The term “servitization” has gained traction in recent years. It refers to selling an outcome as a service. A great example of this is Netflix: it sells media as a service, rather than selling the CDs or DVDs customers would have used to consume media.
Servitization isn’t just confined to companies operating in the digital space, such as Netflix. Manufacturing firms can also take advantage of servitization. Microsoft Dynamics 365 can help them achieve this goal – read on to learn more.
How Can Manufacturers Capitalize on Servitization?
Manufacturers that create physical products can definitely employ servitization tactics to boost their profits. Servitization is generally a subscription model.
Researchers have identified three levels of servitization: product provision, after-sales, and advanced services. Product provision is manufacturing at its most basic – you build and then sell a physical product. It’s also the lowest level of servitization. Once a product leaves the factory, it’s no longer a revenue stream.
After-sales is the second highest level of servitization. Services in this category include maintenance, monitoring, and repairs. These services provide ongoing revenue for manufacturers, though there are ways to capitalize further.
Advanced services takes after-sales a step further. They are usually a subscription-based model in which a customer pays for a specific outcome. For example, it could be a monthly maintenance plan.
How Can Microsoft Dynamics 365 Allow You to Take Advantage of Servitization?
Microsoft Dynamics 365 is a suite of business applications that unites CRM and ERP functionality under one banner. It offers a number of features, including a module for field service technicians and IoT functionality.
Let’s discuss the IoT functionality first. IoT allows you to monitor and diagnose problems before they interfere with your customers’ business. Dynamics 365 also lets you automate work order creation as well as the scheduling and dispatching of technicians. When Dynamics 365 dispatches a technician on a call, it will provide the technician with relevant customer information so that he or she arrives at the call with the right tools and a full background of the case.
Dynamics 365’s field service module also helps you better connect with your customers and take advantage of servitization. You can seamlessly share quote, contact, and scheduling information for service calls. In addition, Dynamics 365’s customer portal makes it easy for customers to keep track of service activities as well as self-schedule appointments. Your customers can even track the technician in real-time and receive automated voice and text appointment reminders so they know when to expect a service call.
Servitization is a valuable technique to increase revenue. When everyone is called upon to do more with less, servitization helps you meet that goal. Capitalizing on your products after they leave the factory doesn’t have to be difficult, though. Dynamics 365 makes servitization easier thanks to its IoT functionality and its field service technician module. You can be proactive about offering service to provide your customers with the greatest possible value, making you more than just a vendor; you’re a trustworthy, reliable partner.