How Technology Has Changed Industrial Equipment Sales
Our world today wouldn’t be the same without industrial equipment. Every industry faced a change when everything went digital, and the industrial market is one of them.
Industrial equipment is facing several updates, from the way customers shop to the rising technology in equipment.
Some digital sales trends mean more responsibility for the company. Personal interaction can be difficult because more customers prefer tech-based interaction.
However, there are many benefits. Industrial equipment systems are more connected to the customers. These systems collect more data on customers to understand consuming trends.
Read on and find out how technology has changed equipment sales.
The LAER Model
Traditional sales haven’t drastically changed. Rather, machinery is introducing customers to a new buying experience. What was then ‘make, sell and ship’ is also ‘own, operate, and get an outcome.’
The best example is taking the classic LAER model. Let’s see how the LAER model operates under the digital era.
This first step is the most important, even in the digital era: land the sale.
Traditionally, performing the land step occurred face-to-face. This ensured industrial equipment was properly built for the right customer and for the specific reason of their industry.
Today, this step involves more analytics.
The customer needs to see the products are smart and connected to prove reliability. When the customers trust in the equipment, they’re more likely to share their data. This results in a higher output of sales.
You want to be sure your customers are happy with your equipment. This goal hasn’t changed in the digital world.
Because of this, the emphasis has always been on the products. This focus includes modernizing and improving products, as well as training and educating the customer about the equipment.
This focus is still the same today. However, it’s implemented differently. For example, services such as crane load testing are available for customer safety and satisfaction. Digitalization makes this training easy for the modern consumer.
Customers receive this education, but in the cloud. Included product training in the operating system connects to other devices and machines.
Education implementation is in the cloud. It’s accessible on a remote server.
Rather than focus on personalized service, manufacturers are focusing on optimizing technology to be more accessible.
The struggle lies within the support, maintenance, and upgrades within the cloud.
All marketing encourages the customer to spend more, and the same goes for equipment. When this type of marketing as applied in a traditional sense, it was to promote newer equipment customers could use as a replacement.
These leads were perfect when cross-selling and upselling to existing customers.
Your customer base keeps coming back and new products generate more revenue.
Today, equipment isn’t replaced as a whole. Customers want solutions rather than new products. So they invest in spare or replacement parts, contract features, and software upgrades.
This means a lot of focus falls on third-party products, especially the tech-based ones. While this may not drive revenue streams as strongly as before, you’re establishing better relationships with your customers and expands your business.
This helps bring customers back by renewing their contract. Before, there was a specific renewal process and specialized personnel who handled renewals. This strategy ensured high renewal rates and predictable revenue streams.
Today, renewal is either automated or tech-assisted. Technically, linking the renewal phase with the adoption phase helps save time.
The only time the renewal phase occurs is when the contract expires. This way, your customer will decide to agree to renewal based on your equipment’s success.
Increased Demand for Innovation
Digital applications and analytics are opening new doors for machinery. Therefore, demand is increasing for more innovation and sophisticated technology.
Customers want more than monitoring production. They want to remotely control their equipment through mobile devices. This requires technological advances and system updates.
The demand comes from saving time and money. Users have even become used to machinery informing them of automatic updates. This includes replacing parts.
Other benefits include an additional GPS system and 3-D printer installation.
Customers Don’t Pay for Hardware
Customers are paying for technology and services, and are no longer paying for hardware.
This simple change dramatically altered the sales chain. Most manufacturers are finding more benefits from being cross-functional, offering more digital technology for their products.
Customers are able to access data through their machines. This data is accessible in the cloud. This makes improved collaboration with stakeholders.
Emphasis on Rapidity
Industrial machinery results in high-quality work, crafted with precision. This quality results in reliability.
Before, manufacturers relied on talented engineers to craft machinery with this quality. Today, manufacturers also add customer insights to the manufacturing process.
Today, this process produces quality machinery but does so rapidly. Speed-to-market has always been a customer need. Technology is able to integrate machinery at market value but with fast results.
Redefining Customer Relationship
There is no longer the model of production, sales, service, and design.
Today, technology is measuring customer satisfaction. Since these updates are automatic, manufacturers understand what customers want. This boils down to collecting customer data: how they shop, purchase, use, and replace equipment.
When analyzing, manufacturers have a better idea of what customers want and are able to deliver results.
With technology, customer feedback is easy. Customers are eager to review product design and order progress. They can immediately connect to service teams if they encounter an issue.
Technology makes it easier to connect with your customers, but also with your prospects. This is a useful marketing method while implementing social media.
Either directly or indirectly marketing your brand to prospects helps increase the chances of new sales opportunities.
Industrial Equipment is Undergoing Technological Change
Technology makes it easier to handle equipment.
Innovations in technology help productivity and data can be available on platforms such as the cloud. The sales and renewal steps are easier to manage and you can conveniently access customer data as they use your equipment.
Technology has created a different industrial customer, but the process runs more efficiently.