Servitization is a business model that consists of offering complementary services to a physical product, transforming traditional sales into a more comprehensive proposal. This approach has gained popularity in various sectors, especially in the manufacturing industry, where companies seek add value to your products through associated services. A common example is regular equipment maintenance or upgrades, which extend the life of a product and improve the customer experience. Servitization allows companies to differentiate themselves in the market, increase customer loyalty and generate income beyond the initial sale.
In recent years, according to Mystery of Industry and Tourism of Spainservitization has become a key strategy for many companies, especially in an economic environment where competition is fierce and profit margins on the sale of products are reduced. This transformation goes beyond simply offering an added service. It is about integrating the product and the service so that the customer does not perceive one without the other. For example, technology companies that sell printers now also offer printing services. print management, monitoring the use of equipment, providing solutions in real time. This type of strategy allows companies to stay competitive and provide added value that is difficult to replicate.
How can servitization help you?
Servitization offers a series of advantages for both companies and customers. First, it allows companies to diversify their sources of income.
According to a study carried out from Department of Management, Economics and Industrial Engineeringservitization offers convenience and added value. By purchasing a service along with the product, you ensure that the purchase will be backed by ongoing support. This reduces concern about possible failures or technical problemssince companies usually take care of maintenance and updates.
Additionally, this model fosters closer relationships between companies and their customers, as the supplier has an incentive to maintain customer satisfaction over the life of the product. For example, in the automotive industry, many brands not only sell cars, but also offer maintenance programs, thus ensuring that the vehicle runs optimally for longer.
In which sectors is servitization present?
This concept is not limited to a particular sector, but can be applied in a wide range of industries. In the manufacturing sector, companies that produce heavy machinery, such as industrial or construction equipment, often offer maintenance and repair contracts, ensuring that products operate efficiently over time.
This model is also extending to the technology sector, where companies that traditionally they sold productssuch as computers or printers, now provide management and maintenance solutions as part of their core offering.
Another sector that has successfully adopted servitization is the energetic. Energy companies not only sell electricity, but also offer energy efficiency services, helping customers optimize energy use and reduce their costs.
This not only improves the customer experience, but also fosters a longer and more productive relationship between supplier and consumer. In this context, servitization allows companies to adapt to the changing needs of their customers, offering solutions that go beyond the simple product.
Servitization challenges
Despite its many benefits, servitization also presents certain challenges. Implementing this model, there is a change in the business mentality, since companies must move from a product logic to a service one.
This involves restructuring internal processes, investing in staff training and adopting new technologies to offer services efficiently. Furthermore, servitization requires a greater interaction with customers, which can be difficult to manage for some companies that are used to selling products without subsequent follow-up.
Another major challenge is the initial investment that implementing a servitization model may require. Companies must be willing to commit significant resources to creating new services, which can be a barrier for smaller or resource-limited organizations.
Additionally, this approach can lead to greater customer dependency in the long term, as services must be maintained consistently to ensure customer satisfaction and continuity of income.
Servitization is an innovative strategy that allows companies to add value to their products and differentiate themselves in a competitive market. By offering complementary services, companies can generate revenue, improve the relationship with their customers and increase the useful life of their products.
