In the Construction Equipment market the parts and service groups have very low market capture rates.
I don’t think that any customer service provider is aiming to have less than a 50% or even less than a 25% market capture rate. Yet that is where the parts and service departments are in these critical measures. The employees care about the service they provide to their customers. Yet obviously there have been events that have caused many customers to find solutions to their needs elsewhere.
I am convinced that part of this is created by the lack of market coverage that is provided to customers.
- First there are not enough salespeople involved in the parts and service area. It appears that the number of sales people is determined to minimize complaints from suppliers rather than a deliberate choice of who to cover and why. I know that is strong but how else could you explain that there are typically more than double the number of prime product sales people compared to product support sales people.
- Second there is little if any follow up on actual transactions. Wouldn’t it be nice to have a supplier give you a call and ask how you were treated during your most recent sale or inquiry? Of course it would.
- Third we don’t engage the customers who have a change in buying habits. A customer that has had a change in buying habit and has not purchased anything or contacted you in more than the standard time between activities should be contacted and engaged. That leads to a defection rate that is unusually high.
How do you rate on market coverage? Are you engaged with ALL customers every year? Do you know your defection rate? Do you know your market capture rates? These are important questions with serious answer from which you can make the necessary business decisions. In this case ignorance is not anything like bliss.
The time is now.