OEMs are unable to capitalize on the extended warranties and service contracts due to these 4 reasons - 1. Poor visibility in their Installed Base data 2. Weak offers due to lack of data visibility 3. Lack of options & flexibility 4. Ineffective GTM strategy & tactics In this webinar, we will share various best practices to resolve these issues.
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Okay, I say let's go ahead and get things kicked off.
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Thanks everybody for joining.
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We expect the event time to run anywhere between 20 to 25
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minutes with some time for questions at the end.
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What that being said will move to some rules of the road.
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At the bottom of the meeting room,
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you will see different options to communicate with us.
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Please use the Q&A area for questions to the speakers.
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And then there's also a chat button you can see to raise any type of technical
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issues during the course of the event.
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The recording and the event deck will be sent out to you post the event.
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And what that being said, let me go ahead and introduce you to one of the
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speakers of the day.
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The VEC is the CEO and founder of entitled he has decades of experience working
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on both sides of the industrial equation.
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He's passionate about all things install base and simplifying install base
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workflows to give customer facing OEM teams an opportunity to do more with less
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He is also the founder of industry next community designed to help industrial
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leaders share and learn from one another with that the VEC over the year.
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Thank you very much and it's my pleasure to join you guys today and talk to you
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a little bit about what we're going to do today for the next 20 to 25 minutes.
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But more importantly, introduce you to a friend and a colleague who I've known
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for many years now in the name of Michael Bloomberg.
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Michael and I first met gosh, I think about seven, eight years ago at one of
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these industry conferences speaking of industry conference.
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And it is very clear to me back then that in this world where there's a handful
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of us who understand know about and are really passionate about after market
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and services Michael clearly was one of these guys.
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We've got to know him over the years we work together over the years off and on
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with different ideas and different initiatives.
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And you know recently we were talking about some specific things going on in
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our respective worlds in the in the context of equipment manufacturers and what
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they look for and so on and so forth.
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And we really started talking about this notion of services and service
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contracts and so on and so forth.
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And I thought there was nobody better than Michael to join us and tell us what
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he's been seeing and hearing and working with in a wide range of industries and
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wide range of manufacturers.
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And so we decided to kind of hold this webinar together.
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So without further ado, I want to invite Michael to tell us a little bit about
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himself as you can see his bios up on the screen, but Michael there's nothing
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better than the audience hearing from you directly about your background and
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who you work with and so on and so forth. Over to you Michael.
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Thanks for that again. Thank you for this very kind and thoughtful words that
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are part of your introduction.
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I've been working in the aftermarket service industry, literally my entire
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career and then some I learned this business of being a madame consultant and
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became an expert under the two of my father, the late Donald Blumberg who
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started a consulting business in 1969.
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And very soon after he started, he saw this opportunity and aftermarket service
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, how to apply strategic thinking around building and growing a profitable
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highly efficient, highly productive field service organization.
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So over the years, I worked in many many different industries.
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I started in 1985 gives you a good idea how long I've been around and I've
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worked until calm medical devices, IT, industrial automation, building controls
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, building automation.
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I would say if you consider any kind of product that has a durable good that
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has a printed circuit board or electronic component chances are I've worked
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with a client in that field.
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I've worked with the M or in some cases I've worked with independent service
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organizations, helping them build and grow their service services just as I've
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done with all the amps.
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So some of the companies I work with are Siemens GE ABB Schneider and let's go
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on and on.
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So what I'm going to do is I'll be the controller of this deck. I'm going to go
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ahead and start pushing the slides forward and Michael is going to take us to
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some things that I think are relatively, relatively important in terms of
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things one should care about in terms of aftermarket.
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But before we get that far, I am going to run a small poll which should take
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place in a second here, give me a second.
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I'm going to put a poll about understanding where you guys are with respect to
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this. Thank you very much. You guys are seeing the questions out here. Please
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go ahead and answer them.
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The poll should have started. So please go ahead and start voting. So home you
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can hit the start button I think.
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We're going to leave this on the screen for about 30 seconds and that will
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allow you guys to vote and then we will look at the results at the end of this
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session.
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We don't want to give any ideas along the way.
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So Michael, I'm going to go to the next space we can get going. I think the
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poll is visible and people can vote as they go through the so I'm going to go
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ahead and start moving the slides forward. Okay, so over to you again.
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Okay, great. So a lot of the work I do is around helping companies put together
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these growth strategies. It often involves quite a bit of market research and
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benchmarking. So I'm going to share that with you.
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But you're probably thinking about you're probably here because you're facing
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some challenges about growing your service contract business.
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You're thinking about it. You're contemplating it or you've done something
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recently. You want to make sure you're on the right path.
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So there's a number of reasons why you want to prioritize the maximizing
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revenue from these kinds of offerings.
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Keep in mind to me, this is almost like saying is I think of service contracts
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as a way to codify what your promise is to your customer.
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So if you're trying to go any kind of service, any kind of service revenue, you
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need a contract for it.
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So there's a couple of reasons why it's important to be that to be kind of a
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primary focus of your aftermarket business, particularly if you're running it
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as a profit center.
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First of all, my developing strategies and tactics that maximize the revenue
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from these offerings, you're going to increase your revenue profitability.
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Just for extended warranties, they typically represent about 10 to 15% of a
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company's P and L overall P and L.
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But then if you add service contracts, it could be even more. We've seen
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companies that have 40 to 50% of the revenue that's coming from the combination
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of service contracts, service offerings and extended warranty programs.
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Also enhances customer satisfaction. So when you have a service contract,
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customers are more likely to call you and assuming you deliver on the request,
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they're going to be more satisfied with what you have to offer.
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They're also going to have a piece of the piece of mine and the assurance that
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you're going to deliver a certain level of service to them that they may not
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otherwise get.
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And as a result of getting that level of service, they're going to be more
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satisfied with their relationship, with the product and the service.
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And to the extent you really deliver it and you perform this well, having a
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contract in place and having these offerings helps strengthen trust and the
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reputation of the provider.
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Another benefit is when you have contracts, you know exactly how much revenue
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and you're going to have.
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So it's not uncertainty you have about your future, but you also can anticipate
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what types of service resources you're going to need and what kind of service
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costs you might experience.
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So you can clearly plan a forecast better when you have those contracts in
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place because you have that data. So that helps you overcome operational
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challenges and obstacles.
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And most importantly, you can start making day driven decisions based on the
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data you have about your install base about where the equipment is, what kind
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of service activity is and service history research.
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And experiencing and what kind of additional services they might need because
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you have that data and hand.
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Let's move to the next slide.
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So when I brought into client organizations to help them with this issue, I
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find that there's four reasons or four mistakes they're making which got them
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into this challenge in the first place.
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One of those is poor market visibility followed by week offers, lack of options
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and flexibility and ineffective go to market.
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That's what GTM stands for strategy and tactics. So I want to unpack each one
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of these right now.
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So the mistake number one is we call it poor visibility in the previous slide,
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but it's really that they're unclear about their market size.
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They have not determined their tam salmon sum. So those that such acronym for
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total available market service addressable market and share market.
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So total available market is what's as big as the market for when buys service
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addressable market is what's really in your reach and some is what's your
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current share of that market.
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So what's your revenue, right? So can you imagine a company that's maybe
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manufacturing a product not knowing how big their market is.
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Well, that's the case with many service organizations. They don't really have a
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precise view of how big how large and how fast the market is growing.
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They like say, well, there's a market there. It's like selling cars. You know,
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can you imagine a car manufacturer saying, yeah, we know there's a market for
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cars because people drive cars.
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Some of those cars are kind of old. They look like they're falling apart and we
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believe that there's going to be consumers are going to buy more cars.
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And that's how some OEMs and service leaders deal with determining how big
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their market is. They guess that they don't have a clear view of it.
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And as a result, just just no commitment to pursue that market.
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And tied to that, they don't understand their tam salmon sum chances are they
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don't understand the value of the install base.
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And I know that Vivek and I and other members of his organization often joke
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around that, you know, you're in still base.
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If you're in still base is like a treasure chest. It's a gold wine of
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opportunities.
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Once you know what's there. And I'll give you an example that I had a client
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that they thought their market was declining.
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And because the product their product market was declining that an old product
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that was being phased out.
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And they just assume that there's really no service revenue anymore. It's
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declining as well. They need to expand into a new service market.
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And so we help him out. We help them identify other markets to expand into.
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But we also said to them at the on set on.
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On set of a project is let's not throw out the baby with the bathwater. Let's
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just really try to understand how big is your still base what's the value when
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you learned from our analysis that the service market the install base was the
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value of that notice the revenue potential was worth about four times the
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product sales market.
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And I'll get into more detail in the next slide of how that we arrive at that.
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And then we also just one more if there's also lack of data.
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So if they don't know the value of the install base chances are they don't
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really have good data on the stall stall base.
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Because that's really kind of one of the prerequisites for understanding the
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value and then calculating the tam sandwich some is to that data.
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What is the install base? How large is it? Where is it? How old is it?
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So that's what we want.
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So how do you obtain clarity? So you need to know what's at stake. We need to
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go back.
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You need.
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Next one, please.
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Here we are. This is the correct slide.
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So first thing is you need to know what's at stake and you need to remember
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that data is king. So just like in my example about car manufacturer would not
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go to market they'd not develop a new product new car or open up a new factory
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or new facility without doing a very thorough due diligence on our saying the
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size and forecast and segmentation of the market.
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And this example I gave you. We've earlier with that company and I think I said
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it was four times, but we've had others where they were surprised to learn that
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the revenue from service potential was 10 times more than they're actually
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getting.
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And indeed, there are studies that show that the over the lifecycle of a
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product. A company can generate service revenues 10 to 20 times that of the
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product revenue when you think of all the service offerings and contracts that
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you can provide on the equipment installed base.
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Another way to get clarity, remember pointed about out that people don't have
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good data. Well, one way is to encourage product registration at the point of
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sale and 100% registration is possible.
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And I learned that just from my own personal experience, I bought a bike road
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bike. And when I bought the bike, I said, well, you know, I'm a service guy.
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And the warranties I like to buy warranties make sure I want to make sure there
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's a warranty on this.
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It's the yes, absolute is I said, well, how is it on there? You know, you didn
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't give me a form to fill in and give me a little bingo card to fill out and
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give me my contact information and give me an OCR coach.
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I can go online. They said, well, when you bought it, we automatically entered
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and registered the product for you. So that's possible.
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I gave you a consumer example, but it's also achievable in B to B, maybe not
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100% out of the gate, but just putting in that simple process standard
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operating procedures that when someone buys your product, you're going to
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register it in your warranty system.
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And then the next one is make it easy for customers to attach service
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agreements and extended warranties at the point of sale. So making it very
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simple, not having a lot of paperwork, giving clear options to them, trading
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the sales people on the what's involved in the agreement, make and again,
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making it easy for people say yes or no to the to the offer.
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And companies that are able to do that, we found that they've been able to
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increase their tax rates by 20% minimum. Let's move on.
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So the next mistake that OEMs are service providers make is they have vague
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offers and part of that is they not make good use of marketing intelligence.
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And they just keep coming up with ideas, they sit around the table and from the
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gut they think that I call gut level play and say, this looks like an
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interesting offer to make, but they don't really know whether people are going
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to want to buy it.
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And part of this is there's limited details about the offer. So I remember a
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couple of clients I've worked with where they're struggling on their service
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revenue growth.
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And starting with their service revenue growth and I asked them, well, what's
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the offer to the make? They said, well, we provide a field service and say can
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you tell more about it?
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Said, yeah, we provide field service. This will like the explain what the
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process is going to look like, the define the level of coverage.
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Do you tell them how long it will take for a technician to come out? You give
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them any kind of commitments or guarantees? No, we don't.
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So no wonder nobody buys it. And then the value proposition is unclear. So let
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's, let's move on to the next slide talks about how companies, how I've helped
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companies overcome this.
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I'm not sure whether there's a question mark. I apologize for that. It should
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be just a bullet point, but the first one is to conduct voice the customer and
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competitive research.
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So very recently I was working with an industrial manufacturer and we went
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through their offerings and we found out that some of the offerings nobody's
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buying.
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Right. And so we were able to determine just from that analysis that some of
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these offers we got to eliminate and there's others that they're buying of
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buying.
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So we decided to prioritize around those offerings. I've got other examples
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where we've done voice the customer research and competitive research to refine
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the offer.
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But in general, by just going through your offerings and identifying those
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offerings that are doing well and prioritizing them and eliminating the low
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performance, you can optimize your sales and prove your sales by 10%.
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And the reason why is sometimes first of all having only one offer is a problem
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. If you have one offer, nobody buys it is a problem.
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If you have two offers, that might be a dilemma. If you have three offers, now
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you're really providing options. But when you get to four, five, six, seven,
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even 10, you have overwhelmed.
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They have overwhelmed and nobody does anything. They don't make a decision
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because they're overwhelmed. So that's why it's important to periodically
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conduct voice to the customer research and competitive research and also just
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analyze your offer your success rates to determine how you prioritize your
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offerings.
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The second area to create stronger offers is to provide more better contract
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distinctions. I'm a big fan and student of Tony Robbins. And one of the things
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I've learned from attending his seminars is that the more distinctions you can
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make about something about anything.
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The more effective you are going to get be an influencing and getting people to
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understand what is you want from them or what does you have to offer them.
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So those are distinctions that I referenced earlier about really describing
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what's the coverage is it's seven by 24. What's the response time if you're
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offering a for example for offering a one site dispatch contract.
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So the more distinctions you can make the more likely they're going to see
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value in it. And indeed, I've helped companies increase increase attachments by
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22% that's one company helped increase increase attachments because they made
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better distinctions about their offerings.
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Lastly, refining your value proposition. So one example is a client who offered
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a contract which was really a pride as a service. So they're offering a modern
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ization plan modernization service which involve upgrading the equipment and
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attaching services to that offering over a subscription basis over a multi year
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period.
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One of the problems they ran into is that nobody was buying it even though the
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data said that you know subscription based services and product as a service
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offerings are where it's at.
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And when I got into the organization and did some snooping around did my
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assessment. I learned that they just weren't conveying the value of this
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offering they were saying, hey, look, you can't buy they trust they went in
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trying to sell it as a product.
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And selling the upgrade as a project and then trying to attach services
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afterwards and they find that their customers weren't buying and they said,
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because they didn't have a capital.
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So they said, well, we got an alternative for you. You can lease it from us. We
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have a program. It's a modernization. It's a product is a service but it's
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really it's really a lease.
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Well, the customers didn't like that idea they were told not to lease anything
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by their CFOs. So of course it wasn't something but then we said, drop the word
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lease and describe exactly what it is. It's a subscription.
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We're going to get this value over a period of time. You're going to get some
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guarantees in terms of up time in terms of available to once they did that in
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the matter of days within 30 days.
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They generate $1 million a new revenue because one of their salesperson people
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decided to change the value proposition based on the advice I gave them.
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And you know, I didn't stick with them, but I understand that more and more of
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their salesmen started to offer it so they did see significant increase in
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revenue.
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The third one is lack of options and flexibility. We talked about that little
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bit before I'm going to go into more details. So some companies have a one size
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fits all offering this is it.
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You only take it. You only take this one and mentioned there's some short
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comings of offering one one one option.
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They also don't allow their customers to customize negotiate or terminate the
21:47
agreement. So they're kind of stuck with it. So it's a risk. Right.
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And then also if the offer maybe there is six or seven different features in
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the offer, but they only need to them.
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They too, they might say, yeah, it's not worth it. There's seven things on
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there. I don't need them all. I imagine the price of the contract is reflective
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of all these features.
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But giving the ability to customize it. I get just what they want. There's also
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the ability to personalize it.
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And also that's cumbersome and time consuming tip for the salesperson to
22:22
configure price and quote.
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And then you might take weeks, months to get a quote back and at that time, the
22:29
salesperson loses steam attraction and trying to close the sale.
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Next slide, please.
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So what are some ways to create more options and flexibility? Well, as we said
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before, provide choice and also provide a personalized customer experience.
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For me, providing choice involves also providing personalized customer
22:51
experience because you have to have a little bit of a consumtative sale.
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You know, we understand the customers needs and requirements to give them the
22:59
solution they want.
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And as we found a study where that showed that 76 from McKinsey that showed 76%
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of customers expressed expect a personalized experience.
23:12
Only 71% are however, 71 are frustrated when they don't receive it. So how do
23:17
you provide this customization personalization? Well, you got enable customers
23:21
to customize the agreements.
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You can also as part of that offer early termination or modification closes
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doesn't necessarily mean they're going to terminate it or modify, but just they
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have the peace of mind that they can.
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Provide the insurance is that they're not stock and you also streamline and
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automate the configure price and quotation process by looking at software
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solutions that provide that capability and implementing the solutions.
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And what we found this is from some benchmark data that attach rates.
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If you're doing these things consistently, they can be an excess of 65% and it
23:58
seems low, but not not for industrial not for industrial amps.
24:03
You know, for a sea consumer electricity, maybe a low, but they can get higher
24:08
than 85% whereas the in the industrial amps is a little bit above 65% anything
24:13
above 65% of my opinion.
24:15
I think that's pretty good to saturate.
24:17
There's always room for improvement, of course. And also renewal rates, you
24:20
know, once they have the service agreement and they're happy with the service.
24:25
These capabilities to be able to terminate modify customized and can lead to a
24:34
re renewal rates of an excess of 85%.
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So last mistake I want to cover is ineffective go to market strategy and
24:44
tactics.
24:45
An example of an effective one is the offers only made at the point of purchase
24:48
. Now I said it's important to make the offer easy to understand and easy to buy
24:52
at the point of sale point of purchase.
24:55
But you have to remember that's not the only touch point you have with the
24:59
customer.
25:00
There's also oftentimes a lack of sales training and incentives that the sales
25:04
people just aren't motivated or trained or feel confident or competent about
25:09
selling these services, these agreements.
25:13
And there's also an effective communication with the customer. They sell the
25:16
agreement and that's it.
25:18
Customer never hears from again. And that's, you know, so that's a great thing
25:21
in some ways from the product side.
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Product never failed, but the product never failed.
25:26
Customer may be led to believe that they don't need to have a service agreement
25:31
because the product is so reliable.
25:34
So let's look at how to solve that problem.
25:38
So one is to expand the sales touch points in terms of who they can buy the
25:48
service from and what timeframe effort they want the product can they buy and
25:53
also more marketing activities communicating and promoting and influencing to
25:58
the customer that are still an opportunity to buy the agreement.
26:01
Provide formal sales training, of course, and also provide reminders about the
26:07
value deliver and the performance you're providing to your customers and show
26:12
you appreciate them.
26:14
So, you know, you could give them results of a customer satisfaction study. You
26:17
can tell them stories about how you you save the customer millions of dollars
26:22
because they had your service contract and you able to respond in a timely
26:26
manner.
26:27
So somebody is reading that may they have never had a problem. They may never
26:31
will have a problem where they need the service, but the fact that they see how
26:36
you're helping other company read about how you're helping other companies just
26:40
like them kind of reinforces the value of your offering.
26:44
So the combination of these tactics have been instrumental in helping us grow
26:51
our clients share a market by one third by 33%.
26:56
On average, so let's move on.
27:00
So Mike, I think the key takeaways what you should take away from this brief
27:05
amount of time we spent together is you want to be continuously assessing your
27:12
company's market size, their needs, and your good and market strategy and
27:18
starts with organizing your installed based data to know what you have.
27:22
How old is it or is it located and how it's trending over time.
27:29
And then you want to unify your installed based data to leverage data analytics
27:33
and a high to drive sales and marking efforts.
27:37
And lastly, you want to do your research and your assessments to gain actual
27:42
insights so you can implement a personalized customer experience and flexible
27:47
service offerings.
27:49
And with that, turn it over to Eric Cohen.
27:54
Thank you very much, Michael. I think there's one more slide for us to go
27:56
through.
27:57
Oh, yes. Thank you for reminding me.
28:00
So I think the, you know, one of the things that we've talked about, Michael
28:04
and I talked about this as you're preparing for this event is, you know, there
28:07
's a lot of stuff that is being in the public realm in terms of what you can do
28:12
with service contracts, how you can think about warranties, how you can think
28:14
about install base.
28:16
But what we find time and time again, and this is as much as a subtle and unsu
28:20
attled ad for what we do it entitled is the ability for manufacturing companies
28:26
to simply and systematically find a way to unify this data, disparate data set
28:32
that exists all over their functional systems to find a way to analyze it in a
28:37
very simplistic and but in a very cost effective scalable matter.
28:41
And allow access to it either through an application that could be a purpose
28:45
able application like we've built in title insights all through third party
28:49
applications like CRMs and other things is really important.
28:53
And in one of the things we see time and time again, and this is literally why
28:57
Michael and I started talking about this is when he was working with one of
29:01
these manufacturing companies as a client.
29:05
The starting point was trying to figure out almost the first thing that Michael
29:08
said, you know, they didn't know where the install base or they didn't really
29:11
understand where things were and that's kind of how this whole discussion got
29:15
started.
29:16
So the idea is to kind of create the platform that allows you to spin off and
29:19
do a lot of different things. And so we just want to make sure that we put that
29:23
little reminder in here that there's ways to solve the problem that Michael
29:28
started off with.
29:29
So with that, I think we're ready for some Q&A Michael, I have one question to
29:33
start before Colin starts kicking up the questions, you know, you you talked
29:37
about the four mistakes or the four things that manufacture should do better
29:41
from one to four.
29:43
Well, those by any chance prioritized by things that you see the manufacturing
29:50
making the most amount of mistakes.
29:53
Or is it a sequential order of things that you think they need to get and get
29:57
an order before they get going. What was that sequence one one to four is this
30:01
later ladder.
30:02
It's where I see them making mistakes and where they get the biggest bang for
30:06
the buck. So if you don't know, you're going to install base, how big it is in
30:10
the right of opportunity.
30:12
You kind of lack the reason why you're doing it the first place and everything
30:15
you're stems from there. So then you got to decide is big enough and precisely
30:21
what is our offer and then how do we go to market with it.
30:26
Okay, over to you Colin, I think there's a couple of questions that you have
30:30
for Michael.
30:31
Yeah, I think there's a couple of complimentary questions to what you just ask
30:35
and what Michael responded for is, where is the best place to start to
30:39
understand what I should include and offer in a service contract.
30:44
I think you needed if you're thinking about doing this, I think there's two
30:48
places one is you really want to look at what your competitors are offering.
30:52
Now they they could be lagged themselves. So the next thing is to kind of
30:56
understand in general what's available and many people in this call already
31:00
have a pretty good idea of what other leading service organizations are
31:04
offering.
31:05
So you want to do some industry benchmarking and then lastly and really
31:09
important not to overlook this is you really need to talk to your customers.
31:13
You can't just assume you know what's best for them. You can't assume because
31:16
your competitor offers it. They're going to want as well. You can't assume
31:19
because some leading company offered this service and grew their business by
31:24
double digits that it's also right for you.
31:28
You got to talk to your customers. You got to do your due diligence and your
31:33
quantitative research.
31:36
One other follow up to that is what are ways that they can calculate the total
31:40
addressable market for after market for their install base.
31:45
So we use a model where we do a lot of economic economic modeling where we get
31:51
product shipment data and then estimate over time.
31:57
So we can't install base and we also estimate how does that install base of
32:02
change over time in terms of what's being replaced.
32:07
And then we kind of identify estimate how much what's the value of that install
32:13
base and what services can be offered as to generate that value.
32:19
We size it historically and forecast it for and then also you know your company
32:25
title also helps companies find out what they have today in terms of the market
32:31
size today.
32:33
What we're doing is also looking historically and forecasting it in the future
32:38
based on other data sales forecast, economic data and so on.
32:43
Quick introduction if you don't mind I had so home bring up the poll results
32:46
was this fascinating Michael at least if nothing else.
32:50
This is a self selecting crowd 60% of the folks here agreed that increasing
32:55
contract at that rates is a really good way to to drive service revenue, right,
33:01
which is great.
33:02
The second most selected option was driving proactive predictive service, which
33:06
is actually quite interesting to us as well personally from the entire
33:10
perspective.
33:12
And the third one was maybe this is just losing its appeal any longer, but
33:16
multi vendor services, which is a manufacturer providing services for other
33:21
manufacturers equipment was relatively distant third and then advising
33:26
consulting simply did not get any.
33:28
Any people voting for it so I thought it was fascinating by the way just as an
33:32
aside you know some of you are probably familiar with another organization
33:36
called service council.
33:38
They ran a similar survey in fact we might be the exactly the same words we
33:41
were used. I wanted to kind of see how this thing performed and their.
33:45
Bold results were literally exactly almost the same order of priority, which is
33:49
increase attached to its drive proactive predictive services then multi vendor
33:53
offerings and advising consulting.
33:56
Even for them did not even rank at all as a choice so Michael, I thought this
34:00
is interesting validation of the point you are trying to make today as well.
34:06
So yeah, yeah and the multivitory service that's very interesting to me because
34:10
I did a lot of work in helping OEMs increase the multivitory service business
34:15
in the 80s and 90s and 2000 and you're right it's kind of lost its priorit
34:20
ization.
34:21
I think part of it is that we're seeing more boxes of service offerings and new
34:25
offerings that we didn't have before so if a company was experiencing the
34:30
client in their install base.
34:33
They didn't want to fire any of their field service engineers one way to offset
34:37
that trend was to expand multivitory service so now with new offerings and new
34:41
technologies that allows to do more or less.
34:44
I'd say that's probably one of the drivers of why manufacturers are less
34:48
concerned about building that part of business and going into focusing on
34:53
increasing attach rates and developing new service offerings like proactive and
34:58
predictive service.
35:00
Great. That's all I'm back to you.
35:03
Yeah, I mean as far as last question go the last question that I had and kind
35:07
of relates to the advisory consulting maybe people don't know about people like
35:11
Michael is this so how do clients end up finding and working with you Michael.
35:16
Yeah, so one of the ways they end up finding me is from venues like this or
35:20
going to conferences they can subscribe to my newsletter read my blog but and
35:25
usually what ends up happening is either there's an outcome they have like they
35:31
they know they want to grow their service business but they're not sure.
35:36
And they want to independent and objective assessment about how to grow or they
35:40
're getting pressure not so much as they want to do it not sure but they're
35:43
getting pressure by somebody in their organization to maybe eliminate that
35:47
service business or that they need to do better so they're bringing me in and
35:51
it always starts with assessment understanding what is they're currently doing
35:56
identifying the gaps and then providing recommendations on how to close those
36:00
gaps.
36:02
Great. That was it for questions about.
36:05
Excellent. Well, thank you very much Colin for for I'm seeing the questions
36:11
appreciate it very much for those of you on on the.
36:14
Webinar right now there's a few things that we wanted to write first of
36:17
foremost obviously we collaborate with Michael and his organization so we can
36:22
kind of do a combo offer you right one month free trial of entitled insights
36:26
the application.
36:28
And the screenshots you see at the bottom right there as well as a consulting
36:31
call strategy called with Michael still kind of going and really is about
36:35
making sure that you're driving profitability right I don't know what those a
36:40
few in the equipment business are seeing right now but we are heard clearly
36:45
from our customers and prospects that we work with that because of interest
36:49
rate increases because of the wallblowness of the economy certainly the US in
36:53
Europe or e sales original equipment sales that come down pretty significantly
36:57
over the last two years. And as companies scrambled to kind of find ways to increase operating margin
37:01
and start driving gross profit to cover a lot of the fixed costs they have in
37:06
place.
37:07
You know getting after the warranties and extended service contracts is also
37:10
something that's really important that I think there's some real near term
37:14
opportunities like as Michael showed in some of the examples near term
37:18
opportunities to start driving revenue on profit margin because most of you
37:23
know that these service contracts have incredibly high profit margins.
37:26
And the gross profit and an operating profit level for manufacturers so that's
37:31
an offer we are not going to make you if there's any questions you know please
37:36
contact me by email or you can go to Michael site call Michael dot net and
37:42
please reach out to either of us and we're more than happy to help in any way
37:46
we can so with that.
37:47
I'm sorry Michael going to my site you can schedule a call with me and we get
37:54
conversations.
37:56
Thank you.
37:58
With that wrapping up the webinar thank you for attending it as Colin said in
38:02
the beginning we will share the presentation and recording with the
38:06
participants on this event as well.
38:09
Thanks again and have a great day and good evening.
38:11
Bye bye.
38:13
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