It’s probably not too surprising to hear that having a fine-tuned service organization is key to a properly functioning – and growing – business. After all, when products in the field break or need service, a quick proactive approach to service makes all the difference.
But what if I told you companies that operate the best service organizations are actually seeing 46 percent margins on service revenues? 46 percent! That’s almost 20 percent higher than what most industrial companies see on new equipment sales, according to Bain & Company.
And not only does a well-oiled service machine lead to higher profits – recession-proof profits, mind you – it’s also a huge contributor to help differentiate your business from the competition. Just look at what McKinley Elevator has done, for instance.
Luckily there’s a way any organization can mirror these traits. And it has to do with these three aspects:
- Process. With numerous technicians scattered around a region or even around the globe, it can be hard for service leaders to not only know how everyone is performing, but also ensure they are all following the same processes.
- Technology. While technology is a somewhat vague term, in this case, it’s the combination of a modern service system (software) with mobile devices (hardware).
- Metrics. “If you can’t measure it, you can’t grow it,” as our customer MilliporeSigma eloquently quipped onstage at our user conference earlier this year. Visibility into your service organization is the most essential part of improving how you operate.
Operational excellence isn’t merely a tactic for growth or higher profits — it’s a survival strategy. As product commoditization continues, service is emerging as a critical battleground for manufacturers, industrial organizations and traditional service providers alike.
To learn more about operational excellence and how these aspects work together to create a service system that is far greater than just the sum of its parts, check out our new free ebook.