Service optimization for profitable, stable growth
Growth potential in service often remains untapped. With our service optimization method, we ensure above-average margins and ensure stability in your company’s profits.
Service optimization in after-sales service: stable revenue growth with high margins
Competition in the volatile new machinery business is becoming increasingly competitive and reduces margins. Globally active customers demand a comprehensive and globally positioned service. In addition, high profitability is generated in the service sector regardless of market cycles, and customer satisfaction can be significantly increased through service optimization.
Often the service is operated too reactively. Only very few companies know their market potential in the service business, and the costs of service provision are rarely as closely watched as for the new product business. Above all, however, customer needs are not fully understood and actively addressed. There is no alignment of the service sales organization with revenue responsibility for all employees.
Service optimization tailored
Optimizing service therefore offers particularly high potential. Our team of experienced TARGUS experts analyzes the performance of your service provision. For service optimization, all four dimensions of your service business are examined in detail. The aim is to exploit the untapped margin potential with solutions individually tailored to your situation.
- First, your service KPIs are evaluated in order to check both performance and service quality as well as service controlling.
- If the basis of service provision meets customer needs, your market knowledge of competitors, customers and operating conditions of the equipment is examined.
- Based on this, the costs of service are scrutinized. Only companies that provide the service offering under economic conditions can make the necessary profit. Nur wer die Leistung zu wirtschaftlichsten Bedingungen erzeugt, kann den notwendigen Profit daraus schlagen.
Service optimization through better customer understanding
Revenue often is one of the biggest levers. You have to understand the customer in detail in order to align your service offering with their needs and exploit its full potential. Regular visits to the customer’s site help to know their needs and to serve them in the best possible way. This can also be used to align pricing with customer benefits.
In order to ultimately be able to sell the optimal range of services, the entire service-sales organization must be geared to the customer.
TARGUS has in-depth know-how in operational excellence in service delivery, in the procurement of external services and in the increase of operational sales performance. Building on these competencies, you benefit from the extensive experience of our experts in the development and implementation of a powerful service concept.
Typical results of service optimization in after-sales service
- Increase in service margin to over 20%
- Expansion of the revenue share from service to at least 20%
- Double-digit growth rates in service
- Quick increase in customer satisfaction
- As a side effect, stabilization of your company’s earnings
Service optimization in practice
Systematic service optimization made it possible to create new revenue streams, significantly reduce the costs of service provision and introduce a new pricing system. Sales increased by over 20% and the profit margin is on track to double.
With the targeted support of TARGUS, the service was fundamentally revised in just four months and a medium-term action roadmap for service optimization with detailed measures was created. The positive results were quickly reflected in the operating result.