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ServiceMaster Idea Proposal (SERV)

ServiceMaster Idea Proposal (SERV)
 

Is ServiceMaster’s ServSmart technology bringing incremental improvement or revolutionary change to its American Home Shield segment?

Report Available: December 16, 2016

 

Blueshift’s initial research shows SERV rolling out ServSmart, an innovative app for its technicians and customers alike; technology aimed at increasing efficiency for home warranty service calls. It holds great potential to transform AHS’ service delivery but requires buy-in from two independent parties, and it is unclear if the benefits are enough for either or both groups to turn them into consistent users that will make ServSmart fulfill its promise.

 

Observations

  1. SERV’s ServSmart app is aimed at delivering better, faster, and more convenient service to its customers. It works as an efficient communications tool between the company, its technicians, and its customers. The mobile app is used to file a claim, schedule a time for a service call, and allow customers to rate their experience. It also has a feature to alert the customer when the technician is on their way, including a photo of the technician, which brings an element of assurance and safety to the encounter.
  2. ServSmart holds the potential to transform AHS’ home warranty business from a dial-in limousine-style service for customers to an on-demand Uber-type service. It is in a rollout phase as it gets introduced nationally and needs buy-in and adoption from both of AHS’ constituents, technicians and customers, in order to succeed. Without it, the app could fall short of revolutionizing the company’s service delivery to instead being only a nice convenience for one of the parties involved.
  3. Blueshift’s Sept. 21 report said ServSmart is a hit among those technicians using it in the pilot regions. Three large contractors said it has resulted in improved communications, transparency and workflow. One source said that if technicians buy into the system, the technology can become sticky and keep them loyal to AHS. Another source said it saves his technicians time and improves their service delivery through customer reviews. Still, five smaller contractors are not using the technology, instead opting for process systems already familiar to them.
  4. Also in Blueshift’s September report, a common complaint was AHS’ call center and call wait times, which can be 30 to 60 minutes. One AHS contractor reported high turnover in the call center and now a shorter training period in order to fill the vacant seats. Still, another said high call volume is a sign of AHS’ booming business. It is possible the extended wait times were a summer phenomenon driven by demand for air conditioning repairs.

 

How are adopters using ServSmart? How does ServSmart affect the customer experience? How does it affect technicians’ business? Is ServSmart creating a benefit for AHS customers, or just technicians? What are its main benefits/drawbacks to customers? What is the incentive to use ServSmart? How do current call center wait times compare to the summer? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: AHS contractors and AHS customers.

 

Companies: ServiceMaster Global Holdings Inc. (SERV)

 

Research Begins: Nov. 28, 2016