How Servitization Establishes Field Service Success for Manufacturers

It’s important for manufacturers to provide customers with the support they need. Start supplying your products and their solutions.


With increasingly complex, high-tech equipment, customers rely on their equipment dealers for service expertise more than ever.

Instead of focusing solely on selling a product, manufacturers are redeveloping their strategy to match the increasing needs of customers.

Their solution? To sell an entire field service support system around a product. Offering service support along with their equipment allows manufacturers to grow their business and strengthen their customer relationships. This means you can sell your products and maintain them, too.


What is servitization?

Many manufacturing companies are moving toward servitization. Servitization allows manufacturing companies to supplement their product offerings by supplying things like maintenance packages and emergency servicing. This keeps customers happy and allows manufacturers to expand their service business.

The manufacturing market has become increasingly complex as technology advances. More complex products tend to lead to more complex breaks and errors.

Servitization allows you to commit to your customer and ensure that they will be able to rely on you and your products.




Why should manufacturers care?

There are clear benefits to incorporating servitization into an equipment manufacturing business model.

Sell a Product and Its Solution

In the past, the manufacturing industry typically only sold products to their customers. Manufacturers used to only worry about the efficiency and quality of their products and not as much about their service.

As the demand for strong service programs grows in popularity and the market becomes more complex, customers now expect an entire solution to their problem, not just a product.

Gain Financial Stability

As manufacturers sell long-term contracts with all-inclusive service to their customers, their revenue streams become more secure. Why? Because service contracts guarantee regularly recurring revenue and increase chances for loyal customers and upsales.

Increase Customer Retention Rate

Some manufacturers are finding they can keep more customers through servitization. Largely, this is because they are the most educated about their customers’ equipment.

By constantly tracking and monitoring their technicians, supplies, vehicles and systems, manufacturers and their dealers hold the keys to the data that makes their customers’ businesses more efficient.


How shifting to service can impact your team

Servitization has the potential to impact the way field service is managed.

Technician as Lead Generators

In the past, manufacturing companies viewed their field service departments as a “cost of doing business.” Now, manufacturers that have adopted servitization and mobile technology are viewing their field service technicians as vital lead generations.

The Salesforce State of Service Report mentions that 80% of service decision makers say emerging technology is transforming customers’ expectations of their service organization.

It’s important to enable your technicians to adapt to meet customer expectations. These findings show the importance of quality service and the potential for technicians to sell new products, services, and contracts.

Increased Need for a Mobile Management System

As manufacturers continue to benefit from service contracts, the need for mobile field service management software continues to grow. Servitization depends on strong customer support, which only comes with high first-time fix rates and immediate help when needed.

The only way to manage this data, monitor remote equipment, and manage complex workflows is through a central field service management system.

Growing Importance of IoT

As contracts include more advanced service requirements for their products, field service data will become more dependent on the IoT (internet of things).

With services like tracking products remotely and taking preventive measures, manufacturers will rely on the power of IoT to inform their service efforts.



As customers continue to expect additional benefits and long lasting relationships with their dealers, more manufacturing companies will add service contracts to their product sales.

The industry keeps growing in complexity, highlighting the need for a mobile management system and strong customer service.

In return, manufacturers that take advantage of the opportunity in service will become more financially secure and build stronger customer relationships.