All would agree that product warranty and maintenance contracts are important; however, in reality, they are usually given second priority after price and performance. Nonetheless, warranty and maintenance are areas of opportunity to provide added value for both end users and channel players.
Technology changes the way we do business. In recent years, the surveillance industry has been shifting from analog to IP cameras, cloud technologies are gaining pace, and more sophisticated software applications are being introduced. These technology changes have also influenced offerings in terms of warranty and maintenance contracts. Systems integrators and distributors have been pushed to acquire new skills, change their offerings to give added value to end users, and make sure users don’t suffer from system downtime.
“The warranty and maintenance prism of view is totally different from the distributor position to the system integrators’ and the end users,” explained Mehdi Moukite, CEO of Melint, a value-added distributor in the Middle East. “From the end-user point of view, the most important is that the product is working properly with the expected features. From the distributor level, the only responsibility is the warranty of the products. This includes guaranteeing a certain level of service locally in the market, such as making sure there are spare parts available, or a policy of full replacement. Distributors should also have a good relationship and continuous communication with the vendor through regular reports and tracking material returns.”
Warranty is very straight-forward, as it is mainly on installed product quality. If a product fails during an agreed period of time it is replaced; maintenance is more of a relationship between the end user and the service provider. Maintenance programs continue after the warranty period and are considered a part of the product’s life cycle. This is an important client experience management process. As such it has many opportunities for delivering added-value and upselling offers.
Channel players will often first compete on price — warranty or a maintenance program will often be a secondary consideration for the end users, distributors, and integrators. However, for companies that wish to maintain return business, good warranty and maintenance are critical. It is therefore recommended for channel players to try and offer as much added value as possible to give a high level of service.
To better answer these demands, Nicholas Yap, Director of Client Relations at ICD Security Solutions emphasized the importance of centralized management platform (CRM system) deployment for clients’ service cases management, as well as a proactive routine preventive maintenance (RPM) to make sure systems are running properly and problems are identified in advance, otherwise, “when a client calls you with an issue, it is usually too late,” he added. RPM should include system checks to ensure functionality of both devices (hardware) and programs (software). This includes checking cables and batteries, data back-up, firmware and software updates, and customer training (at the operator level and the administrator level).
Embedded Service Model
According to Yap, one of the major changes in maintenance plans in recent years was the need to offer a global standard for multinational corporations (MNCs). A large MNC such as Microsoft or Cisco can have up to 50 locations across a geographic area like APAC. Instead of signing an annual maintenance plan for each different site, MNCs are looking for one central solution. “We foresee an embedded service model for MNC clients. In this model, maintenance is done on-site by a dedicated engineer that works in the client office internally,” explained Yap. In this model the systems integrator will provide an embedded team of engineers that will be in charge of all locations and guarantee consistency and a global standard of service.
Upselling Opportunity
Maintenance is not just technical work making sure that the systems are routinely checked and working. From Yap’s view, it should also be a consultative relationship in which the integrator can give more value to the end user. “The role of the solutions consultant is important, to advise the end user about the life cycle of his system, to give budgetary assistance at the earliest stage, recommend replacements, and implementing one global standard. For example, if some products are discontinued, the client should be aware in advance that it is time to upgrade his current system or prepare accordingly,” he said. An additional value the integrator can provide is educating the client about the added value beyond security. Security systems, especially video surveillance, are creating mass amounts of information. This is an upselling opportunity for the systems integrator to offer more products and services besides maintenance.