might maximize that value by lowering sales costs for new customers, demonstrating consistent revenue growth, expanding margins, and retaining customers. While all of the math and advice in the chapter is accurate, I have come up with a simplified slogan for focusing company value building efforts. How Many, How Much, How Long.
How Many refers to the number of customers your company has. A customer is not a location where you do work, but instead it is an entity that pays an invoice. How many unique invoice payers does your business have? How easy is it to add new ones? If the answer to these questions is “a few” (whether big or small) or “difficult,” then the value of your business is marginal. Having only a few customers, even big ones, is risky. More is better. Having an undefined sales process is also risky. If you do not know how to add new customers systematically, growth is a crap shoot. If you have a lot of customers and you can demonstrate how you reliably add more every year, your business will command a premium from a potential buyer.
How Much refers to the amount you can reasonably expect to be paid every year by each of your customers. If you can do more for them and if they pay you a premium relative to the market because you provide a unique experience, better outcomes, or great customer service, your business will command a premium from a buyer. If there is a great deal of uncertainty regarding how much each customer pays annually, a buyer is going to demand a risk premium from you and the value of your business will be marginal.
How Long refers to the number of years the typical customer stays with your company. Churn in the customer base is a bad thing, and your business value will be marginal if you have a lot of churn. Do you know how long the typical customer stays with you? Do you measure churn every quarter to see how well your customer service activities are being received? Ideally, your business has less than ten-percent gross churn (the number of clients that you serviced last year during the current quarter compared to the number serviced this year) and zero or negative net churn (the amount of revenue achieved from customers that you serviced last year in the current quarter that also received service this year). If your net churn is zero or negative, it means that you are becoming more valuable to your customers as a whole each year even as you lose some of them. It means you are raising prices and expanding your portfolio of services consumed by your customers.
How is your business doing on the How Many, How Much, How Long scale? Are you tracking these metrics every quarter? Are you putting programs in place that make it easier to sell your services, allow you to charge a premium, and make it hard for the customer to let you go? If not, why not? These programs will make your business more valuable when the time comes to move it along to the next owner and spend more time on the boat.
Allow Only the Best Drivers on Your Customer Service Bus
I keep finding ways to use the phrase “When you’re a hammer, everything looks like a nail.” This week, it’s pointed at those of us at ServiceTrade. See, we’re a technology company, so we love using technology to help service companies meet the online customer engagement bar that Amazon has raised.
We don’t cover as often as we should the human side of customer service. We both know that it takes the right employees in the right role to use those customer service tools. If you put an employee who does not embody your brand in charge of the best-engineered customer service platform in the world, you’re still likely to give crummy customer service.
Zoho has written a blog post about some of those softer-side elements of customer service that uses examples from companies that ServiceTrade references often: Chick-fil-A, Nordstrom, Southwest, and Amazon.
So it’s truly my pleasure (shout to Chick-fil-A) to share this blog post from Zoho that is a good reminder for all of our technology and process geeks that good customer service is always multi-faceted and that we have to manage each part.
My favorite tip is #3: Give your employees the freedom to soar. It says that we should encourage employees to make connections by being genuine and not stifling their personality. You’ve hired people that you want to be around every day, let them show your customers that they’re also the type of people that they want to be in business with.
Customer Service is Dead: 5 Companies That Killed It
Thanks to new technology, customer service innovations are not just an option, they are a must for most businesses, especially commercial service contractors. To be clear, by “customer service,” I don’t mean more smiling employees on phones reacting to disgruntled customers as this Google image search for “customer service” suggests. Truly modern customer service doesn’t burden companies because technology and processes provide customers with the information they need and enable them to fulfill their goals without assistance.
This is NOT good customer service.
Every company listed below had strong, well-established competitors that provide great customer service in the classical sense. Innovations to the customer service model is all it took for these companies to overcome their competition and build billion dollar brands. In fairly commoditized industries, these companies found ways to enable customer self-service to differentiate themselves from the competition, enhance their customer service experience, and avoid hiring expensive customer service staff.
As you read about the companies below, think about the customer service experience you’ve had with any them. Have you ever had a phone call or exchanged emails with any of their employees? Would you consider yourself happy with their customer service?
Many would argue that they preferred the great customer service experience they received at a Blockbuster years ago; Employees taking them by the hand and making personal recommendations from a large selection of new releases. However, I think most folks would agree that they are willing to spend more time sifting through Netflix’s older digital selection as long as they don’t have to leave their couch. In fact, so many people prefer Netflix that its annual revenue has surpassed Blockbuster’s highest annual revenue by about $1.5B without selling a single pack of overpriced candy.
For those of you who are half blind like me, you may be more familiar with Warby Parker, a company selling designer frames and glasses for under $100. Aside from the great price point, Warby Parker has two major customer service innovations that have skyrocketed the company’s sales and valuation. First, customers can upload their picture and digitally “try” different frames on. Second, customers can have five frames sent to their home for free to try on before making a purchase. This has the added benefit of enabling the customer to solicit feedback from their friends and family about their selection. This simple tweak to a business model that traditionally required customers to drive to a physical store during business hours and receive advice from a total stranger has been upended by a self-service process that customers love because it is more valuable and convenient.
Company: Dollar Shave Club Age: 5yrs Value: Acquired for $1B Revenue Multiple: 5x
Admittedly, Dollar Shave Club found success through both customer service innovations and great marketing. If you are unfamiliar with their brand, I implore you to watch their first viral marketing video:
Marketing aside, the subscription model that they use was transformative and effective. By simply removing the hassle of remembering to buy new razor blades, Dollar Shave Club solved a simple problem that inevitably happens to everyone. If you do not plan ahead, you will run out of razors which can lead to awkward, stubbly days at the office.
Practically everyone is familiar with what Uber has done to transform the taxi experience and dominate the industry. In fact, we wrote an entire blog post explaining exactly what Uber did to the customer service experience in the taxi industry that has enabled such incredible growth and value. Suffice to say, Uber cut out the hassle of dealing with taxi dispatchers, crooked drivers, and broken credit card readers and replaced it with smart technology that empowers the customer.
Before Amazon, all we had was Walmart, the mall, and catalogs. Personally, I dread all three of those options so I am glad to have an alternative. By simplifying the online retail experience such that customers could easily find and buy whatever they needed, Amazon has taken over. They’ve eliminated so much hassle by removing the need to drive to a physical store during business hours or speaking with a catalog company’s customer service agent on the phone. Traditionally, stores and catalogs offered great customer service with sales teams that guided customers to make informed purchases. However, I will sacrifice the sales guidance every day of the week if it means I can shop from the comfort of my own home.
These companies followed a simple formula for success: Innovate to eliminate hassle for the customer, often with self-service technology or processes. Though self-service often adds additional steps or work for the customer, it is more valuable (when executed effectively) because they can accomplish goals in their own time at their own convenience.
To follow in the footsteps of these successful companies, simply review your current processes and look for customer-facing operations that require high labor and yield low or no revenue. Then, ask yourself if technology or processes can be put in place that eliminate hassle for your customers and enable them to conveniently serve their own needs.
5 shocking things you don’t know about next-gen facility managers
First off, I have to congratulate you on clicking through to read this article. You are well on your way to understanding the younger, future generation of facility managers and you didn’t even realize it. “How” you ask? The title of this article is what is commonly referred to as “Clickbait” which is generally targeted towards a younger, tech-savvier audience. I crafted the title of this blog post so that it followed a handful of rules known to increase click-through rate:
Use a list approach with an odd number of items. For example, “5 shocking types of…” or “17 amazing tips to…”
Add an element of excitement with words like “shocking” or “amazing.”
Use negative words in the title such as “no” or “not.”
I don’t want to go into any more detail about optimizing blog post articles as there are hundreds upon hundreds of articles dedicated to this subject, but I do want you to simmer on the point that your future customer, the next generation of facility managers, is right around the corner and you probably don’t understand what makes them tick. No matter what you think about us millennials, we are starting to fill important, decision-making roles. Your company and, more importantly, your brand can be prepared when you understand how our generation operates and how to apply that knowledge to the facility manager of the future.
They are always connected
I feel naked without my phone. Seriously. Unless I have mentally prepared myself for a preplanned excursion without it, like a recent trip to Yosemite, forgetting my phone on any other day leads to inexplicable anxiety. Honestly, I was relieved when I realized that I had a signal when I arrived at the base of El Capitan! Unfortunately, my boss knows that he can call at any hour and expect an answer. Admittedly, I, like my fellow millennials, really don’t mind working in off hours if work needs to get done.
Takeaway: When you send an email to a next-gen facility manager at 9pm, you can pretty much expect that they received it. When possible, give them a low friction or short-form means to respond such as a simple “yes,” “no,” or electronic quote that enables one-click approval.
They hate talking on the phone
Ironically, as much as we love our smartphones, we hate talking on the phone. We’d much rather txt or email than spend 10 minutes discussing anything over the phone. I’ve got a list of important calls that I’ve been meaning to make for the past couple weeks, but here I am catching up on emails and writing a blog post instead.
Takeaway: Don’t rely on phone calls as a primary means of communication with millennial facility managers. Instead, use electronic communication such as txt, email, electronic quotes, or Service Links.
They are impatient
Social media and instant means of communication have led to a need for immediate gratification for millennials. Instantly receiving likes and retweets for pictures and comments has resulted in a need for immediacy in the other aspects of our life. Constant access to all forms of communications our entire adult lives means that we’ve never had to wait until we “got back” to a computer to check our email.
Takeaway: Information about the services you provide must be accessible immediately. After-service summaries, deficiency reports, and quotes can’t be delayed by days. Delays in information will be unacceptable.
They prefer self-serve over customer service
I’ve never ordered anything over the phone or by mail. I’ve been spoiled by the Amazon experience and I consider any business that requires me to speak to customer service on the phone as antiquated. To my generation, great customer service happens when people don’t have to get involved because I made my purchase or achieved my goals via the company’s self-serve kiosk, mobile app, or online features.
Takeaway: As much as possible, rely on applications that enable your customers to engage with you online to retrieve the information they need, make purchases, and schedule work. This has the added benefit of reducing the amount of administrative labor in your office dedicated to traditional, phone-based customer service. A few great examples of these features include online payment platforms, ServiceTrade quotes, Service Links, and Service Portal.
They hate paper
Often, I hear stories of companies that print paperwork because it is the primary driver of internal processes and because “we just like paper.” Don’t get me wrong, I, like most millennials, think this is an environmental waste, but we are more baffled by the preference for and the inefficiencies of paper processes. Having grown up with collaborative document platforms such as Google Drive, we have a strong preference for paper-free processes and view paper as old fashioned.
Takeaway: Although paperless processes can drive internal efficiencies, it should be viewed as a means of enhancing the quality of your customer service. In the future, Facility managers will expect electronic documents and view companies that use paper as substandard.
Our CEO, Billy Marshall, has a common adage that, among other insights, succinctly describes the mindset necessary to be successful with the next generation of facility owners and managers:
“Innovation is not optional.”
Leaning on ideologies like “that’s just how we’ve always done it” or “we got this far without changing” will not work with the next generation due to their massive exposure to technology. Your old school customer service will need to be overhauled to meet the needs of millennials or they will turn to your competition. However, those brands that adopt the technology mandate have the opportunity to build valuable, sustainable brands.
Innovation is not an Option for Service Contractors
My kids have a Chick-fil-A habit, and I don’t mind because I also enjoy the comfort food they offer (particularly an Arnold Palmer with half lemonade and half unsweet iced tea). On my latest Chick-fil-A run, I was bombarded in the restaurant with banners and promotions for Chick-fil-A One – the new Chick-fil-A mobile application the company is promoting. The application makes it easier for me to choose Chick-fil-A as a restaurant option because it streamlines the buying experience by eliminating lines, communicating my preferences for buying, and leading me to a familiar brand when I am traveling. If Chick-fil-A is innovating in the area of customer buying experience, when do you believe your customers will demand similar innovations from you?
I ask prospective ServiceTrade customers all the time if they believe their customers are buying from Amazon, Uber, eBay, and other innovators in the area of online and mobile buying experience. Of course they respond that all of their customers are experiencing the conveniences of these leading mobile experience brands. Now we can add Chick-fil-A to the list of companies that is placing their brand into the palm of their customer’s hand in order to differentiate their product. This current innovation from Chick-fil-A is not a juicier chicken nor a crispier fry nor a tarter lemonade, but instead it is an information and communication innovation that endears them to the valuable customers carrying smartphones in their pocket. If customers come to expect this type of buying experience from all the companies they patronize, what innovation will you deliver to satisfy that desire?
Innovate or Wait?
Will you deliver innovations before your competitor in order to create a sales advantage? Or will you wait to see if a competitor really takes business from you simply because they are easier for the customer to engage online?
Instead of innovating, maybe you will become the labor bureau to an Internet pioneer that corrals the customer online and sends you to deliver the work using their mobile app – reporting back to them with photos and video in order to claim your meager labor wage.
Or perhaps a manufacturer you currently represent will instrument the equipment with sensors for proactive service – selling a three year maintenance agreement to the customer at the time of the original, online equipment purchase? How do you fit into that arrangement?
Innovation is not optional if you intend to maintain a premium price with your customers, and it is also not limited to the classic tools of the trade. Chick-fil-A did not fry a juicier chicken, but instead delivered a mobile app. Innovations in customer experience are the next competitive land grab in most industries, and service contracting will not be exempt.
Innovation’s Rewards
Innovation is a key ingredient for new sales, customer retention, and employee recruiting and retention as well. In the service contracting space, the worldwide skilled labor shortage is going to be a boon for the innovative brands that can attract customers and workers, and it will be a death knell for those that remain trapped in old ways of doing business. The former will drive new sales, raise prices, and attract scarce workers that are looking for career growth. The latter will lose customers to innovators, sell on price, and squeeze employee wages to maintain margin – fully embracing the downward death spiral that follows a lack of innovation.
If Chick-fil-A is promoting a mobile app as the number one priority in their business, when are you going to do similar or likewise? What are the customer experience innovations you are embracing in a world where everyone uses Amazon and Uber? How can you be the first in your market so that you can set the rules instead of being the follower that sells on price and embraces the death spiral?
Pick up a copy of The Digital Wrap and get your head around the idea that these changes are not just about big brands with tons of capital. Customers are being conditioned to expect these experiences, and your brand can be the one they embrace online if you believe as I do that innovation is not optional.
Make your Business more Valuable by Being more Valuable to your Customers
Billy Marshall often speaks to industry association groups on topics that help service companies be more valuable, successful, productive and more important to their customers. This past May, he spoke in Indianapolis to fire protection companies about The Digital Wrap.
What is Billy talking about? Watch the video to see!
This 15-minute recording is crash course on what a digital wrap is, and how it helps commercial service contracting companies become more important to their customers – and in turn – increase the value of their business.
Billy uses funny and interesting stories to relate how service companies should:
ps. Don’t have 15 minutes? You can watch short segments from this presentation at digitalwrapbook.com.
Sharing: No Longer Any Separation between User Experience and Brand Perception
We’re always on the lookout for great commentary on the importance of customer experience to the success of modern businesses. There was a recent post by Greg Sterling on screenwerk.com that stood out to us, that we want to share with you.
Greg makes several points that we agree with, and that we think are particularly important to commercial service companies that we work with. Again, please read the full article, but here are three things we want to highlight:
“One of the big lessons of the past decade is that brand marketing and advertising and post-purchase fulfillment and customer service are now effectively joined at the hip — or should be. However most brands haven’t fully assimilated that lesson with its corresponding organizational and customer service implications.” — Greg SterlingTo borrow an overused popular phrase, the struggle is real! The service companies that call on ServiceTrade are often so focused on their back office operational struggles that they’re not focusing on where there’s bigger payoff in revamping their customer service in the front office. Our suggestion is to solve the front office, where there is a bigger payoff for a larger number of users, and the back office will follow.
“There’s another wrinkle I’ve been thinking about recently, mostly in a mobile context. That is: how the moment-to-moment user experience builds or destroys brand value.” — Greg SterlingGreg goes on to say that the online experience is just as important as the onsite service experience. The time for service companies to have an outdated brochure-like website that doesn’t engage customers before, during and after the service call has passed. If this is your current situation, take a look at revamping your site to make it an important portal that your customers use to do business with you.
“Often companies treat their digital assets as though they’re simply tools or utilities or add-ons or necessary evils. But there’s something more fundamental I’m trying to say. There is no longer any separation between digital experience and brand identity.” — Greg SterlingAdmittedly, brand identity has been somewhere toward the bottom of the list of what keeps commercial service business owners awake at night. But we also hear it coming up more from more progressive service companies who see what Greg says, that service experience and brand experience are equally important, and are gradually merging into one.
Cheers to Greg for his article. We’re happy to see him singing from the same song book.
Photo Cliches Drive Sales and Retention for Service Contractors
We’ve all heard, and likely loathe, the plethora of bad cliches about pictures. As overused and seemingly meaningless as these cliches are, they hold a literal wealth of knowledge for field service contractors. From new sales to retention, these sayings will drive growth in your field service company:
The big picture.
Why should service contractors consider photos important for day-to-day operations? Online businesses have proven the importance of imagery for customer engagement and sales. Even though you may not be engaging customers online at the moment, technology, like ServiceTrade, makes it easy to move your service activities online with rich job summaries and quotes. With this in mind, the stats below represent a huge opportunity for every field service companies:
Online articles with images get 94% more total views than those without imagery.
In an ecommerce site, 67% of consumers say the quality of a product image is “very important” in selecting and purchasing a product.
In an online store, customers think that the quality of a product’s image is more important than product-specific information (63%), a long description (54%) and ratings and reviews (53%).
92.6% of people say that visuals are the top influential factor affecting a purchase decision online.
Offering multiple product views and other alternative images lead to 58% more web sales.
A picture is worth a thousand words.
Imagine writing a description of the picture above in the space provided on the paperwork you provide your customers after every job. Did you have enough room to describe, in detail, the flying cats, splashing water, and mustachioed artist in a way that anyone could understand? Is your handwriting even legible? Would anyone reading your summary even believe you?
Every year, your company is wasting hundreds, or even thousands, of hours attempting to summarize technical details in illegible handwriting that the customer is unlikely to understand, value, or trust. Again and again, ServiceTrade users have proven that providing pictures to customers for every job, not only speak volumes about the quality of their work and the value they provide, but also builds trust with their customers because “seeing is believing”.
Take a picture. It will last longer.
Left with the wrinkly, coffee-stained paperwork as the only remnant of the work you did, are you memorable to your customers? Does your company stand out as one your customers enjoy working with, or are you replaceable?
The picture above is a time capsule for the ages. Without referencing Wikipedia, you probably knew this was taken on V-J day, the final day of WWII. This image will forever represent the end of the war for America and encapsulate a national memory. Similarly, you can turn every service for a customer into a memorable experience. Beyond the “wow” factor you can elicit by exceeding their expectations for information, months from now, when they have questions about what you did for them, pictures will remind them how valuable your services were.
Additionally, pictures can save technicians time by converting their individual memories about a job into tribal knowledge shared in the office. How often does someone in your office end a conversation with a tech using the phrase “just go back” due to lack of information collected on an initial visit? Along with audio notes and videos, pictures are one of the primary forms of rich media that will ensure that everyone in the office knows what the next steps are for every job without relying on the technician’s fading memory. Instead of wasting time calling technicians and, even worse, sending them back to collect forgotten information, have them catalogue their experience in a way that helps everyone understand not only what was done, but also what is left to be completed.
The whole picture.
As seen in the series above, one or two pictures cannot tell the whole story. Similarly, your company should provide customers with as many pictures as necessary to explain everything they need to make an informed buying decision; whether that is to make a new purchase or retain you as the long-term vendor of choice. There is no hard and fast rule about how many pictures you should provide, however, more is better in the vast majority of situations.
Get the picture?
Take a lesson from retailers. Moving online and engaging your customers with rich content (photos), will lead to favorable outcomes including increases in sales and retention via the trust you build with photographic evidence of your value.
