Selling the Way Buyers Will Expect to Buy
Increasingly as consumers we buy access vs. assets.
In other words "Rent the Runway" provides access to prom dresses, Turo let's you rent someone's car when they don't need it, and Netflix saves you buying DVDs.
Those consumers by night and weekend are also your B2B buyers on weekdays, and the norms that are shaping their expectations and habits as consumers are also gradually influencing their business expectations.
Why should a company invest in machinery they don't need all the time and that they might not be able to fully optimize, much less all the spare parts for each contingency and training for staff that turns over?
Why not simply contract for the consistent output of the machine?
Those are some of the questions that servitization answers.
A Radical Change for Manufacturers
This is a relatively easy leap of thought (and even for implementation) for the buyer. But it raises lots of thorny issues for manufacturers. From finance to operations, the transition to product service systems threatens to tie them in a knot.
The important thing to know is that companies are already making this transition successfully; even middle-market companies like yours in addition to the Siemens, Deere and GEs of the world!
This webinar is a perfect introduction to the whys, hows, and even the buts of making this transition. Neil Tumber of the Advanced Services Group takes us through a variety of topics including:
- What are "servitization" and "outcome based services"?
- Why will this be important for industrial companies?
- What is normally included in "outcome based services"?
- Aren't customers hesitant to allow outside internet connections to their machines?
- How does a company make the technical transition? Can SMEs do it too?
- How can you make the financial transition from down-payment financed working capital to subscription models?
- What's involved in the cultural shift that's needed?
- Key takeaways of this product service systems approach
Stronger Customer Relationships
The point of servitization isn't to just change the frequency of and line items on an invoice. It's about creating a much stronger relationship with buyers.
As you focus on their success you'll find opportunities to add services. Further, you'll aggregate data that will enable yet more services.
Ultimately it's about value based on what the buyer realizes rather than your cost to deliver - and often that drives a substantial improvement in margins.
50 Minutes Packed with Insights
If you've wondered about how subscriptions might impact your business, or how you'd even begin to quantify and understand the required changes, Neil is the guy with the answers.
Our discussion covers a lot of ground and will lay out how to start to visualize the opportunity and the required changes.
In addition to the webinar recording, you'll also have access to download both the slide deck and an AI-generated transcript of the conversation. Just complete the simple form on the right, and we'll take you right to it. 👉
Neil Tumber and Ed Marsh
Neil Tumber is a former submarine officer with a lengthy career in a variety of operational roles in industrial companies. Additionally, he's developed innovative metering systems for utilities. He currently is a senior industrial fellow at the Advanced Services Group and is based in St. Louis.
Ed Marsh is the founder of Consilium. He works with industrial manufacturers to help them improve revenue growth through improved sales performance, digital marketing, and business strategy. He's written frequently about the opportunity/threat of recurring revenue/subscription models for capital equipment manufacturers.