One lucky Massachusetts resident is a very rich person today.
In case you haven’t heard, the winning ticket for one of the largest jackpots in North American history – $758.7 million! – was revealed this week. While we all can dream of what we’d personally do with a pile of cash that large, manufacturers have a significant opportunity to tap into their own winning recipe for success.
New and Untapped Revenue Streams
As the manufacturing sector consolidates and new sales of durable goods fluctuate, manufacturers are seeking new and alternative sources of revenue. With disruption from companies like Amazon and emerging technology becoming more prevalent in the workplace, a ‘perfect storm’ of financial opportunity is brewing for manufacturers, and it’s time for them to capitalize.
Leading manufacturers today are looking towards after-sales service to optimize their revenue streams as much as possible. Take Boeing, for example. The aerospace giant recently stated that they plan to double sales in their service business, putting them in direct competition with current suppliers. And, just like Boeing, more and more manufacturers will lean on after-sales service to help spike top and bottom-line performance.
The choice to capitalize on after-sales service is a no-brainer, as it delivers highly attractive financial value: up to 25 percent of revenue and 50 percent of gross profit margin. Remember: Improving after-sales revenue by just a few percentage points could mean a cash value in the millions! To succeed, today’s most innovative manufacturers should invest in modern after-sales service technologies and strategies to help them achieve this level of success.
More than Financial Benefits
Just as all facets of an individual’s life change when they win a huge lottery jackpot, manufacturers will see added success when they employ customer-focused service strategies.
It’s no secret customer expectations are changing across all industries and verticals. In the manufacturing sector, more customers are requiring service level agreements (SLAs), which often guarantee product uptime. Additionally, today’s on-demand mindset means manufacturers must react quickly – or even pre-emptively – to make quick and efficient service repairs. In fact, according to BI Intelligence, it takes 12 positive experiences to negate one negative experience. This means manufacturers can’t afford to leave customers unsatisfied with after-sales service experiences.
If manufacturers can meet (and exceed!) these customer expectations, they’ll form long-standing relationships with clients, and gain more and more market share. While this may seem like a relatively seamless shift in strategy, service organizations should be aware of common failure points, and identify strategies on how to best guarantee maximized product uptime and customer satisfaction if they want to hit the ground running.
A Winning Combination
Focusing on after-sales service and optimizing the service supply chain aren’t necessarily new thoughts, but it does require a new way of thinking. Manufacturers that properly leverage advanced after-sales service technologies and strategies will be well suited to succeed in today’s ever-evolving landscape – hopefully creating their own winning combination for success.
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