How Service Creates Value
Service creates a variety of intangible and material values – for the customer and the service provider alike.
But what are these values? ‘Value based pricing’ or ‘value in use’ are the current key terms here. Here, the service controller helps to balance values and goals No ship can safely enter port without a pilot. And what applies to shipping is not so different in the service business. Here, the pilot is the service controller. Piloting would also fit well to describe key topics such as key figures, productivity data and value based pricing. After all, a service controller is not a railway conductor working to find fare dodgers.
For You at a Glance
„New World” – How?
Backwards? … It will be different!
What are the cornerstones of the business in the New World?
My mental supermarket
How to develop, efficiently control service organizations in a future-oriented way: Management knowledge for the service practice as certificate course with Real Life Project.
Raising customer satisfaction and operational efficiency by professional service. Certificate course and module of the Certified Service Business Manager course.
Strategic design of service products, future-oriented steering and marketing. Certificate course and module of the Certified Service Business Manager course.
Quality methods and indexes for continuous improvement and optimal internal collaboration. Certificate course and module of the Certified Service Businesss Manager course.
Understanding and applying mechanisms of change, transformation, co-creation with customers & partners. Certificate course and module of the Certified Service Business Manager course.
Professional implementation of the fruits of the Certified Service Business Manager in an accompanying practical projekt. Graduation module of the Certified Service Business Manager course.
Customer-focused service presentations and professional communication with customers. Certificate course with 5 days of intensive classroom training and supervised pratical transfer taks.
Special requirements for service projects. In this five-day certificate course (incl. final exam and service project), you will work out how they will be successfully completed.
The pricing policy has a significant effect on profitability – with the right reasoning you ensure higher price acceptance and better profit margins.
Learning on the Job: how to ensure quality and efficiency by steering internal and external partners.
How the sales organization, as the customer interface can best implement the company's goals: the important tools.
Understanding customers is key to market services successfully: concept, development and design of services.
Emotionalization and measurable increase in customer benefit: how to optimally present the value of a service.
Intensive practical seminar: which settings do you have to make to be better than others? Effectively evaluate and control service.
On the contrary: the service controller is helpful, a partner to create transparency in cost accounting. Since only if the ratio of benefits and cost-generating factors is balanced, the bottom line for the company will be positive.
An important factor in this calculation is the pricing of the service. For this purpose, service controlling provides valuable, cost-oriented figures. If a company systematically aligns these prices with the customer's benefit, this strategy is called Value-Based Pricing. An essential factor: possible savings on the customer side.
Entrepreneurs who focus on service are in the lead in the long run. Why? Well, selling a product is more like a one time hit. Service, on the other hand, can be a constant revenue. Because: long after the washing machine, the smartphone or the printer are sold, the customer uses services. And not just once – often for years.
Benefit: High Margins
Service beyond warranty and repair has long-term potential to increase sales and profits for suppliers and service providers. Often, margins created by a wide service range by far outrun the margin generated by product sales. No wonder then that value in use, the value arising from use, is gaining importance in the value added process and is consequently changing business models.
Knowing Tomorrow's Needs
What is good for the customer is also good for the service provider: because it generates profits. A win-win situation. But to create a win-win, the service provider must always be one step ahead of the customer. Today, the service provider must already know what customers will need and wish for tomorrow and the day after.
The smart ones listen well to their service employees. As they are closest to the customers and therefore know their wishes best.
Creating New Values
New service services can be developed to create new values based on the experience of the service employees. Ideally, service employees therefore contribute systematically to this process and add value. They analyze customer processes and actively recognize the needs of the customer. When service recognizes and fulfills these needs, new values are created for the customer: internal processes are simplified and accelerated; efficiency increases and costs are reduced.
If service employees internally share their findings from close customer contact with the right colleagues in the company, they are an essential, dynamic part of value creation ‑ for both sides.
Especially if sales decline in the short or even the long run, the after-sales business can be an important stability factor. Often, service accounts for more than half of the profit. It can thus be a particularly effective tool for good long-term profits and stable corporate success.
Kangaroos Leap Further
If the customer orientation of the service provider goes beyond customer expectations, we at the ISS speak of a ‘kangaroo leap’. The reason: kangaroos leap further.
The ‘kangaroo leap’ is a core element in a modern service culture. Of course, this means you have to know your customer. However, an excellent service provider even knows the needs, wishes and challenges of the customer's customer.
It's a long way from product to service. But it is also one with excellent prospects.