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This is one thing your product servicing business can’t overlook.

May 30, 2019  |  Written by Ashwin Dhumal

Very often we have seen companies giving great emphasis on TAT (Turn around time). TAT is a very useful metric for judging the efficiency of your service organization to resolve customer issues. Moreover, in many cases, a shorter TAT may also be an indicator that you have positioned your service organization for a further increase in profitability while increasing CSAT scores.

As end consumers become more demanding, the speed of service delivery has a direct correlation to improved customer loyalty and an increase in referral business. Unfortunately, the way companies measure TAT might not truly reflect the time your customers actually spend to get their product fixed.

We conducted a quick survey asking 100 customers (who had product-related issues) about the time they took to log a service call or get help from a nearby service provider. The results were nothing, but surprising to me. Over 25% of customers took more than a week to do so. They chose to use a standby solution (i.e. using a laptop to watch GoT instead of their Smart TV) even before they had raised the issue with the concerned company. And only 20% of customers made an effort to get help the same day, mostly for product categories that don't have a standby easily available (e.g. refrigerators).

In my view, in both cases, the companies stand to lose. In the first case (customers spending > 1 week to log a call), it was because customers found it inconvenient to go through the call logging process. Customers thought of it as another task in their busy schedule. In the second case (customers seeking same-day resolution), customers mostly got help from a local service provider. I believe these statistics will be more alarming for small business customers who have to coordinate between multiple stakeholders (accounts, owner and product user) before logging a service request.

Companies should lay emphasis on reducing Real TAT. Real TAT is the time a product issue arises to the time a product is fixed instead of TAT from the time of logging a service request. One way to reduce the real TAT (In an ideal world) is for the companies to know about product breakdown even before it happens. Till that time comes, focus on practical solutions that can help you simplify the customer's journey. Your time starts now :)

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