I don’t have to tell you that industrial machinery manufacturers face all kinds of challenges. You’re constantly looking for innovative ways to keep customers happy. And this sophisticated customer base is more focused than ever before on top-notch service.
I would propose, however, that after-sales is a potential silver bullet – a way you can separate your services from those offered by the competition.
It’s important to remember that after-sales service is an opportunity to grow business, not something merely meant to placate customers.
The numbers speak for themselves.
Most manufacturers in a recent UPS survey said the average lifespan of their equipment was between 10 and 19 years.
I’m guessing you can’t afford to wait two decades for new business to materialize. In the interim, why not consider an uptick in after-sales support to generate revenue?
The UPS research, conducted by IDC Manufacturing Insights, found that one-third of mid-size industrial machinery manufacturers say up to 75 percent of their profitability comes from parts, service and consumables.
This is a potentially global enterprise.
All survey respondents – U.S.-based industrial machinery providers with a global customer base and between $10 million and $50 million in annual revenue – said more than half of their business was in North America, with the rest divided almost evenly between South America, Europe and Asia.
A small percentage of business was located in the Middle East and Africa.
Regardless, there’s already a clear opening to better meet the after-sales needs of the average purchaser.
Nearly half of all respondents said their equipment is serviced every six months. That presents both short- and long-term opportunities for manufacturers.
Why then, are so many firms reluctant to view service after the sale as a way to stand out from the competition?
With the right formula, after-sales can better satisfy customers and deliver repeat machinery sales.
Charlie Chung is the industrial assemblies and machinery marketing manager for the Industrial Manufacturing and Distribution segment at UPS.