Service, an earnings model?
Wednesday 1 April 2020 Tags: Added value, Services
Service, an earnings model?
Good service is normal. It goes with the product. Service is, however, not distinctive and it certainly isn’t an earnings model. After all, your customers are almost always disappointed the minute they need you to provide a service. This is why you should focus on the added value of your services and offer these proactively. In other words, before your customer comes to the conclusion that there is an issue with your product. It will help you generate value.
How do you keep your customers satisfied?
Ask ten entrepreneurs about service and all ten of them will say that it is of paramount importance to keep their customers happy.
“But what exactly does ‘keep happy’ mean?” I asked an entrepreneur during the annual trade exhibition.
“Well, you know. We listen to their queries and investigate whether we can solve them. I do prefer hearing nothing at all, because that means that everything is going well and that we delivered according to expectations.”
Why don’t they purchase an SLA?
For this entrepreneur service is a necessary evil: a mere pretext to help his customers a bit. Or to create that illusion in any case. Or even to make them keep quiet.
Do you think his customers would be willing to spend money on that? Of course not.
Could it be considered strange that customers do not want to conclude a Service Level Agreement (SLA) with this entrepreneur?
Of course not, because how will the entrepreneur improve on what he is already doing? At the end of the day, doesn’t he come into action when the customer calls the entrepreneur in the event of a problem?
As long as a Service department is set up to respond to complaints reactively, customers will never appreciate the true value. The way the customer perceives it is that the problem should not have occurred at all. The entrepreneur can consider himself lucky to not receive a claim for lost production hours or income. What will change their mind?
Service as a profitable service requires that you, as entrepreneur, apply a totally different mind-set; a mind-set aimed at value. Your customers will only pay if you act creatively and proactively, even before they have asked a question. In this case, the Service department will not be a necessary evil but rather a professional service provider who is involved in the customer’s processes. An expert who continuously focuses on their success and value creation. An expert who stands beside them and looks, considers and undertakes with them.
Would your customers be willing to spend money on that? Of course!
How can you create proactive service?
Set up an appointment with a customer today and really listen to the problems,
concerns and questions they have about your products. Tell them what you know, what you could do for that customer and at what price. How could your customer make even better use of your product? How can your customer save money or, even better, create value?
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