This is in spite of the fact that services generate an average of 31% of company revenue and 45% of EPS.
Recently, we have begun to see the emergence of a new school of thought about the relationship between products and services. Results reported in the SSPA Consumer Support Demand 2005 study show that support is a selection criteria for 80% of consumers, with over 50% of these consumers ranking support as one of the top three criteria when making a product buying decision and another 26% consider support important but not in the top 3 when purchasing consumer products. Clearly, for these consumers, support is much more than an afterthought. Dell Computer has picked up on this theme and has been featuring technical support in their recent television ads.
If services are becoming more important to customers as they make their product purchase decisions, what changes should companies be making in their services marketing plans to take advantage of this new trend? The biggest challenge is that services are intangible – they lack the tangible features that product marketers rely on to promote their value propositions. Marketing services is like the title of Harry Beckwith’s popular business book, “Selling the Invisible”. When a customer buys your service, they are really buying your promise to deliver a specific level of service at some future date. So, one approach to strengthen your services marketing is to increase your customers’ trust that you will make good on your promise. One of the strongest tools for increasing customer trust is your brand.
Building your services brand takes commitment and time. You need to determine what your brand will stand for, and then back that up with clear and consistent communications. You also need to be sure that your service delivery lives up to your brand.
One way to expedite the process is through co-branding. The SSPA is doing its part to help promote the branding of services through the J.D. Power and Associates Certified Technology Service and Support (CTSS) program. J.D. Power and Associates has a powerful brand that stands for quality and customer satisfaction. Linking your service with the J.D. Power and Associates brand can differentiate you from your competition and increase your service sales, and your product sales, too.
The CTSS program is due to launch this September and an industry standards board is hard at work this summer defining the criteria that will be used for certification. Participants in the program are eager to adopt the industry’s best practices, and to co-brand their service with a J.D. Power and Associates award for excellent technology services and support.
If you would like to participate on the standards board, please contact Mike Davison, mdavison@thesspa.com. If you are interested in becoming certified under the program, please contact John South, jsouth@thesspa.com.
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