CRM - August 2008 - (Page BP6)

6 August 2008 Sponsored Content closer look at the strategies needed to support successful post-sale activities. SUCCESSFUL STRATEGIES Given the size and complexity of most aftermarket environments, companies should map out a careful and proven pathway to achieve their desired results. Most good plans will begin with a thorough evaluation of a company’s aftermarket needs and opportunities. That study should examine variables such as the manufacturer’s current post-sale strengths and weaknesses, customer service expectations, the profitability of existing support and warranty programs, cross- and up-selling opportunities, and the overall competitive environment. The results of that assessment are then used to formulate specific plans for improvement, as well as an overall road map to guide the company in the creation of a profitable aftermarket business model. Many OEMs prefer to assign this important initial assessment to an objective third-party provider. When a company is considering change that will cross lines of business, internal departments and established business boundaries, it can be hard for internal teams to achieve an unbiased result. For that reason, third-party specialists can often help OEMs design, implement and operate an efficient and profitable aftermarket operation. Outside professionals often can also offer helpful insights into the use of industry-standard benchmarks and tools. Each organization is different, and companies should select the appropriate speed, timing and scope of any project designed to improve their aftermarket services. Sometimes, incremental changes can yield significant improvements, and the savings from those gains can then be invested in future innovations. It’s a good idea to involve the company’s business and technology leaders in this planning and transitional process. What objectives should an OEM pursue first? Again, that depends on the company and its specific situation, but there are several logical places to begin any aftermarket improvement effort. Any aftermarket business should focus its attention on customer requirements and satisfaction. Work to gather precise, up-tothe-moment information on product usage and funnel that data to product development, sales, service and technical support groups. Many companies can benefit by streamlining their warranty processes and by treating parts and labor in a holistic manner. A HOLISTIC APPROACH AFTERMARKET ADVANTAGES Manufacturers can realize a number of benefits by fully integrating aftermarket activities into their overall value chain. OEMs can apply CRM best practices to the aftermarket to achieve the following benefits: • Improved customer service, satisfaction and retention • Increased profits from new service contracts, maintenance plans, replacement parts and outof-warranty repairs • Better decision-making through the use of standardized data, more precise customer segmentation and more sophisticated analytics • Measurable reductions in spare parts inventory, stock-outs and overall carrying costs • Up to 40 percent reductions in cost per aftermarket contract • Reduction in the number of “No Fault Found” returns • Reduced customer service agent headcount requirements • Higher first-call resolution for expensive field service visits At EDS, we recommend an approach that closely integrates sales and service to create a CRM solution that is ideally suited to the OEM aftermarket. This end-to-end model can be used to manage virtually every aspect of a successful aftermarket business, including the following: Post sales support. Aftermarket sales and service support can include direct customer touchpoints such as sales support, order processing, product specification and registration, and campaign management. A well-planned program will include troubleshooting, claims processing and the scheduling of remote and field service calls, as well as general inquiries, returns, order status calls and the handling of complaints. Warranty administration. A comprehensive aftermarket program should address dealer relationships, warranty payments, the validation of entitlements, service and performance analytics, payment processing, and the integration of produce lifecycle and product data management systems. Workplace support. A reliable system should manage the scheduling and performance of on-site repairs and the management of service tickets. Fulfillment. This may encompass the management of repair and reverse logistics operations, the sale of spare parts, inventory management, processing and distribution. Knowledge management. Good decisions are based on reliable information. A robust aftermarket solution should include the ability to gather and manage information from service reports, customer input, Weblogs and other sources and to provide rapid and helpful answers to CSRs, managers and others. In today’s global marketplace, the aftermarket is simply too important to ignore. Lackluster post-sale efforts lead to higher costs, frustrated customers and lost opportunity. To compete and succeed, successful manufacturers know they must fight for every inch of the product lifecycle. The good news is this: OEMs can now leverage a proven, integrated CRM model to transform post-sale costs and complications into aftermarket profitability. ABOUT EDS EDS (NYSE: EDS) is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 45 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. The company’s comprehensive aftermarket approach helps companies deliver a consistently high level of customer service across all interaction channels. Learn more at eds.com. http://eds.com

Table of Contents Feed for the Digital Edition of CRM - August 2008

CRM - August 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Maximum Security A Code Win Doesn’t Blow Forming the Platform CRM on Twitter CRM Class Is in Session Making CRM Mandatory for University Administration Required Reading Cover Story: Calling it Quits Wouldja Look at That? 8 Enterprise Strategies That Stick CRM Searches for Search All Lines Are Not Busy UC: As Easy as A-B-C Even Contact Centers Have Room for Improvement Money Lying Around? Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - August 2008

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