Machines are getting more complex and service organizations in nearly every industry are feeling the pressure to monitor and keep their customers’ equipment up and running. Here’s why establishing a preventive maintenance program is a great place to start, and tips you can share with your field services clients for kicking one off in their businesses.
Customers purchasing equipment today have higher expectations than they did even five to 10 years ago. Not only do they expect a quality piece of equipment (quality is no longer a differentiator, it's the rule), they demand service expertise and a true partner to maintain their equipment and keep it running at peak performance.
This is good news for your service business clients that have a huge opportunity to expand beyond break-fix calls and create a recurring PM program that secures revenue streams and improves customer relationships.
Why Preventive Maintenance Is Good For A Services Business
As service organizations, when your clients sell preventive maintenance contracts, it gives them a leg up beyond break-fix competitors and makes their businesses more secure. Here’s how:
Companies that sell service contracts out-perform those that don’t. So, instead of focusing solely on selling a product and waiting for the customer to call when something's not working, your services clients will want to get out ahead of the problem and set up regular PM visits.
Why Preventive Maintenance Is Good For Customers
As services providers, your clients’ number one goal is to keep customers happy. With that goal in mind, PM contracts shouldn’t be a tough sell since (in addition to establishing recurring revenue for your field services clients, they benefit customers in two distinct ways:
According to a recent article written by Caterpillar in Equipment World, world class businesses spend 60 to 70 percent of total maintenance hours on preventive maintenance, compared to the industry average of 35 percent. As a result, world class organizations end up spending less than 3 percent total revenue of maintenance compared to the industry average, 8 percent.
(source: Equipment World)
In addition to the financial benefit they gain from investing in recurring PM contracts, customers can rest assured their equipment is being taken care of over as opposed to waiting for it to break down under a break/fix set up. Customers today expect more from an equipment purchase; they want field services businesses’ expertise and a lasting service partnership.
And, as you know, when customers are happy, the business is happy — with consistent referrals and a consistent revenue stream coming from pre-scheduled maintenance visits.
Tips For Establishing A Preventive Maintenance Program
Here are some steps that you can share with your field services clients to help get them started on the path to a consistent PM business model:
As customers continue to expect additional benefits and lasting relationships with their dealers, more service businesses will include service contracts as a standard sales initiative. Thanks to advancing technology, machines are increasingly complex, which emphasizes even greater need for a mobile management system and strong customer service.