Why your product service offering might be missing the mark

The product-centric trap

Many manufacturing companies remain heavily focused on their products, driven by engineering and technical specifications. While this approach ensures robust product features, it often sidelines the essential services customers need throughout the product’s lifecycle. This disconnection can lead to offerings that don’t fully address customer needs, resulting in underutilised services and dissatisfied clients.

Integrating services and products

For a manufacturing company, the challenge lies in viewing products and services as an integrated system rather than separate entities. Successful businesses need to understand and address the entire lifecycle of their products, from initial design through to end-of-life services. This holistic approach ensures that both products and services are aligned to deliver maximum value to the customer.

Real-world consequences

Examples from the field illustrate the consequences of failing to integrate product and service offerings effectively. Issues like delayed power plant startups or the infamous late opening of Berlin’s new airport highlight how disconnected services can lead to significant operational and financial setbacks. These examples underscore the importance of seamless integration between products and services to meet customer expectations and operational requirements.

Steps to relevance

To stay relevant, manufacturing companies need to:

1. Understand customer needs: Gain a deep understanding of customer operations, demands, and values. Tailor services to meet these specific needs rather than offering a one-size-fits-all solution.
2. Invest in service development: Allocate resources to develop and refine service offerings, ensuring they are as robust and well-supported as the physical products.
3. Standardise and automate: Use tools like Configure Price Quote (CPQ) systems to standardise processes and automate order configurations. This allows for more streamlined operations and ensures that products and services are accurately priced and delivered.

The role of customer service

Customer service is at the heart of a successful service strategy. Manufacturing companies must focus on delivering consistent and reliable customer experiences. This involves ensuring that customer service teams are well-equipped to handle inquiries swiftly and effectively, identifying customer products and the services they are entitled to, and maintaining a high standard of service delivery.

Product lifecycle management (PLM)

Product Lifecycle Management (PLM) is a critical framework for integrating products and services. It encompasses the entire journey from product development and marketing to sales and after-sales support. By adopting a PLM approach, companies can ensure that their offerings are designed and managed as cohesive, end-to-end solutions.

Configure Price Quote (CPQ) solutions

CPQ solutions play a vital role in bridging the gap between what is developed, what is manufactured, and what the customer wants. These systems help configure products and services to meet specific customer requirements, price them accurately, and generate precise quotes. This not only enhances the efficiency of sales processes but also ensures that customers receive tailored solutions that deliver value over the product’s lifecycle.

Conclusion

Companies must integrate their product and service offerings effectively in the evolving manufacturing landscape. Focusing on customer needs, investing in service development, standardising and automating processes, and leveraging tools like CPQ and PLM can enhance relevance and competitiveness. The goal is to offer comprehensive solutions that meet customer expectations and deliver sustained value.

For more insights and in-depth discussions on optimising your product service offerings, tune in to our podcast, Fluido Moments.