Hiab, a leading provider of smart and sustainable load handling solutions, was looking for support to accelerate proactive service sales.
They approached us to support their customer activation initiative as part of their digital transformation program.
The initiative’s goal: Initiate proactive customer engagement to increase equipment service hit rates and upsell service contracts. This approach is crucial for Hiab to successfully operate in industries with a difficult business climate, particularly the construction industry.
Hiab was dealing with some key challenges in the past that had significantly influenced their operational dynamics and growth trajectory, including:
- Escalating cost of raw materials directly impacted the pricing structure of machinery and construction projects
- Supply chain disruptions, often triggered by global events like pandemics or geopolitical conflicts, led to delays in the procurement of essential materials and components
3. Environmental regulations posed a substantial challenge as they require the adoption of greener technologies and practices. This not only increased operational costs but also added a layer of complexity to compliance efforts
4. Persistent shortage of skilled labor, which delayed project completion and forced reliance on expensive temporary labor solutions
5. Market pressure to invest in new technologies and training to stay competitive, which can be a significant financial burden
Amidst these operational challenges, our client faced a strong customer expectation for reliability and minimal downtime in machinery use. End customers who purchased machines for their businesses emphasized the need for security and operational continuity, since downtime can lead to substantial financial losses. Therefore, providing robust service support — including a wide network of service workshops for regular maintenance and repairs — was crucial and expected to be managed by the manufacturers or third-party providers. This demand placed an additional responsibility on our client to ensure their machinery was not only efficient and compliant but also consistently reliable and easily serviceable.
As a way to tackle the above challenges, Hiab services management contacted Simon-Kucher Elevate to develop a global playbook for customer activation, aiming to accelerate proactive customer engagement and thereby proactive service sales.
Together with the client, we developed a customer activation strategy. This included roll-out requirements to automate customer interaction along the equipment lifecycle with the aim of increasing equipment service hit rates and contract upsells.
This outcome was achieved with a detailed analysis and target state mapping through interviews, research, a capability assessment, and gap analysis.
The primary issues faced by Hiab included:
- Inaccuracies in end-customer data
- Missing integration of technology
- A lack of automation
- Absence of a cohesive activation strategy
These challenges hindered our client’s ability to effectively manage customer relations and leverage service potential. By focusing on these issues, our experts aimed to enhance the overall effectiveness of their customer service operations, ensuring that the existing customer experience improved in support and reliability.
We solved these challenges through a five-step approach by…
- Meticulously assessing the status quo and identifying the gaps
- Evaluating existing data and digital strategies to define and meet precise data requirements effectively
- Holding detailed interviews across major functional areas, as well as targeted deep-dive sessions with key teams, enabling us to address specific challenges decisively and enhance overall customer satisfaction and experience
- Developing a robust customer activation strategy
- Implementing an automated communication process for end customers to ensure the seamless delivery of service excellence
We strategically improved Hiab’s operational marketing processes by identifying and defining the different customer touchpoints through the equipment lifecycle, automating end customer communication including service invitations, and creating a framework to find new opportunities for upselling maintenance contracts.
Our targeted initiatives paved the way to increase Hiab’s potential base sales by €9m!
We significantly improved synergies between digital and services marketing strategies and revitalized our client’s approach for enhanced, proactive customer engagement.
Our well-constructed customer activation strategy addresses systemic challenges. Through our collaborative efforts, Hiab was able to discover and address new growth opportunities:
- List of eight main risks and recommended mitigation techniques to secure readiness for further market roll-outs
- Business case overview to forecast potential markets for the next roll-out
- Integration of customer lifecycle touchpoints and associated journey maps with a hit rate analysis, volume assessment, and key areas for improvement
- Development of reporting dashboards with defined metrics to ensure transparency during the roll-out phase
- Customer activation playbook with key concepts, frameworks, and step-by-step guides to improve market readiness
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