Harvesting Revenue and Profit from Older Products
I like to break the services the OEM provides to its customers into two groups:
- The services that are used during the complete product lifecycle. — This is like the routine physicals and tests your primary care physician performs with you, no matter your age.
- The services associated with aging products. — Keeping with the medical analogy, this is like visiting a dermatologist, cardiologist, or ophthalmologist. You can see these specialists when you are young, but you are most likely to need some of them as you age.
Businesspeople are generally familiar with the essential services offered by OEMs. And most have heard of services like refurbishing and remanufacturing, but their company does not offer them yet. And a smaller number of companies are creating customer value while also earning revenue and profit by extending the lives of older products.
This is from an article on Thomas Insights published on June 23, 2022. To read the article, tap here.
About Middlesex Consulting
Sam Klaidman is the founder and principal adviser at Middlesex Consulting. He helps his B2B product manufacturing clients grow their services revenue and profitability by applying the methodologies and techniques associated with Customer Value Creation and Customer Experience professions to assist his clients in designing and commercializing new services and the associated business transformations. Contact Sam here.
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