In a previous blog, we mentioned that Original Equipment Manufacturers often carry a recessive business gene. Aftermarket is not in their DNA!
The next blogs will target related business issues and propose solutions to help OEMs increase their parts and services sales.
Short term memory!
When an OEM sells an equipment, it rarely deals with the end-users. The ultimate transaction is usually made through a contractor, distributor, or agent. These “middle-men” are rarely interested in spending time promoting the benefits of OEM solutions to end-users.
The market is structured in such a way that OEMs cannot benefit from the full value of their products
Without a direct channel to end-users OEMs quickly “forget” about their customer base and concentrate on the next sale. But by doing so, they forfeit repeat sales, value-added services, and higher profitability.
Typically OEMs will have little information relative to;
- who the equipment owners/end-users are (no customer data)
- where the equipment installed base is located
- when was the equipment installed or serviced
Establish a durable link with your customers
It is impossible to establish a durable customer relationship with your customers when you don’t know who they are! And finding them using historical data will be difficult or impossible as your data is most probably corrupted and/or outdated.
The first step is to start collecting clean end-user data and link it to the relevant equipment data. The new process you put in place to acquire this valuable data needs to;
- work even if you don’t always have access to the end-user,
- enable you to update your data dynamically (end-user, equipment, your coordinates),
- let you update the data without having to dispatch someone to the end-user location (i.e. remotely),
- be easy to use by end-users, partners, and employees,
- be more efficient and rewarding than looking for the info with search engines,
- be flexible enough to adapt to your current business processes,
- Provide multi-directional communication channels so that end-users, partners, equipment and your employees can generate value for all involved, simultaneously.
If the owners of your products “Google” to find information on your product, chances are someone else will get the sale
KONNEK is a complete solution to easily manage and automate this process. The app is made of 3 basic elements;
- KONNE SaaS – A cloud-based software application available over the Internet
- Equipment tags – Tags with encrypted QR codes, made of various materials to match the equipment’s environment
- An integrated database linking end-users, equipment, partners and your own data, all connected to the Internet
The idea is simple, yet powerful. Each equipment is unique… so each tag is unique. Scanning the QR code brings the end-user, partner or employee, directly to their equipment dedicated web page. No more searching or guessing. The access is immediate and accurate since the data is always up to date. KONNEK™ even gathers historical data on scans, accesses, notifications and alerts.
The tags can be applied at any time during the manufacturing process. They can also be attached when an equipment is being field serviced. KONNEK™ automatically links the tag with the equipment and the end-user. If the end-user was not known, the first time they scan the tag, they immediately land on their equipment page and see your contact information. They can be prompted to enter their credentials in exchange for valuable information (warranty management, training, replacement parts, updates or services).
You control the information and can modify it for any and all tags/equipment. Your customers can now easily update their own information and communicate with you directly from the same web page. Everybody sees the same thing at the same time. A much easier job for customer service and aftermarket sales!
The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%
KONNEK™ can also help you accelerate your industrial IOT program (industry 4.0). It can accept real-time data from your equipment and IOT devices and display it directly in the dedicated web page. Depending on your requirements and connected devices, customization will be required.
KONNEK™ will help you;
- sell more OEM part and services (remote monitoring and data analysis),
- improve customer experience,
- generate high margin recurring revenues.
Increasing customer retention rates by 5% increases profits by 25% to 95%
So far we have discussed the impact of aftermarket sales for OEMs. In the next blog, we will see how service companies can benefit from repeat business and focusing on overall customer experience.