The 4 most Important Stakeholders of Your Field Service Organisation
February 4, 2019
From a financial perspective, adapting to more sophisticated billing scenarios and evolving revenue recognition standards may seem like the obvious path forward for field service companies. However, in reality, CFOs and CEOs of field service providers need to inculcate a deeper understanding of the needs of all its various stakeholders. The following blog looks to categorise the different stakeholders involved in the running of a field service organisation and how key decision makers can look at keeping their needs satisfied.
Keeping customers satisfied is field service operations 101. Make sure your customers are timely provided with an accurate bill, preferably with a breakdown of the various products and services. To up your game, you should consider switching from legacy systems designed to process more linear, order-to-cash transactions to more advanced systems that support contracts that incorporate diverse revenue streams, such as from clients who are on a subscription service to ones that prefer project-based work. If you use different systems to track revenue from different streams, your billing process will develop bottlenecks, which will ultimately affect the customer experience. Make sure all your systems are designed with the customer’s experience in mind.
Field service companies have a lot of regulations that they need to adhere to, and businesses that are just starting out may not be aware of the full gamut of rules governing the industry. They also need to strictly follow constantly changing and increasingly complex financial regulations, which require auditors to have clear visibility into financial dealings such as contracts, performance obligations and revenue recognition events. By consolidating all your regulatory metrics into a single database, you can keep a closer track of important data, while providing auditors with a comprehensive lens to assess your organisation.
Besides yourself, the stakeholders most invested in your field service business are its investors, who will expect a detailed breakdown of metrics to track and forecast business performance. Some of the include, customer acquisition costs, customer retention rate, customer lifetime value, and so on. Such metrics are key for service-based businesses as they can provide an accurate forecast of revenue generation. Furthermore, having such data on hand is also important from a fund-raising perspective, as you can expect potential investors to check each and every detail possible before parting with valuable capital.
When it comes to stakeholders of a field service organisation, the most often overlooked ones are unfortunately the employees. However, the happiness levels of your employees can make or break your organisation’s growth. Ensure you have feedback tools in place to track employee grievances and implement easy-to-use reporting software to support their daily workflows. From the viewpoint of a key decision maker, it is crucial that your employees have quick access to up-to-date data which helps them resolve business issues that directly affect their day-to-day tasks.
Now that you have a clearer idea of the different stakeholders of your business, you can think of strategies that will improve metrics, keeping in mind the different objectives of each party. To understand how to better improve customer satisfaction levels, read our blog.