Servitization is an economic model which consists of offering complementary services to a physical product, transforming traditional sales into a more complete proposition. This approach has gained popularity in various sectors, notably in the manufacturing industry, where companies are looking 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 businesses to differentiate themselves in the marketplace, build customer loyalty, and generate revenue beyond the initial sale.
In recent years, according to the Spanish Ministry of Industry and Tourism, servitization 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 additional 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, monitor equipment usage, provide real-time solutions. This type of strategy allows companies to remain competitive and provide added value that is difficult to reproduce.
How can servitization help you?
Servitization offers a series of benefits for both businesses and customers. First, it allows businesses to diversify their revenue sources.
According to a study by the Department of Management, Economics and Industrial Engineering, servitization offers convenience and added value. By purchasing a service with the product, you ensure that the purchase will be supported by ongoing support. This reduces concerns about possible breakdowns or technical problemssince companies usually take care of maintenance and updates.
Additionally, this model promotes closer relationships between companies and their customers, as the supplier has an incentive to maintain customer satisfaction throughout the life of the product. For example, in the automotive industry, many brands not only sell cars but also offer maintenance programs, ensuring that the vehicle performs optimally for longer.
In which sectors is servitization present?
This concept is not limited to a particular sector, but can be applied to 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 also extends to the technology sector, where companies that traditionally, they sold productssuch as computers or printers, now offer management and maintenance solutions as part of their core offering.
Another industry that has successfully adopted servitization is energetic. Energy companies not only sell electricity, but also offer energy efficiency services, helping customers optimize their energy consumption and reduce costs.
This not only improves the customer experience, but also promotes 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, by offering solutions that go beyond the simple product.
The challenges of servitization
Despite its many benefits, servitization also presents some challenges. The implementation of this model leads to a change in business mentality, since companies must move from product logic to service logic.
This involves restructuring internal processes, investing in staff training and adopting new technologies to deliver services efficiently. In addition, servitization requires a greater interaction with customers, which can be difficult to manage for some companies used to selling products without follow-up.
Another major challenge is the initial investment that implementing a servitization model may require. Companies must be prepared to dedicate significant resources to creating new services, which can be a barrier for smaller or resource-constrained organizations.
Additionally, this approach may 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 relationships with their customers and increase the useful life of their products.
