Differentiating and Pricing Field Services in a Xaas World

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Timothy Matanovich
Timothy Matanovich

Timothy Matanovich is president of Value and Pricing Partners, and author of Profitable Technology Services Pricing - How to use offering design and pricing strategy to accelerate sales and increase willingness to pay, available on Amazon. Tim’s clients include, Nikon Precision, CDK Global, Kodak Alaris and Informatica.

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44% of service organizations surveyed on the topic of mobility considered mobile or cloud-based services to be essential in maintaining a competitive company.

However, many mobile field service management solutions take a one-size-fits-all approach that can only offer limited value to partners and customers. The evolution of the XaaS (anything as a service) business format has allowed for more flexible field service solutions that focus on offering maximum impact and value. Using XaaS, field services can grow and scale according to business needs and benefit from emerging innovations.

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XaaS and Flexible Field Services

The main attraction of the XaaS model is that it offers clients, partners, and customers the opportunity to replace huge blocks of their capital investment with smaller, more versatile operating expenditures.

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The world of cloud technology is expanding, and the fact that it allows for real-time growth and innovation within the field services industry means that XaaS is perfectly positioned to overtake the focus of many field service management and solution offerings. According to Gartner: “40% of the workforce will be mobile” by the end of this year, and mobile solutions rely on cloud technology for the expansion of services.

The emergence of the XaaS model forces field service providers to ask how they’re going to use the latest technology for maximum impact, and what actionable steps they can use to take advantage of the benefits that XaaS can offer.

Moving into the XaaS World

For most field services, the value of their business depends on the value they can offer to their customers. Though the field service industry was comparatively slow in joining the information economy, there’s no longer any reason for the cloud’s productivity, efficiency, and creativity to pass the industry by. Empowering service technicians with a XaaS-based solution of cloud-based real-time tools can be used in the fields means:

  • Completing work orders faster through the restructure of schedules, and staff management
  • Processing payments quickly and securely with updated technology
  • Renewing maintenance agreements for end-users with an altered approach to orders and inventory management
  • Access to manuals and training when necessary
  • Communicating through new social channels and real-time solutions

XaaS allows for real-time access to mobile solutions and services that field technicians may need to offer the best possible services. Unlike standard cloud-based field service management solutions, the XaaS framework means that companies can change or scale the solutions they use according to the changing needs of their business. This is particularly valuable in the field service industry, where current management systems allow for the collection of data about customer relationships, requirements, and solutions to increase technician productivity.

Connecting Value with Scalability in the XaaS Era

As a company grows and evolves, it needs to be sure that its field service group is capable of responding in kind, delivering the correct software, tools, and resources for a more productive and efficient set of solutions. While most companies know the value of upgraded partner programs and revised strategies for success, refreshing the field service offerings provided every time a new technology emerges on the field is neither cost-effective nor reliable. Instead, differentiating, and appropriately pricing field services in the XaaS era means connecting value with scalability according to the individual needs of each customer, partner, or client.

This means that field service solutions should not only be customizable, thanks to the XaaS framework but also that they should be wide enough that customers and partners can choose the services that they need.

The more XaaS solutions customers have access to, the more incentive they have to use your company in supporting their business and capitalizing on growth. However, differentiating field services doesn’t mean making each resource separate from the others. Instead, field service providers must offer various solutions that can interact smoothly with each other, regardless of whether customers choose to use a large range of tools, or just a few crucial resources.

Restructuring Field Services with XaaS

The modern market requires businesses to realize that productive and efficient field service solutions rely on both streamlined and versatile technology.

The XaaS business format removes the one-size-fits-all approach to field service solutions, meaning that the information companies gather about customer relationships, productivity, and purchasing can define the exact services, solutions, and management resources they need for optimizing their business. Not only does this mean that field services become more efficient, but also that the solutions aiding those services can be properly differentiated and priced according to the expanding needs of a target market.

One of the many aspects involved in proper pricing strategy for XaaS organizations is segmentation – splitting customers into categories based on their needs. The same concept of segmentation exists in field services – where procedures, technology, and management systems can be restructured depending on the services performed, the technology required, and the size of the industry. In other words, the XaaS era allows companies to restructure their field services, cost, and time effectively, according to:

  • Emerging market opportunities
  • Skills and competencies required for a specific market
  • Segmentation needs
  • Any partners involved in the program

Technology companies that are able to differentiate and restructure their pricing or programs according to the shifting times of the XaaS era, should be able to capitalize on the growth opportunities offered by this popular medium for business/customer transactions and interactions.

Innovation is the Lifeblood of Modern Business

While it can be all too easy for people in the field of services industry to fall into a routine process of performance because “that’s how it’s always been”, the emerging technology in the “as a service” industries demonstrate how important it is to generate new solutions and fresh ideas for business challenges.

Because XaaS relies on data, real-time updates, and constant innovation, it fits with the field service industry and the requirements of field service management software. However, it’s important for the providers of field service solutions to ensure they continue to offer segmented solutions priced according to their perceived value if they want to remain competitive.

How do you feel about field services in the XaaS era? What could you do to restructure your business for productivity and cost-efficiency? Let us know in the comments below!

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