For retailers looking to add higher margin services to their business models (and who’s not?), it might be time to stat beefing up your repair, support and consulting departments.
In its latest report, “Digital Home Services: Carriers, Retailers, and the Consumer,” Parks Associates estimates consumer spending for remote and/or on-site IT support services for home computers and networks will grow from about $450 million this year to $977 million by the end 2011, while in-home services for the installation and configuration of new PCs will generate revenues of more than $700 million for the same period.
This presents big opportunities for retailers that have a strong services model in place, especially if their technicians and installers take the initiative to sell additional products and services once they’ve established a relationship with the client. Even if they don’t make an immediate sale, the technician or installer can walk away with valuable customer information that can lead to future sales. The key is to let the client know exactly what you have to offer, especially in terms of services, because many of them just don’t know what’s available.