Problem Definition :
A Facilities Management Company based in the Middle East, was facing problem with stagnated growth and also in identifying their profitable customers. The client approached Align Associate to come up with a solution to overcome the problem.
Align Associate’s experience in various sectors across industries for more more than a decade, knowledge of business standards and best practices were used to assess the problem. A team of experts were drawn to research & identify the root cause of the problem.
On research, it was found out that there was no proper mechanism in place to record customer complaints with respect to AC and Lift installation. Customer complaints raised over phone were registered manually by the customer care cell. The details of the complaint could not be cross checked for reference purpose as they were recorded in a diary. Also, there was no tracking system to find the response time taken to resolve the complaints as well as the number of complaints raised by the same customer. Further, technician occupancy was found to be 45% which was very low as per industry standards. Once identified Align Associate worked towards putting in a comprehensive solution.
To address this issue, Align Associate had recommended the client to implement a Facilities Management System (FMS) which would follow a simple procedure :
- First, the Customer registers a complaint via the customer App. This complaint is pushed to a cloud based FMS system.
- Complaints are categorised in the FMS system into 2 types – preventive and break down tickets. Complaints raised in the customer app are break down tickets whereas instructions issued automatically by the FMS system without customer interference are preventive tickets. Preventive tickets are measures taken periodically to service equipment such as AC and Lift under Annual Maintenance Contract.
- Customer Complaints irrespective of break down or preventive tickets are assigned to a particular technician by the admin via the technician app.
The technician who is assigned the job, completes the work and sends a message through the App which is updated against the customer complaint. This way, the customer as well as the complaint date and job completion date could be recorded for future reference.
Align Associate’s “Facilities Management System” was adopted by the Client after realizing its numerous advantages. The entire service process was automated which helped in obtaining the response time taken to resolve customer complaints with ease. Complaints could also be mapped easily to the respective customer by the FMS system and historical complaints raised by the same customer could be retrieved at any point of time.
Historical records were used to identify the most profitable customers. Customers sign an Annual Maintenance Contract (AMC) with the client for a particular period on fixed charges for engaging their services for the contract period. Cost to the client when servicing all complaints of a single customer based on historical records during their AMC contract period was calculated. Customers were deemed as non profitable customers if the overall cost to the client exceeded the AMC contract amount during the entire period and vice versa. AMC Contracts of the non profitable customers were not renewed after identification.
The client was able to closely monitor the company revenue with the help of the FMS system after identifying its most profitable customers.
Challenges Faced :
- Technical Team at Align Associate took painstaking efforts to design and develop a simple, user friendly, error free customer and technician app. All the bugs were supposed to be fixed before launching the app and getting the client go ahead. The design and the features of the app needed to be constantly modified after consultation with the client.
- The technicians were coerced to let go of their habitual procedures and needed to be convinced to use the technician app to service customer complaints and receive customer feedback.
The client, after initial hesitation, realized the importance of “Facilities management system”. Business derived significant benefits from Facilities management system include :
- 50% year on year (YOY) growth in company revenue after identification of Profitable Customers
- Cost to the Client reduced as a result of increase in Technician efficiency from 45% to 85% leading to decrease in expenditure on technicians
- Preventive measures taken care before hand in response to same repeated complaints for a particular customer based on historical records as well as preventive tickets helped in further reduction of cost to the Client.
- Effective Inventory Management due to better forecasting of spare parts required for future stocking purposes based on nature of historical complaints improved cashflow.
Please contact Align Associate for exploring possibilities of providing your organization similar support.
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