Field Service Management Delivers 22% Increase in Service Revenue, 24% Productivity Increase, 12% Increase in Contract Renewals, and Decreases Repair Times by 19%
The growing adoption of field service management platforms is delivering double digit top and bottom line revenue growth for businesses globally. The shift to outcome-based business models and the adoption of servitization strategies is fueling deployment of service management software.
Intelligent field service management systems are delivering a 22% increase in service revenue, a 24% increase in productivity, a 12% increase in contract renewals, and a 19% decrease in average repair times, according to ServiceMax customers. And according to Ashton Business School, a servitization strategy delivers a 5-10% jump in annual services revenue, profits two to three times greater than product sales alone, 30% cost reductions for customers, and the opportunity to increase service revenues even further by supporting existing third party or competitive products. This creates an ongoing relationship with the customer that effectively locks out competitors.
According to Rick Gustafson, Chief Financial Officer for ServiceMax: “Field service is now speaking the language of finance. “Words like cost control, upselling, accountability and efficiency are now in the service leaders’ vocabulary. With most companies chasing the same part of the value chain, field service management is delivering an important differentiator, and bringing unprecedented benefits in the cost control of a business function that was previously unmanaged at this level of granularity.”
Field service management systems not only reduce waste and expenditure, and provide visibility and accountability in stock levels and technician utilization, but also enable service engineers to identify revenue opportunities on-site, seeing first hand potential problems and solutions. This helps drive product upgrades, replacement products, additional service provisions, and control expenditure. More importantly, unlocking service potential is an effective strategy for combating economic uncertainty.