Thrive during disruption by growing new digital services

Monetising Service | Better Articulate the Value to Monetise Services and Data

Better Articulate the Value to Monetise Services and Data

by | May 23, 2018 | Monetising Service

Too often we see that (new) services, solutions or features are promoted without connecting the dots to their bigger problems.
You can also watch the video

CENTRAL QUESTION: HOW TO MONETISE SERVICES AND DATA

This article is the third of my series of five in which I cover 4 critical steps which make the difference between success and failure in monetising services and data:

Read my introduction to this topic in Why it is important to monetise services and data

Common mistakes in articulating your value

Too often we see that (new) services, solutions or features are promoted to clients without connecting the dots to their bigger problems.

For example, a client of mine – a major equipment manufacturer – experienced the power of explicitly connecting the dots. They launched a first version of a portal with many online technical manuals to serve DIY clients which had their own maintenance departments. They initially presented the benefit of this portal as a way to save time when a maintenance engineer of their client needed to find the right manual. It turned out to be tough to sell paid subscriptions for this portal.

Only when the manufacturer articulated their view of the key problems of their clients’ maintenance departments and how the portal would solve these problems, did the clients get really interested. It appeared that the real problem of clients was the daily pressure to increase availability and uptime with  shrinking budgets and the slow learning curves of their maintenance engineers, due to low volume of certain problem-solving work. A portal which would evolve into a broad toolset for best practices, trouble-shooting and maintenance management was considered a crucial asset.

Furthermore, we often see manufacturers thinking and talking about features and activities, instead of customer value, while clients only pay for the value they perceive, not for what you do.

A striking example: Field service engineers of another client normally spend a full day in pairs to install equipment which was already delivered a couple of days before. They unpack and assemble the components, connect it to a couple of other devices from different manufacturers and the client’s IT network.  This involves solving many integration and security issues with the client’s IT department – which by nature tends to be reluctant. A few days after installation, another colleague visits the client for training and commissioning.

And here is how they brief their client when they start the job: “We are here to unbox the components, put the bits and pieces together and check if everything is on site, so the trainer is ready to go……” . Their client did not even know what kind of complex integration problems the engineers were solving. Actually, their client even wondered why his supplier did not have more mature and efficient processes to get the job done. And by no means are the engineers to blame for this.

Strengthen your customer insight

Customer InsightRapidly strengthen your customer insights by structuring the knowledge into a compelling and clear structure of the challenges, pains and mistakes of your customers.

With this insights, you will improve the customer focus and catalyse new initiatives.

Some practical solutions

You can easily start improving on these common mistakes:

  • Build a compelling story of your view of your customers challenges, opportunities and problems, which is validated by (a segment of) your customers. Relate this to strategic or crucial priorities of your clients.
    Include your view on how your clients could best pursue these opportunities and solve these problems. Just start with a first strawman version and let it grow in time. Do not try to get this perfect the first time.
  • Link the characteristics and benefits of your solutions and services to the challenges, opportunities and problems of your clients.
  • If possible, quantify the benefits in terms of the strategic or critical priorities.
  • Ensure that your value story is well articulated in your messaging to (the specific segments of) your clients and is consistent across all touch points. This may involve some staff training.

Conclusion

Clients only pay for the value they perceive. This requires you to explicitly articulate the value of your solutions and services for your clients in relation to their bigger challenges, opportunities and problems.

Do not expect your clients to figure this out themselves.

The Essence

Great offerings and solutions won’t sell themselves.

Learn more from like-minded peers

Join the moreMomentum Services Community and Fast-Track your Digital Services


You can also watch the video

Related Articles

Build a Strong Customer Story in 7 Steps

Many service innovations fail because they do not have a substantial and desired impact for clients. Often, customer insights and value propositions are limited to a description of features and benefits, without considering the outcomes clients desire.

Diversify your innovation to boost growth

Leading manufacturers cover a scope of innovations, searching for opportunities to improve the value they promise their clients, how they deliver the value and how they capture part of the value.

Upcoming events

Stay up to date

Receive the latest insights and updates from our articles, interviews with your peers and ongoing research into best practices.

If you liked this article, you may also like the following articles, on the same topic.

Why it is important to monetise services

Value propositions in manufacturing are becoming more data-driven and more service-oriented. It is critical to generate and capture the new value.

Solve Bigger Customer Problems to Monetise Services and Data

A common mistake is to solve small problems of customers. These are necessary improvements, but will not bring any growth or opportunities to monetise.

Better Articulate the Value to Monetise Services and Data

Too often we see that (new) services, solutions or features are promoted without connecting the dots to their bigger problems.

Panel discussion: How to transform your field service into a profit centre?

Success depends on the level of collaboration and support from all stakeholders.The name of the game is establishing a shared concern and goal first.

Panel discussion: Drive service revenue and growth with personalised services

New technologies offer great opportunities to improve customer experience and perceived value. When done in a differentiating way, this can drive revenue.

Remove Obstacles for your Clients to use your New Offerings and Monetise your Services and Data

If your clients fear or experience too many obstacles to use your new offerings, they will not see your offering as a viable and valuable solution. This will block your commercial success.

Build Internal Momentum to Monetise Services and Data

Launching new advanced services is innovating your business model. This requires internal momentum to monetise these services and data-driven solutions.

Build Your Advanced Service Sales Model

Common transactional sales models do not work for advanced services and solutions with a recurring revenue model. Build your advanced sales model.

Stay up to date

Receive the latest insights and updates from our articles, interviews with your peers and ongoing research into best practices.

OUR VISION and MISSION

More and more manufacturers are growing their digital services. This requires strong and repeatable business innovation capabilities.

With our community, we continuously develop, share and apply new best practices for digital services and radical business innovation.

Services innovation enables manufacturers to thrive and solve our global problems.