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AberdeenGroup’s Service as a Profit Center: The CFO’s View

Benchmarking financial executives’ visibility of the service financial value chain

Today Post-sales service ranks among the top three priorities for chief financial officers worldwide. This recent report from AberdeenGroup provides insight from top-level finance executive son the key components of service which drive revenue profits customer satisfaction and competitive differentiation.

Some of the key findings include:

  • 94% of best-in-class companies have reported an increase in service-driven profits over the last two years. For these companies, 31% of overall profits are derived from post-sales service, on average.
  • Best-in-class companies were most likely to see increases in service-driven revenues and operating cash flows over the last two years while seeing decreases in service parts inventory, days sales outstanding and service-related costs over that same time period.
  • Industrial manufacturing companies lead the push toward an integrated profitcentric service chain strategy, and edged out all other sectors with average service- driven profits at 23%.
Download this valuable report to understand how to financial executives can leverage their service operations to improve top and bottom lines.

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