Value Added Services (VAS) are additional services that are not part of a provider's actual activities but enhance the existing offering. Such value-added services can make a significant contribution to a service provider's turnover.
An example of a value-added service from the private sector could be the collection and delivery service for clothes from your local dry cleaner. Or an offer from your electronics store not only to deliver your new washing machine, but also to install it for you.
If the relevant service is offered by very few competitors on the market, value-added services are naturally the best way to stand out from the pool of competitors. Digitalization in particular offers very creative opportunities to sell unique additional services.
The stronger the link between the VAS and the standard product/service, the greater the impact of customer satisfaction (achieved through the additional service) on the perception of the standard offering. With unique value-added services, you can set yourself apart from the competition in the long term.
Goals for the introduction of value-added services:
- Differentiation from competitors
- Creating unique customer benefits and experiences
- Strengthening customer loyalty
- Increase in customer satisfaction
- Additional income
When developing new services, you often don't know where to start. Service Design Thinking is a proven method for discovering the potential for new services and implementing the ideas gained. More info>>
Differentiation between value-added services and "normal" services
The above definition of value-added services already makes it clear that it is not so easy to distinguish VAS from conventional services. It depends on the company's own definition of its core business. The transitions are fluid. Nevertheless, the term makes sense. It helps to open up new business areas and to think outside of conventional structures in order to identify sales potential and differentiate your portfolio from the competition. What else can be offered to the customer? What needs arise from the service or product on offer?
Unique value-added services are all those services that cannot be easily copied by competitors, as a great deal of know-how about the data of the primary product served must be available in order to be able to offer them. In this case, competitors can no longer compete with you for customers because they do not have the necessary resources to offer a comparable service.
Value-added services in technical customer service
In the technical customer service of mechanical engineering companies, for example, VAS can consist of On-site training on the machine, Consulting services or comprehensive Service contracts exist. However, data-driven services in particular offer an excellent opportunity to impress customers. Here, for example, the implementation of projects in the area of Predictive maintenance or the often-discussed smart services that create added value for the customer based on interpreted data. The possibilities for getting creative here are almost limitless. Think about which machine data is of interest to the customer and prepare it in the required form.
Predictive maintenance solutions are an excellent example of data-driven value-added services. More info>>
The ServiceLobby has developed an 8-week plan for the implementation of a first pilot project in the area of predictive maintenance in order to surprise your customers with this unique additional service. More info>>
Value-added services will change mechanical engineering. Condition monitoring will play a major role in this and will enable completely new business models for which the market will have to restructure itself. More info>>
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Value added services in logistics
In logistics, the term value added service is often used for all services other than the pure transportation of goods. Many orders in the logistics sector are very time-critical. It therefore makes sense for a freight forwarder to also take on other tasks that the customer cannot perform themselves. Examples of such value-added services in logistics are
- Assemblies
- Repairs
- Returns
- Quality controls
- Tracking and tracing
Further examples of value-added services from other areas
- Car rental is by definition the core business of a car rental company. The option of renting a navigation device is often offered. This service can be regarded as value added.
- In logistics, value-added services can often consist of various packaging services that are not actually part of a freight forwarder's core business. At least if the packaging service goes beyond the usual transport-safe form.
- Mail order companies also often offer gift packaging for a small surcharge.
- Data-based services are often offered in the telecommunications sector. These go beyond the core business of providing the communication connection. Processed communication data is often made available.
