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The Essential KPIs for Success in the Aftersales

Written by MARKT-PILOT | Feb 25, 2025 9:00:00 AM

The parts business within the machine manufacturing industry is experiencing significant growth. For instance, the global construction equipment aftermarket was valued at over $25 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 4% from 2023 to 2032

Similarly, the agricultural equipment market is expanding, with projections indicating growth from $193.46 billion in 2024 to $344.77 billion by 2032, reflecting a CAGR of 7.5% during this period.

To remain competitive in these expanding markets, pricing and aftermarket managers must track the right KPIs.

Table of Content:

Why KPIs Matter

Tracking KPIs ensures informed decision-making, process optimization, and a proactive approach to market trends. Without proper monitoring, businesses face:

  • Missed revenue opportunities due to ineffective pricing strategies
  • Stockouts or excess inventory, leading to higher costs
  • Delayed deliveries and poor customer experience
  • Reactive rather than proactive decision-making

Revenue and Profitability KPIs  

Aftermarket Revenue as a Percentage of Total Revenue

  • A strong aftermarket business should contribute a significant portion of total revenue. Industry leaders generate up to 30% of their revenue from aftermarket services (Middlesex Consulting).
  • Formula: (Aftermarket Revenue / Total Revenue) x 100 

Ratio of Aftermarket Margin to Equipment Margin

  • This KPI highlights the profitability of spare parts and service offerings compared to original equipment sales. A higher ratio indicates that aftermarket services are a major profit driver.

Service Contract Renewal Rate

  • A high renewal rate suggests strong customer satisfaction and recurring revenue potential.
  • Formula: (Renewed Contracts / Total Contracts Up for Renewal) x 100 

Operational Efficiency KPIs 

Production Lead Time

  • Efficient production times ensure timely deliveries and minimize customer downtime.

On-Time Delivery Rate (OTD)

  • Meeting promised delivery dates is critical in the aftermarket business.
  • Formula: (Orders Delivered on Time / Total Orders) x 100 

Downtime to Operating Time

  • Measures machinery effectiveness and maintenance efficiency. Preventive maintenance reduces downtime, improving operations
  • Formula: (Downtime/ Operating Time) 

Yield (First Pass Yield - FPY)

  • Assesses production efficiency and quality control. A high FPY means fewer defects and rework.
  • Formula: (Parts Passed Without Failure / Total Parts Produced) 

Customer Satisfaction and Market Positioning KPIs   

Customer Service Levels

  • Measures responsiveness, issue resolution time, and overall service quality—critical for retention.

First-Time Fix Rate (FTFR)

  • Measures service efficiency and technician effectiveness. High spare parts availability directly impacts FTFR, reducing downtime and improving satisfaction.
  • Formula: (Issues Resolved on First Visit / Total Service Calls) x 100 

Transparency Towards Customer

  • Providing real-time updates on order status and pricing builds transparency and customer trust, increasing repeat business.

Pricing and Market Intelligence KPIs  

Profit Margins

  • Monitoring gross and net profit margins ensures sustainable pricing strategies.
  • Formula: [(Sales Price- Purchase Price) / Sales Price] x 100 

Price Elasticity

  • Understanding how price changes affect demand is crucial for optimizing pricing strategies.
  • Formula: % Change in Quantity Demanded / % Change in Price

Customer Acquisition Cost (CAC)

  • A lower CAC while maintaining pricing integrity drives sustainable growth.
  • Formula: Total Marketing and Sales Spend / New Customers Acquired 

Customer Lifetime Value (CLV)

  • Focusing on CLV helps businesses develop long-term pricing strategies that foster loyalty and profitability
  • Formula: Average Revenue per Customer x Customer Retention Period 

How MARKT-PILOT Supports These KPIs

MARKT-PILOT helps aftermarket businesses leverage real-time market insights, competitive pricing intelligence, and automated data analysis to improve efficiency and profitability.

Market-Based Pricing Optimization

  • Supports KPIs: Profit Margins, Price Elasticity, Aftermarket Revenue %
  • Analyzing global market data to ensure pricing aligns with demand while maximizing profitability.

Customer Satisfaction and Service Optimization

  • Supports KPIs: Transparency Towards Customer

  • Improving transparency in pricing and availability, ensuring customers receive the right parts at the right time.

Profitability and Growth Indicators

  • Supports KPIs: Ratio of Aftermarket Margin to Equipment Margin, CLV
  • Enabling strategic decision-making by uncovering revenue opportunities in the aftermarket segment.


Key Takeaways

  • Tracking the right KPIs drives revenue, profitability, and efficiency
  • A data-driven approach optimizes pricing and inventory management
  • Prioritizing service excellence and market transparency strengthens customer relationships

Take the Next Step: Ready to elevate your aftermarket business? Get in touch with our team and request a personalized demo with one of our experts. Learn how MARKT-PILOT can help you track and improve key KPIs for sustainable business success.
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