Episode 6: Aftermarket Services

Aftermarket Services

Defining aftermarket services can vary widely between businesses. Broadly speaking, however, it encompasses the repair, maintenance and upgrade services provided to clients following the sale of a primary product.

With the explosion of connected systems, and the acceleration of digital technologies, the aftermarket space is in a state of transformation and the potential for manufacturers is huge. In an increasingly competitive market, this sector is a lucrative area of differentiation and competitive advantage.

In this episode Nick, Michael and Geoff discuss the opportunities for manufacturers in the world of aftermarket and share practical examples to take inspiration from. Click any of the links to listen.

Five key insights you’ll hear in this podcast

Resilience – COVID-19 has illustrated supply chain and operations volatility which has led to manufacturers reviewing their business models. Parts and services (aftermarket) have little volatility so offer a more secure, high-margin revenue stream when prime product demand ebbs.

E-commerce – The traditional route to market is through a heavily invested dealer network of experts. There’s a growing group who want the industry to embrace the ease of use of e-commerce demonstrated in other sectors, like consumer. Those who can combine the best of both will be ahead.

Utilise data in tandem with a fit for purpose e-commerce platform. Decide how you will use data to define your audience and what their needs are. Use that information to sharpen up your products and services offering and ensure these insights are shared with your dealer network.

Invest in the marketing of your aftermarket services. It’s often an underserved area when businesses are setting out their stall.

Competitive advantage - Manufacturers need to look at aftersales as a source of competitive advantage and a key part of their future to stay relevant in their market. Move from an exclusive focus on primary product to lifetime value through aftersales.

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