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How to create a successful after sales service strategy

Many professional electronic device suppliers in telecom and industrial sectors have invested in their growth and profitability by offering after sales service solutions.

These services form a continuously increasing part of their success or loss. Thus more and more focus must be invested in a comprehensive after sales service strategy. Also the results of existing strategies should be regularly measured and evaluated.

The cornerstones of a winning after sales service strategy

The company’s individual competitive environment sets the frame for a successful after sales service strategy. Other key elements include e.g. the customer profile and existing inhouse competences. What kind of service is required by the customers now and in the future? Does it make sense to invest in inhouse services or could outsourced services provide better profit and value for the end customer? These questions align the choices and help to select the optimal toolset for a successful after sales service strategy.

The basic after sales service options focus on solving the issues of

  • Quality
  • Cost
  • Customer intimacy

Succesfull after salesThis means that the chosen strategy must provide benefits throughout the life-cycle of the products for the end customers and the supplier alike.

A feasible after sales strategy

  • Creates trust
  • Ensures needed support
  • Utilises help-line
  • Builds service integrity
  • Provides rewards
  • Excels in quality
  • Is cost-efficient

How to measure the benefits of various options?

Most straightforward way is to measure the impacts of the options on sales and profitability. There will be differences. First you need to understand the structure and results of the different options. Then you have to understand thoroughly what your customers want now and in the future.

Furthermore, knowing your competitors actions will help to find solutions which differentiate your service offering and leave the competition behind. Innovative approach is needed when create new business with after sales services. This is today a must in order to achieving handsome growth and profitability goals.

As mentioned, it is also crucial to evaluate the successfulness of the chosen strategy on regular basis. This leads to continuous review of the key performance indicators and consequently, continuous improvement of operations and results.

Example of a successful partnership strategy

A globally operating power solutions supplier wanted to reach two goals: to improve their customer satisfaction and to focus their own activities on the core businesses of developing, manufacturing and selling of power solutions. The key challenge was to find a trusted partner with right repair competences, test environment and ability to supply repair data for the use of product development.

Today the partnership between this company and TDR covers all the after sales functions, meeting the set goals in cost, quality and service. We at TDR provide two main options for outsourcing after sales services in professional electronics: our repair services in Finland are optimised for service and the services in Estonia are optimised for cost. Both options provide a good level of customer intimacy.

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