LONDON, September 18 /PRNewswire/ --
- Study of Downton Service Management Consultants Identifies Successful Strategies
Using technology to provide technical services is an important engine of growth. Technical services can produce substantial revenue growth, but achieving profitable growth requires a smart service strategy.
A new study from Downton Service Management Consultants examines the strategies of successful service operations and how they produce revenue and profit growth.
41 % of the surveyed companies concentrate on services of high added value or focus on the personal relationship with customers. Over 50 % of these companies foresee more than 10 %, revenue growth with one third expecting more than 20 % revenue growth in the next years and nearly 40 % of these firms estimate their annual margin growth to be more than 10 %.
"Our research has identified six different strategies applied by these firms. But only two strategies seem to lead to profitable growth and sustained success", explains Steve Downton. "Executives of service organizations can gain from our research insight, and can learn from companies implementing these winning strategies. "
The respondents indicated they deploy one of the following strategies:
- 18 % focus on brand driven, high value added services - 23 % focus on people driven, relationship-based services - 31 % focus on feature driven, high performance services offering more benefits - 16 % focus on price driven, high performance services at the lowest possible price - 8 % of service-organisations remain as a cost centre - 4 % are moving from a cost centre to a profit centre strategy
"Successful companies wanting lasting success do not enter into price wars with competitors, but concentrate on understanding the needs of their customers", diagnoses Steve Downton. "Firms developing innovative service propositions with their clients can go far beyond break-fix."
The study was designed together with senior executives in round-table meetings and 180 companies in Europe and North America participated. The executive summary is available at http://www.thefutureofservice.com, where one can also register for the research related conferences.
Downton Service Management Consultants
Downton Service Management Consultants assists businesses to strategically differentiate their service business. Downton Service Management Consultants operates globally through other brands including Noventum Service Management Consultants, Taurel Service Management Consultants and is also a partner of Service Strategies Inc.
Media contact: Steve Downton Tel: +44-(0)1279-461777 Email: press@downtonconsulting.com
Website: http://www.noventum.eu
Media contact: Steve Downton, Tel: +44-(0)1279-461777, Email: press@downtonconsulting.com
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