The No.1 reason why FM companies will retain & grow clients.
In the first of our Q1 2019 “FM Insight” series, we share 1 thing FM companies should focus on in order to hit retention and growth targets.
Clientshare work with international, domestic and boutique FM companies, who are telling us that CX (Customer Experience) is their focus for 2019, and here we explain why.
Let’s start by having a look at x4 FM trends that have occupied minds for the past 18 months:
1. Continued high levels of merger and acquisition activity.
2. Energy management services growing strongly.
3. Technology and data analytics increasingly central to service delivery models and to creating value-adding opportunities.
Source: Frost &
1. Key to future growth: maintaining a high standard of service while adding value via differentiated services.
2. Likely new development: the consolidation of facilities management contracts among central government departments.
Source: AMA Research
M&A remains a significant market feature
1. M&E, building management systems and compliance together account for around half of all recent transactions.
2. Cleaning deals are on the up.
1. Innovation in Technology and the Work Environment
2. The next growth
3. People are looking for work environments that embrace technology to enable seamless, collaborative, healthy and comfortable working experiences. Organisations, and their
Sources: BDO and Memoor
These trends are powerful market forces and the FM industry has been reacting to these for the past 3 years. M&A activity has been significant, TFM was (and arguably still is) a key selling point. Every FM company has been talking about Smarter Building, Smarter Cities and IoT. And you won’t find an FM company that doesn’t rightly have a strong sustainability agenda.
You won’t be surprised by these trends and in
But so have your competition.
And here lies one of the biggest challenges your FM company faces. Your best technology, best innovation, best TFM strategy and smartest acquisitions are all important. In reality, your best is just ensuring you can compete with everyone else in a challenging, commoditising market. They aren’t the key reason you will retain and grow contracts.
Here’s CEB on why you will be successful in B2B contract wins:
– 53% of success is down to CX; not price, product or service.
If you look at your FM price, FM service and FM SLAs and find that they look worryingly like your competition’s, then where is your competitive advantage going to come from?
This is compounded by 2 key things that have happened in the FM market and FM procurement in the last 10 years.
1. Your buyer is better informed than ever; they know the right price and the right service levels.
2. Your USPs on service
So, let’s assume you are one of the top providers in your market, and along with the competition, are very good at what you do – where is your competitive advantage?
Today in FM, competitive advantage is found in CX (Customer Experience). And for FM companies CX is all about relationships. It is what won you the deal in the first place. Think back to when you won a new contract, your relationships were on fire, you knew everyone you needed to sell to, understood what made them tick, knew the procurement, real estate, c-level, HR and operations teams.
Now think about when it comes to renewals or trying to cross sell….so often the fire has gone out, relationships have gone cold or at best damp!
PwC state that 25% of supplier value remains unlocked during b2b contract lifecycles; the reason for this is that buyer and supplier teams struggle to work together in the same way they did when they signed an agreement in the first place. No FM company or Real Estate buyer intends for a relationship to go sour, but it does time and time again. Relationships fizzle out, and you end up with a transactional relationship where even if you hit SLAs at a good price you remain vulnerable to RFPs.
Every FM supplier strives to goes above and beyond, they add value but often where they fall short is in explaining to their clients what they are doing. Only 1 or 2 of their key stakeholders are aware of how they are innovating, and that’s madness. You work so hard to deliver excellence and then the RFP lands on your desk asking for a 15% price reduction with a scope that omits everything you do for the client.
Your success depends more than anything on having strong and sustainable relationships with your clients. You need to embrace and nurture the partnerships you’ve built for the long term. This means offering the very best CX so you can show your FM clients not just that you really listen and care, but that you can also deliver with consistency, belief and passion.
Providing great CX is something that has to be worked on. You really need to have a solid strategy in place. That’s where Clientshare comes in. Our own clients know exactly what they want from us, and we’ve built our product around the things they’re looking for.
1. Price, SLA and Service won’t win you business alone.
2. Today in FM, CX (Customer Experience) is critical to success
Next up in our FM Insight Series will be a case study looking at how FM companies get the best from Client reviews. We look forward to sharing this with you.
#customerexperience #b2bcx #facman #customersuccess #b2bsales
Headquartered in London with a team passionate about b2b relationships, Clientshare software helps you retain and grow business through an easy-to-use online solution that transforms the way you and your clients work together. Clientshare work with leading Outsourcing, BPO, FM and IT services suppliers including Xerox, Interserve, Carlisle, Guidant, Nustream and the APS.
Clientshare allows you to build your own client community. Buyers or suppliers can securely connect with each other and invite colleagues with just one click. That means you grow your contact base and know that everyone can see what is happening.
We also make business reviews – always a necessary part of FM relationships – quicker, easier and more productive, so the right people see the right information. That’s a huge benefit.
Clientshare also shows your FM customers that you’re going the extra mile for them. It allows you to demonstrate your innovation and added value in one easy-to access place. That’s a major win when your contract needs to be renewed.
It also gives you invaluable feedback from your customers and lets you keep it in your community using our NPS (Net Promoter ScoreTM) feature. It’s an everything under-one-roof approach and an invaluable way of measuring how you’re doing.
Then there’s Clientshare’s ability to integrate marketing, communications and sales. It’s fast, efficient, encourages team working and turbocharges your content.
On top of all this, we provide client health scorecards, allowing you to see in seconds how your relationship is performing. That means decisions made on insight, not hindsight.
Clientshare: Experience Matters
See more: www.myclientshare.com
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