One-Stop destination for all after sales support business needs –
Mobility, IT and Consumer Electronics &
…………the quest for double digit growth
and higher margins
After sales service is the primary concern for a customer today while planning for buying any product and it plays an important role in customer satisfaction and customer retention. It generates loyal customers and vendors need to ensure that customers get excellent support and services from their end. It becomes even more critical in some of the product segments where businesses ideally depend on technical and customer support, especially, security, storage, server , PC and mobile devices and so on.
Information Technology, Telecommunication and Mobility has been recognised world-over as an important tool for socio-economic development of a nation and has a defining role in growth and modernisation of various sectors of the economy and after sales service makes sure products and services meet or surpass the expectations of the customers and the service includes various activities to find out whether the customer is happy with the products or not?
Nowadays it is not just about designing the product, getting it manufactured and then selling it. For a rational customer of today, after sales service becomes a strong point in the decision making process. Aesthetics and pricing do play an important role in making a product look more visually appealing to a customer, but this cannot be achieved at the cost of support service, which a customer understands it very well. In spite of India being a price-sensitive market, consumers are generally open to pay a little more to purchase a quality product, if it is backed by quality post-sales service support.
The Manufacturing industry is driven by intense competition, complex and globalized supply networks combined with the growing number of environmentally-conscious customers. With rapidly changing customer expectations and constant technological change, there is a need for quick product development and innovation. While global competition, price deflation and rising commodity costs have eroded product-based profit margins, shrinking product-based profit margins are spurring the need for service-based revenue growth. The emerging markets are fuelling the revenue growth but at the cost of profitability.
Service Support in India
The IT & Telecom industry continues to witness increased intelligence & complexity in new generation products. And in India, the industry is now penetrating the small towns & villages very rapidly. Taken together, these factors have made pan-India after-sales service vital, not just for the success of new product launches, but also for the sustenance of growth of brands in the Indian market. Service excellence has always been a key component for the corporates dealing in hardware products because of their huge customer base spread across the country who can expect timely, efficient and high quality services is always on demand and there has to continuous improvement of the service standards.
There are two segments today – Warranty Services and Out-of-Warranty Services. Post-sales-Service is greatly felt in product categories like Consumer Electronics, Mobile Phones and the IT product lines like PCs and laptops. All brands are clearly focused on services today as the key differentiator, because most of their products are brought from outside are have common features.
Today, mobile phones market today is approx..300 Million phones sold in a year; out of which 20 million phones need to be repaired, whereas brands offer warranty services for twelve months. These brands tie up various service providers like Accel Frontline, Aforeserve, Bright point, Digicare,F1,HCL , Hitachi Systems Micro Clinic, Intarvo , IQOR, Reliance ( REsQ ), Redington, , RT resources, TVS-E , Wipro are various players offering pre-sales and post-sales services to IT vendors. There are three different service delivery models – the delivery format can be (a) onsite where our engineers will go to the consumer to repair the device, (b) walk-in centre where a consumer walks in with his defective product and (c) repair factory at a central place where the products will be brought-in, repaired and then sent back to the respective brand. The fourth model which is emerging now is the Remote Tech Support and this is considered to be more effective when there are no parts to be replaced and the problem can be solved remotely.
Customers now are becoming conscious about the well-being of their products and even after the warranty period they will land in an exclusive branded repair centre instead of visiting a local service dealer. Trust is the single biggest factor when it comes to choosing a service outlet for repair. As per our estimate the warranty services market to be around Rs.2,000–Rs.2,500 crores while the Post-warranty services (repairs) market is expected to be around Rs. 5000 Crores and is expected to grow at 20%. While Mobile phones dominate the repair market with 90% share, Out of Warranty (OOW) constitutes 60% of the market. OOW market is growing faster than the overall market and is expected to become 2.5x in five years.
The service life cycle has to be designed to power the after sales support services by controlling cost and increased revenue in the areas of warranty, field-service, spare parts and installed base management. How customers can contact a Centralized Tech Help Desk for On-Site Warranty and RMA related support, backed by a 24×7 Network Operation Centre, enables reliable & efficient asset management, policy deployment, and proactive support, helping improve IT availability for the customers & optimizing their IT investments. The critical part is how the dedicated technical staff will provide doorstep repair & replacement services for in-warranty products. Additionally, customers can check on the status of their RMA / service requests through email, SMS, or on company webpage dedicated for the purpose. Various service support companies also offer the best services like “rendering solution design & implementing support across Server, Storage, Data, Voice, Video & Security verticals” that enables the brands & the partner community to increase reach & sales in the Enterprise & SMB space.
Service and support becomes a very vital aspect, especially if the company happens to be a market leader and has the reputation of being a trustworthy brand. It is the key factor for technology products as it helps customers to overcome the challenges caused due to constant technical evolutions. It is a key differentiating factor that drives growth. As a result Service is more often seen as an assurance from the brand. So while aesthetic & pricing of a product do play a prominent role in making the purchase decision, it is the consistent and efficient service support offered that affirms the brand credibility in consumer mind and go a long way in influencing buying decision.