An example of a value-added service in the consumer sector might be the pick-up and delivery service for clothing offered by your local dry cleaner. Or the service offered by your electronics store, which not only delivers your new washing machine but also installs it right in your home.
If the relevant service is offered by only a handful of competitors in the market, value-added services are, of course, the best way to stand out from the competition. Especially in the field of digitalization, there are very creative opportunities to sell unique value-added services.
The stronger the connection between the VAS and the standard product or service, the more customer satisfaction (generated by the value-added service) will also positively influence perceptions of the standard offering. With unique value-added services, you can set yourself apart from the competition in the long term.
Objectives for the Introduction of Value-Added Services:
- Differentiation from Competitors
- Creating Unique Customer Benefits and Experiences
- Strengthening Customer Loyalty
- Increasing Customer Satisfaction
- Additional Revenue
Distinction Between Value-Added Services and „Regular“ Services
Based on the above definition of value-added services, it’s already clear that it’s not so easy to distinguish VAS from traditional services. It depends on the company’s own definition of its core business. The lines are blurred. Nevertheless, the term is useful. It helps companies tap into new business areas and think outside conventional structures to identify revenue potential and differentiate their portfolio from the competition. What else can be offered to the customer? What needs arise from the service or product being offered?
Unique value-added services are all those services that competitors cannot easily replicate, since offering them requires a great deal of expertise regarding the data associated with the primary product being serviced. In this case, competitors can no longer poach your customers because they lack the necessary resources to offer a comparable service.
Value-Added Services in Technical Customer Service
In the technical customer service departments of mechanical engineering companies, VAS can, for example, come from 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 what are often referred to as “smart services,” which create added value for customers based on interpreted data. The possibilities for creativity here are nearly limitless. Think about what data from their machines interests customers and prepare it for them in the format they need.
Solutions in the field of predictive maintenance are an excellent example of data-driven value-added services. More Info>>
The ServiceLobby has developed an 8-week plan for implementing an initial pilot project in the area of predictive maintenance in order to surprise its customers with this unique value-added service. More Info>>
Value-added services will transform the mechanical engineering industry. Condition monitoring will play a major role in this transformation and enable entirely new business models, requiring the market to restructure itself. More Info>>
When developing new services, it's often hard to know where to start. Service Design Thinking is a proven method for identifying the potential for new services and implementing the ideas that emerge. More Info>>
Value-Added Services in Logistics
In logistics, the term “value-added service” is often used to refer to all services other than the mere transportation of goods. Many logistics orders are very time-sensitive. Therefore, it makes sense for a freight forwarder to also take on additional tasks that the customer cannot perform on their own. Examples of such value-added services in logistics include:
- Mondays
- Repairs
- Returns
- Quality Controls
- Shipment Tracking
Additional examples of value-added services from other sectors
- By definition, renting out cars is the core business of a car rental company. Often, customers are offered the option to rent a GPS device. This service can be considered a value-added feature.
- In logistics, value-added services often consist of various packaging services that are not actually part of a freight forwarder’s core business—at least when the packaging service goes beyond the standard requirements for secure transport.
- Mail-order companies also often offer gift wrapping for a small additional charge.
- In the telecommunications sector, data-based services are frequently offered. These go beyond the core business, which is the provision of communication connections. In many cases, processed communication data is made available.
