After sales support - The options to explore

After sales support – The options to explore

Posted by: mheguru
Category: forklifts
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One of the most intriguing question for a Capital equipment selling company is when to deploy the service support in a specific region with some customers? It is actually a bit of a paradox. The No. volume of of equipment (or No. of customers) mostly determine the deployment of service engineer / after sales channel to ensure cost viability but on the other side, we often come across the phrase “The Sales person sale the first machine / equipment but rest is sold by after sales team”

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During my journey in Material Handling Industry of over a decade I have witness this “Paradox” multiple times and honestly haven’t come to terms with it yet in totality. There is probably no right option or right approach that can be said with complete authority.

Still, thought, it would be interesting and a good exercise encouraging to review all possible scenarios on the topic as every exercise often leads to learning and eventually improvement.

Let’s start

1. The Most Conventional Method: Dealer network

Channel sales is often seen as best tool to tackle this and offers many other advantages. Local presence of dealers helps in market penetration – especially with country as diverse as India, this is big plus – and also take care of the after sales support, inventory for spares & service support. Channel sales or Dealer network can not only give after sales support but also help in achieving faster business growth and also business for spares.

Pros:

✓ Strong regional & local presence ✓ Better Market penetration.
✓ Service network ✓ Inventory of fastmoving spares
✓ Higher market presence. ✓ Reduce fixed cost for companies
Typical Dealer Network OR Channel Network

While channel sales & dealers offer many benefits the problem actually is remains as it is merely “passing the buck” and now the problem is with respective dealer. Other challenges that company face are training – of skilled service technicians, loyalty – as many dealers have different product portfolios and priority service to end customer. Another aspect is because of nature of the funnel this adds to the cost that end customer pays which in high cost competitive market can be decisive at times.

CONs:

✓ Loyalty ✓ Limited control
✓ Added cost for end customer ✓ Attrition
✓ Passing the buck ✓ Customer Priority

2. Own Service Network

The alternative to dealer network is having company owned personal for after sales support, this gives definite advantage in terms of quality of service, control and also loyalty without a doubt as compared to the other option.

Pros:

✓ Better control over service ✓ Faster response time.
✓ Better skilled technicians ✓ Prioritizing customer
✓ Loyalty.

This though requires a deep pocket for working capital towards salaries till the time business of spares & service immerge through volume of equipment / machines in said region. This makes it significantly difficult for manufacturers in SME / MSME segments offering good quality products.

CONs:

✓ High fixed Costs ✓ Attrition
✓ Limitation on resources ✓ Limited presence in areas with less customers.
✓ Spares distribution

Service On Call – The new alternative

All these years of experience and taking a learning from our surroundings of offerings through UrbanClap or OLAs & UBERs we have realized the opportunity to offer fast & reliable services by utilizing the available resources and giving the much-needed digital overhaul to the aftersales support function.

MHEGURU’s Service On Call is a unique solution that can benefit the customers and also manufacturer’s who make & supply quality equipment to use the facility for offering better & reliable service support to end customer without incurring fixed cost.

Pros:

✓ Faster Service response ✓ No fixed costs
✓ Digital tracking ✓ Guaranteed 12 Hour response
✓ Digital reporting ✓ 24×7 Service availability
✓ Loyalty & Transparency
service on call
service on call 1

There are “Service On Call” also has and as it’s a new option it will experience the market and newer challenges ahead of it, but we are all geared up and ready to take the ride on the tide, learn along and constantly evolve for the better services.

CONs:

✓ Limited presence (for now) ✓ Skilled personnel
✓ Slightly High unit transaction costs ✓ Training & Skilled upgradation

MHEGURU’s service on Call is for customers and Manufacturers (OEM) alike, contact with our team for various possible arrangements of like corporate tie-ups, ARCs etc. We shall be more than happy to grow along while rendering quality offerings. Also offer SAAS enterprise solution for After sales service.

Author: mheguru

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