Technology Advancements Help Leading Manufacturers Uncover Revenue Opportunities for Aftermarket Part Services
Digital Transformation has Dramatically Shifted Manufacturing
The manufacturing landscape has undergone a dramatic transformation in recent years. Advancements in technologies such as software, Internet of Things (IoT), artificial intelligence (AI), augmented reality (AR), and robotics have redefined product capabilities and customer expectations. Technological evolution has elevated product performance and customer expectations while also highlighting the critical role of comprehensive aftermarket part support for original equipment manufacturers (OEMs) and their partners.
The COVID-19 pandemic accelerated the adoption of digital solutions across industries. As lockdowns disrupted traditional aftermarket part service models, manufacturers were forced to find innovative ways to support their customers. Remote assistance technologies emerged as a lifeline, enabling businesses to maintain operations and minimize downtime.
A recent Deloitte study revealed a significant shift in the perception of the aftermarket among industrial companies. By the end of 2022, a substantial majority (71%) of these businesses were enthusiastic about the potential of aftermarket part offerings to enhance margins and the overall customer experience. The aftermarket was traditionally considered a necessary expense, but leading manufacturers now view it as a lucrative revenue stream that can differentiate their business.
Digital tools are rapidly reshaping the aftermarket, offering new possibilities for efficiency, customer engagement, and revenue generation. Looking beyond operational efficiency, a strong aftermarket strategy has the potential to unlock significant profitable revenue.
By offering value-added digital-first aftermarket part support, manufacturers can increase customer lifetime value and create new profitable revenue streams. The shift towards long-term partnerships with customers is a promising sign for the future of the industry, instilling a sense of optimism for reliable revenue.
Digital Aftermarket Part Services Must Deliver a Best-In-Class Search Experience
A robust aftermarket strategy is not just about revenue generation but also about enhancing brand loyalty and customer satisfaction. It can create substantial revenue with little to no touch from service representatives. Recognizing this opportunity, an increasing number of our manufacturing customers are prioritizing their aftermarket businesses and moving to an AI-enabled, digital-first, self-service e-commerce system that enables end users to search, find, and buy aftermarket parts. However, e-commerce is not the only solution. Customers and distribution partners could still struggle to identify the parts they need if they don’t have a comprehensive aftermarket strategy that starts with optimizing the part search process.
Customers sometimes lack precise information about parts, even though they might know a general description or have a damaged part in hand but struggle to find an exact match. Parts often have multiple identifiers, from OEM numbers to aftermarket equivalents, which can create complexities when the customer is trying to search and verify that they have found the correct part before purchasing. AI-powered data clean-up and optimization can help you quickly get your parts data aligned to implement a search-and-buy solution for your aftermarket part business.
Without a reliable search function on your website, end users can become frustrated and abandon their carts or call a service representative, leading to lost sales, damaged brand reputation, and high customer service costs. The urgency of deploying a well-implemented visual search solution is clear. It empowers customers to find the parts they need quickly and easily, driving a more profitable aftermarket part business through self-service e-commerce sales, while also fostering customer trust and loyalty.
The Advantages of Improving Your Aftermarket Part Services are Clear
The aftermarket business has become a valuable solution for manufacturers, offering substantial revenue and profit opportunities. By leveraging digital technologies and a customer-centric approach, you can boost the bottom line, strengthen customer relationships, and gain a competitive edge.
Increase Revenue and Boost Your Margins: Aftermarket part businesses have emerged as a lucrative revenue stream for manufacturers, offering significantly higher profit margins than new equipment sales. Providing digital aftermarket services provides a steady, low-touch income stream that can mitigate the impact of economic downturns by helping to create a more stable revenue base.
Strengthen Your Customer Relationships: By deepening customer relationships through aftermarket services, you can gain invaluable insights into customer needs, preferences, and equipment usage. This knowledge empowers you to offer tailored service packages, cross-sell additional products or services, and proactively recommend upgrades or replacements. AI can significantly enhance this process by analyzing vast amounts of customer data to identify patterns and predict future needs, enabling manufacturers to offer highly personalized product recommendations and optimize upselling and cross-selling opportunities. The improved experience bolsters customer confidence and loyalty to your brand.
Gain a Competitive Advantage: A robust digital aftermarket part sales experience can be a significant competitive differentiator, particularly for manufacturers ahead of the curve. By providing exceptional aftermarket support, you can build stronger customer relationships, increase loyalty, and generate additional revenue. Beat the competition by giving your customers a digital solution that empowers them to search, find, and buy aftermarket parts online.
Meet CDS Partable: The Visual AI Aftermarket Spare Parts Search Solution to Increase Ecommerce Sales
A strategic focus on delivering exceptional aftermarket part services powered by digital technologies is a game-changer for long-term success. CDS Partable software enables anyone to search, find, and buy aftermarket parts through your e-commerce site. Our AI-powered visual search solution helps end users find the right aftermarket parts by serial number, bill of materials (BOM) navigation, exploded view, or AI image search – in a matter of seconds. It’s that easy with CDS Partable.
Are you interested in exploring specific strategies or getting a demo of CDS Partable? Get in touch with us today!
