For Original Equipment Manufacturers (OEMs), the selling of spare parts, services, and accessories has become more than just a repair operation. It has now become an intelligent and profitable way of expanding the business. 

Nowadays, the aftermarket revenue is a major source of profit due to digital tools and more advanced systems. By implementing digital solutions, OEMs can not only increase aftermarket sales but also strengthen customer relationships and use customer feedback to inform future product designs.

This blog discusses the strategies deployed by OEMs to transform the aftermarket into a wellspring of profits, along with the use of digital tools to increase aftermarket sales.

Why Aftermarket Revenue Is Strategic for OEMs

The aftermarket revenue is a crucial factor in the growth and stability of OEMs in the long term. 

The reasons for its importance are as follows:

• Higher margins: The sale of parts, services, and accessories is generally more profitable. As a result, OEMs not only get repeat income from their existing customers but also get a huge boost in profit margin.
• Market control: The moment OEMs stop focusing on the aftermarket operations, independent repair shops come in, taking away sales from the OEM and thus, making OEM's relationship with customers and dealers even weaker.‍
• Cash flow stability: Aftermarket revenue is constant and predictable, hence it strengthens the company's financial position, whereas new equipment sales are entirely reliant on the state of the market and undergo changes accordingly.‍
• Competitive advantage: OEMs can create a trustworthy and strong relationship with dealers and even users through various ways, like providing authentic parts, quick service, and data-based insights, which will, in turn, increase brand loyalty.‍
• Leakage prevention: A lot of OEM firms surrender their customers to the counterfeit parts outlets. Safeguarding and increasing aftermarket revenue through the reduction of such leakage via superior catalog systems and visibility is the right approach.

How OEMs Can Turn Aftermarket into a Revenue Engine

In order to increase aftermarket revenue, OEMs must first elevate sales in the aftermarket. To achieve this, one of the key strategies is digitization. This will not only help in modernizing the whole process but will also improve the accessibility, accuracy, and customer engagement in all the different channels.

Intelli Catalog, a complete spare parts marketplace solution, enables OEMs to digitize their spare parts sales ecosystem. It connects dealers, distributors, and retailers through a unified, intelligent platform.

With Intelli Catalog, OEMs can streamline their sales networks, manage multi-channel orders, optimize pricing, and ensure real-time visibility, turning their aftermarket operations into a consistent, high-margin growth engine.

1. Boosting Spare Parts Sales Across Primary Sale Channels

Intelli Catalog helps OEMs to increase their spare parts sales through the primary sales network by offering the dealers a glimpse into the inventory, pricing, and availability in real-time. Thus, the dealers can easily find the right parts and place orders. The digital enablement that is the result of these operations removes interruptions, improves order accuracy, and increases dealers overall productivity, resulting in more aftermarket sales and satisfied customers.

2. Spare Parts Sales Through Dealer Online Storefront

Through Intelli Catalog, every dealer can run an online storefront that provides the end customers with a smooth and branded buying experience. Customers can easily enter their ZIP code to locate nearby authorized dealers, browse parts catalogs with photos, identify the right spare parts, and place instant orders. 

This digital storefront not only simplifies the buying journey but also helps OEMs and dealers increase spare parts sales and revenue by improving accessibility and reducing manual effort. It further attracts repeat customers through a modern, convenient, and reliable purchasing experience.

3. Boosting Spare Parts Sales Across Secondary Sales Channels

OEMs can significantly boost spare parts sales by connecting their distributors and retailers through Intelli Commerce, streamlining the parts ordering for their secondary sales network and enhancing communication across the supply chain.

The app allows distributors to work with retailers, allowing order placement instantly without the need for any physical visit. Retailers can find and purchase parts quickly, and thus, they can get more efficiency, wider market access, and higher spare parts sales for OEMs.

4. Dynamic Discounting Modules for OEMs Discount Programs

Intelli Catalog gives original equipment manufacturers (OEMs) the power to implement discounts through flexible and data-driven discount programs, which are aimed at improving dealer engagement and increasing profitability in the aftermarket. The easy-to-use interface allows administrators to set up their offers based, for example, on volume, time, or value, bundle the parts according to the customer's needs, and specify payment conditions.

Dealers are provided with a more streamlined buying experience, where the applicable discounts are shown instantly at checkout, thus making the transactions transparent and optimized at the same time. This makes the purchasing process more efficient, gives rise to bulk orders, and increases sales.

By having a distinct checkout process for special program purchases, OEMs secure transaction accuracy, protect their margins, and keep all discount programs clear, thereby forming a sustainable, win-win ecosystem for both OEMs and dealers.

5. Accessory Module to Boost Accessories Sales

The Intelli Catalog's accessory module gives OEMs the opportunity to offer other products through cross-selling and upselling, besides the main parts. During the checkout process, accessories compatible with the ones selected by the dealer or the customer will be displayed, which can lead to an increase in the order value. The use of this feature also contributes to the establishment of customer trust in the brand, leads to the total adoption of the OEM ecosystem, and ultimately results in the continuous growth of the aftermarket through the increased opportunities for product bundling.

5. Best Practices

The following are some of the practical tactics that the OEMs can use to transform their aftermarket into a growth engine:

• Dynamic pricing/value-based pricing in the aftermarket, to maximize the margin.
• Forecasting and predictive stocking of parts based on installed base data to prevent any shortages.
• A mix of items, service, and accessory parts to raise the average order value.
• Parts usage information, dealer performance, and demand forecasting are being applied to find the areas where the most growth can be achieved.
• Marketing, campaigns for cross-selling, and reminders (through portals/mobile) are implemented to keep the customers who buy repeatedly.

Conclusion

Aftermarket has changed from a support function to a core revenue driver for OEMs. By employing Intelli Catalog, OEMs can increase productivity and improve communication with dealers. This transformation not only changes the aftermarket into a strategic, high-margin growth engine but also reinforces brand loyalty and profitability. 

Ready to transform your aftermarket into a growth engine? Book a free demo of Intelli Catalog and see how your OEM can capture more revenue, boost brand loyalty, and drive product innovation.