It’s no secret that current events have had a significant impact on the economy. But just because manufacturing has changed, doesn’t mean your business should be placed on hold. In fact, this may be the perfect opportunity to focus your efforts by starting to evaluate processes that can improve your customer’s experience.
Below are three ways you can begin to refocus your efforts and drive customer retention.
Know Your Aftermarket Value
Selling aftermarket parts is a high-margin, long-term revenue stream. Economic studies show that spare parts and aftermarket sales comprise almost 8%+ of the GDP, meaning about $1 trillion is spent a year on assets that are already owned. Big money is made through ongoing sales of replacement parts and service products.
Who is best positioned to sell these products, if not the OEM?
What may surprise you is that OEMs traditionally capture less than 50% of aftermarket part sales. Instead, most of this market share is occupied by third-party resellers, will-fitters, and other suppliers. Opening up a huge opportunity. By taking steps to increase your aftermarket sales using technology and other resources, manufacturers can see their profits grow exponentially for the remaining part of the year.
Reallocate Your Sales to an Online Format
With the increase of online activity, buyers expect real-time information with immediate access. And the expectation that equipment owners provide their equipment parts online is no different. Manufacturers have a unique opportunity over the next few months to streamline aftermarket sales with online parts catalogs and flexible purchasing options. With access to exclusive customer data, comprehensive product knowledge, and more precise parts information, manufacturers have a head start on making a “sticky” online sales platform.
Internet of Things (IoT)
Where do people, data, and intelligent machines intersect? According to Manufacturing and Technology, IoT spending is expected to skyrocket in the next few years. Because IoT can make services more responsive, convenient, and efficient for consumers – some manufacturers are using these systems to shift maintenance from a preventative to a predictive model. Downtime is one of the costliest variables in equipment lifecycle costs, and IoT can play a crucial role in diminishing it. Instead of guessing the condition of equipment and replacing parts on a predetermined schedule, maintenance can instead be triggered by real-time conditions monitored by sensors installed in the machine. This information can also predict a customer’s needs and have parts and supplies ready and in stock. By integrating this data into your online parts catalog, you could send the customer a reminder email with a suggested shopping cart that includes the needed parts.
Now more than ever, it is essential to have reliable and secure systems in place to help you effectively collaborate with your team and manage your manufacturing equipment information. And we want to help you do that. Contact us to learn more.