Top Organizations Optimize Service Delivery to Increase Customer Satisfaction and Profitability

Leading Firms Leveraging Service Delivery Optimization Report a 21% Increase in Service Profitability Over the Past Two Years


BOSTON, MA--(Marketwire - May 6, 2009) - Service organizations of all types (i.e., Manufacturers/OEMs and Independent Service Organizations/ISOs) continue to feel the pressures of an increasing drive toward national or global expansion coupled with the mandate for improving service profitability in a complex and volatile global economy. Field service labor and related costs continue to increase, and customers are continually raising their demands for faster, better service. However, based on the findings from a new report, "Service Delivery Optimization: Managing Outsourced Service Partners to Drive Customer Satisfaction and Profitability," published by the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), leading service organizations are able to achieve a 90% customer satisfaction rate, and a two-year growth rate of 21% in service profitability by managing their overall service chain more effectively through service delivery optimization.

Aberdeen's survey of over 110 companies revealed that top service organizations who manage an effective mix of in-house and outsourced service functions are able to attain the highest levels of service performance, revenue and profit, including 89% customer retention, and a two-year growth in total service revenue of 26%. Further, these companies are 50% more likely than Industry Average firms to have the capabilities to expand or enhance their existing service and support offerings through the development and execution of these strategic channel partnerships (55% vs. 36%, respectively).

"Our research shows that 100% of top firms presently outsource, or plan to outsource, at least some portion of their overall service operations, ranging from field service labor/management (54%), to depot repair/refurb (42%), logistics network management (34%), and service parts planning/management (29%). This represents a significant advantage for leading firms to generate higher levels of revenue in an expanded geographic market by leveraging the resources and technology tools of their service channel partners," said Bill Pollock, Vice President - Principal Analyst at Aberdeen. "Top firms also get off to a good start in managing channel performance by formalizing the channel partner selection process at the beginning of the cycle, and utilizing real-time data to support management in tracking performance and making key decisions."

A complimentary copy of this report is made available due in part by the following underwriters: ExpressPoint and ServicePower. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5853.

For additional access to complimentary Service Management Research, please visit http://research.aberdeen.com/index.php/-service-management.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748.

© 2009 Aberdeen Group, Inc., a Harte-Hanks Company
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Boston, Massachusetts 02210-1928
Telephone: (617) 854-5200
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www.aberdeen.com

Contact Information: Media Contact: Kimberly Madden Research Analyst Aberdeen Harte-Hanks Kimberly.madden@aberdeen.com William Pollock VP & Principal Analyst Aberdeen Harte-Hanks Bill.pollock@aberdeen.com (617) 854-5211