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The Rising Cost of Customer Service and maintaining business profitability?

It seems you too are worried while looking at the ever rising cost of customer service. Many others like you are equally concerned and feel that some Goliath in the customer service operation is eating out major chunk of the business profitability or even becoming a threat to the survival of the business. My Dear Friends, it is the right time to adopt and embrace excellent customer service and reap the benefits attached to it than continue considering it as a cost center and keep losing hard earned profits.

The BIG Question that is raised impromptu from all corners is How can we do ? We too have been brainstorming about the same from quite some time but still do not know how to? The answer is simple and not a rocket science. In order to make profit from the customer service function, you will have to adopt or rather adapt to the Best customer service management practices. There are two to do that, first, you can start from afresh (from a blank slate), study the Best practices followed by the market leaders and then build your service strategy and service tools around that, second, start following the strategy and service management tools used by the leaders in your vertical. While both these routes can help you to reach the right customer service strategy, the turn-around-time and chances of success look brighter in the 2nd option. All this while, you will have to keep in mind that every business entity is a unique business entity including yours and despite having substantial similarity to any other market leader you may wisely consider to follow only those service practices and customer service management tools that suit your business situations and within the capability of your organization.

Coming back to the main discussion point about maintaining profitability in business and continued business sustenance in a scenario where managing customer service is getting costlier every day, let’s quickly highlight where and how are we going to save the money spent on customer service operations which shall actually add to the bottom line as profit.

1. We are going to reduce at least 30% time spent of the service technician or field service engineers by automating the manual & error-prone call handling processes, which means more service calls handled by the same number or less number of service engineers and above all you enhance your customer service turn-around-time and increase customer satisfaction level and gain intangible benefits.

2. We are going to save cost on spare parts inventory loss that happen due to manual and inconsistent service processes and delayed reporting of service requests.

3. We are going to save cost on hard-copy service books, multiple Xerox copies of work orders, manual data capture and collation activities, duplicate data capture and data entry activities at different service levels for the same work order, multiple phone calls and interactions between service engineers and back-office or service center to resolve queries

4. We are going to increase profitability through efficient spare parts and logistics management by facilitating just-in-time practices like MSL/ROL and thereby allowing more funds and liquidity in the service channel.

5. We are going to save cost on unfair practices like moon-lighting which in some countries majorly make service operations a BIG revenue looser and cost center.

6. We are going to increase revenue streams and related profits by en-cashing AMC opportunities which mostly go missing and unnoticed in the absence of a strategic service process and a centralized tool to monitor and manage warranties.

7. We are going to enhance overall service operations efficiency by bringing in a quick, easy & fair warranty & service claim settlement mechanism for the service partners.

2 thoughts on “The Rising Cost of Customer Service and maintaining business profitability?

  1. Pingback: Measure your field service performance using service KPI Dashboards |

  2. I read the post and found several facts and challenges prevailing in the service industry quite relevant. It is good to see that you have highlighted specific areas where sufficient cost saving can be done and service profitability can be made. However, I’m not sure about any service management tool capable of handling such an end to end service process mapping and automation. Let me know more about such a tool and key features as well..

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