After-sales services: A rising revenue model?
Posted On May 16th, 2009
By Srabani Sen
When Sinee Electronics shifted base from Thane to Delhi, it installed 16 UPS and four inverters to run its office. A popular brand, which provided both UPS and inverters, was very prompt in delivering the products and installing them. Not only that, the two servicemen who had visited the site to install the machines, spent a full day in explaining the On the other hand, good customer service often isn’t good enough. Customers are becoming increasingly disillusioned with the “merely adequate” services provided by companies. For them, exceptional service is the rule, not the exception. Anything less, they’re ready to change their brand. That makes extraordinary service necessary, not just desirable. Service: An inherent part
In this competitive sector, it is important that any company keeps its customers happy. Strategically as well as financially, it costs much more to hook a new customer than to hold on to an existing one. Companies vying with each other, therefore, need to offer excellent customer services or else the customers will go to their rivals. “After-sales service has become an integral part of a company’s overall strategy when it comes to building loyalty, improving customer satisfaction, reducing costs, improving product design and discovering new market opportunities,” states Nilkantha Rath, senior manager, customer support, Delta Energy Systems (India). Explaining the necessity of after-sales services, Devender Sharma, manager, service, Intex Technologies India, says, “An organisation cannot exist without a robust after-sales service support. Strong after-sales service support forms one of the basic requisites of creating good and long-term relationships with consumers. It is, in fact, instrumental in enhancing brand image and building goodwill.” Yogesh Dua, managing director, UpsIN-word of mouth.” VERTER.com, however, feels, “A product sans after-sales services holds no value for the customers and will eventually lead to the col-lapse of the entire sales channel—steadily but surely. These services spread publicity through word of mouth.” Elnova director, Vijay Mehra, explicates, “With sophisticated systems in use it is very essential that the wiring is properly set up. Unfortunately, the electrical sector is very disorganised and the wiring is not properly done and that’s where the after-sales services of UPS or inverters come in place. Most of the problems come up due to incorrect wiring systems and it is the products that suffer. We need to educate customers about this. Improper wiring can even lead to disasters.” Elnova director, Vijay Mehra, explicates, “With sophisticated systems in use it is very essential that the wiring is properly set up. Unfortunately, the electrical sector is very disorganised and the wiring is not properly done and that’s where the after-sales services of UPS or inverters come in place. Most of the problems come up due to incorrect wiring systems and it is the products that suffer. We need to educate customers about this. Improper wiring can even lead to disasters.” Is it a revenue model?
The recent fluctuating economy, leading to decline in product sales, the high market pressure and the increased competition in the power electronics industry, have compelled brands to search for new business opportunities. In such a scenario, it is imperative for companies to focus on strengthening sales in their service sector. However, most brands are not comfortable about admitting the fact. While some feel after-sales services have become a new revenue-generating model, others deny the fact and claim their products require zero maintenance, and hence, inspiring no revenue through after-sales services. “After-sales services have become increasingly important as a source of differentiation and market share for the manufacturers, resellers and strategic drivers for retention of customers, thus, getting...
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