Retail Observer

RETAILOBSERVER.COM MARCH 2017 96 O ver the past few years, the independent appliance service provider has seen the need to adapt to keep pace with a changing business environment. The use of the smart phone has changed the industry- you now take photos of service problems and send them in for analysis, along with scheduling calls and filing electronically as a part of your day. Of course, you want to keep the phone handy to bring issues up to technical support features like PSANet, which can help provide assistance and reduce the need to consult tech support lines. On the product side, high tech systems are now the norm, not the exception. You need to be able to keep up with the many changes that make it possible to effectively diagnose the service problem that may exist, and continuing training is a must just to keep up with everything. Welcome to today's service world. But you know that. There is another change taking place in the appliance field service industry, and it's not quite as notable, though it has touched more and more service providers every day. That is the introduction of and quality of support provided by third party providers (TPA's). In years past, the service network was the sole tool of the manufacturers- they built the product, provided a warranty and developed and trained a network to support that product. Over the years, however, the landscape has changed. Manufacturers still require a highly trained and effective service network, but as warranty coverage from the factory have been scaled back, an opportunity was extended for TPA's to step in with their own extended warranty programs to help supplement those customers that preferred the additional coverage. This meant that in many cases, with original product warranties shrinking to a year in some cases, the TPA was attached to that product for a longer period of time than the manufacturer. The TPA must keep their costs down, too. Repeat service calls and product exchanges impact them just like they do manufacturers- even more. It became incumbent on the TPA to develop their own service network- in many cases, mirroring that of the manufacturer. Now, many TPA networks have grown to the point where they include several field support representatives that handle not only appliances, but electronics, lawn and garden and other product lines. Rates and metrics are developed around the service provider, just like they are in a standard warranty service environment. And the pressures are the same- the need to be trained, supported and have an effective communication pipeline with the TPA. Moving ahead, what will service networks look like? Will the networks built and supported by both manufacturers and TPA's be supported with training and other support? Will the independent parts suppliers have a role in the TPA networks? In many cases, TPA's supply the parts to the service provider, taking the parts supplier out of their valuable role in supporting and nurturing the service provider. Can the industry work together to make this effort seamless in the sight of the customer, which should be the ultimate goal of all parties. At NASC 2016 in Dallas, TX last fall, PSA welcomed a large number of both manufacturers and third party providers, and it may ultimately fall to associations like PSA to assist in the training and melding of the service networks. While manufacturers are largely charged with training on their current product lines, TPA's will require support on many older models that are warranted through their extended warranties, and providing basic or product specific training opportunities to insure the capabilities of the network. It remains to be seen how the TPA's and manufacturers interact in support of their respective field networks. Both have a vested interest in working together, as TPA's will need to closely monitor their performance metrics to make certain costs remain in line, and the manufacturers, of course, still have their name on the product. While many members of the service networks may support both TPA's and manufacturers, there will be different providers in some markets that require the same support. This change in the field service model is not necessarily a bad thing- it is good to see the TPA's stepping up and providing the additional support needed to provide their customers with a quality service experience. We are sure that those of us that support the appliance service industry can get together and make it better for all parties. S E R V I C E D E P A R T M E N T CHANGES IN FIELD SERVICE NETWORKS HOLD PROMISE FOR CUSTOMER SUPPORT RO Randy Carney- Executive Director- PSA

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