It’s no surprise Europe’s spiraling economic fortunes are affecting service sales. And yet, some companies are achieving growth of between 5 and 15 percent. What then are these companies doing differently?
Why are service sales in the limelight now?
In the wake of the recession, companies are struggling to maintain flat service revenues, while prices of service contracts are actually depreciating. Businesses are now realising they will have to do more to stay afloat, let alone grow. Markets, customer needs, budgets and decision makers are changing so service providers need to adapt. The key difference between companies whose service sales are flat and those that are growing is ‘customer focus’.
What’s the issue with common sales practices? Sales tends to follow a push approach; service sales presents characteristics and benefits of the service offering to the client, identifying a few ‘hooks’ as to why they may be interesting. Often, however, sales will not be talking to the decision maker who may have different needs. But in most cases the sales approach is reactive rather than proactive; the customer calls in with a query, or just before their warranty expires.
Which are the typical encounters service sales people will experience? Often, service will encounter issues related to their client’s ‘budget’. Actually, increasing competition means the services are no longer competitive or don’t adequately meet the clients needs.