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Customer Value Creation
In the B2B value creation chain, the product’s end user team is the only people who can identify and quantify the value they receive. Neither the purchasing agent, the delivery truck driver, nor the dealer receive value from your product. They all facilitate (or destroy) the value the end users enjoy. And, because of where value is created, it means that Manufacturing does not end at the loading dock but smoothly flows into the service and aftermarket areas.
Another way to think about this is that the manufacturing department creates products, and the manufacturing company (and its channel partners) facilitates the customer receiving the product’s value.
The key players in the value facilitation chain are:
- Product Management
- Engineering/R&D
- Manufacturing and Marketing
- Sales
- Service & Support (Aftermarket)
Each function must do its job before customers receive value from their product or service. Interestingly, the only people the end users routinely interact with are in Service & Support. Therefore, these support people substantially affect how the end users feel about the company, the product, and the overall post-shipment experience.
Customer and Equipment Feedback is a Reason that Manufacturing Does Not End at the Loading Dock
When we think about the service and support function, we think about restoring an inoperable product to usability. While this is a significant part of the support organization’s job, it is not the whole job. Another critical role is collecting, analyzing, and communicating information and insights to the rest of the organization. These insights will enhance the customer’s experience, improve product quality, reduce internal costs, and identify still unmet customer outcomes.
Here is what the TSIA (Technology & Services Industry Association) recently said about XaaS in general and product updates in the future:
“The transformation to “Anything-as-a-Service” (XaaS) business models is rewriting the rulebook on how businesses operate and engage with their audiences.”
“At the heart of the XaaS business model lies the continual updating and release of products or services, which is markedly different from the traditional six-month release cadence.”
If you haven’t already, you will soon receive customer pressure to move to an Equipment-as-a-service business model. You may as well start now in product improvement.
Here are some examples:
- A technical support agent helped an end-user trying to do something on the equipment for the first time. He explained the process to the customer and realized this would become a common problem. He also recognized the problem could be avoided by adding a small stick-on label with the instructions. The agent forwarded the call ticket and a label sketch to the product manager. She liked the idea, and within a week, manufacturing was putting the labels on all new products. She also sent a pile of labels to service for field people to stick on whenever they were at or near a customer with the product.
- A field engineer specialized in supporting a popular high-usage product. The engineer analyzed the product’s failure history and discovered that a group of products with close serial numbers had all experienced the same failure while still under warranty. He prepared a short but complete report, which he sent to contacts in manufacturing and engineering. The support organization took less than a month to receive a replacement part for all the machines from the same lot of devices. The parts were replaced when convenient for the customers and the engineers. Most of the customers were impressed with the proactive parts swap-out. Customer loyalty increased, and extra trips were avoided.
- A salesperson was on a follow-up visit with a customer recently installing his new tool. During the visit, she learned that the customer felt rushed during his familiarization training and uncomfortable operating the product. She spent time answering his questions and improving his confidence. When she returned to the office, she met with the head of training, told him the story, and asked him to do what was necessary to prevent further situations as she saw. The conversation resulted in a new, well-received video training course for all installers. No one was singled out and punished. It was a perfect example of hearing a complaint and taking actions that would eliminate the issue going forward.
Actions to take if there is minimal or no alignment between the OEM and their channel partners
In each of these cases, one part of the company culture was in play – all the employees wanted to ensure that all customers enjoyed positive experiences when using their product or working with the company’s employees. It doesn’t matter if the sales and support people work for the OEM or a dealer. What does matter is that each person has a passion to go the extra step and delight the customer.
For this to happen, the OEM must articulate how the value facilitation channel must think and act. While this is usually easier if everyone works for the OEM, the OEM can guide willing partners to act as though they were integral to the OEM’s business. And the OEM’s leadership must ensure that their partners are completely on-board. If they aren’t, it may be time to find a replacement organization, either again independent or, this time, part of the OEM. This action may sound drastic, but the likelihood of long-term success is zero unless the field organizations are aligned with the OEM.
This is why Manufacturing companies must include after-sales service and support organizations in all their plans—they are the substitute for customers. Their efforts create loyal (or not) customers, and they collect and direct customer feedback to the organization. Hence why we say that Manufacturing does not end at the loading dock.
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About Middlesex Consulting
Middlesex Consulting is an experienced team of professionals whose primary goal is to help capital equipment companies create more value for their clients and stakeholders. We continue to provide superior solutions to meet our clients’ needs by focusing on our strengths in Services, Manufacturing, Customer Experience, and Engineering. If you want to learn more about how we can help your organization create value through customer-centric solutions, please contact us or check out some of our free articles and white papers here.