Few decades ago, aftermarket was seen as an afterthought, but in today’s scenario OEMs can’t underestimate the role of aftermarket sales in their business and its impact on their financial health. Aftermarket sales generate more revenue for OEMs than the sales of original parts.
Today, aftermarket is not an afterthought. OEMs need to find opportunities and the effect of part sales on their business revenue. However, the tricky part is to adopt a sales plan to make sure that authorized dealers and end-customer purchase OEM parts to make the most out of it.
A well-managed strategy with effective spare parts management tool will help OEMs to boost revenue, increase profit and make brand image shine. Parts management means managing inventory, parts sold, and keep track of parts needed by authorized dealers in future. It also includes management of damaged or returned parts from the dealers.
Let’s have a look at three main points to increase aftermarket sales:
- Loyal Customer Base: When it comes to success of a business, it’s all about loyalty. OEMs success in aftermarket totally depends upon their behavior with existing customer. OEMs can build loyal customer base by offering exceptional customer service and put more prominence on the values. Create durable spare parts, because every time an end-customer has to replace equipments, OEMs will have the risk to lose that customer with a competitor. However, customer loyalty with brands increases with increase in reliability of equipment. Whenever, OEMs will organize service events, they will create opportunities to develop strong relationship with their customers. OEMs need to find balance between over-durable and unreliable equipment for increasing sale. Providing equipments at discounted price and extended service warranties are two other techniques that will improve brand loyalty and thus increase sales.
- Lock Existing Customer Base: End-customer have the option to purchase parts from third party suppliers in the aftermarket, as they can get great price through them. In such scenario,OEMs must attract the customers to their side, by giving them the option of choosing their parts. An OEM can lock the existing customer base by providing their customers by offering quality assurance to them, great price, warranty cover on parts, patent part design and best after sale services. These are the things that customer will not get anywhere else. For example, when a customer will purchase a patented bearing, he/she has to continue buying bearings, in order to realize the value of patent. This will surely increase the sales of bearings.
- Use of Proper Software’s: OEMs need to integrate fast and agile software with their existing setup. The software must span entire life-cycle of a spare part. Example of such software: Electronic parts catalogue.
From the above points you must have got an idea how the things will work after implementing latest technology and why implementation is necessary according to the current market trends. Feel free to connect with the team at www.intellinetsystem.com, if you have any query about the same.
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