Building Relationships Across the Life Cycle
Manufacturers are increasingly turning to aftermarket products and services to drive growth. While a construction firm, for example, might buy a front-end loader only once every decade, to keep it operational they’ll need immediate access to replacement parts and related services. According to a recent MAPI survey, aftermarket generates 30% of enterprise sales and 41% of enterprise profits. Deloitte has shown that service offerings can be particularly lucrative, delivering profitability that is 75% higher than for products. For high performing organizations, service offerings are as much as three times more profitable.
But the returns are greater than financial. Aftermarket products and services can forge tighter bonds with customers. According to one Chief Marketing Officer, “our aftermarket program deepens customer relationships so that they don’t end at installation. Aftermarket allows us to better understand their needs, and that guides our R&D efforts.” Aftermarket can also enable manufacturers to play a strong defense. One executive told us that their services help “create barriers against customers changing suppliers. Service can be both a differentiator and a barrier in our markets.”
Members – click here to download the full report.