Service Optimization for Sustainable, Stable Growth
Growth potential in the Service function remains too often underutilized today. In optimizing your Service function we secure above average margins and provide profit stability for your company.
Service optimization: Stable growth in sales with higher margins
Competition in the volatile new equipment business is becoming more and more contested and depresses margins. Globally active customers demand comprehensive and global Service support. In addition, Service generates high profitability independent from market cycles and customer satisfaction is significantly increased.
Service is too often reactive. Only few companies recognize the market potential of their Service business. The costs of value performance are seldom as scrutinized as for new products. Above all, however, customer requirements are not fully understood or even actively controlled. The focus on the customer of the Service sales organization with revenue responsibility of all employees is lacking.
Service optimization tailored
Optimization of the Service function offers therefore especially high potential. First our TARGUS team consisting of industry and consulting experts analyzes the performance of your value performance in Service. Ultimately all four dimensions of your Service business are examined in detail, whether weaknesses are still hidden or you are unsure if your Service function is competitive. The unrealized margin potential is weighed towards developing individually tailored solutions for your situation.
- First your Service key data is examined in order to evaluate performance and Service quality as well as Service controlling.
- If the basis covers the value performance of customer requirements, then your market knowledge about competitors, customers and operational conditions of your facilities are examined.
- Building on that information your value performance costs are carefully examined. Only under efficient conditions rendered performance can achieve the necessary profit.
Service optimization by unterstanding the needs of customers
One of the greatest levers is often found on the sales/marketing side. One must understand the customer in detail in order to align one’s Service offer with customer requirements and exhaust its full profit potential. Frequent on-site services at customer’s plants support knowing their requirements and how to serve them best. That allows you to bring pricing in line with customer value.
In order to be able to sell its optimized Service offer, the entire Service sales organization must be focused on the customer.
TARGUS has extensive know-how in Operational Excellence in value performance, in purchasing external value creation and in the improvement of operating sales performance. Building on these core competencies you profit from the comprehensive consulting and industry experience of our experts in the design and implementation of a powerful Service concept.
Typical results of service optimization
- Increase of return on sales in Service over 20%
- Expansion of the percentage of Service sales of at least 20%
- Double digit growth rates in Service
- Customer satisfaction after a short time
- As a side effect – stabilization of your company’s earnings
Service optimization in practice
The systematic optimization of the Service business built up new sales fields, significantly declined the costs of goods and services and implemented a new pricing system. Sales have been increased by more than 20% and the profit margin is on its way to being doubled.
With the goal-oriented support of TARGUS the Service business was reworked in only 4 months and an intermediate action plan with detailed measures was developed. The positive results appeared quickly in the company’s earnings.