This article was written by Sam Klaidman, Founder and Principal Adviser at Middlesex Consulting. He helps clients grow Service Revenue and Customer Satisfaction by defining service contracts and other services that meet customer’s needs and create value for them and their customers.
A large part of the job of a Service Executive is to grow your business. This is true even if you are not a profit center, but especially true if you are one. And the key to successfully growing your business is to focus all your planning efforts on customers and prospects. After all, they are the ones with the money. They are the people who will buy your services.
While it sounds logical, many people do what they always did:
When planning to grow revenue, you have three separate paths to simultaneously follow:
This information comes from a few sources:
You are now ready to preliminarily figure out what new service products your customers may purchase and possibly, how much they will likely pay for them. And, of course, the list will only include services that your team is currently capable of delivering or can learn with a small investment.
Now, you must become (or engage) a service marketer and start testing your ideas by talking to potential customers. These talks should be structured to make sure you are getting answers to the same questions so that you can compare and evaluate the feedback you receive. This is also the opportunity to discuss prices to determine your customers’ willingness to pay. And you should collect feedback about the skills your team possesses that will be employed to deliver the new services.
When you have collected sufficient information, you can then apply the previously determined key service drivers. You must see if different customer segments want different products or similar products with slightly different components.
You will have to obtain agreement/approval from the other business stakeholders. This includes sales, marketing, finance, and CEO. An ROI calculation and a margin analysis will no doubt be expected.
You should ask the CX or customer success group to project the impact these new services will have on customer retention.
What to do when you have successfully checked all the boxes:
Good luck and expect success!