How Companies Use Service Management to Increase Revenue and Retain Customers

  • by Venkata Tagirisa, Manager, BearingPoint, Inc.
  • June 3, 2009
Find out how companies are using different service delivery models — including service contracts and product service letters — to transform their service processes to maximize service revenues. In addition, take a look at service billing using CRM Billing and contract entitlements before and after service is provided.
Key Concept

Service order management allows users to maintain all the information needed to plan, execute, and bill for a service. A service order maintains all the information needed to resolve a reported problem via either remote or on-site customer support. Service confirmation management allows users to report actual working time, service parts consumption, expenses, and tools used while performing a service.

Service organizations continuously watch their service revenue by reducing service costs and providing efficient services to their customers. To meet this goal, service executives need a closed-loop service delivery process that starts with logging a service event, identifying services to perform, tracking time and parts consumed, keeping an up-to-date installed base, and accurate service billing. Service organizations that effectively manage service order and confirmation processes have seen decreased service costs, increased service revenue and margins, improved customer satisfaction, and improved customer retention rates.

The first step in any service order management life cycle is the creation of the service order. I begin by reviewing some communication channels and processes that you can use to initiate service order creation. Refer to “Configuring a Communication Channel” in SAP Help for supported communication channels and supported vendors.

You can initiate an SAP CRM service order using a variety of sources, but I focus on reviewing those channels that I find clients use most frequently, including direct phone calls, incoming email, installation service orders based on CRM sales orders, preventive maintenance service orders from planned services via CRM service contracts, and field change orders using product service letters.

I’ll review these processes briefly to provide an overview on how you can create a service order. I’ll show you how to log a service event through various channels and how to plan, instruct, and track services that field technicians perform using different service delivery models. I’ll also discuss how to capture actual time spent and parts used while performing a service and go over service billing with SAP CRM billing. The processes in this article apply to SAP CRM 2005 and later.

Venkata Tagirisa

Venkata Tagirisa is a manager with BearingPoint’s Commercial Services SAP CRM practice and has 12 years of experience with CRM implementations. Venkata has implemented service, marketing, and sales projects in SAP CRM. Venkata has more than 17 years of IT experience and been involved with CRM implementations in high-tech, public sector, manufacturing, and consumer industries.

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