Grow your recurring revenue by connecting Marketing, Sales and Service!

Many businesses go through financial ups and downs on a regular basis. Merely selling products is therefore no longer enough today, as sales volumes vary over time and income streams become rather unpredictable.

Customers expect more than just a good and useful product. They look for reliability and predictibality of their productivity beyond the initial warranty period.

An intensified competitive landscape in many industries means that companies that only focus on the product will lose customers to a competitor.

There is a solution that, if done correctly, can align your business for long-term stability. 
However, this also requires a significant change in mindset for many companies today.

It's related to enhancing customer engagement and called recurring revenue, a stream of predictable income that, unlike one-off sales, can be counted on to occur at predictable intervals with a high level of certainty.

Therefore, manufacturers nowadays put more and more focus on growing service revenue, and many organizations recognize that extended warranty and extended service programs can be of strategic value.

The offer of additional services is a trend that can be observed in almost all industries and is perceived as strengthening the competitive advantage.

This growing trend for enterprises to shift their focus away from selling products towards building revenue via services is called servitization. 

Many companies are moving from just selling simple products to selling a full-fledged service.

Companies should definitely make this shift, but it can only work if their marketing, sales and service organizations are well aligned.

There are a few key reasons why companies should care about this trend:

Customer Engagement

Selling a service means a longer relationship with your customer, often combined with remote monitoring of your customers’ equipment. Valuable data is shared directly from the field, which gives a better insight into the use of the equipment as well as useful data for your R&D department.

Selling a service means a longer relationship with your customer, often combined with remote monitoring of your customers' production equipment. Valuable data is shared directly, giving you better insight into the use of the equipment and its status-quo but also provides you with valuable data for your R&D department.

Financial Stability & Predictability

Long-term service contracts guarantee regular revenue streams. They will be more secure and predictable than just selling products as sales volumes vary over time.

Long-term partnership

Customers today expect more than just a good and useful product.

Customers are paying more and more attention to the TCO (Total Cost of Ownership) of devices.

They are looking for trustworthy partners who will accompany and advise them throughout the entire life cycle of their equipment.

When companies move to selling complete solutions that help their customers protect their investments, they gain an important competitive advantage and become a long-term trusted advisor and partner.

To enable the change to a service-oriented organization, companies must align their marketing, sales and service departments and enable their employees to develop into trustworthy advisors.