Is Our Service Worth Paying For?

Is our service worth paying for? That’s what integrators with service-based revenue models need to ask themselves.

Whenever I write that commercial integrators ought to shift from a product-based to a service-based revenue model, I’m cognizant that I might be ticking off a lot of hardworking folks. After all, it’s easy for me to say.

It’s daunting for the integration companies that put their reputations on the line with service contract promises of elevated service.

It’s especially challenging for integrators who have been around for a few years and whose clients are accustomed to a high level of post installation service - for free.

Service contracts also present tremendous staffing challenges because clients have a documented reason to expect beckon-call attention whenever they require it.

I don’t feel guilty about writing it, though, because it’s true. Integrators who don’t make the shift to service-based revenue probably won’t be around very long.

Related: 21 Business Altering Trends

The good news is that many manufacturers are putting out products that allow for some sort of remote management or third-party support aimed at taking some of the service burden off the integrator. Panamax/Furman’s BlueBOLT management system, which allows for remote AC outlet control and hard reboots, springs to mind, but many manufacturers have joined the fray. As the commercial industry has become more service oriented, vendors that used to tout “great product margins” are now likely to claim “fewer truck rolls.”

A managed service provider subcategory has even emerged with companies like ihiji, Nuage Nine and Certified Cyber Solutions.

ANC Sports recently enlisted customer support service Zendesk. That intrigued me. One of the company’s characteristics that most impresses me is its incredible commitment to service. A provider of digital signage for professional and college sports venues, ANC actually has an employee on site for almost every event. So it was already super-committed to service.

Related: How ANC Sports Reinvented Itself, Digital Signage

There was room for improvement, though, says chief technology officer Mark Stross. ANC expanded its ability to service its clients by custom developing a technical support hotline and web-based ANC Help Desk, he says.

When trouble arises, ANC’s on-site technicians can talk to remote specialists that are trained on the system. Meanwhile, a full account of the issues and troubleshooting steps is generated in an email ticket. This is critical, Stross says, because ANC can study the documentation to determine reasons for failures and how to fix them more quickly.

All information is shared with the clients. Transparency, Stross says, is lacking in the integration community. “If you’re going to charge for a service, you’d better be accountable. You’d better be able to prove to them what you’re doing. Finally, you need to be able to improve your own internal services. You do that by keeping data.”

From the end-user’s perspective, the transparency probably makes them feel good about paying ANC for a service. In 2011 and going forward, that’s what it’s all about.

I just hope I didn’t tick off too many readers.