3 Signs that Your Revenue Is Impacted by Service Delivery

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If you’re a business owner, you’re likely well aware that having an efficient lead generation and sales process is crucial to your revenue forecasting and income. But for many business owners the sales process doesn’t end there - it continues through to the delivery of services, as well. If your sales process doesn’t end with the sale itself, you know how important service is to your company’s image, the likelihood of repeat sales, and customer satisfaction.

But how do you know if your revenue is being impacted by a service delivery related issue as opposed to a shortcoming in another area of your sales cycle or business? Here are three ways to tell.

#1 You have drastic highs and lows in revenue.

Highs and lows happen in every business, every sales cycle, and every financial report. But if you’re experiencing extreme highs and lows, you might be dealing with a problem in the service area of your business. Poor service delivery can cause extreme highs and lows in revenue because of the following things:

  • Customers buy the product, but then stop engaging in business or back off when the service delivery fails.
  • In an effort to deliver services with an inefficient system your sales representatives become distracted, which results in fewer sales calls and lower sales.
  • Nothing is wrong with the service itself, but your sales team keeps dropping the ball on sales tasks because they’re trying to engage in delivering services.

#2 You have sales representatives conducting customer service calls.

Customer service is part of every sales cycle, but if you’re walking through your sales floor thinking it sounds more like a customer service call center, you might be experiencing a problem in the area of service delivery. Since your sales representatives are the ones finalizing the deal, they’re also the ones that customers are most likely to call in the event they’re not getting what they want where service delivery is concerned. This can distract your sales team and lead to decreased revenue. Some signs that your sales team is being forced to handle customer service calls instead of sales calls are as follows:

  • More incoming calls than outgoing calls are conducted.
  • Your sales team says “I’m sorry” a lot when answering the phone.
  • Members of your sales team report that they’re receiving a lot of customer service calls.
  • Even the most reliable sales team members are turning out lower prospecting and conversion numbers.

If any of the above are occurring on your sales floor it’s time to take a good look at the service side of your sales cycle.


#3 Your sales team is selling, but revenue isn’t growing.

If you’re looking at outstanding numbers from your sales team and stagnating revenue growth you might be dealing with an issue in service delivery. This dichotomy is an indicator of poor service delivery for one of two reasons:

  • Customers are leaving.
  • Customers aren’t leaving, but they’re not buying more or coming back consistently.

In either of these cases your sales team can be doing fantastic, but all they’re really doing is replacing customers or the void where repeat orders should be.


Conclusion

In any of the above cases you should take a good look at your service delivery and see what customers are saying about it. Satisfied customers can be cross- and up-sold without a lot of effort, and they’ll keep coming back for more. Make sure you have a dedicated customer service team, and make sure that team is separate from your sales team. Once your sales team starts to become distracted by customer service issues your revenue will take a hit.

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Photo credit: LendingMemo / Foter / CC BY

Tags: Service Delivery Management

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