See what CFOs are looking for from their service organizations in this webinar featuring Aly Pinder of Aberdeen Group and Rick Gustafson, CFO of ServiceMax
3. 4
Agenda
Service Management Practice and Aberdeen Research
Framework
Introduction to the Study
Key Trends
Service profitability
Service margins vs. product margins
The increased impact of service on financials
Trends in service differentiation
ServiceMax Field Service Overview
Final Thoughts
Q&A
Not for Distribution
5. 6
Aberdeen Maturity Class Framework
What are Best-in-Class companies
doing differently?
What pitfalls are they avoiding?
Why are they achieving greater
success?
What technologies and services
are enabling them to succeed?
P
A
C
E
Pressures:
External forces that impact an organization’s market position,
competitiveness, or business operations.Pressures:
External forces that impact an organization’s market
position,
’
competitiveness, or business operations.
Actions:
The strategic approaches that an organization takes in
response to industry pressures.Actions:
The strategic approaches that an organization takes in
response to industry pressures.
Capabilities:
The business competencies (organization, process, etc…)
required to execute corporate strategy.Capabilities:
The business competencies (organization, process, etc…)
required to execute corporate strategy.
Enablers:
The key technology solutions required to support the
organization’s business practices.Enablers:
The key technology solutions required to support the
’organization’s business practices.
Selected Performance
Criteria (KPI)
Total
Respondents:
- Top 20%
- Middle 50%
- Bottom 30%
Respondents are scored
individually across KPI
Best-in-Class
Industry
Average
Laggard
Customer Satisfaction Rate
Service Revenue Change
Customer Retention Rate
Service Cost Change
Not for Distribution
6. 7
The Importance of Service Management
Objectives – To understand:
State of Service
Management
Best-in-Class Trends
Key Challenges
Impact on the Financials
Top Performance
Investments in Technology
Profitability
Differentiation
Margin Disparity
Not for Distribution
8. 9
Yes, 70%
No , 26%
Don't Know, 4%
In 2013, will Service be Managed as Profit
Center,Percentage of Respondents
State of Service Management
Cost vs. Profit-Center for 2013
Source: Aberdeen Group, December 2012
Not for Distribution
9. 10
Yes, 67%
No, 22%
Don't Know,
11%
Did service generate a profit in 2012, Percentage of Respondents, n =
138
State of Service Management
Profit Achieved in 2012
Source: Aberdeen Group, December 2012
Not for Distribution
10. 11
State of Service Management
Service Revenues Increase in 2013
Yes, 53%No, 28%
Don't Know,
14%
Anticipate service generating a greater proportion of
overall revenues in 2013, Percentage of Respondents, n =
138
Source: Aberdeen Group, December 2012
Not for Distribution
11. 12
40%
5%
23%
3%
19%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Higher by
10% or more
Higher by
less than
10%
Same Lower by less
than 10%
Lower by
10% or more
Service Margins
vs. Product
Margins,
Percentage of
Respondents,
n=138
State of Service Management
Service Margins vs. Product Margins
Source: Aberdeen Group, December 2012
Not for Distribution
12. 13
Less, 51%
The Same, 18%
More, 8%
Don’t Know,
23%
Cost of Service vs. Cost of New Customer
AcquisitionPercentage of Respondents
State of Service Management
Cost of Service vs. Cost of New Customer Acquisition
Source: Aberdeen Group, December 2012
Not for Distribution
13. 14
Metrics
Average Result
Customer
Satisfaction
> 90%
Customer
Satisfaction
< 50%
Customer Retention 89% 48%
Customer Loyalty Score 77 32
Revenue Growth (Previous 12
Months)
3.7% -1.7%
Service Revenue Growth (Previous 12
Months)
6.1% -2.9%
State of Service Management
Link Between Customer Satisfaction and Loyalty / Revenue
Source: Aberdeen Group, December 2012
Not for Distribution
14. 15
Top Goal
Drive Service Revenue – 22%
Enhance the Customer Experience – 17%
Improve Customer Satisfaction – 13%
Improve Customer Loyalty – 13%
2nd Most Important Goal
Drive Service Revenue – 23%
Drive Service Resource Productivity / Utilization – 16%
Not for Distribution
State of Service Management
Goals
Source: Aberdeen Group, December 2012
15. 16
State of Service Management
Top Metrics Being Measured
Not for Distribution
Source: Aberdeen Group, December 2012
57% 57% 56%
40%
0%
10%
20%
30%
40%
50%
60%
Customer
Satisfaction
Service Revenue Service
Profitability
Service Costs
(Overall)
Topmetrics,PercentageofRespondents
n = 138
16. 17
State of Service Management
Service Roadblocks
Not for Distribution
Source: Aberdeen Group, December 2012
29%
32%
33%
33%
0% 10% 20% 30% 40%
Current technology infrastructure
is insufficient
Lack of budget for investment in
service
Economic concerns hindering
service business growth
Cost cutting initiatives take
precedent
Challenges, Percentage of Respondents, n = 138
17. Imagine Flawless Field Service
Perfect your service
delivery
Maximize your service
growth/revenue
Delight your customers
18. Flawless Field Service, End to End
The only complete field service solution.
Delivered in the cloud.
20. The Road to Service Delivery Perfection
We surveyed our customers to assess the true impact of ServiceMax
31%
14%
11%
16%
Productivity Service
revenue
First time fix
rates
Customer
Satisfaction
scores
-16% -16%
Field
service
costs
Average
time
to repair
21. ServiceMax Extends Salesforce Capabilities
ServiceMax transforms Service Cloud into a
complete Service Life Cycle solution
Sales
Cloud
Marketing
Cloud
Service Cloud
powered by
23. 24
Final Thoughts
Not for Distribution
The Rise of Profits in Service
Service Margins vs. Product Margins
Service-centric Organization
New Service and Services
Focus on Current Customers, Avoid the Expense of New
Acquisition
Delight the Customer and Find New Revenues
Measure Profitability, Drive Customer Satisfaction
IT Service Budget Increasing (or at least not in decline)
But Service Still Needs More
Insufficient Technology Infrastructure
Imagine Flawless Field Service. Imagine eliminating inefficiencies, driving growth, and solving customer issues sometimes before they even know they have a problem At ServiceMax our mission is to help our customers deliver the best field service possible to their customers. We do this by helping customers perfect their service delivery process, drive revenue growth, and not just satisfy customers, but delight them.
We help our customers achieve Flawless Field Service by delivering the most innovative and cutting edge solution available. We are the ONLY complete end-to-end suite of field service applications delivered in the cloud, driving transformation across all field service functions including: ContractsSchedulingPartsSocial CollaborationCustomer and Partner PortalsWe also offer full BYOD mobility across the product suite, and run on the most trusted and scalable cloud platform in the world.
ServiceMax surveyed its customers in Jan 2013 and got pretty amazing numbers that represent the average improvements. Here are logos of the customers that participated in the survey. These metrics that our customers see improves all the key areas of running a flawless field service organization: perfecting service delivery, driving revenue growth and profits, and delighting customers.
Customer survey results on one slide..
ServiceMax is built on the power of the Force.com cloud platform from Salesforce.com. We are tightly integrated to the Service Cloud offering from Salesforce and we extend Service Cloud to field service, giving you a complete Service Life Cycle Solution in one technology solution.