Servitisation for manufacturers: success stories
You’ve heard all about servitisation and you’re still sceptical. Just because some consumers are willing to subscribe to a service which provides them with monthly disposable razors, why on earth should it mean that customers in the manufacturing and industrial sectors are yearning for subscription service-based products?
Well, the proof is in the pudding: there are already impressive success stories in these sectors.
Remember: if you don’t take the opportunity to offer service-based products, you can be sure that your more adventurous competitors will.
For instance, 20% of Waste Spectrum’s revenue is now coming from services. As a manufacturer of waste disposal incinerators, their desire to not compete on price alone led to the implementation of servitisation. Now, customers have the option of leasing or purchasing units, as well as choosing from a range of cover packages offering different parts and servicing options. Attaching sensors to their equipment means that they can remotely monitor it: both how it is used, and to become aware of potential problems before their customers.
Waste Spectrum’s implementation of servitisation has increased customer satisfaction and loyalty, meaning repeat custom along with the regular subscription revenue, as well as word-of-mouth recommendations. This has been such a success that more bespoke packages are in the pipeline.
Find out more about what servitisation is and how you can apply it to your business with our:
> ‘Servitisation for Manufacturers’ 20 page downloadable guide
> 15 minute servitisation video from our manufacturing marketing expert Dave Pannell and manufacturing business growth expert Mark Prince
Watch our video and download our guide on servitisation for manufacturers
Servitisation is the biggest ‘big idea’ since just-in-time and lean manufacturing practices emerged in the 1980s. It offers you the promise of higher profits and competitive advantages. But you’re probably worrying about the potential implications for your company if you embark on a servitisation journey.
In this 15-minute video, The CIM’s Manufacturing Ambassador for Yorkshire Dave Pannell talks with Business Growth Expert Mark Prince about what sevitisation is, and how you can gain a competitive advantage by creating a service-based business model.
This is presented alongside our 20-page downloadable Servitisation for Manufacturers guide.