As margins on initial sales continue to tighten and new products reach maturity faster, new sources of revenue are needed by all companies. What happens after the initial product sale – in the service supply chain and ongoing customer service contact situations – could provide the answer. Post sales service and support is the emerging frontier.
It's about more than ‘satisfaction surveys’ and CRM. It is about
both revenue expansion and cost containment. According to AMR Research, after-sales
service, while it only accounts for 24 percent of revenue, contributes 40
to 80 percent of profit.
For many leading organizations, post-sales logistics has quickly become a
significant revenue opportunity. They’re using best practices, leading
technology and enhanced training to drive bottom line increases with their
existing customer base – that's the most efficient market there is.
Specifically, Progistix-Solutions’ customers have evolved simple parts
delivery and personnel training to establish new best-practices that generate
new revenue.
This issue of Prescient offers real world examples of how these companies and their logistics leaders are making small changes pay big dividends. People, processes, technology – it all adds up to an emerging frontier rich in new revenue.