The report found that fewer than 5% of organisations had such a chief service officer, but they were found in 37% of the best in class companies. Best in class companies are ranked on performance in areas such as percentage of overall revenues derived from service, overall profitability and percentage of customer base under service contracts. 

Mark Vigoroso, Aberdeen's vice president of service chain management research and author of the report, said product based companies who were experiencing a squeeze on margins will increasingly rely on service for revenues, profitability and competitive differentiation. ‘As the top-line ramifications of service continue to broaden and intensify, so does the strategic importance of service management within the overall corporate agenda,’ he said. ‘Leading companies are appointing senior-level executives to optimise service performance and meet specific revenue, profitability, and customer satisfaction targets.’ 

Other traits of best in class performers include standardised, codified communication, real time access to service data, use of planning and wireless communication technologies and the measurement of customer-facing metrics such as customer retention and service revenue growth

Vigoroso said that companies of all maturity levels should consider the following recommendations as ‘potential building blocks’ of a strategic service organisation:

•  Bring field service and parts logistics under one operational umbrella
•  Promote and empower senior service executives from within
•  Validate, document, and publicise service delivery excellence
•  Forge stronger ties between service and manufacturing