The shift towards a servitization model or EaaS (Equipment as a Service) can transform a company's sales organization. Traditional sales models, which focus on selling products, may not be suitable for services, digital products, and outcomes. Therefore, it is crucial to understand how sales methods change when making this move.
Before making the shift, it is essential to understand that selling services differ from selling products. A servitization model focuses on selling outcomes achieved by providing exceptional services. A change in the sales approach requires a focus on selling the value of services and results rather than just the features and benefits of a product.
To be successful, sales teams must understand the customer's needs and challenges from a customer-centric viewpoint, where the sales process focuses on the customer's needs. In addition, service visibility and performance observability are crucial to selling services. Investment in business process automation and IIoT (Industrial Internet of Things) technologies monitor equipment performance and predict maintenance needs.
To illustrate the changes, here is a list of actions needing consideration.
Focus on the change from selling products to providing outcomes and solutions for customers.
Pricing models become more flexible and can be based on usage, performance, or outcomes.
Customer engagement becomes more proactive and consultative, focusing on understanding the customer's business needs and providing tailored solutions.
Service visibility and performance observability become crucial to selling services as customers demand transparency and accountability for the services they purchase.
Selling digital products such as software, analytics, and predictive maintenance becomes a vital part of the service offering.
Business process automation and intelligent automation become essential to delivering efficient and cost-effective service, which helps to increase customer satisfaction and loyalty.
Collaboration and partnerships with other service providers will allow a broader range of services to be offered to customers.
Sales teams need to develop new skills, such as understanding service delivery processes and how to sell outcomes rather than products.
Contracts become more complex. They incorporate equipment and service components, detailed SLAs, and KPIs.
The relationship with the customer becomes more long-term and strategic, focusing on delivering lasting value and building trust.
Companies should partner with service providers, such as Endowance Solutions, that can accelerate the journey towards a servitization model by providing expertise and technology solutions.
Endowance is a technology solution provider that enables companies to transition to a servitization model or EaaS. Our solutions can help companies monitor equipment performance and predict maintenance needs, but more importantly, automate the next action and go beyond just alerts. By partnering with Endowance Solutions, companies can accelerate their journey towards a servitization model and reap the benefits of a service-centric approach.