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Service as a Revenue Source

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Presentation on theme: "Service as a Revenue Source"— Presentation transcript:

1 Service as a Revenue Source
Percentage of revenue derived from services: % < 5% 5-10% 15-20% 25-30% 40% 100% Count 3 2 1 Percent margin derived from services: % 18-30% 25% 65% 100% Count 1 Is after-service support a revenue or a cost center? Revenue center Cost center 11 5

2 What is the current level of outsourcing in your company for:

3 Customer Service Performance
Current target/realized value (6 responses): 98%/99% 75%/80% 85%/? 95%/96% 95%/96% 95%/92% 95%/90-98%

4 Asset efficiency Service parts inventory turnover (6 responses)
≤ 1 1 – 2 2 1 – 12 2 – 15 ≤ 10 Service labor utilization rate (4 responses) 75% 80% 85% 95%

5 How important is your company’s service business to your organization’s competitive advantage?


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