The latest buzzword doing the rounds in the consumer market is servitisation. Gaining popularity by the day, and with more and more businesses adopting this model, it is worthwhile to look at what it actually is.
Servitisation is a strategic approach that emphasizes the provision of services alongside tangible products, thereby offering customers enhanced value and fostering long-term relationships. Traditionally, businesses focused on selling products – tangible goods that customers purchased outright. However, servitisation involves transforming from a mere product provider to offering innovative and invaluable services alongside the products. It includes a variety of offerings, ranging from maintenance and repair services to outcome-based solutions and subscription models. Apart from managing the spare parts catalogue, the Signifikant platform can also assist in warranty and claims management, making it easier for you to track the maintenance and repair requirements of various parts.
To cite an example, let us take the case of an air conditioner. Under the servitisation model, instead of buying an air conditioning unit, the customer pays for the cooling service it provides. The ownership of the system remains with the technology provider, who assumes responsibility for all operational costs, and the customer pays a fixed fee per unit of service consumed. This prompts providers to ensure the optimal performance and longevity of their products. It may seem a tedious task, but with our solution, it is quite convenient to keep a track of the post-sales requirements. This not only enhances customer satisfaction but also promotes sustainability by minimizing resource consumption and waste.
Key benefits:
· Businesses leverage services to enrich the customer experience, drive loyalty, and differentiate themselves in competitive markets.
· It combats high upfront costs, perceived performance risks, and competing investment priorities that often hinder the adoption of energy-efficient technologies.
· Companies can leverage data analytics to deliver customised experiences and predictive insights.
· Through IoT-enabled devices and connected systems, manufacturers can proactively monitor equipment, anticipate maintenance needs, and optimize performance in real-time, thus enhancing operational efficiency and reducing downtime.
While the major players across sectors are rapidly adapting to this shift in paradigm, it is still a long way from this concept becoming a universal application. Apart from digitalisation of the aftermarket and further advancement of data analytics, there is also a need to change the mindset to embrace the new way of conducting business. In the long run, servitisation would lead to sustainable technological advancements, alongwith nurturing better customer relations.
Want to take a step towards servitisation? Begin your aftermarket digitising journey with Signifikant Svenska AB.
Written by: Sugandha Saxena
