Servitization: A Trend Your Business Should be Following | Blog | EnSight+

Time and again, good customer service has been proven worth its weight in gold. If you need a refresher, check out these stats: 73% of customers remain loyal to a brand because of friendly customer service, 90% of Americans say customer service is a reason to do business with a company and 93% of customers were likely to be repeat customers if the company offered excellent customer service. If you’re providing attentive customer service on goods or services directed toward the masses, it can boost the bottom line. Imagine what could happen if those services were tailored to the customer?

That’s the crux of “servitization.” The term behind a shift in mindset for field service management businesses. These organizations expand their offerings to focus more intently on solving customers’ problems. Today, we’ll explore what servitization in field service is and why it’s gaining importance.

What is “servitization”?

Servitization is described as an evolution from producing products to delivering product-related services. It’s a departure from the traditional sell-break-fix business model that companies have been relying on for decades. One of the first companies to move toward this strategy was Rolls-Royce. They designed an aero-engine program that allowed customers to pay based on the number of flight hours. The company can remotely monitor the engines and schedule maintenance and repairs as needed.

Field service companies can replicate that strategy with one of their own. For example, an HVAC company may offer a “comfort-as-a-service” option in addition to selling new air conditioners. Their customers pay a flat fee each month that includes both the equipment, repairs, and preventive maintenance. Considered a win-win by both parties involved, customers receive new equipment with no upfront money. This provides peace-of-mind. No more costly repairs should something go wrong and businesses get access to a new and consistent revenue stream.

Why servitization matters in field service

Servitization often works in lockstep with advanced technology like cloud-based software and internet-connected smart devices.

Related: Technology to the Rescue: Constant Customer Service

Servitization for field service often starts with field service management software. Such tools enable efficient scheduling, route planning, and dispatching. This helps technicians to arrive on time, making their customers happier. It can provide technicians with important job-related information and improve first-time fix rates. Technicians are able and encouraged to deliver invoices on the spot. This means less of a delay for payment, which will make company leadership happier.

Related: Modernizing Field Service Operations for Better Emergency Response

Smart devices allow businesses, like Rolls-Royce or the HVAC company in the examples above, to monitor wear and tear on equipment from afar. With that monitoring, service contracts are feasible because they facilitate preventive maintenance.

Related: Field Service Scheduling Is Good Customer Care

There is really no need to quiz customers to get estimated equipment usage. The company can simply monitor and analyze data as it is fed to a computer screen.  Scheduled maintenance checks at regular intervals ensure equipment condition and avoid future emergencies or unscheduled repairs.

Related: Get Field Techs to an Emergency Quickly

With such a critical part of customer acquisition and retention, servitization supplies field service companies with a unique wrinkle. There simply aren’t many customers who would say no to dedicated service. Service that solves problems at potentially lower costs.

EnSight+ has a cloud-based software solution that can help make servitization a reality for your field service business. Curious to see what we offer? Book a demo of the software today.


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