GLOSSARY

Servitization

CONTENTS

1 - What is AI Market Research

2 - How AI Market Research Supports Pricing Strategies

3 - The Importance of AI Market Research for Business Success

4 - About MARKT-PILOT

WHAT IS SERVITIZATION

Definition Servitization

Servitization is a shift in business strategy where companies go beyond selling products and focus on providing value-added services to improve customer experience and generate recurring revenue. Rather than prioritizing one-time transactions, businesses incorporate offerings like maintenance, consulting, aftermarket support, and performance-based solutions to create a more integrated and customer-focused approach. 

Servitization often includes: 

  • Predictive maintenance and repair services 
  • Subscription-based pricing model 
  • Equipment-as-a-Service (EaaS) 
  • Remote monitoring and AI-driven analytics 
Servitization Definition

What Are the Benefits of Servitization? 

  • Stable, Recurring Revenue: Servitization helps companies move away from one-time purchases and create steady income through service contracts, maintenance plans, or pay-per-use models. 
  • Stronger Customer Relationships: Offering services beyond the initial sale increases customer loyalty and retention. 
  • Higher Product Lifecycle Value: Service integration ensures optimal product performance, increasing overall resource efficiency and reduces waste. 
  • Improved Competitive Advantage: Companies that provide value-added services differentiate themselves from competitors focused purely on product sales. 
  • Data-Driven Insights: Connected services allow business to gather data and optimize future product designs and user experiences. 
BENEFITS OF AI MARKET RESEARCH

How AI Market Research Supports Pricing Strategies 

AI-driven market research streamlines the analysis of large datasets, such as competitor pricing, customer trends, and material costs. By automating repetitive tasks, it not only saves time but also delivers greater accuracy than common manual methods. This approach is particularly relevant to machine manufacturers aiming for market-based pricing strategies. 

WHY SERVITIZATION

When to Implement Servitization? 

This approach works well in industries where customers value long-term reliability, cost-efficiency, and better performance. Service-based business models are often more appealing than traditional product sales in these cases.  

Businesses should consider servitization when: 

  • Their products require long-term maintenance and optimization. 
  • Customers value reliability, uptime, and performance over ownership.  
  • They want to generate revenue beyond initial machine sales. 
  • They aim to differentiate from competitors offering low-cost alternatives. 
Servitization Explained
SERVITIZATION IN MACHINE MANUFACTURING

In the machine manufacturing industry, servitization plays a crucial role in increasing profitability, customer loyalty, and competitive differentiation. Instead of selling only machines and spare parts, machine manufacturers are transitioning to service-oriented business models, offering: 

  • Machine uptime guarantees through predictive maintenance services. 
  • Subscription-based or pay-per-use models for industrial equipment. 
  • Smart, connected services using IoT and AI-powered analytics. 
  • Lifecycle management and performance optimization to reduce downtime. 

By shifting to a service-led approach, machine manufacturers can secure long-term revenue streams, improve product lifecycle management, and create stronger relationships with customers. 

PRICEGUIDE-featured-image
BLOG

Overview of Parts Pricing Strategies

In this article, we review a few of the most common parts pricing strategies for OEMs.

READ MORE

More about Servitization in Machine Manufacturing

Learn more about how a market-based pricing strategy can elevate the service experience in machine manufacturing. Contact our experts to explore tailored strategic pricing solutions designed to drive success for your business. 

Ein Service-Mitarbeiter telefoniert mit einem Headset
WIKI

After-Sales Service: 9 Strategies to Increase Profitability in Manufacturing

Discover how innovative strategies are transforming after-sales into a profit powerhouse.

Learn more
service excellence mockup
ROADMAP

Service Excellence for an Exceptional Customer Experience in Manufacturing

Our roadmap article highlights the key factors for excellent customer service and sustainable growth.

Learn more
Blog The Future of Printing: HEIDELBERG's EaaS Model Boosts Productivity
BLOG

The Future of Printing: HEIDELBERG's EaaS Model

HEIDELBERG transforms machine manufacturing with equipment-as–a-service, creating innovative business models.

Learn more
The Top Parts Pricing Strategies for OEMs

The Top Parts Pricing Strategy for OEMs

Take a deep dive into what is the top pricing strategy for OEMs and discover how it can greatly increase your revenue. 

Learn More

About MARKT-PILOT

MARKT-PILOT is a leading provider of software for market-based spare parts pricing in machine manufacturing. The solutions enable OEMs to conduct precise market price research, automated price recommendations and optimized strategies. Customers benefit from increased sales, margins and customer satisfaction in their parts business.

LEARN MORE
PRICERADAR The SaaS solution for market-based spare parts pricing & lead time intelligence

You might be interested in our resources

Aftermarket

Global Parts & Service Report 2025: First Insights Available

Get an first look at the Global Parts & Service Report 2025 Executive Summary. Discover key findings shaping the machine manufacturing aftermarket.

Blog

10 Ways to Determine the Value of a Parts Pricing Software

When it comes to running a sustainable spare parts business, determining the value of a parts pricing software is a crucial step.

Event

Price Is Right, Trust Is Tight: MARKT-PILOT's Aftermarket Advantage

Field Service 2025: How data-driven pricing builds trust and boosts aftermarket loyalty. Key insights about this year’s event for service executives.