Improve your sales and customer relations: switch from a production-oriented to a service-oriented company.

Leon Paaijmans

Business Development Manager

Change your focus from manufacturing to services with expert support

Achieve a stable, long-term revenue stream thanks to intensive customer relationships

Implement digital solutions like predictive maintenance for a streamlined service process

Servitisation: a successful transition from production-oriented to service-oriented

More and more manufacturing companies offer their products as a service rather than deliver products as such. Servitisation is a real challenge for manufacturing companies. How can you ensure a smooth transition from a production-oriented organisation to a more service-oriented one?

From products to services

More and more manufacturing companies are deciding to offer all or some of their products on a subscription basis that includes advice and maintenance. A growing number of manufacturing companies are also providing services like maintenance, financing and advice on top of their products. Some companies even choose to change their entire model in order to offer their product entirely as a service only. Like the bulb manufacturer who no longer sells bulbs, but light. Or the aircraft engine manufacturer that no longer sells jet engines, but flight hours.

Benefits of servitisation: more sales and better relationships

Changing from product delivery to service delivery can bring major benefits. It may increase sales as well as margins. You will also strengthen your relationship with your customers, which is an essential ingredient for success. For manufacturing companies that sell services rather than products, the customer relationship is invaluable. The longer a customer continues to enthusiastically buy your product, the more sales such a customer generates. The focus shifts from the transaction to the relationship. The result is a stable, long-term revenue stream.

How to take the first step

Total customer care starts with an outside-in approach. Stop approaching things based on your own objectives and make the customer your starting point. Who is that customer? What is the customer working on? What are your customer’s problems and how can you assist them in the best possible way? Tailor your service delivery and align your organisation’s objectives accordingly. Next, it is important to really start approaching your business as a service. What products could you offer as a service? Our most important advice is to start small. You can’t make the switch all at once.

Focus on service

Servitisation will have a big impact on your company’s back office. In most manufacturing companies, sales from services tend to be very limited and not much attention is paid to services. Servitisation, however, requires a streamlined service process. And it needs in-depth insight into how your customers use your product so that you can fully adapt your production processes and service delivery accordingly. Digital developments such as big data, digital twins, predictive maintenance and IoT can help you do this in many different ways.

If you want to get started with new service concepts or switch from a production-oriented to a more service-oriented organisation, Ctac will help your manufacturing company to focus on its customers more and boost its customer experience. We offer inspiration and allow you to explore what is possible in terms of the introduction and support of new processes. Contact us for more information.


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