Gaea and Oracle will help you adopt servitization for increased revenue and customer acquisition.
Servitization (or servitisation for those across the pond) refers to the refocus of sales strategy from a product-centric approach to a service-centric approach; from a-one-sale-and-done approach to a customer-for-life approach.
The term servitization has been in use since at least 2010, but the concept of prioritizing the long-term customer relationship over a short-term sale has arguably been around since companies began selling maintenance contracts, and unquestionably since the SaaS subscription model was introduced. The buzzword is new, but the concept is not. What is new is the cool new technology for delivering servitization. And the driving force behind this new technology is the increased customer demand for convenience.
The Three Servitization Models
Companies can deliver servitization via one of three models, with new digital technologies making servitization delivery faster and more effective across all three.
Improving core customer service is the actual service delivery part of customer service. Your company likely already has telephone or email support, but a slew of new digital applications like chatbots and service apps specifically designed to track and nurture customers. These new apps are very important as today’s customer on the service line may be tomorrow’s repeat purchaser.
Building new packages of aftermarket services is the delivery of service-related products after, or distinct from, the initial product sale. For many products this service delivery has traditionally included maintenance. One new development here is IoT (internet of things) sensors that can be built into your products. These sensors can report how, where, when, and by whom your products are being used, providing useful pre-sales qualification data.
Delivering your products as services is the change in your sales model from a single upfront sale from which a customer can use your product in perpetuity, to a customer pay-as-they-go model. For software products, the term software as a service, or SaaS, is common. This model may require significant adaptive product changes so usage can be monitored remotely, and a new financial model that recognizes a fundamentally different revenue stream.
Gaea implements Oracle supply chain management solutions that deliver results, including:
- A choice of channels through which to engage with your business;
- Tools like live chat and AI-powered chatbots to help everyone get the answers they need when they need them;
- A unified view of customer data that enables agents and bots to serve people quickly and effectively;
- Discrete devices that monitor product status in real time and help you deliver support proactively;
- Field service teams with access to customer and IoT data, so they can deliver the right service, the first time, every time;
- Sensors that monitor product usage, enabling customers to only pay for what they use;
- Data gathered at every point is used to continuously improve service, and the quality of the products you manufacture, and;
- Long-lasting customer relationships with your company and your field-service teams.
At Gaea, we build long-term partnerships with our clients. Most of our clients continue to rely on Gaea as a trusted advisor for many years after their initial software implementation.
Contact us using the form on the right and let’s discuss why Gaea is your best partner to help you adopt the customer-for-life approach of servitization, enabled by Oracle applications.
Learn more about servitization by reading Oracle’s eBook, The Manufacturer’s Guide to Digital Connected Service.