Challenges for After-Sales Service and Its Potential
Labor market risks—like the shortage of skilled workers, rising costs, and growing price pressure—have moved from being short-term worries to long-lasting challenges for many companies. These issues affect everyday work and force businesses to change their strategies to achieve long-term success.
A recent study by the audit firm Deloitte shows that these factors are greatly limiting companies’ flexibility and competitiveness in both the medium and long term. As a result, actions to reduce costs and boost efficiency have become central to countering the financial pressures in a competitive market environment. In other words, companies are increasingly responding to these market conditions by adopting defensive business strategies.
At the same time, the field of aftersales service is still considered less strategic and financially barely viable in many companies. Often, revenues from services and spare parts account for less than 10% of the total turnover—with margins frequently remaining modest. However, this conventional view significantly underestimates the enormous potential inherent in a carefully optimized aftersales service operation.
My Concept as a Strategic Solution
In contrast, a well-positioned service business not only boosts customer satisfaction, company profits, and efficiency but also reinforces the overall resilience of the organization. Sales downturns in new business have virtually no impact on aftersales service. On the contrary, they typically coincide with an increased demand for modifications and upgrades—making a proactive range of offerings essential. A strategic reorientation of this area, including a critical review of transfer pricing, enables companies to unlock additional revenue potential while simultaneously building an important buffer against economic crises.
The study published in 2024 by McKinsey & Company shows that companies with a strong focus on aftersales service generate roughly twice the profits compared to those with a low focus. > > Here is the study: Why aftermarket and service are vital to OEMs—and how to excel
This is exactly where my concept comes into play: together, we develop strategies to transform your service division into a vital source of growth and efficiency!
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