Service departments are constantly scratching and clawing
to save costs and increase efficiency to improve their
bottom line profitability. Imagine if your dealership
could resolve more than thirty percent of its break/fix
printer calls without having to send a technician on site.
How would this increase in effectiveness impact the
department’s staffing levels? Would it allow the service
department to support incremental revenue without having
to hire additional staffing? What impact would this
savings have on the company’s bottom line? Would it free
up more cash in order for the company to invest in other
areas?
A call avoidance approach to printer
service can significantly reduce the number of onsite
break/fix calls for your service team. It comes as no
surprise that labor (burdened) is 80% of the service cost
when supporting MPS, and service departments have a
tremendous amount of pressure to be price competitive
while maintaining a desired margin. Not to mention the
fact that more managed service providers are starting to
make their way into the MPS space and are beginning to
compete with the traditional copier centric dealers. These
providers have their challenges; however, they already
have the call avoidance procedures in place to maximize
their labor savings.
There are many benefits to
call avoidance. It is possible to see over a thirty
percent phone fix opportunity depending on the
sophistication in call avoidance methods. Also the client
can enjoy the benefit of increased uptime because they
would not always have to wait for your technician to
arrive on site to fix their issues. Imagine the
opportunity to right size your staff, or the additional
revenue your dealership could support without adding
headcount, if you were able to maximize your call
avoidance potential and fix 30 percent of the break/fix
printer service calls without having to send a technician
on site.
The following is a quantifiable example of
the impact of call avoidance. Let’s assume your dealership
has seven technicians dedicated to break/fix printer
support. However, due to vacations, meetings, sick days,
or any other circumstance out of the norm, you are left
with six technicians actually performing the service calls
in any given day. Let’s also assume these six technicians
are each able to perform 6 gross service calls per day,
which equates to 36 calls/day, 792 calls/month, and 9504
calls/year. By just avoiding ten percent of the calls, one
could avoid dispatching a tech out to 79 calls for the
month, which also equates to just over half of a
technician workload. This workload reduction provides
additional time to do other things, i.e. quarterly
cleanings (if this is your practice), review your printer
loaner fleets, evaluate printer car stocks, staff a help
desk, etc… Now imagine if you were able to avoid thirty
percent of the calls (237) for the month. This call
reduction is the equivalent to the workload of almost two
technicians. Assuming your MPS initiative is experiencing
rapid growth, the organization could support an additional
$450k in MPS revenue without having to increase its labor
cost. Depending on the size of your organization the
financial impact through call avoidance can be
significant.
The way to achieve this high level of
call avoidance rate is through a phased implementation
approach. The first phase is through a technician
call-ahead program. This has been a copier dealer best
practice for years and relies on each technician’s
individual knowledge. This is best tracked using a form of
“phone fix” call completion code. In most cases one will
see upwards of 10 percent call avoidance rate using such a
practice.
The second phase is through a basic
customer facing help desk function. Many times this is
staffed with knowledgeable personnel i.e. rotating
technicians in/out on the help desk, use of shop staff, or
use of training personnel etc… This phase provides a
higher level of call avoidance success; however it is
imperative that printer calls are routed to this support
function so that the calls can be managed and tracked in
the ERP system.
The third phase of support takes it a
step further by using a help desk function along with a
dynamic knowledge base. This requires the use of a
knowledge base management solution that allows help desk
personnel to easily retrieve solutions by searching for
key words, phrases or topics. As the knowledge base grows,
less skilled staff is required to operate the help desk.
Through this method your dealership could achieve greater
than thirty percent call avoidance rate.
This type
of solution is commonly used by consumer electronics
companies and by the manufacturers your dealership
supports for technical support. As an example, if you are
experiencing an issue with your home computer and you call
the manufacturer’s help desk to get your issue resolved,
the support person you are connected to is using a
knowledge base solution to look up your issue and provide
you with a resolution.
Whichever is your current
phase of implementation it is important to track your
progress and the results of your call avoidance rate.
Remember to quantify your operation gains through either
of these methods and keep the sales team informed of your
call avoidance rate; this could be a differentiator and
provides increased client uptime.
Ken
Staubitz is a service consultant with Strategy
Development, with 14+ years experience in all levels of
service operations and MPS service structure. Formerly
with Modern Office Methods (MOM) in various service and
operational roles; was MOM’s Director of Client Services
where he oversaw all service operations & managed a staff
of 60+ field service personnel. Ken served on the Lanier
Dealer Advisory Council & was an E-Automate Service
Committee member. At
www.Strategydevelopment.com