Introduced in
1969, the phrase, "mind the gap" originated in the London
Underground to warn passengers about the gap between the train
and the platform in the stations. While the market still seems
to struggle with what is and is not MPS, the "MPS-me-too-game"
is constantly playing out right in front of your customers. In
a sea of MPS offerings washing over your customers, how
creative can you be to ensure your company's story doesn't get
lost in the gap?
The independent office equipment dealer has long offered
high-touch service in an annuity model. However, many strong
organizations now struggle with the ongoing decline in
profitability as it relates to typical cost-per-image
contracts and unit placements; the equation of adding more for
less isn't adding up to a winning solution, and many are left
scratching their head. For those successful dealers, I might
even challenge you further by asking if things like average
response time is enough to impress educated customers anymore?
Is this long-standing measurement of service in our industry
acceptable when competitors from other industries are
beginning to court your current customers?
According to a comparison of Top 10 MPS contract items
included by a provider, and their relative importance to
customer decision makers, I recommend providers mind the gap.
The 2010 MPS Decision Maker Tracking StudyTM, conducted by
Photizo Group, measures what decision makers, like yours,
think about their MPS engagement and the providers supporting
them. Spanning thousands of customer decision makers, this
comprehensive study reveals many unique insights into the mind
of your customer.
Namely, there is a misalignment in matching customer
deliverables to desires in MPS contracts, as guarantees of
response time are often left off of the contract despite
customer demand; the very thing most office equipment
providers take great pride in mentioning, high-touch service,
evidently isn't anything more than a talking point on most
sales brochures.
When asked, approximately 70 percent of customers ranked
service response times of 2-hour, 4-hour or next day as
critical; in fact, customers ranked these as second, third and
fourth in importance, respectively. However, even guarantees
of providing same-day or four-hour response only appeared in a
third of customer contracts. Furthermore, the study clearly
shows that differentiation is key in first-time customer's
award. However, with repeat engagements for MPS on the rise,
delivery of on-time and effective service is critical evidence
used by your customer in contract renewal.
One argument might be that offering guarantees of service
levels might create a punitive system where the dealer would
suffer because response times cannot be met consistently.
However, I might challenge those who believe the standard
benchmark of average service response time will continue to be
acceptable to customers.
In an MPS solution, the customer is buying the outcome you
provide, and measurements of uptime and utilization are much
more effective in telling a customer if they are getting what
they paid for.
In a sales engagement, your customer is asking one key
question, "Can I trust you to deliver a solution to my
particular problem, consistently?" In that instance, your
service history and support of most accounts stands as your
greatest testimonial to renewal. Ask what value your company
could bring by establishing a crisp, easy-to-understand
scorecard, including your commitment to service select devices
and drive toward sustained availability. Surely, you will be
held to this standard, and the failure to meet such a standard
may well be your main concern.
However, have you thought about being your customer's
accountability partner and trusted advisor by using this
balanced scorecard to elevate your elite team above the
typical antics everyone else plays out each and every contract
renewal cycle? Will they pay you more for this 'personal
trainer' style of service? Perhaps, but more importantly you
should be asking yourself who is already offering this to your
customer in other areas of their lives and whether you are
minding the gap this creates.
As a senior consultant with the Photizo Group, Ken Stewart
comes from and works directly with channel providers in the
managed services space, developing educational tools and
resources to promote lasting business transformation (
http://mpswin.com ).
Ken also owns and operates an industry-niche blog, ChangeForge
( http://changeforge.com ), focusing upon the collision between
the constantly changing worlds of business and technology in
an information-centric world.
