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How to make after-sales services pay off

For many manufacturing companies, servicing products is an increasingly important part of the business.  Manufacturers of everything from elevators and freezers to security systems and transportation equipment—products built to last—find that revenues from after-sales product installation, configuration, maintenance, and repairs are 30 percent or more of their total revenues, and the proportion is increasing. In some industries, the serv ice market is four or five times larger than the market for products.
 
For more information, see Whitney L. Alexander, Sandeep Dayal, Jack J. Dempsey, and Jonathan D.Vander Ark, "
The secret life of factory service centers," The McKinsey Quarterly , 2002 Number 3, pp. 106–15.
  

 

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