As service ascends the corporate priority ladder, executives are not only looking to control and manage service-related costs but also to drive revenue recapture and creation opportunities from their existing customer base. In a recent research survey by Aberdeen, to further evaluate revenue generation strategies of more than 300 firms, 88% indicated that the need to develop new revenue opportunities from service was either “extremely” or “very” important. More so, more than two-thirds of all respondents, and 83% of Best-in-Class respondents, stated that they are actively engaged in new service revenue initiatives.
Of the 300+ survey respondents reporting, corporate goals of higher revenue in the face of shrinking product-based margins coupled with rising resource costs were cited as the top drivers for new revenue initiatives. As such, leading service firms were actively looking to segment their customer base to identify high value prospects and aggressively market complementary product and service offerings to these prospects. More than a third of leading firms also indicate taking steps towards the development of a sales force dedicated to service offerings.
For instance, these firms:
• Report having 60% of their customers under service contracts as compared to 31.9% for all other firms.
• Experience a 67% success rate in renewing service contracts when compared to 49% for all other firms.
• Are 54% more likely than all others to provide their service executives with visibility into contract registration, attachment and renewal rates.
Get more information on the Service & Support Industry at www.Supportindustry.com
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