As economic tides shift, industries, and businesses grapple with the challenges of recession. The saddest part is not many industries can escape from it.
However, a field service company can stay resilient in such a situation by proactively preparing a winning strategy to reduce (if not entirely eliminate) this adverse potential impact of a recession.
A winning strategy is achieved by finding the right balance between increasing revenues and reducing costs. You can chart one out by streamlining your operations, reducing waste, & implementing cost-saving measures. At the same time, ensure that you also focus on increasing revenues by offering new services and expanding your customer base.
Besides this macro strategy, here’s a list of micro strategies that ensure your service management business demand remains stable and recession-proofs your field service business:
Maintaining resilience and operation efficiency are the only keys to staying ahead of stiff competition. A field service management software that can ease tedious tasks like scheduling, dispatching, invoicing, and more can help your service business do more in less time. However, investing in just any FSM software might not get you the expected results.
When choosing an FSM software, ensure you sign up for maximum features at a minimum price. An ideal FSM software can help streamline your work orders, audits, and inspections through complete digitization. Facilities like mobility, route optimization, and digital forms are some of the top features to look out for in FSM software to enable your field technicians to work smart and gain extra stars on customer feedback. Ensuring efficient operations with robust FSM software is an essential step to recession-proof your business.
Develop a comprehensive contingency plan to address unforeseen challenges and ensure business continuity during economic downturns.
A big aspect of this is to have a diverse range of financing options. These will significantly help you maintain the quantity and quality of business operations.
Also, it’s wise to streamline processes and eliminate any inefficiencies in the first place.
Offer a wide range of services to cater to different yet aligned customer needs (besides the one you’re already meeting). This way, you reduce business dependency on a single market segment.
Your research team needs a thorough competitor analysis to identify market gaps. Harp on these to stay afloat even during economic turbulence.
Typically, offer services that require minimum investment from your end and utilize wasted capacities (cargo space and/or personnel productivity).
Negotiate favorable terms and maintain good rapport with suppliers to ensure a stable supply chain.
Further, actively seek out strategic alliances that will help you offer more to your prospects and thus become their preferred choice even during a recession.
Equip your workforce with up-to-date skills to handle diverse tasks efficiently, making your business more adaptable.
Conduct workshops and seminars and offer other upskilling opportunities to employees so that they help you survive by staying professionally relevant during tough times.
The importance of customer retention cannot be undermined to keep your field service business running during a recession. Encouraging customer loyalty (which leads to their retention) becomes even more important when there is strong competition in the market.
So, provide exceptional customer service and keep doing market research to understand the evolving customer needs.
The hard reality is that the economy is always in flux. Considering this, it always helps to stay updated on industry trends and relevant economic indicators.
Also, to adapt to the change in the economic weather, assess and adjust your business strategies. Businesses that are and remain agile are best set to thrive during changing market conditions.
For example, today, customers want access to multiple payment options like UPI, credit, debit cards, etc. So, offer them this facility to streamline your payment cycle, ease the financial burdens on customers, and eventually increase sales.
Adopt field service software and automation to streamline operations, optimize resources, and cut costs exponentially.
When you invest in automation, there are almost zero chances of error as there is no manual intervention.
As AI bots record, communicate, engage with customers, and route their requests to the relevant field personnel, field managers save much time otherwise spent allocating field tasks.
Develop a robust marketing strategy that is built considering a possible recession. As you market your services, the messaging should be such that your prospects find you as the most cost-effective service provider.
Reveal your unique value propositions to your clients as these resonate instantly and make them choose you as their service provider.
Explore and leverage multiple digital marketing channels and proactively pursue new sales opportunities as they keep arising.
Plan your inventory in advance and stockpile only essential items to reduce holding costs. Avoid excess inventory, organize all SKUs in your warehouses by classifying them by type, shelf life, etc., and improve efficiency.
Also, through market research, keep identifying if there is any demand for new product types by your clients. First, keep these items in stock only on an as-and-when-needed basis. Eventually, add more to the inventory if the demand rises.
Meanwhile, remember to stick to the basics. Nothing helps minimize costs or keeps customers satisfied–and wanting more–like service delivery that is provided efficiently and right on time, every single time.
Monitor cash flow, expenses, and debt to identify potential issues and proactively take corrective actions. A great way to stay ahead of the financial game is to create a quarterly cash flow forecast.
It’ll help you identify where you lack and make lucrative business decisions. As you arrive at estimates of future sales and expenses, you can accordingly define a budget and make your business resilient in turbulent times.
To thrive during a recession, the idea is not to raise or lower the numbers by a certain percentage but to get things right. Any effort to change the way field services are delivered during a recession must begin with an efficient and synchronized operational process and go from there.
ReachOut Suite is a field service management software that is built following a streamlined process and, when implemented, delivers the same value to our clients.
It helps them optimize their field service management processes by raising efficiency, lowering costs, and helping them serve more customers.
Backed with advanced features like dynamic scheduling and dispatching, job tracking, etc., this platform has helped our clients improve scheduling times by 10X and ensure on-time service delivery.
Contact us to know more about what ReachOut Suite can mean for your business.