Mikayel Aslanyan is the CEO and Founder of All Furniture Services & ServiceJan, a top repair and restoration service.
In a world driven by convenience and technology, many service companies continue to rely on processes such as paper receipts, spreadsheets and handwritten notes. While industries like transportation and retail have transformed through software and automation, I’ve found much of the service sector remains stuck in the past.
Adopting modern technology solutions can help service providers increase efficiency, reduce costs and enhance customer satisfaction. Yet, many companies hesitate to modernize, which means they could be missing out on valuable opportunities for growth and operational improvement.
As a seasoned professional in the service industry, I’ve experienced firsthand the impact of digital solutions. I led a digital transformation journey that was pivotal to my company’s growth. I also founded a company that provides a platform for customer relationship management and enterprise resource planning for service businesses. This experience has not only shown me how to modernize service management but also deepened my passion for leveraging technology to support business success.
A Global Market Ready For Disruption
The service industry contributes significantly to the global economy. In the U.S. alone, the services sector contributed more than 75% of gross domestic product in 2021, according to Statista. Service businesses also account for a substantial portion of employment worldwide. Services are a primary source of employment in many countries; about 50% of employees around the world work in the service space.
The U.S. service industry includes more than 1 million businesses providing services ranging from home repairs to facility maintenance and corporate support. The extensive number of service businesses across various sectors underscores the sector’s breadth and essential nature.
But, as I mentioned above, I’ve observed many service companies operate with manual processes. As such, I believe the gap between these service providers and customer expectations could be widening. According to McKinsey, “Two-thirds of millennials expect real-time customer service … and three-quarters of all customers expect consistent cross-channel service experience.” I’m also finding that many consumers today expect ease and transparency from service providers, including the ability to book services quickly, receive real-time updates and manage transactions digitally.
Companies can consider using technology to help keep up with these expectations. For example, automation can reduce the need for manual data entry and allow companies to automate scheduling, invoicing and customer notifications. This can help minimize errors, enable a smoother workflow and give employees more time to focus on customer needs. CRM and ERP systems can centralize data, make it more accessible across departments and support decision making. Companies can also consider adopting mobile apps, online portals and customer communication channels to enable customers to book, track and manage services on demand.
Best Practices When Adopting New Tech
When pursuing a digital transformation, companies will likely encounter challenges, such as employee hesitation and learning curves. To help address these hurdles, provide ongoing support and clear communication. Explain to your team how the tools will affect their daily workflow. Highlight the benefits of the tools as well, such as whether it will help save on costs, reduce errors or give team members more time to focus on meaningful work.
Make sure your team knows they should not hesitate to ask questions along the way. Bringing in younger, tech-savvy team members can also help guide and support the process and make it easier for everyone to adapt. I suggest designating a “tech champion” within the team who can help smooth the adjustment process.
Keeping operations steady during this change can be tricky, but there are ways to handle it. To make the tech adoption more seamless, I recommend starting with a phased rollout. This lets teams get comfortable with a tool’s features. Introduce new tools step-by-step, and start with areas that don’t directly impact customers. This phased approach gives teams time to adjust and reduces any disruptions in customer service.
Leaders can also set up a backup team to manage any issues that arise so the transition goes as smoothly as possible. In my experience, forming a team specifically to oversee digital transformation was very effective. This group managed the changes, addressed any concerns and kept everyone aligned with our main goals. We also celebrated small milestones to keep motivation high and encouraged team members to share their progress. This approach created a positive atmosphere around the changes and helped us achieve a smooth transition.
Conclusion
I believe service companies that rely on outdated methods risk falling behind, while businesses that adopt new technologies could see valuable productivity gains.
As customer expectations evolve, businesses that fail to modernize could struggle to retain clients and attract new ones. Moreover, the inefficiencies of manual processes can make scaling difficult and may require companies to hire more staff to handle increasing workloads. In contrast, technology can support growth without necessarily expanding overhead.
The service industry stands at a crossroads. While technology adoption may seem daunting—and there are challenges to be addressed—there are steps service companies can take to implement new tools successfully. By considering these best practices, businesses that embrace digital transformation can position themselves for long-term success.
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