Driving value through service | Nilfisk
September 24, 2018

Driving value through service


Categories: Business Insights

Big data, connectivity and automation are in the spotlight. But there’s another development taking place alongside all this— one that calls for more human involvement. I see a future where the role of the service engineer will expand and where closeness to customers becomes crucial for success. 

As someone who’s worked in service in various industries, it’s exciting to see this change in the commercial cleaning industry. I see five clear indicators of where the industry is heading: ​

1. Solutions, not machines will be the preferred choice
When I look at our industry today, I see several new entrants. An increasing number of international vendors are producing and selling hardware; and as the industry matures, cleaning machines are likely to become more standardized with similar attributes and benefits.

Usage patterns are changing too. Up until a few years ago, customers would use a machine for a few years, and then replace it when it broke down. Not anymore. Customers are becoming conscious that they need to both preserve the value of machine and maximize machine uptime.

For this to happen, they need access to continuous service. I compare this trend with what is now a regular practice in the automobile industry — where customers take their cars to service centers for regular maintenance and not only for repairs.

What this means is that the industry will need to offer complete solutions that combine machines and after-market services. Solutions that help customers maximize their operations and return on investments.

2. Customer relationships will influence longevity
With service becoming more important, the role of service engineers will evolve as well. Connected to this is the growing importance of customer relationships.

When I look at the factors that determine whether a customer chooses to stay with you, two things stand out: the quality of service and the nature of interactions between the customer and the service engineer. A continuous, close relationship with customers is key to understanding customers’ evolving needs and to offer the flexibility they require to run a successful business.

Service engineers will also play an important role when companies introduce new technologies like automation. With autonomous machines being new to the industry, the user experience will be influenced both by how the machine performs and by the after-market services. For companies selling autonomous machines, this will mean ensuring that customers have qualified service engineers readily available to not only help them with maintenance and repairs, but also to understand the behavioral aspects of autonomous machines.

3. Customers will seek simplicity 
When I compare the cleaning industry with the wind energy industry where I worked before, I see some parallels.

Until a few years ago, customers were risk averse. So they would buy hardware from one vendor and service from another. But the varying levels of quality when it came to service left customers both confused and dissatisfied. That is changing. Customers now want to simplify their operations. They want a single trusted service partner who can meet all their needs. A one-stop shop solution.

This is where ‘rainbow service’ comes in. Through rainbow servicing, a single vendor services all the cleaning equipment a customer uses — irrespective of the brand or manufacturing company.

Customers are increasingly asking us to partner with them as a sole service provider. In addition to servicing our machines, they would like us to service non-Nilfisk machines as well. With the level of global expertise and experience we’ve accumulated, we are well equipped to do so.

4. The need for transparency will drive digitalization
Connected to the trend of customers seeking simplicity is the demand for more transparency. Customers are looking for solutions that will give them greater and more detailed insight into their operations and help maximize uptime.

This is where digitalization will play a role.

I believe that, for Nilfisk, digitalization is a key differentiator. It allows our customers to monitor their fleet continuously — through real-time machine performance data and data on service and maintenance schedules. They can, together with the service engineer, pre-empt breakdowns and manage spare parts inventory to keep downtime at a minimum.

While fleet management gives customers insight into how their machines are performing across their fleet — independent of geographical location, the service history shows customers how we’re delivering on service agreement promises. These insights are delivered to our customers digitally and instantly.


5. Flexibility will be key
The development that, in my view, will have the most far-reaching impact will be customers demanding flexibility.

Let’s take the example of the automotive industry. Leased cars are a fast-growing segment. I expect to see the same trend in cleaning as well. Instead of buying machines, customers will prefer to lease them. The  flexibility of being able to either buy or lease will be especially important for customers that see fluctuations in their business.

Tied in with this will be an increased focus on output. Instead of paying for machines, customers will in the future pay for uptime. They will pay for cleaning by the hour or by square meters cleaned.

The industry needs to be prepared for this scenario — as it will put huge pressure on cleaning equipment companies in terms of solutions, operating expenses and logistics. But in order to be competitive, we have to offer this flexibility. 

At Nilfisk, we're tackling all these developments head on. In addition to our digitalization initiatives, we're restructuring our sevice offerings. We're fine-tuning our service packages so that it's easier for customers to identify the ideal service solution and associated financial model. And we also continue to strengthen our global service force. The focus is on employing engineers with the right commercial and technical mindset and constinuously education and mentoring them - so that they grow with the industry and evolving customer demands.

All our efforts are geared towards providing customers more value by providing the simplicity, transparency and flexibility they need to enhance their operations. And by ensuring that we deliver the same high service quality across the world.

Pernille Wichmann is the Vice President EMEA Service at Nilfisk.

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