Member ROI Case Study ReviewField Services

The services industry is rapidly moving from a pure product focus to a customer outcome-based focus. New customer expectations, new models, and new capabilities will put tremendous pressure on today’s field services organizations to adapt, be relevant, and continue to deliver a key revenue stream for their companies.

At TSIA, we help our members by providing assessments of their business through our validated benchmarking process, frameworks for best-of-breed operations, recommendations for actions and best practices, and exceptional networking with industry peers. Understanding the new capabilities required in the future while continuing to deliver today’s results will separate the winners from the losers in field services.

The following case studies are an example of positive outcomes achieved through leveraging TSIA membership benefits.

EXECUTIVE SUMMARY

ROI Case Study #1 | Focus: Spare Parts

OUTCOME

Reduced spare parts cost percentage of revenue by 2 points ($8.8 million).

MEMBER CHALLENGE

An Enterprise IT and Telecommunications Company was challenged as part of their annual planning process to reduce spare parts cost as a percentage of revenue.

TSIA RECOMMENDATIONS AND LEVERAGED RESOURCES The member participated in TSIA’s annual Spare Parts and Logistics Multi-Member Study, which provided a benchmark cost breakdown identifying potential opportunities:

• Brokerage, customs clearance, taxes, and duties • Repair vendor spend• Parts cost and depreciation expense

Additionally, they implemented a TSIA Scorecard for ongoing tracking of performance and initiatives.

2 POINTS

$8.8 M

ROI Case Study #2 | Focus: Differentiated Offers

OUTCOME

Increased services revenue $19 million by reducing the number of offers from 44 to 4 bundled tiers, increasing attach rates (+32 ppt), and improving renewal rates (+30 ppt), while increasing gross margin by 2 points ($4.8 million).

MEMBER CHALLENGE

An Industrial Equipment Company was challenged with developing outcome-based services offerings and creating differentiated field service offers that increased customer value.

TSIA RECOMMENDATIONS AND LEVERAGED RESOURCES The member participated in TSIA’s Field Services benchmark which identified an excessive number of offers and low contract renewal rates.

They also conducted a two-day TSIA advisory workshop to rationalize offers and go-to-market strategy, and utilized outcome chains to establish a value proposition.

Additionally, they leveraged the following research reports: • Creating Differentiated Field Service Offers• Taking the Plunge: B4B Pricing Models

ROI Case Study #3 | Focus: Driving Adoption

OUTCOME

Increased gross profit by $4.6 million. Gross margin improved by 1.3 ppt, field service utilization increased to 70% and experienced an annual services revenue growth of +6% (vs -5%). They also maintained high renewal rates and transactional customer satisfaction.

MEMBER CHALLENGE

The field service organization within this Industrial Equipment Company was tasked with reducing costs and increasing services revenue.

They often bundled in premium contracts at no incremental cost to capture product sale/install.

They were facing an “off target” gross margin at 30%, and services revenue was shrinking 5% per year.

Additionally, the company’s field service utilization was at 62%, and lower customer density resulted in 1.3 hours of travel time per incident.

TSIA RECOMMENDATIONS AND LEVERAGED RESOURCES The member participated in TSIA’s Field Services benchmark and leveraged the following research reports:

• Field Service Workforce Optimization and Productivity • Creating Differentiated Field Services Offers That Increase Customer Value• Outcome-Based Services Portfolio• The Impact of B4B on Field Services

ROI Case Study #4 | Focus: Differentiated Offers

OUTCOME

Developed new offers with an outlook of a 5% increase in total revenue, resulting in $2.0 million annual revenue growth. They also anticipate improved field service utilization from alignment of response time SLA’s and contract entitlements.

MEMBER CHALLENGE

This Office Equipment Company struggled with “off target” renewal rates for support and maintenance contracts and wanted to be more on par with their industry and peer group. They also lacked differentiated field service offers that resulted in delivering premium service levels at standard pricing.

Additionally, their SLA compliance for response time was “off target” even though absolute performance approached pacesetter levels.

TSIA RECOMMENDATIONS AND LEVERAGED RESOURCES The member participated in TSIA’s Field Services benchmark and was able to compare performance across sales and marketing and operations, which identified an opportunity to further differentiate field service offers.

They also leveraged the following TSIA research: • Creating Differentiated FS Offers That Increase Customer Value• Outcome-Based Services Portfolio• The Impact of B4B on Field Services• Consumption Analytics

Become a TSIA member and gain access to a rich set of programs, services, resources, and events that empower service leaders and their organizations to better manage their business. Join our community of more than 30,000 individual service executives.

> Request a Field Services Membership Briefing

www.tsia.com© Technology Services Industry Association | 17065 Camino San Bernardo, Ste. 200 | San Diego, CA 92127 | Tel. 1.858.674.5491