SERVICE AS A STRATEGY: HOW TO USE TECHNOLOGY TO MAXIMIZE YOUR COMPETITIVE ADVANTAGE

Transcription

1 HOW TO USE TECHNOLOGY TO MAXIMIZE YOUR COMPETITIVE ADVANTAGE

2 INTRODUCTION Field service has undergone a revolution in recent years, emerging as a key strategic differentiator and profit center for many industries. In the past, service was something of an afterthought to the sales process. It was either a cost center or a break-even operation. Over the past decade particularly in the aftermath of the most recent financial recession service has transformed into a crucial profit center. In fact, in some industries, service has transitioned to being a primary source of profits. Service delivered effectively and efficiently does more than just satisfy an immediate customer need for repairs or maintenance. It can help generate customer loyalty, repeat product sales, and referrals. As this shift has occurred, new technology advancements in other segments have increased customer expectations and demands related to service. The use of online services like Amazon and ebay, along with mobile apps like Uber, has created an environment in which customers have increasing expectations of flexibility, visibility, and control. HOW GROWING CUSTOMER EXPECTATIONS IMPACT THE FIELD SERVICE ORGANIZATION What does this mean for field service organizations (FSOs)? Delivery of the basic service the installation, maintenance, or repair of the asset is no longer enough. Customers want real-time alerts, and they are no longer willing to wait for a technician to arrive within a fourhour window. In some cases, customers even want real-time visibility into the entire service process from their desktop or mobile phone, or direct access to technicians. Customers are looking for more than just a qualified technician who arrives on time. They want tailor-made service plans, self-service and remote service options, flexible scheduling, visibility, up-time guarantees, and other features that can strain the capabilities of FSOs that have not yet made the right technology investments or mastered the use of those technologies. Because of their exposure to other types of advanced, connected services, customers expect that FSOs will provide real-time alerts about technician arrivals; that technicians will have immediate electronic access to their customer histories and all the repair information they need to complete the job; that the FSO can respond quickly to emergency calls; and that they will have the ability to receive electronic updates about their service status on their own mobile devices. In many cases, the features customers are looking for may not directly reduce costs, but they do help build brand trust and loyalty. For example, systems that customers the name and photo of the service technician prior to arrival don t improve the service outcome, but they do provide peace of mind to customers, who will remember that the next time they need help. According to Aberdeen s State of Service 2017 report, the top priority of 58% of respondents to the field service survey was improving customer satisfaction. Savvy service executives are shifting their attention from cutting costs to keeping customers happy in an effort to be more competitive and create new revenue streams. THE TOP PRIORITY OF 58% OF RESPONDENTS TO THE FIELD SERVICE SURVEY WAS IMPROVING CUSTOMER SATISFACTION In this white paper, we will present an overview of the technologies that field service providers will need to deploy in order to turn their service organization into a strategic, competitive asset. We will also outline the key steps companies should take to launch these new service strategies. MODERN TECHNOLOGY: THE KEY TO ENABLING STRATEGIC SERVICE A key strategy in meeting these new customer expectations is to embrace today s technologies as enablers that can help deliver that new level of flexibility and visibility your customers are demanding. Each service organization is going to have its own unique requirements, but in general there are a few common established and emerging areas of required investment. FINDING YOUR MOBILE DEVICE MATCH Mobile computing has become a must-have tool for field service technicians, even for the most basic service automation systems. There are a wide array of devices on the market today, but successful deployments will require a reliable, purpose-built, durable mobile device in a form factor that is right for the service tasks involved. There are a multitude of form factors available, from smartphone-like devices to fullyfeatured rugged laptops and tablets. According to VDC Research, rugged line-of-business (LoB) tablets remain one of the fastest-growing segments of the mobility market, with a compound annual growth rate (CAGR) of 3.3% through Tablets provide a familiar touchscreen interface and a larger screen, and are able to be taken in and out of a service vehicle easily. In other applications, rugged handheld computers are receiving growing interest due to their smaller footprint, durability, and extreme portability. They key is to find the device (or mix of devices) that best fits the working conditions your technicians will experience in the field. That often includes peripherals such as barcode scanners, mobile printers, credit card readers, and other devices. It is also important to deploy hardware that is durable enough to withstand your operation s field conditions, especially when exposure to weather and dirt is likely. 1

3 In some markets, FSOs have leveraged lower-cost consumer-grade tablets or phones (such as the ipad or iphone). While these have been successful in some light-duty applications, you need to be aware of the everyday operating environment and plan accordingly. Replacement costs in more taxing environments can quickly wipe out those initial hardware savings and put you further behind schedule. In fact, the upfront acquisition cost of the hardware really accounts for very little of the total cost of ownership (TCO) of a mobile solution over five years. Your TCO analysis also needs to take a look at your expected replacement rate, and downtime and support costs when repairs or replacements become necessary. 34% FAILURE TO RESOLVE AN ISSUE ON THE FIRST VISIT WAS A TOP CUSTOMER COMPLAINT FROM 34% OF RESPONDENTS TO A CUSTOMER SURVEY. SELECTING THE RIGHT FIELD SERVICE AUTOMATION SOFTWARE Just as mobile computers and portable devices have advanced, field service automation software has also evolved from a fragmented market of point solutions to one offering fullyfeatured solutions that can streamline just about every type of field service operation. When connected to a suitable device, modern field service software can leverage the built-in GPS capabilities, barcode scanning, high-resolution cameras, and other features of new mobile computers to improve technician efficiency, boost first-time fix rates, and increase customer service levels. They can also serve as a platform to link what were previously disconnected streams of customer data. According to Aberdeen Group, field service employees spend up to 15% of their time on average looking for customer data across systems. This level of inefficiency hurts all businesses, but can add up to millions per year in wasted labor within larger organizations. A comprehensive automation system will help FSOs tackle work-order creation and management, scheduling and dispatching, fleet tracking/management, invoicing, time tracking, and inventory management. The entire customer interaction can be managed from a mobile device in real-time, right at the point of activity. Customers, technicians, and managers can be kept up to speed on each service call, and the inefficient paper processes can be eliminated. FIELD SERVICE EMPLOYEES SPEND UP TO 15% OF THEIR TIME ON AVERAGE LOOKING FOR CUSTOMER DATA ACROSS SYSTEMS % More importantly, these systems create a wealth of valuable customer information related to asset condition, sales, repair, and maintenance history, along with other data that can be used to help sell additional services or strengthen the customer relationship through more consultative interactions. Arming your technicians with the information they need on the job not only helps them complete work more effectively, but enables them to give your customers that seamless, informed experience they re looking for. INTEGRATE THE BACK OFFICE WITH THE FIELD A strategic approach to field service also requires direct integration between the mobile solution, your back-office enterprise resource planning (ERP), and customer relationship management (CRM) systems. This gives employees the ability to gain a total view of the customer, and helps service technicians arrive at the job site fully equipped and prepared to complete the work the customer needs. According to data from The Service Council, failure to resolve an issue on the first visit was a top customer complaint from 34% of respondents to a customer survey, and the average first-time fix rate for service companies is currently just 74%. With access to all customer and asset data, technicians can review service histories, anticipate repairs, order necessary parts ahead of time, ensure they have the tools they need to complete the repair, and avoid asking customers redundant questions during the service call. Likewise, if call center employees or sales staff can view service information, they can make better decisions and/or recommendations, and improve their own customer service activities. LEVERAGING THE CLOUD One way companies are achieving that level of integration and connectivity is by utilizing cloud-based platforms and applications. When back-office systems are cloud-based and the customer data and other systems are connected to the cloud, technicians can easily access the necessary data they need to perform their jobs, and then update back-office solutions in real-time. The cloud also makes it easier to pull customers into the service software loop. Being able to track the status of service requests online, from any device (even remotely), can help 2

4 ACCORDING TO THE SERVICE COUNCIL, USING THE IOT CAN IMPROVE REMOTE RESOLUTION RATES BY 41% AND FIRST-TIME FIX RATES BY 11%, WHILE REDUCING MEAN-TIME-TO-REPAIR BY 9%. reduce telephone traffic and give your customers a greater sense of control when it comes to service. This type of access can be especially valuable when it comes to scheduling. A 2014 survey by CSG International found that 89 percent of consumers would prefer an Uber-like tool to track arrival times for service technicians, and 86% were willing to pay a premium if they could have the ability to choose specific arrival times, receive same-day service, or establish guaranteed one-hour service windows. And they almost unanimously wanted to have more control over the scheduling process. The data gathered from connected equipment can also be used to create usage-based maintenance schedules, to develop service contract offerings, to improve product designs, and even to establish new revenue streams based on value-added services. THE ROLE OF AUGMENTED REALITY Augmented reality (AR) systems combine digital content with real-world data and images. AR systems can be used with smart glasses or head-mounted displays, tablets, phones, and other mobile devices. Digital content (such as schematics, instructions, or images) can be overlaid on a live image on the mobile device to offer a helping hand in guiding the repair. Cloud-based solutions provide a secure, reliable portal so that both internal and external stakeholders (including customers and third-party providers) can stay engaged in the process. INCORPORATING THE INTERNET OF THINGS (IOT) AND PROACTIVE SERVICE The Internet of Things (IoT) uses a network of sensors, connected machines/assets, wireless and wired communication, and cloud-based computing systems to provide enhanced visibility into the status of equipment. FSOs have been using similar technology referred to as machine-to-machine (M2M) communication to monitor assets for years. The IoT advances this process and can potentially enable more proactive or even predictive service recommendations. With assets and equipment connected via the IoT, FSOs can remotely diagnose and repair customer devices without the expense (often in the thousands of dollars) of sending a technician to the site. Using data analytics, IoT information can also help proactively address maintenance issues before they lead to expensive downtime. The diagnostic information available from these systems can also help technicians ensure they have the right tools and replacement parts before traveling to the customer site. This type of real-time device connectivity can revolutionize service delivery for both customers and technicians. According to The Service Council, using the IoT can improve remote resolution rates by 41% and first-time fix rates by 11%, while reducing mean-timeto-repair by 9%. In the field service space, these systems can help provide hands-free access to repair or service data that can be viewed simultaneously with an image of an asset or machine. Customers can even use AR to self-diagnose or service equipment, or to enhance interactions with customer service personnel when initiating a work order. For FSOs, however, there will be added value in embracing AR. The number of field service technicians in most markets is in decline, and workforce shortages will increasingly be a challenge as experienced techs retire. AR can help more efficiently train new employees, or it could be used to provide remote support between techs who will be able to share these enhanced views of a repair in progress, even if they are miles apart. In this way, FSOs can maximize the productivity of their most experienced techs while streamlining knowledge sharing across the enterprise. DEVELOPING YOUR SERVICE STRATEGY So how do you get started? How can you shift from a reactive model to a moreproactive and profitable, strategic approach to service? Here are the important first steps to take: 1. Evaluate the perception of service at your company and make the necessary adjustments. Your service technicians are the face of your company after the sale of a product. Does the executive leadership in your organization understand the value of those interactions? Aberdeen Group s State of Service 2017 report found that just 27 percent of service executives had made increasing brand awareness and loyalty a priority. That means others are falling behind their counterparts in sales and marketing when it comes to creating more value

5 Make a case to leadership that service is a critical, customer-facing activity that will drive future profits. 2. Identify what process changes need to be made. Applying technology to inefficient or redundant processes simply delivers poor results faster. Work with stakeholders within the service operation to outline all processes and identify bottlenecks or redundancies. 3. Gain a thorough understanding of your customers expectations and desires. Surprisingly, many companies fail to include their customers when they begin taking steps to improve their service operations. Survey your customers, find out what they like or don t like about your service, and ask them about their own pain points. competitors or posting negative reviews. Embracing service as a competitive strategy will not only provide an advantage when it comes to customer loyalty; it will also unlock new opportunities to generate repeat business, customer loyalty, new product sales, and referrals that help increase top-line revenue. The right mobile technology and field service software will make it easier to meet your customers increasingly complex requirements. Best-in-class service companies have already used this technology to drive down their internal costs and improve productivity; the next phase of field service evolution will be leveraging that investment to enhance the overall customer experience. 4. Use that feedback to formulate a service upgrade plan and develop employee training programs. Once you ve identified the problems you need to solve and the customer needs you want to meet, design your new service environment to match those needs. Employees across the enterprise (including managers, dispatchers, drivers, technicians, etc.) should have a voice in that design. They will also need to be trained to use the new technologies and processes both in the office as well as in the field. 5. Invest in the right technology and equipment to achieve your service goals. Technicians won t be able to execute on the new plan if they don t have the right tools (rugged mobile computers) and information (access to real-time customer data) to do the job. The information you gather from outlining you service processes and surveying customers will guide your technology selection. On the hardware side, the ruggedization specifications, battery life, form factor, operating system, and wireless communication options will need to meet your customers requirements and integrate seamlessly with your existing infrastructure. Software should provide the features/functions you need for your staff to provide high levels of service and gather data to enable continuous improvement. CONCLUSION Field service organizations are on the front line of an increasingly challenging marketplace where your customers are just a click away from giving their business to one of your ABOUT PANASONIC Panasonic Toughbook laptops and tablets are purpose built mobile devices engineered to withstand the harshest environments. With 4G LTE built in, workers have anytime access to critical data helping them work more efficiently. Not only is a Toughbook built to withstand the challenges of unforgiving environments, but it has the exclusive ProServices team standing behind it. Learn more at toughbookterritory.com/fto toughbook@us.panasonic.com Phone: Panasonic Corporation of North America. All rights reserved. 4