Aligning Gartner's four service scenarios within a customer-centric model
In this series of articles from an exclusive Field Service News white paper, we have taken a deep-dive into each of the four service scenarios Gartner outlined as likely to dominate field service across the next five years. In the final article in this series we look at how we can align these within a customer-centric service model…
While it is important to acknowledge, as we noted in the introduction to this paper, that Gartner talks of operating scenarios within field service management, rather than potential operational models, many field service organisations may likely fall into the trap of developing models to fit within the service scenario that is most common for them.
This we believe is a mistake for two critical reasons.
Firstly, as we have looked at across this paper, there are multiple areas where these scenarios will overlap. The likelihood is that most, if not all, of the scenarios, will be present within one service organisation’s service portfolio.
Secondly, all of the Gartner scenarios appear to be focused on the service provider’s perspective of looking outwards to the customer.
An outside-in perspective, in line with Peter Drucker’s famous methodology, that places the customers’ needs at the forefront of the service contract would likely take elements of each of the above, depending on requirements.
So in this concluding segment of this white paper, we shall once more revisit each of the four of Gartner’s scenarios; however, this time, we shall be looking at how each of these scenarios can be viewed from an outside-in perspective and in doing so how we can adapt to these scenarios within a customer-centric service model.
We will also highlight further how these scenarios overlap with each other when we reframe our perspective to one aligned with the customer.
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“With a focus on equipment the question that arises from the customer-centric perspective is what value does our expertise in the equipment our customer are using bring to the table?”
#1 – Equipment Centric Scenarios
With a focus on equipment, the question that arises from the customer-centric perspective is what value does our expertise in the equipment our customers are using bring to the table? As Gartner outlines in this scenario, there is an expectation from the service provider both to offer certified experts that are subject matter specialists and for the effective use of asset data to drive optimum results.
However, how those optimised results are delivered may change drastically from customer to customer.
For example, one customer may be seeking to completely outsource the maintenance and service of the assets so they can focus on revenue-generating activities of their own. This, of course, would see the customer needs aligning with Gartner’s outcome-based scenario. Another customer, however, may already have their own team of technicians that handle service and maintenance.
In this scenario, the customer may see value if the service provider offers detailed asset maintenance training, remote access to specialists to support their technicians and potentially some layer of data-led insight that can help the customer get the most out of the assets. Of course, each of these suggestions emerges from a knowledge-centric scenario.
#2 – Outcome-Based Scenarios
When it comes to outcome-based scenarios and understanding the customer’s perspective, the conversation is quite simple. The customer’s desire is to focus on the revenue-generating aspects of the business and to outsource responsibility for the continued productive use of the asset to the service provider.
Basically, they want to get on with their day job without worrying about making sure the asset you provide is functional and available when they need it.
Obviously, we can make some quick and easy assumptions within an outcome-bound scenario.
Firstly, the client and the service provider have a shared understanding of the desired outcome. Secondly, there is a strong relationship based on mutual trust.
The latter point is an absolute fundamental within an outcome-based agreement, yet it is something that often gets overlooked by service organisations looking to embrace such a model.
When we look at the scenario from the customer’s perspective, those that have entered into outcome-based agreements with a service provider have done so because they have faith in the service provider’s ability to deliver on their promises of uptime.
When it comes to outcome-based models, the savvy field service organisation does not look outward to promote such an offering.
Instead, they speak with their customers whom they have the deepest relationships with, whom they have worked alongside for the longest period and try to understand better how such a model could benefit them.
As mentioned in the paper, this process shouldn’t be a fact-finding Q&A but a journey of exploration together as partners. The service provider needs to be prepared to challenge the customer’s ideas in a positive way that seeks to understand whether there is a genuine synergy between customer needs and the service provider’s core competencies.
Suppose the level of relationship between the two businesses is not mature enough to initiate meaningful discussions in this area.
In that case, this is where a more mature approach toward appointment-based scenarios that allow the engineer to build the foundations for better relationships becomes important.
Similarly, the ability to demonstrate deep industry knowledge in asset operations, whether via what Gartner defines as knowledge-centric or equipment-centric scenarios, is an excellent way to demonstrate expertise, which will offer a clear means of establishing trust.
“The ability to demonstrate deep industry knowledge in asset operations, whether it be via what Gartner define as either knowledge-centric or equipment-centric scenarios is an excellent way to demonstrate expertise, which will offer a clear means of establishing trust...”
#3 – Knowledge-Centric Scenarios
As we discussed in the section of this paper that focused on Gartner’s ‘knowledge-centric’ scenario – this can be a double-edged sword, particularly when we start exploring protected IP, as Gartner lists in their definition of such a scenario.
When we take the customer-centric position into account, in some instances, our customers will want us as service providers to fully accept the reigns to ensure that our assets are operational. In an outcome-based agreement, this can work particularly well, for example.
As we explored earlier, in such a scenario, the customer cares little about how we achieve the promised uptime of their assets, simply that we do so. Indeed, in such a situation, having a layer of protected IP, a secret sauce as it were, can help build a compelling narrative as to why the customer should choose your organisation.
However, in other situations, say where the customer already has their layer of maintenance technicians and is looking to the service provider as a second tier of expert to handle the more complex service and maintenance requirements, obstructing more straightforward maintenance tasks through protected IP could prove to be the source of friction between service provider and customer.
The challenge with a knowledge-centric scenario based on protected IP, which, as explored in the relevant section of this paper, has some merits, is that it could prove to be a more rigid approach that offers little flexibility regarding how we may serve different customers with different needs.
Within a customer-centric service model, we have to consistently apply outside-in thinking to assess how our customers perceive the value we offer as service providers. With this in mind, one potential application of protected IP, per the knowledge-centric scenario Gartner outlines, could be in an additional layer of expertise available at a premium – quite possibly aligned to an outcome-based service contract.
However, as we explored further within this paper, the concept of knowledge- centric service scenarios being limited to IP, as outlined in the Gartner framework, overlooks many aspects of where the value lies in knowledge- centric scenarios.
If executed effectively, a knowledge-centric model allows the service organisation to demonstrate deep value that can be a significant competitive differentiator and drive internal service efficiencies simultaneously.
The critical challenge is that building an entire service model around a knowledge-centric approach requires conveying less tangible concepts. However, when that knowledge is aligned with a customer-centric model, it becomes a powerful lever to provide the value the customer needs, often hidden below the waterline.
#4 – Appointment-Centric Scenarios
Finally, we come to appointment-centric scenarios. As we have already discussed in this paper, for the vast majority of field service organisations, this will be the scenario they are most comfortable with as it has been the field service delivery status quo.
However, as we have seen in this final section of the paper, appointment-centric scenarios allow companies to evolve their service offerings and bring degrees of specialist service, whether equipment-centric, knowledge-centric or outcome-based service models, into the mix.
However, as the old saying goes, you cannot run before you can walk and being able to meet customer expectations within an appointment-centric scenario is fundamental. Customer-centric service organisations realise the importance of making the service appointment as frictionless as possible for their customers, and the role technology plays in achieving this is vital.
As we touched on earlier in the paper, modern solutions such as those provided by our partner in this paper, Gomocha, offer essential elements that are designed to make the service experience as effortless for the customer as possible, including self-service appointment booking and customer notifications that keep the customer informed throughout the service cycle.
Additionally, it is important to note that a customer-centric model aligns directly with a more efficient and productive service organisation, which will positively impact the bottom line.
For example, it is often stated that in traditional break-fix field service model, the first time a field service engineer or technician is sent on site, the service company breaks even; for every return visit after this, they are losing money.
This is why KPIs such as first-time-fix and technician-utilisation are almost always in the top metrics measured by field service organisations.
Similarly, from the customer-centric perspective, we want our customers’ issues to be resolved quickly and within the time frame provided – and again, first-time-fix and technician utilisation are critical metrics in achieving this.
However, once again the tools included in modern next-gen FSM solutions such as Gomocha, such as dispatch and scheduling tools, intuitive mobile apps for technicians, real-time dashboards, and more allow the field service manager to ensure his team are meeting these goals in the field.
Final Thoughts:
While Gartner was correct in outlining their four potential operational scenarios for field service companies, the takeaway for many in the industry was that each of these scenarios should form the basis of a model for field service operations, an area of expertise that should instruct all other thinking within the service organisation.
However, as we have seen in this paper, the reality is that there is much overlap across the four, and not every customer will be suited for every scenario. Indeed, many customers will likely move across the different scenarios depending on their requirements.
Therefore, it is crucial to understand both your own strength as a service provider and what your customers actually want and need from you as well. To achieve this, a customer-centric approach to service delivery is the essential starting point that should encompass all service portfolio thinking.
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