6 steps to success with installed base management

Installed Base
Management
6 Steps to Set Up for Success

Collect &
Colate Data01
2016 Chris Dunn Consulting Services Limited All rights reserved

1. WHICH DATA DO
YOU COLLECT?
2. HOW DO YOU
OBTAIN THIS DATA?
3. WHO OWNS THE
COLLECTION PROCESS?
4. WHERE WILL THE
DATA BE STORED?
Product type, serial number,
age, warranty status, usage,
service history, location etc
Remotely from the product
itself, from field teams, from
the customer etc
Local teams or central
management? Is the process
inhouse or subcontracted?
On local or central systems or
both? In the cloud or on
company servers? Integrated
with CRM and ERP systems?
Key Questions

Quantify &
Qualify Data02

1. HOW MANY ACTIVE
UNITS ARE IDENTIFIED?
2. WHAT LIFE STAGE
ARE THEY AT?
3. WHAT USAGE DATA
DO YOU HAVE?
4. HOW DO YOU
IDENTIFY MORE UNITS?
You know how many products
you've sold but how many are
still in use and for these have
you collected data?
Each life stage represents an
opportunity from service
contracts to parts to trade=ins
This knowledge enables
targeting of complementary
products and services
What is the best way to
register new products and
incentivise customers to
provide data on existing units?
Key Questions

Measure &
Monetise03

1. HOW WILL YOU
SEGMENT?
2. HOW WILL YOU
TARGET ACTIVITY?
3. WHAT KPIS WILL YOU
INTRODUCE?
4. HOW WILL YOU DRIVE
THESE KPIS?
Product category, industry
sector, geography are all
common segmentations
Sales or service teams? Are
new product and service
packages required? Which
segments are to be prioritised?
Revenue/margin per product in
the installed base? Ratio of after
sales revenue vs, finished
product revenue/margin?
From the centre or through
local teams? What rewards will
be offered for success?
Key Questions

Share &
Strategise04

1. WHAT IS THE FULL
POTENTIAL FOR THE
INSTALLED BASE?
2. WHAT IS YOUR
CURRENT SHARE?
3. WHO ARE YOUR
YOUR COMPETITORS?
4. WHAT IS YOUR
STRATEGY?
How much money is being
spent using, maintaining and
upgrading your products?
Of consumable revenue? Of
service income? Of parts and
accessory spend? Of upgrade
budgets?
Who else "lives off your installed
base"? What benefits do they
offer? At what point do your
customers switch and why?
To increase your knowledge of
the installed base and share of
the revenue generated. How
will you share this strategy?
Key Questions

Retain &
Regain05

1. HOW DO YOU DETECT
NEW INSTALLATIONS?
2. HOW DO YOU
RETAIN CUSTOMERS?
3. HOW DO YOU IDENTIFY
LOST CUSTOMERS?
4.HOW DO YOU WIN
BACK BUSINESS?
Do you partner with
intermediaries who sell/install
your products? Can your product
be made to self register?
What are the critical touch
points in the ownership cycle?
How do you continue to add
value at each point?
Does your system alert you?
Are you reliant on field
intelligence? Can you predict
"drop out danger"?
Do you have a specialist win
back team? Can you target
competitor weaknesses?
Key Questions

Enhance &
Expand06

1. HOW DO YOU
IMPROVE DATA
COLLECTION/USE?
2. CAN YOU COLLECT
COMPETITOR DATA?
3. HOW DO YOU
INTEGRATE & SHARE?
4. DO YOU SERVITISE
OR NOT?
Can you automate? Can you
encourage sharing across
teams and territories?
On your installed base
competitors to retain and regain.
On finished product competitors
for increased product sales
Data must be accessible at
point of need. Mobile and
cloud based systems are a
must as is data security
The installed base can be a
goldmine. Your business may
change focus from productled
to service driven.
Key Questions

Your Activity Plan
Appoint an Installed Base Manager
Collect and analyse data
Develop an IB business strategy
Set KPIs to measure and monetise
Create lockins for attached assets
Target revenue at unattached assets
Winback campaigns for lost business

Thank you for
viewing this
presentation
For more information on
developing your aftermarket
business please go to:
www.chrisdunnconsulting.co.uk

6 steps to success with installed base management

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