6 steps to success with installed base management

Installed BaseManagement

6 Steps to Set Up for Success

Collect &Colate Data01

2016 Chris Dunn Consulting Services Limited All rights reserved

1. WHICH DATA DOYOU COLLECT?

2. HOW DO YOUOBTAIN THIS DATA?

3. WHO OWNS THECOLLECTION PROCESS?

4. WHERE WILL THEDATA BE STORED?

Product type, serial number,age, warranty status, usage,service history, location etc

Remotely from the productitself, from field teams, fromthe customer etc

Local teams or centralmanagement? Is the processinhouse or subcontracted?

On local or central systems orboth? In the cloud or oncompany servers? Integratedwith CRM and ERP systems?

Key Questions


Quantify &Qualify Data02


1. HOW MANY ACTIVEUNITS ARE IDENTIFIED?

2. WHAT LIFE STAGEARE THEY AT?

3. WHAT USAGE DATADO YOU HAVE?

4. HOW DO YOUIDENTIFY MORE UNITS?

You know how many productsyou've sold but how many arestill in use and for these haveyou collected data?

Each life stage represents anopportunity from servicecontracts to parts to trade=ins

This knowledge enablestargeting of complementaryproducts and services

What is the best way toregister new products andincentivise customers toprovide data on existing units?

Key Questions


Measure &Monetise03


1. HOW WILL YOUSEGMENT?

2. HOW WILL YOUTARGET ACTIVITY?

3. WHAT KPIS WILL YOUINTRODUCE?

4. HOW WILL YOU DRIVETHESE KPIS?

Product category, industrysector, geography are allcommon segmentations

Sales or service teams? Arenew product and servicepackages required? Whichsegments are to be prioritised?

Revenue/margin per product inthe installed base? Ratio of aftersales revenue vs, finishedproduct revenue/margin?

From the centre or throughlocal teams? What rewards willbe offered for success?

Key Questions


Share &Strategise04


1. WHAT IS THE FULLPOTENTIAL FOR THEINSTALLED BASE?

2. WHAT IS YOURCURRENT SHARE?

3. WHO ARE YOURYOUR COMPETITORS?

4. WHAT IS YOURSTRATEGY?

How much money is beingspent using, maintaining andupgrading your products?

Of consumable revenue? Ofservice income? Of parts andaccessory spend? Of upgradebudgets?

Who else "lives off your installedbase"? What benefits do theyoffer? At what point do yourcustomers switch and why?

To increase your knowledge ofthe installed base and share ofthe revenue generated. Howwill you share this strategy?

Key Questions


Retain &Regain05


1. HOW DO YOU DETECTNEW INSTALLATIONS?

2. HOW DO YOURETAIN CUSTOMERS?

3. HOW DO YOU IDENTIFYLOST CUSTOMERS?

4.HOW DO YOU WINBACK BUSINESS?

Do you partner withintermediaries who sell/installyour products? Can your productbe made to self register?

What are the critical touchpoints in the ownership cycle?How do you continue to addvalue at each point?

Does your system alert you?Are you reliant on fieldintelligence? Can you predict"drop out danger"?

Do you have a specialist winback team? Can you targetcompetitor weaknesses?

Key Questions


Enhance &Expand06


1. HOW DO YOUIMPROVE DATACOLLECTION/USE?

2. CAN YOU COLLECTCOMPETITOR DATA?

3. HOW DO YOUINTEGRATE & SHARE?

4. DO YOU SERVITISEOR NOT?

Can you automate? Can youencourage sharing acrossteams and territories?

On your installed basecompetitors to retain and regain.On finished product competitorsfor increased product sales

Data must be accessible atpoint of need. Mobile andcloud based systems are amust as is data security

The installed base can be agoldmine. Your business maychange focus from productledto service driven.

Key Questions


Your Activity PlanAppoint an Installed Base Manager

Collect and analyse data

Develop an IB business strategy

Set KPIs to measure and monetise

Create lockins for attached assets

Target revenue at unattached assets

Winback campaigns for lost business2016 Chris Dunn Consulting Services Limited All rights reserved

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