Tuesday, 28 November 2006 22:25
Business Models for Aftersales Services
The first step to be taken in order to create value through aftersales services is to specify and determine the business model. Business model consists of the rules and instructions to be specified by the organization for the purpose of creating values with every member having relation with the company. A strategy, organization and human resource shall not be efficient without a determined business model.
The economic logic behind the value to be created for every member having relation with the company should be comprehended for creating a succesful business model. For this reason, different companies shall select different business models in compliance with the values to be created.
An automotive company entering into new markets shall generally choose Emergency Support Model for its aftersales services in order to remain in those new markets. The company shall try to solve the possible defects of its own vehicles and satisfy customer demands as soon as possible within Emergency Support Model. For this reason, the company shall organize mobile teams and set up systems to supply required spare parts as soon as possible. In other words, the companies, which adopt Emergency Support Model, shall maintain a proactive attitude and try to solve the problems before occured. Profit resulting from aftersales services and spare parts shall never be priorities in Emergency Support Model and all aftersales support shall be based on maintenance of vehicle’s mobility.
A company, which aims to support its sales within the market with aftersales services, shall apply Customer Satisfaction Model. The company adopting Customer Satisfaction Model shall establish authorized services where the customer can easily access, make regular spare-part shipments to those services, permanently train service staff, prepare required service documents completely, try to increase customer loyalty by means of extended warranty and service agreements. Customers usually apply to the company for their requirements within Customer Satisfaction Model. The principle aim is to provide comfort and pleasure for customers. The company adopting Customer Satisfaction Model makes an effort to increase the number of end-users in its portfolio. For this purpose, the company shall aplly discount on spare part and workmanship/labour fees within the scope of various campaigns. The company applying Customer Satisfaction Model shall stipulate that a pleasant and satisfied customer shall choose another vehicle of the company when changing its vehicle, and, unpleasant customer shall have a negative effect on potential buyers and prevent the sales of the company. The company applying this model assumes that the first vehicle is sold by sales department whereas the rest of vehicles are sold by aftersales services department and performs its operations within this frame.
A company, which aims to increase in its aftersales services, shall adopt Maximum Profit Model. The company adopting this model makes an effort to increase the sales volumes of spare parts, accessories and services etc on one hand, develops methods to reach the all potential customers who do not come to its service workshops, on the other hand. That is why the company focuses on methods such as training its service consultants, supplying different services to fleet customers, concluding private and special agreements with insurance companies etc. in order to increase amount of product and service per work order. In addition to the activities within service workshops, the company shall organize mobile teams to sell more spare parts to workshops insmall industrial areas. Another departmant shall be established for such spare parts trade since the specifications of the spare parts to be sold to workshops are different from the spare parts to be sold or used within the service workshop. A successful spare-part sales team shall be able to sell 2/3 of whole spare part sales volume to the independant workshops and get high level of profit. The company applying Maximum Profit Model shall try to maximise its revenue by creating syngery with competitors within its eco-system one on hand, and try to minimise its stock level and general expenses, on the other hand. The company, therefore, shall use each opportunity for increasing its profit by expanding within the market.
The basic principle of business model is to provide maximum benefit for the company and every actor which contacts the company. To select most appropriate aftersales service models in compliance with the eco-system and general expectations of the company increases the the success level of the company within the market and its value. For this reason, the company, which aims to increase its value through aftersales services, at first, shall appropriate business model and then determine its strategy, create its organization and human resources. If such a company is available and provides aftersales service support currently, the first step to be taken is to determine whether the business model is in compliance with the target or not and then change its model, if necessary, and make revisions in terms of strategy, organization and human resources.
