Michael Blumberg & Vivek Joshi 38 min

Service Revenue Accelerator


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.

12:37

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

14:27

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

16:11

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

16:46

be just a bullet point, but the first one is to conduct voice the customer and

16:50

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

19:08

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

19:29

a contract which was really a pride as a service. So they're offering a modern

19:34

ization plan modernization service which involve upgrading the equipment and

19:40

attaching services to that offering over a subscription basis over a multi year

19:46

period.

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One of the problems they ran into is that nobody was buying it even though the

19:52

data said that you know subscription based services and product as a service

19:56

offerings are where it's at.

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And when I got into the organization and did some snooping around did my

20:02

assessment. I learned that they just weren't conveying the value of this

20:07

offering they were saying, hey, look, you can't buy they trust they went in

20:11

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,

20:22

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

20:29

have a program. It's a modernization. It's a product is a service but it's

20:32

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

20:38

by their CFOs. So of course it wasn't something but then we said, drop the word

20:43

lease and describe exactly what it is. It's a subscription.

20:48

We're going to get this value over a period of time. You're going to get some

20:51

guarantees in terms of up time in terms of available to once they did that in

20:56

the matter of days within 30 days.

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They generate $1 million a new revenue because one of their salesperson people

21:06

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

21:17

their salesmen started to offer it so they did see significant increase in

21:21

revenue.

21:22

The third one is lack of options and flexibility. We talked about that little

21:25

bit before I'm going to go into more details. So some companies have a one size

21:31

fits all offering this is it.

21:34

You only take it. You only take this one and mentioned there's some short

21:38

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

21:58

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

22:05

there. I don't need them all. I imagine the price of the contract is reflective

22:10

of all these features.

22:12

But giving the ability to customize it. I get just what they want. There's also

22:15

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.

22:34

Next slide, please.

22:38

So what are some ways to create more options and flexibility? Well, as we said

22:42

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.

22:56

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%

23:06

of customers expressed expect a personalized experience.

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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.

23:24

You can also as part of that offer early termination or modification closes

23:27

doesn't necessarily mean they're going to terminate it or modify, but just they

23:31

have the peace of mind that they can.

23:34

Provide the insurance is that they're not stock and you also streamline and

23:37

automate the configure price and quotation process by looking at software

23:41

solutions that provide that capability and implementing the solutions.

23:46

And what we found this is from some benchmark data that attach rates.

23:52

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%.

24:39

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.

25:23

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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