Sustainability in service

In the corporate context, the topic of sustainability usually focuses on the sustainable production of products and services. However, service can also use business models and initiatives to increase the sustainability of products and services and thus contribute to the sustainability of a company. However, there are hardly any figures, data and facts about the actual state of development of sustainability in service and why more is not being done. Dr Fried & Partner therefore launched a study on sustainability in service together with the German Customer Service Association (Kundendienst-Verband Deutschland, KVD) in autumn 2022. The results of the study have now been published on various channels.

Relevance of sustainability in service

Sustainability in its three dimensions (social, ecological, economic)* is expected of companies in many respects. When making purchasing decisions, customers are increasingly choosing the product that has been manufactured in the most environmentally and socially responsible way and is repairable and particularly durable. Employees are looking for jobs that are compatible with their values and lifestyles and for companies that operate sustainably. Politicians are increasingly focussing on rules and laws that stipulate sustainability in production and the goods themselves. So it’s high time to take the initiative now.

The good news is that sustainability can be established more quickly in the service sector than in other units. Making a product more sustainable is often complex, as production is usually tied to certain materials and manufacturing processes. Sustainable service, on the other hand, is simpler. Various business models in service can make a decisive contribution to making the product easier to repair or more durable. This increases ecological sustainability.

Examples of sustainable business models in the service sector include:

• Expansion of training programmes
• Conclusion of maintenance contracts
• Establishment of predictive maintenance
• Ensuring the availability and transparency of spare parts
• Expansion of the repair service
• Targeted retrofit offers
• Offering refurbished products

Other ecologically sustainable measures alongside business models could be digital service offerings or energy-saving facility management in the office. The flexibilisation of working hours or professional and personal development offer approaches for socially sustainable initiatives in service. Economic sustainability in service can be implemented, for example, by optimising the customer experience along the customer journey or quality management.

Through these business models and initiatives, service units can make a significant contribution to sustainability in the company and create new potential for USPs compared to market competitors. Declines in sales due to fewer new products being sold can be (over)compensated for by new business models. In addition, the image of the company and thus its attractiveness as an employer for attracting skilled labour is enhanced. Political constraints are anticipated, which creates more time and flexibility for agile experimentation and adaptation and therefore a decisive advantage over competitors.

KVD survey on sustainability in service

The Sustainability Study 2022 by Dr Fried & Partner and the KVD provides a benchmark for sustainability in service and answers the following questions:

• How important is sustainability in service? And to what extent is sustainability already developed in customer service?
• Which social, ecological and economic sustainability measures are already being implemented or are being planned?
• What promotes these measures and what stands in their way?
• How should companies be given more support in implementing initiatives?

You can read or listen to the results of the study (only available in German) on the following channels:

• The comprehensive report of the sustainability study can be downloaded free of charge from the KVD website: https://www.service-verband.de/kvd-serviceradar/#kostenloses-exemplar
• Dr Fried & Partner has published an article summarising the results in the KVD magazine ServiceToday: https://www.service-verband.de/servicetoday/#alle-ausgaben
• In the KVD podcast, Stephan Haller, Managing Partner of Dr Fried & Partner, talks about the importance of sustainability in service and the results of the study. Listen on Spotify or on the KVD website: https://www.service-verband.de/podcast/servicestrategie/53-nachhaltigkeit-im-service-status-quo-strategien-und-perspektiven/

Would you like to implement more sustainability in your service and need support in finding ideas or implementing your already developed initiative? Get in touch with us!

*The three dimensions of sustainability are social, ecological and economic.

• Social sustainability refers to a responsible, long-term approach to employees and other stakeholders of a company.
• Ecological sustainability explicitly describes the conservation of natural resources as part of a company’s business activities.
• Economic sustainability refers to the maximisation of economic returns without rendering the resources required for this unusable in the long term.