What are the most common misconceptions about aftersales service quality and standards?

Aftersales is often an after thought and a poor child of Engineering and Sales functions. However, Aftersales is the most powerful function of the business because it delivers: - recurring stable revenue - contributes to very high margins (especially Parts business) - Improves customer satisfaction driving loyalty Aftersales is not optional but is a leading strategy as the customer behaviour shifts from just buying products to buying outcomes (service) especially for manufacturing businesses.

Here are some common misconceptions about aftersales service quality: Quality is too expensive - Good service increases customer lifetime value. It slows sales processes - High-quality service improves customer confidence in sales process. It's less important than marketing - Service and support are crucial for retention and loyalty. Only premium brands need great service - All customers deserve a good experience. It's just about being friendly - Professional expertise and efficient systems are also key. Meeting contract terms is enough - Customers expect service beyond the minimum agreed levels. Quality standards slow innovation - Good processes improve consistency but don't hamper improvements.

Your focus on aftersales service means you're not leaving your customer 'high and dry'. It implies that you truly care about them and not just about your business. This is the biggest determining factor to customer loyalty and retention.

Just as your product or service is not one-size-fits all, so should your aftersales not be. You need your aftersales to meet the specific dynamics of each customer. There's need for personalized delivery. For instance, the installation of a gadget in a home may require different approach from that in another home. Your aftersales should be sculptured to fit each client's needs and preferences.

I look at Aftersales service as a peace of mind contract that they have with their supplier/manufacturer. There are various degrees of risks and perceived risks that the customers have that they are trying to mitigate for which there is a different price point and service offering that they expect from their supplier/manufacturer. Hence, a one-size-fits-all might work for a commodity but for everything else you would need many service levels with flexible service offerings at different price points. This will guarantee maximum profit maximization for the manufacturer and delivering best outcomes, peace of mind and loyalty with customers.

It's been proven that the cost of acquiring a new customer is five times more than the cost of retaining existing customers. No cost expended on aftersales can match what it will cost to acquire a new customer if you lose that existing one. So neglecting aftersales services is tantamount to being penny-wise and pound-foolish.

A growth-minded business will be proactive with its aftersales. Seeking customers feedback after a sale of a product or service is the innovative way to get insights into the market wants and preferences. This is what gives businesses competitive advantage.

Having a helpdesk or a support centre is not Aftersales service. Not having a complete Aftersales service strategy is a "reactive" approach to providing support to your customers. In my opinion - having an aftersales service strategy by definition should be implemented from a pro-active mindset. Customers are now expecting to go up the supply chain and are expecting advanced value-addition from their suppliers (e.g. Energy optimisation, guaranteed performance, uptime guarantees) and the only way to do that is by being connected to your customers and providing pro-active service.

It's through aftersales services that brands can build emotional bonds with their customers. This is what makes some customers become die-hard loyalist. Give exceptional aftersales service and you earn your customers trust.

In my experience having an aftersales service is like a loyalty flywheel. Better service results in well maintained products which results in a happy customer driving higher customer loyalty which drives increased revenue (parts, services, accessories, digital). In addition this also results in additional sales / upsell and reduces counterfeit. Aftersales is the very glue that converts a transactional business into relational business.

Addition to your points: -Undervaluing its importance. -Focusing solely on problem resolution. -Thinking it ends with warranties. -Preferring low-cost services. -Considering it the sole responsibility of customer support. -Prioritizing quick fixes over root causes. -Undervaluing customer feedback.

Often companies run into challenges in scaling digital aftersales journeys. Marginal cost should reduce as you scale aftersales gradually for your complete customer or installed base. However, for a lot of companies(especially engineering companies) tend to build (ground-up) the DNA of software, digital and data instead of partnering or buying these capabilities. This results in high upfront costs and increasing cost (of people, process and inefficient technology) as they scale up their aftersales business. Learn from Rolls-Royce : Partner early when it comes to technology but build unique business models (e.g. pay-by-the-hour) which will drive competitive advantage.