Our sales team at Entytle has spoken with over 300 leaders that own the Aftermarket P&L for their respective corporations.
The titles of these service leaders vary by industry, but common ones include Directors and VPs of: Aftermarket, Parts, Spares, Service, Field Service, Customer Care, Lifecycle Management, etc. We took away some interesting findings from these meetings that are worth sharing with you:
- 93% acknowledged they have significant and untapped aftermarket revenue potential within their Installed Base.
- 82% had a completely reactive approach to aftermarket sales (inside sales team just waiting and hoping for the phone to ring and inquiries to come in).
- 19% had attempted ad-hoc, one-off projects (cold-calls, reports, etc) to proactively sell parts/consumables/disposables/replacements to their customers.
- 0% had a scalable solution to sell to their Installed Base in a proactive, predictive and preemptive manner.
- Considering the aftermarket business is recurring, recession-proof, and has dramatically higher profit margins compared to new equipment sales…does it make sense to leave the results of this absolutely vital business unit to mere chance? Is waiting and hoping for your customers to reach out to you an aftermarket strategy?
Of course not. So why do so many manufacturers approach the aftermarket this way?
“It’s just the way things are.”
“It’s how we’ve always done it.”
“Everyone else is doing it.”
As they say in Game of Thrones, “Winter is coming.” In the aftermarket, “winter” is proactively selling into your installed base.
[clickToTweet tweet=”Reactive selling is out. Proactive selling is in. #aftermarketRevenue” quote=”Reactive is on the way out. Proactive is on the way in. Once it’s in the door, it’ll be the new norm. ” theme=”style1″]
By 2020, aftermarket sales teams waiting for the phone to ring will take a backseat to proactive ones systematically calling upon the Installed Base armed with relevant information to close deals.
Aftermarket leaders who embrace this inevitability and make appropriate mindset shift will reap the benefits while outpacing their industry peers. Aftermarket leaders that play it safe will lag behind.
Your installed base is not waiting for you. You need to proactively sell to them.