In many industries today, the sale of product accounts for only a small portion of overall revenues. This is certainly true for durable goods manufacturers who capture higher profit margins from services related to the product after it’s sold.

The product may be the reason for the initial gain of a customer, but the service is often what keeps them coming back. Customers want total solutions. They expect increased product uptime and value-added services on a global scale. Companies delivering both have the competitive advantage.

Higher revenues and customer value are key drivers for manufacturers to shift from a product driven organization to a service driven organization. 4CS helps manufacturers implement a comprehensive service strategy that generates efficiencies and builds customer loyalty.

A Services Business Model also addresses ownership alternatives and new pricing models. Some examples include

The integration of 4CS’ SLM solutions such as, cost management, repair management, fleet services, self-serve applications, and contract configuration are enabling companies to offer a comprehensive service offering to tap into the customer value throughout the entire product lifecycle.

“Car companies should stop thinking of themselves as manufacturers of ‘sheet metal boxes’ and define themselves as ‘mobility enterprises.’ In the future, it must not only be that we sell cars. You can buy mobility from us. For instance a globe-trotting customer might pay Ford $50,000 for a ‘mobility package,’ which would provide a car wherever in the world it was needed.”

Source: Wolfgang Reitzle, Ford